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BOARD
OF FINANCE Present: James Francis, Keith Bolles, Keith Crehan, Campbell Hudson, Joel Marzi, Fred Vollono. James Francis called the meeting to order at 7:05 pm. Others present: Treasurer Robert Dixon, First Selectman Philip Miller, Selectman Norman Needleman Approval of Agenda Motion was made by Fred Vollono to approve the Agenda. Keith Bolles seconded the motion and it was unanimously approved. Motion carried. Approval of Minutes Motion was made by Fred Vollono to approve the June 21, 2007 regular meeting minutes. Keith Bolles seconded the motion the motion and it was unanimously approved. Motion carried. Treasurer's Report: A. Estimated July Year-to-Date Update: Treasurer
Robert Dixon reported that preliminary estimates for July are tracking
well. Property tax revenue for the fiscal year-to-date is tracking at
53% versus 51% last year. B. School Financials: Treasurer Robert Dixon reported that we do not have July financials for the school; however, the 2006-2007 fiscal year is forecasting approximately a $104,000 surplus. Mr. Dixon indicated that he is forecasting a $301,000 surplus for the Town with an end of year undesignated fund balance of approximately $1,945,000. Overall the year ended at $405,000 to the good. Mr. Dixon noted that four years ago the undesignated fund balance was $691,000. Mr. Dixon stated that the year end numbers are not firm but that he was confident that they were fairly realistic. Mr. Dixon also indicated that legal expenses were excessive. Last year's budget for legal expenses was $61,900 and $84,500 was spent. Mr. Dixon stated that $3,000 was budgeted for Preserve expenses and that $10,000 was spent and that $3,000 was again budgeted for this fiscal year and we received a bill today for approximately $7,200. There was a discussion with regard to the Town as an intervener status. Mr. Dixon asked if the Town was named in the law suit. Philip Miller indicated that we were. Campbell Hudson stated that once we became an intervener we become a party to actions. James Francis stated that the "sale" of the intervener status was so that we could receive information with regard to the case. Mr. Hudson stated that it was his understanding that we would be taking a more passive role and asked if Attorney Matt Ranelli was clear on the goals of the Town. Fred Vollono asked why a brief was prepared stating that it was his understanding that we were not taking an active role in the litigation. Joel Marzi stated that it was his understanding that we were filing "as a friend of the court", which makes a difference. Keith Crehan asked if Attorney Ranelli was made aware of our budget restrictions. Mr. Marzi stated that Board of Finance needs to be kept informed of what is going on. Mr. Crehan asked if there was an engagement letter. Mr. Francis asked Mr. Miller if he had any discussions with Attorney Ranelli as to what kinds of expenses were involved. Mr. Miller answered yes, but he did not think it would be quite as much. Mr. Dixon asked if we were giving direction to Attorney Ranelli. Mr. Crehan stated that he needs to define the scope of work. Mr. Vollono would like copies of the briefs. Mr. Marzi stated that he would like it if Mr. Hudson and Mr. Vollono, as attorneys, to review the information and to provide the board with information at the next meeting. Mr. Vollono volunteered to stop at the Middletown courthouse to review the documents. It was the consensus of the Board of Finance that Mr. Miller speak to Attorney Ranelli to clarify the scope of services. C. Year End Expenditures/Encumbrances: Robert Dixon reported that the surplus numbers he reported earlier took into consideration these encumbrances. Mr. Dixon reported that the Police Services budget had enough funds for the expenditures, before the DUI Grant overtime dollars are reversed to revenue for year-end purposes. The items requested for encumbrances were
Campbell Hudson stated his concern regarding the encumbering of funds now and the integrity to the budgets. Mr. Dixon stated that he manages Town finances to the bottom line, from an accounting point of view and that is why we are $400,000 ahead at year end and that it is appropriate to fund from last year's budget. James Francis stated his concern that the Board of Selectmen just learned about it now and the Board of Finance is hearing about the expenditure ex post facto and that bothers him. Joel Marzi stated another alternative is to fund the appropriations in this year's budget. Norman Needleman stated that the Board of Selectmen had unanimously approved the expenditures and that they were not a surprise. Mr. Needleman stated his agreement with Mr. Dixon that we fund from last year. Mr. Marzi stated that there should be budget transparency to