GOSHEN BOARD OF FINANCE
MINUTES REGULAR MEETING
APRIL 28, 2010
CALL TO ORDER: Chairman Allan D. Walker called the meeting to order at 7:32 P.M.
ATTENDANCE: Allan D. Walker, Donald Pardon, James Korner, John D. Garvey and Alternates Wilrose Duquette and Dexter Kinsella. Excused absence Scott Tillmann and absent Ned Bixler. Also present First Selectman Robert Valentine and selectman Thomas Breakell.
SEATING OF ALTERNATES: A MOTION WAS MADE BY Donald Pardon seconded by Allan D. Walker to seat Dexter Kinsella as a regular member. No discussion, SO VOTED. A MOTION WAS MADE BY Donald Pardon seconded by Dexter Kinsella to seat alternate Wilrose Duquette as a regular member. No discussion, SO VOTED.
APPROVAL OF MINUTES: A MOTION WAS MADE BY James Korner seconded by Donald Pardon to approve the minutes of the March 24, 2010 Board of Finance Meeting. Noted for correction, Page 2, Second Para. First sentence add the letter (d) to the word approved. Same Para. sentence eight remove the words (Utilization of) from the beginning of the sentence. Next to the last sentence, change the word made to (encouraged). Page 3, Fifth Para. second sentence, correct the spelling of the last name of Robert E. King. Page 4, last Para. second sentence add an (s) to the word budget. There were no other corrections noted. The minutes were APPROVED AS AMENDED. John D. Garvey abstained from voting.
BUDGET/FINANCIAL REPORTS FOR PERIOD ENDING 3/31/2010: Tax Collectors Report continues to show a good collection rate with collections coming in higher than the same period a year ago. A MOTION WAS MADE BY Donald Pardon seconded by John D. Garvey to accept the Tax Collectors report. No further discussion, SO VOTED. Under a review of the Budget vs. Actual Report Robert Valentine noted that other than the previously reported line item overages, there was nothing new to report. Most Department Budgets continue to be in line and at this time, year end estimates show that a minimum use of contingency line item dollars will be needed.
REPORT FROM FIRST SELECTMAN: Energy Efficient Grant- Robert Valentine reported that through results of a Grant Application being made, a Grant in the amount of $10,895.15 had been received from CL&P toward the Energy Efficient Lighting Upgrade Project for Public Works and the Fire Department. Bids have gone out for the project with an end of May deadline for bid submittal. Tyler Lake Dam Project-The request for qualified bidders produced four (4) good qualified bidders. Review of the bid documents is near completion and the Board of Selectmen will be moving soon to go out to bid on the project and it is believed that the Town is in compliance with the 30 day review period for DEP Permit. The Army Corp of Engineering Permit has already been obtained. East Street North Project Chip & Crack Seal Bidding
Process- Under the bid process the cost for Chip/Crack Seal came in less that anticipated, $32,500.00 compared to the current budget figure of $53,000.00. Part of the reason being that with the use of the Federal dollars approximately 2½ miles will be taken off the 10 miles PW line item for Town Road Chip and crack sealing. The estimated cost at this time for the Chip Seal is $161,000.00 down from $223,000.00 under the 09/10 budget. The Town will be required to reimburse the PW line item for the savings in dollars this year based on the use of Federal dollars for the 2 ½ miles of East Street North that were budgeted under the PW line item for chip/crack sealing. Under the bid process the cost for the East Street North Micro Surfacing Project came in at $203,812.00 which will be paid for by the American Reinvestment & Recovery Federal Grant Dollars.
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Robert Valetine reported that the Public Works Department no longer has a union. Public Works employees have voted to decertify from union membership. Public Works employees will now be integrated into the Town Personnel. The Board of Selectmen have discussed but to date have taken no action relative to the Pension Plan vesting. The Current defined Pension Plan is a three year vested plan and the town is looking to go back to a five year vested plan for all new employs.
