TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING MINUTES
JANUARY 11, 2011
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, Robert Clark, Frederick Moffa, O.D., and Al Wilke
OTHER ATTENDEES: William F. Smith, Jr., Town Manager; John Adams, First Selectman; J. Cal Heminway, BOE Chairman; Alan Addley, Superintendent of Schools; Harry Traver, BOE Business Manager; and Joseph Kask, Principal Partner Auditor Blum Shapiro & Company, P.C., Certified Public Accountants
The meeting of the Board of Finance was called to order by Chairman Michael Guarco at 7:30 p.m.
MINUTES
The Board reviewed the minutes of November 22, 2010.
On a MOTION by Francis Brady, seconded by Al Wilke, the Board voted (5-0-1) to approve the minutes of November 22, 2010 as presented. Gordon Bischoff abstained.
PRESENTATION OF JUNE 30, 2010 AUDITOR REPORT
Joseph Kask, Blum Sharpiro & Company, PC. commented that the financial statements were issued to the town and the school as required by the state and federal auditing standards. He indicated there were some difficulties in completing the auditing exercise because of the new accounting software system. The town staff and others worked diligently to meet the time limit date.
Mr. Kask presented a short report from the Comprehensive Annual Financial Report (CAFR). He referenced the State Single Audit Report and Federal Single Audit Report, indicating there were some reporting changes in the State Single Audit Report to show how the stimulus money and ARRA (American Recovery Resources Act) program was distributed.
Mr. Kask indicated the Town of Granby management letter, audit communication letter, and required reports were filed with the office of Policy and Management and State Department of Education. He reported the Town of Granby received a clean opinion for the financial statements as of June 30, 2010.
Mr. Kask spoke on the following pages from the June 30, 2010 CAFR:
- Page 1 – Independent Auditor’s Report states the Town of Granby received a clean opinion. The Town of Granby’s financial position and cash flows as of June 30, 2010 conformed to generally accepted accounting principles (GAAP).
- Pages 3-15 – Management’s Discussion and Analysis report is prepared by the town.
- Page 16 - Statement of Net Assets; noted was the unrestricted line item in the amount of $9,319,680. Mr. Kask indicated that the term “unrestricted” will be defined differently in future reports.
- Page 17 - Statement of Activities; shows the net expenses for all town activities.
- Page 18 – Balance Sheet – Government Funds; shows the total fund balance for General fund to be in the amount of $4,436,008. Page 52 gives a detailed report of the “General Fund” and a comparison of 2009 and 2010. The General Fund Balance is just over 6%.
- Page 23 – Proprietary Fund; shows net assets increasing at end of year relating to health benefits. He commented other towns have not experienced the same.
- Page 27 – Notes to Financial Statements is self-explanatory. Of interest is the pension disclosure (page 43) showing the annual pension cost and the contribution made.
- Page 46 – Annual Other Postemployment Benefit (OPEB) Cost and Net OPEB Obligations shows the components of the town’s annual OPEB cost for the year, the amount actually contributed, and changes. This year’s funding was made for the actual needs.
Mr. Kask stated that the Statement of Net Assets and Statement of Activities will be converted into a different reporting format next year. Blum Sharpiro, as the town auditors, will be working with the town in the spring 2011 to perform the conversion if contracted to do so.
STATEMENT OF ACCOUNTS
Harry Traver, BOE Business Manager, reported on the Board of Education Financial Statement for November 2010. He indicated the salary levels show a favorable outlook and that outplacement costs have dropped $40,000. On the revenue side, they are on track. Mr. Traver commented that the December budget report indicates that at year end the school will be in the black.
William F. Smith, Town Manager, commented the December report is being used for FY 2011-12 budget preparation for six-month activity. He indicated that tax collections are at 64% for this year and are coming in as expected. The auto supplement billing was $245,000 slightly lower than what was budgeted ($250,000). The Educ Cost Sharing account payment of 25% is due in January. Town Manager Smith commented that the Principal and Interest account will see no activity next year as grant payments from projects are finished. On the local revenue side, the miscellaneous account (money appropriated out for projects) is higher than expected which may assist the shortfall in the short term investments account this year.
Town Manager Smith reported on the expense side, there are no issues. However, General Maintenance account handles the snow removal activity and a variance between budgeted and expensed is to be expected in this account.
REVIEW 2011-12 PLUS-ONE BUDGETS
First Selectman Adams reported approximately $231,000 is needed to stay level with town operations. If not, more services will have to be cut. Last year a position in Department of Public Works was not filled as a result of a retirement and several cuts were made to the Library Department services (hours, personnel, and books).
A discussion was held about town union contracts. Two out of three contracts have been negotiated and settled. The two contracts end in 2012.
When asked about joint forces or regional cooperation activities, both, First Selectman Adams and Town Manager Smith, commented these are activities that are ongoing with governmental agencies and surrounding towns. Some areas are bike trail, CRRA alternative resource, review of police dispatching and police forces, health programs, building inspections, and just recently a joint effort with others towns in developing an assessor revaluation RFQ.
Superintendent Addley stated approximately 1.8% increase is needed for the school operating budget. The basic summary of the Plus One Budget is a $468,000 deficit for FY12 at a 0% operating guideline or $153,000 if $315,000 jobs funding can be used to offset. There are no new personnel proposed in FY12.
BOE Chairman Heminway commented about the school’s joint efforts. Granby with several surrounding towns is looking at joint health care cost strategies and bus transportation agreements.
Superintendent Addley indicated the school union contracts are up for negotiations next year.
BUDGET GUIDELINES DISCUSSION
First Selectman Adams commented he attended a meeting with Senator Kissel and the towns that the Senator 0represents. At the meeting, local municipalities priorities for 2011-12 were discussed.
Chairman Guarco distributed a budget worksheet dated 01/11/11. It noted that the state’s budget release has been delayed a week – the new date is February 16th. An informal discussion was held about budget guidelines. The consensus of the Board of Finance was to wait to finalize the budget guideline until the governor’s budget is known. Some other highlights of the Board’s discussion were:
- A zero increase for operating budgets is being considered.
- It was noted that a zero increase in the operating budgets would negatively impact many public services.
- Include another scenario column showing a zero increase in the mill rate for the next budget worksheet review.
CONFIRM DATE OF NEXT MEETING
The Board of Finance regular meeting of January 24, 2011 will be cancelled. A special meeting of the Board of Finance is scheduled for Wednesday, February 23, 2011 at 7:30 p.m.
Noted there is a Three Board meeting as part of the regular Board of Selectmen meeting on January 18, 2011 at 7:30 p.m. in the Senior Center.
ADJOURNMENT
On a MOTION by Gordon Bischoff, seconded by Frederick Moffa, O.D., the Board voted unanimously (6-0-0) to adjourn the meeting at 8:55 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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