the public. Mr. Needleman stated there is a choice, and that the encumbrances are not significant to a $19 million budget. Keith Crehan stated that to him if the items are needed it would not matter if there was a budget surplus or not. Mr. Dixon responded that a surplus, versus a deficit, and a significant undesignated fund balance, was important when dealing with the rating agencies and submitting the required SEC filings. Mr. Needleman stated that the slack has been removed from departmental budgets and that they are ratcheted down at budget time more and more each year. Fred Vollono stated that it makes sense to charge where they know there is funding available to take the hit. Mr. Crehan stated that he wants the expenses to be charged to where they rightly go. Cindy Varricchio stated that these were all expenses that were discussed and evaluated last year and that if the July Board of Finance meeting had not been cancelled the Board would have been made aware at that time. She further stated that there was transition in the police services area and with new officers coming on the cruiser computers are safety issues. Mrs. Varricchio indicated that if it was not for the workload and transition in the Selectmen's office the Board of Finance would have received the information at their June meeting. Mr. Francis took a poll to determine if all Board members were in favor of the expenditures and it was unanimous. He then took a poll to determine whether the Board members favored from last year's budget and the result was five to two. Mr. Francis restated his concern that expenditures be paid for in the proper year. Mr. Dixon stated that these are not wish list items but essential expenditures. Mr. Marzi stated that we must handle situations such as this on a case-by-case basis and that he was not comfortable tapping into the Board of Finance contingency for this amount in August. Motion was made by Keith Crehan to approve encumbrances from the 2006-2007 fiscal year budget for the gate to the lower vault (account number 10496-508800-898) in the amount of $1,500 and ceramic tile for the police services area (account number 10496-508800-898) in the amount of $6,987.85 and the flooring for the police workout area (account number 10496-508800-898) in the amount of $2,000. Fred Vollono seconded the motion and it was unanimously approved. Motion carried. Motion was made by Keith Crehan to approve encumbrances from the 2006-2007 fiscal year budget for the cruiser toughbooks with accessories (account number 10475-507200). Fred Vollono seconded the motion. Bolles, Crehan, Marzi, Vollono voted yes, Francis, Hudson voted no. Motion carried. It was stated for the record by Mr. Hudson that he is in support of the computers for the police cruisers, but not in support of charging to the 2006-2007 fiscal year. Motion was made by Campbell Hudson to enter Executive Session for the purpose of pending litigation. Keith Crehan seconded the motion. Bolles, Crehan, Francis, Hudson, Vollono voted yes, Marzi voted no. Motion carried. Respectfully submitted, Cindy
Varricchio EXECUTIVE SESSION: Present: James Francis, Keith Bolles, Keith Crehan, Campbell Hudson, Joel Marzi, Fred Vollono Invited Guests: First Selectman Philip Miller, Selectman Norman Needleman, Treasurer Robert Dixon, Essex Housing Authority Chairman Janice Atkeson and Cindy Varricchio. Motion was made by Keith Crehan to exit Executive Session. Fred Vollono seconded the motion and it was unanimously approved. Motion carried. Respectfully submitted, James
Francis Motion was made by Campbell Hudson to appropriate a sum not to exceed $5,000 from the Contingency Fund (account number 10409-508400) to be combined with Essex Housing Authority funds in the amount of $10,000 for a total of $15,000 for the settlement of their litigation with DeCarlo and Doll. Fred Vollono seconded the motion and it was unanimously approved. Motion carried. Joel Marzi stated his concern that that the Town have no culpability in this matter. Mr. Marzi quoted from correspondence issued by Town Counsel David Royston "The recommendation is made on the basis of the cost of further litigation, even if totally successful for the Housing Authority, would likely exceed the $5,000 payment. Since the Town is bearing the expense of the litigation, I believe this is a prudent resolution to the matter". Mr. Marzi wants to be certain that the Town is held harmless in this settlement. Motion was made by Campbell Hudson to enter Executive Session for the purpose of Land Acquisition. Keith Bolles seconded the motion and it was unanimously approved. Motion carried. Respectfully submitted, Cindy