Heating Oil Bid Process- The Town is looking at a 32% increase for heating oil with quotes for heating oil coming in at 2.5471 gal., Diesel @2.5930 with gasoline coming in at 2.4994. The quoted per gallon figure does not include any dollar amounts for the various add on taxes. Based on the new fuel quotes, those budgets that have heating oil line items in their budget will require an adjustment in the proposed budget. Laurie Mosley arrived at 7:45 P.M.
GIS Digitizing of Town Maps – Request for proposal went out for the digitizing of the Town maps. Eleven proposals were received with proposals for the job ranging from $5,600.00 to $40,000. 00. Town Assessor Lucy Hussmann. Based on the three proposals being considered for the job, the estimated cost for map digitizing would be in the $13,000.00 to $15,000.00 range.
Request for appropriation of $25.05 for Skylight Sunshield for the Recreation Office Skylights: A MOTION WAS MADE BY James Korner seconded by John D. Garvey to appropriate $25.05 from the undesignated general fund balance to Capital Non-Recurring Selectmen budget line item for Skylight Sunshield Shades. No discussion, SO VOTED.
Tyler Lake Dam Project-Robert Valentine informed the Board relative to State Statute 3153 that pertains to prevailing wage. Under Statute 3253-G the prevailing wage section states that the prevailing wage shall not apply to any project where the total cost of new construction for any public works project is less than $400,000.00 or the total construction cost for any remodeling,
refinishing, rehabilitation, alteration or repair of any public works project is less than $100,000.00. The Dam Project covers complete removal of the old dam and the construction of a completely new structure which the Selectmen believe should fall under the $400,000.00 threshold for prevailing wage and the project could be done under the current available funds.
Through help of Town Legal Counsel a formal ruling was sought from the CT. Dept of Labor and said formal ruling from the Dept of Labor is that the Dam project is a repair, thus the prevailing
wage ruling applies, adding from 20% to 25% to the cost of the project. There is no case law on this issue and it is the belief of Legal Counsel that to litigate this matter all the way to the Supreme Court would cost the Town no more than $10,000.00. The Town would like to create a case. After further discussion on Counsel’s Opinion on the matter A MOTION WAS MADE BY John D. Garvey seconded by Donald Pardon to appropriate $10,000.00 from the Undesignated General Fund to the Designated General Fund to file suite against the Ct. Dept. of Labor over their decision on the prevailing wage for the Tyler Lake Dam project. Under discussion on the motion, Robert Valentine informed the Board that he would endeavor to seek financial participation from the Connecticut Counsel of Municipalities and Small Towns as well as support from
the Litchfield Hills Council of Elected Officials. No further discussion, SO VOTED.
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Reorganizing of the Board of Finance Established Policies – The project was taken on by John D. Garvey who noted said project remains to be completed and would work on its completion.
Board Review of Remaining proposed 2010/2011 Town Budgets:
DEPT 22 – RECREATION: Current 09/10 Budget $120,001.00, proposed 2010/2011 Budget $120,001.00. Laurie Mosley Chairman of the Recreation Dept. was present to address the Recreation Department Budget. Noted by Laurie Mosley was the major struggle to come in with a no increase budget while dealing with the fixed cost for Camp Maintenance for heating oil, utilities and the wages for twenty employees. Addressed by Laurie was the fact that the wage increase of approximately $5,000.00 made it necessary to make cuts in other budget line items, the main cut being $2,065.00 for Programming Expense. Explained by Laurie was the fact that many of the Programming events sponsored by
the Recreation Dept. bring money into the Town General Fund. Listed for Board Review was the Amount of dollars generated for the various Camp Programs. After meeting expenses, approximately $5,000.00 of the $25,070 00 generated through the Rec. Programs went into the Town General Fund. The major cut to the program line item does not allow for any new programs that the Recreation might want to start. Based on the fact that Rec. Department programs do bring in money Laurie Mosley sought confirmation that if she were to come before the Board that the Board would give consideration to a new program that is not covered under the Rec. Dept. budget during the fiscal year. The Chair expressed appreciation of the efforts made by the Rec. Dept. to present a no increase budget and confirmed that the Board would consider any request coming before the Board. Robert Valentine reminded the Board of the change in the Accounting procedure that was implemented for the
accounting of the generated program dollars. Explained was the line item for general events and the need for Assistant to the Director. A MOTION WAS MADE BY James Korner seconded by Wilrose Duquette to receive the Recreation Department Budget for 2010/2011 in the amount of $120,001.00 there was no further discussion, SO VOTED. Laurie Mosley left the meeting at 8:10. P.M.
