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TOWN OF GRANBY
BOARD OF FINANCE SPECIAL MEETING MINUTES
FEBRUARY 23, 2010
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, Robert Clark, and Frederick Moffa, OD. Al Wilke arrived late.
Also present: John E. Adams, First Selectman; Board of Selectmen Ron Desrosiers, Mark C. Neumann, Barbarajean C. Scibelli, Administration Finance Officer; Alan Addley, Superintendent of Schools; Board of Education, J. Cal Heminway, Jr., Chairman; Matthew Wutka, Edward O’Hannosian; Harry Traver, BOE Business Manager. William F. Smith, Jr., Town Manager arrived late.
Chairman Guarco stated there was a quorum and called the meeting to order at 7:00 p.m.
MINUTES
The Board reviewed the minutes for the meeting of January 11, 2011 before taking action.
On a MOTION by Gordon Bischoff, seconded by Francis Brady, to approve minutes of January 11, 2011, the Board voted unanimously (5-0-0) to approve the minutes.
STATEMENTS OF ACCOUNTS
The January Statement of Accounts from the Board of Education was reviewed by Harry Traver, BOE Business Manager. He indicated this report shows a good level of the forecast for year end. Because of the winter storms thus far, the repair and maintenance account shows an unfavorable forecast in the amount of $155,000. This cost is the result of snow shoveling, roof shoveling, and repairs of water leaks. Another account showing an unfavorable forecast is under purchased services in an amount of $196,281 for conducting a specialized study in education. A grant is paying a portion of the cost. He reported the state indicates only 80% of the excess cost reimbursement account is expected to be reimbursed. In response to Mr. Clark’s inquiry whether there will be any return of money to the General Fund, Mr. Traver commented that this year is a challenge for the school budget with no projection of any return.
Barbarajean C. Scibelli, Administration Finance Officer reviewed the January Budget Operations Report. Tax collections are on target. She commented the chart may indicate collections are slightly higher than previous years. This is due to how the calendar falls for reporting purposes. The intergovernmental revenues are coming in as expected. Next year the manufacturing machine equipment account is not proposed to be funded by the state. A discussion ensued about the reporting of the ECS account. Mrs. Scibelli indicated the state payments were received and Mr. Traver will look into whether the federal payments have come in. Short-term investments are expected to show a shortfall, approximately $70,000. On the expenditure side, Mrs. Scibelli reported the general maintenance account handling the
snow removal overtime spent approximately $35,750 at the end of January, $18,500 in February, leaving approximately $14,000 in the account. However, it will depend on how many more winter storms we have for this fiscal year if the account will meet the budget. Other expenditures are on target.
CONSIDERATION OF FY 2010-11 FINAL BUDGET GUIDELINES
Chairman Guarco began the budget guidelines discussion. Some items he summarized that affect managing the budget guidelines for the proposed FY 2011-12 budget: were the governor’s budget being basically flat including state-aid and legislative concerns, and Grand List growth (approximately $210,000).
Chairman Guarco reviewed the FY 12 budget scenarios worksheet last column entitled “Governor’s Budget”, copy attached. Basically, the column incorporates the school and town plus one budgets presented previously and the intergovernmental revenues including the school job grant ($315,000).
A general discussion about budget scenarios for FY 12 ensued. Some highlights were:
- The state aid to municipal budgets should not be affected.
- The manufacturing machine equipment grant will not be funded to towns.
- Kelly Lane school project is anticipated to be closed this year and the final reimbursement payment from the state will help with the budget.
- When citizens read about the state budget projections, it doesn’t help towns dealing with their own budgets. Unfunded mandates are still an issue.
- The Governor’s portion of budget that affects the town will hold steady.
- The several different worksheet budget scenarios is a good indication how optimistic we are for better results going forward.
- The recommended budget scenario does not have increase in the mill rate, however, there is concern that General Fund balance not go under 5%. The Town Manager and Finance Officer will provide fund balance information during budget process.
- Keeping in mind, the above notation, knowing what we know for this upcoming fiscal year and future demands for FY 13, thought should be given to split a mill rate increase so there is not a major increase.
- When asked about 0% budget operations increase, First Selectman indicated the town would have to find $200,000 in savings, which calculates to three people plus unemployment insurance cost. Mr. Traver commented the school would need to find $400,000 in savings.
- Another look should be taken at the budget and needs for the next two to three years. This statement was concurred by First Selectman Adams and BOE Chairman Heminway.
Mr. Addley commented that we need to protect our education investment going forward. He spoke about the difficulty to accomplish this for FY 12 and FY 13 if the mill rate continues to be at zero percent.
The budget workshop coverage, Chairman Guarco will attend the town side; Dr. Moffa and Mr. Brady will check their schedules to attend the school budget workshops.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, the Board voted unanimously (6-0-0) to establish a budget guideline for FY 2011-12 as stated in the FY 12 budget scenarios (copy attached) worksheet last column entitled “Governor’s Budget” showing the operations budget for the town as $8,993,000 and the operations budget for the school as $26,982,000.
CONFIRM DATE OF NEXT MEETING
The next meeting is scheduled for March 28, 2011 at 7:00 p.m. in the Senior Center Community Room.
ADJOURNMENT
On a MOTION by Mr. Wilke, seconded by Mr. Brady, the Board voted unanimously (6-0-0) to adjourn the meeting at 8:00 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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