Varricchio EXECUTIVE SESSION Present: James Francis, Keith Bolles, Keith Crehan, Campbell Hudson, Joel Marzi, Fred Vollono Invited Guests: First Selectman Philip Miller, Selectman Norman Needleman, Treasurer Robert Dixon, Essex Land Trust Representative Brian Willis, Essex Conservation Commission Chairman Kay Tucker and Cindy Varricchio. Motion was made by Joel Marzi to exit Executive Session. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried. Respectfully submitted, James
D. Francis It was the consensus of the Board of Finance to contribute $70,000 toward the Essex Land Trust's purchase of the Platt Property. Motion was made by Fred Vollono to recommend to Town Meeting the appropriation of Open Space Sinking Funds in the amount of $54,477.19 (account number 10496-508350-865) to contribute to the Land Trust toward the purchase of property known as the Platt Property under the terms and conditions satisfactory to Town Counsel and in consideration of the ability to transfer the property to the Town of Essex. Keith Crehan seconded the motion and it was unanimously approved. Motion carried. There was discussion regarding the remaining $15,522.81 of the purchase price including utilizing funds from Contingency or the Undesignated Fund. Joel Marzi recommended that the Municipal Property Sinking Fund (also known as the Unappropriated Sinking Fund) be used. Motion was made by Joel Marzi to recommend to Town Meeting the appropriation of Municipal Property Sinking Funds in the amount of $15,522.81 (account number 10496-508350-885) to contribute to the Land Trust toward the purchase of property known as the Platt Property under the terms and conditions satisfactory to Town Counsel and in consideration of the ability to transfer the property to the Town of Essex. Keith Bolles seconded the motion and it was unanimously approved. Motion carried. Selectmen's Topics: A. Natural Hazard Mitigation Plan: Philip Miller reported that at the next Board of Selectmen meeting the Selectmen will look to accept the Natural Hazard Mitigation Plan which enables the Town to receive funding from FEMA in the event of natural disaster type event. B. Health Director Position and Park and Recreation Position: Philip Miller reported that at the next Board of Selectmen meeting the Selectmen and other key people will begin to review the position of Health Director which is budgeted to begin January 1, 2008. Mr. Miller also reported that the Park and Recreation position is being reviewed by the Commission and that they will be consulting with Springfield College to conduct an evaluation of our needs. C. Revaluation Bids and Sinking Fund Request: Philip Miller reported that the revaluation had gone out to bid and the lowest bidder was Vision Appraisal, who conducted the last revaluation. There was discussion regarding the equitability of revaluations last time. The Board would like to invite Assessor Jessica Graves and Vision Appraisal to a future meeting to review the process. Mr. Miller reported that the Vision Appraisal bid was $102,625 which was unanimously accepted by the Board of Selectmen. The Board of Selectmen unanimously recommended to the Board of Finance an appropriation from the Revaluation Sinking Fund in amount not to exceed $102,625. Motion was made by Keith Crehan to recommend to Town Meeting an appropriation from the Revaluation Sinking Fund (10496-508350-875) in amount not to exceed $102,625. Keith Bolles seconded the motion and it was unanimously approved. Motion carried. Philip Miller reported that the citizen group involved in clean energy is looking at a proposal for Essex Elementary School for solar panels. However, the timing now may not be appropriate in the midst of the current construction. There was discussion if the old roofs could handle the weight of the solar panels. Mr. Miller indicated that when and if a project such as this is pursued there will be no capital outlay. Joel Marzi indicated that he is receptive to the possibility of installation on the new roof and that the new roof might be a good test. Mr. Marzi indicated that the replacement of the existing roof is going to be quite costly. Old Business: None New Business: A. Annual Report Preparation Appointment: Motion was made by Campbell Hudson to appoint Kelly Sterner and Cindy Varricchio to prepare the Annual Report in a total amount not to exceed $3,000 (account Board of Finance/Other Consultants 10409-503300). Keith Bolles seconded the motion and it was unanimously approved. Motion carried. Dedication: There was discussion regarding the dedication. Joel Marzi will do some research and inquiries and will report back to the Board. It was the consensus of the Board to vote on the dedication at the next meeting. Motion was made by Fred Vollono to adjourn at 10:05 pm. Keith Crehan seconded the motion and it was unanimously approved. Motion carried. Respectfully submitted,
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