DEPT 02 – WASTE REMOVAL: Current 09/10 budget $181,070.00, proposed 10/11 budget $177,485.00 a decrease of ($3,585.00) in the line item for Recycling Contract. A MOTION WAS MADE BY John D. Garvey seconded by James Korner to receive said budget in the amount of $177,485.00, SO VOTED.
DEPT 71 – EMPLOYEE BENEFITS: Current 09/10 budget $375,618.00, proposed 10/11 $411,841.00. an increase of $36,223.00 with the major increase being $28,946.00 for employee insurance and to line items effected by the increase in employee wages. Robert Valentine addressed the insurance renewal increase of 12 ½% and the work done to bring that number down to 8.41%, the lower rate being based on an additional $5.00 employee co-pay for prescriptions and a $5.00 co-pay on Dr. Visits. This change was brought to the attention off and agreed to by the employees. Discussed briefly was a potential argument and the need to be ready to defend the giving of pay raises while also giving
consideration to raising the mil rate during this critical economic environment. A MOTION WAS MADE BY James Korner seconded by Wilrose Duquette to receive the Employee Benefits 10/11 Budget in the amount of $411,841.00. No further discussion, SO VOTED.
DEPT 61 –TOWN OFFICE BUILDING: Current 09/10 Budget $58,829.00, proposed 10/11 budget $58,810.00 down ($19.00). Noted was the reduction of ($2,500.00) for building maintenance. Robert valentine explained that this was a reduction that could be made this year and maybe the following
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year but cannot be taken out forever. Robert Valetine explained that although the cost of oil is based on last year’s averages. A buffer of approximately 10% was applied to the cost for heating oil for 10/11. The purchase of fuel is done under the competitive bid process through the big companies. A MOTION WAS MADE by James Korner seconded by Dexter Kinsella to receive the 10/11 Proposed Town Office Building Budget in the amount of $58,810.00 no further discussion, SO VOTED.
DEPT 59 – CONTINGENCY: Current 09/10 budget $40,000.00 proposed 10/11 budget $40,000.00, no change. It was agreed at this time that the amount budgeted for Contingency should remain the same. A MOTION WAS MADE BY John D. Garvey seconded by Wilrose Duquette to receive the 10/11 contingency budget in the amount of $40,000.00, no discussion, SO VOTED.
NEWSLETTER: Current 09/10 Budget, $6,400.00, proposed 10/11budget, $6,400.00. Noted was the decrease in website expense of ($1,500) and the increase in the cost of $1,500.00 for Town Topics which will cover the cost of three publications. A MOTION WAS MADE BY Dexter Kinsella seconded by Wilrose Duquette to receive the 10/11 Newsletter budget in the amount of $6,400.00. No further discussion, SO VOTED.
DEPT 2 – PUBLIC WORKS: Current 09/10 budget $991,230.00, proposed 10/11 budget $962,721.00, a reduction of ($28,509.00). Robert Valentine reported that in preparation of the
2010-/2011 P.W. budget that adjustments were made in appropriate line items where it was felt they should be made. Based on Bids, the major cut was ($62,808.00) for Chip Seal. The PW Budget does include employee pay raises. Work continues to be done to work with Public Works Supt. to budget to line items. A MOTION WAS MADE BY John D. Garvey seconded by James Korner to receive the 2010/2011 Proposed Public Works Budget in the amount of $962,721.00, no further discussion, SO VOTED.
Capital Expenditures Request for 2010/1011: The Capital Request made under 2010/2011 budgets were reviewed by the Board are as follows – Assessors, $300.00, Fire Department Operations, $20,000.00, Library $675.00, Public Works $217,025.00, Selectman $27,000.00, Town Clerk $4,000.00 for a Total Capital Request of $269.000.00. Robert Valentine noted that the $13,630.00 requested by the Recreation Dept for an Arts & Crafts Building at Camp Coch was moved to capital requests for 2011/2012. Inspection of the existing building would be made to determine if it can be refurbished. Explained was the $15,000.00 capital request for upgrade to the Town Hall telephone system. A MOTION WAS MADE BY John
D. Garvey seconded by Donald Pardon to receive the 2010/2011 Capital Request in the amount of $269,000.00, no further discussion, SO VOTED.
Salaries for Elected Officials: Discussed by the Board were the Salary Increases being considered for Town Employees under the Paul Andrews Study for 2010/2011. The average salary increases are in the 4 ½% range. Noted by the Chairman was the fact that the Board of Finance had, at the request of the Treasurer, received the Treasurer’s Budget minus the $500.00 pay raise recommended under the Paul Andrews Study. Reviewed and discussed briefly by the Board were the published Salaries being paid to the First Selectmen in Towns in the Northwest Corner. A MOTION WAS MADE BY James Korner seconded by John D. Garvey to approve a 2 ½% salary increase for Town Elected
Officials. It was noted under discussion that the Town Clerk Budget received by the Board included the Paul Andrews Salary Increase and if necessary the Town Clerk Budget would need to be adjusted
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accordingly. The 2 ½% increase would increase the budget by approximately $3,000.00, No further discussion, SO VOTED.
There were no other 2010/2011 budgets remaining to be received by the Board. Based on the new quotes for fuel and heating oil, adjustments would need to be made to those budgets which include a line item for fuel. The Board was also in agreement that the Board of Finance Budget line item for Fiscal Audit Fees be reduced by ($1,000.00) bringing that line item down to $14,350.00.
It was agreed that the Fiscal Office would make any necessary adjustments in the proposed budgets and provide the Board with a completed sum total dollars for each Budget for Board
approval. Total 2010/2011 Budget projections prior to adjustments is $2,694,214.00 down by ($1,452.00) from 2009/2010.
Board of Finance Public Hearing: The Date of the Budget Hearing is scheduled for Wednesday, May 12, with the Town Budget Meeting scheduled for Wednesday, May 26, 2010. Noted was the need to hold a Special Meeting for the purpose of the Board of Finance make final review and approval to all Town Department Budgets. The date of the Special Meeting was set for Wednesday, May 5, 2010, 7:30 P.M. in the Recreation Office of the Town Hall.
Revenue Projections for 2010/2011: Reviewed and explained were the projected Revenue projections for 2010/2011. Robert Valentine stated that the revenue projections for State Grants are based on the information in hand. Used were the lowest numbers provided by either the Appropriations Committee or the Governor. It is expected that the Grants that will take the biggest hits will be Town Aid Road and Pequot. It was noted that the Revenue Projection Report does not include Property Tax Revenue or use of Fund Balance. Noted was the need to have some estimate of what the projected Property Taxes /Fund Balance numbers will be for the 2010/2011 Budget. The current projected year end fund Balance at this time is 1.5 million. Town of Goshen Year End Budget best estimate under budget dollars at this time is
$223,200.00. Robert Valentine informed the Board that he would give the Board an update of any change in that number at the May BF meeting. It was noted that the Grand List Tax Revenue is based on a 98% Tax Collection with a 1% Interest & Lien Fee. Noted was the gradual increase in Building Official Revenue and the major decrease in interest income on investments.
Robert Valentine noted that in conversation with other Town Officials and hearing of the financials problems they are in at this time, that he is very please in what the Town’s people have done and where the Town currently finds itself in comparison to other Towns.
Correspondence: None
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There was no other business proper to come before said meeting. A MOTION TO ADJOURN WAS MADE BY James Korner seconded by John D. Garvey. The meeting adjourned at 9:10 P.M.
Respectfully submitted,
GOSHEN BOARD OF FINANCE
Joan M. Lang, Clerk
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