BOARD OF FINANCE
January 18, 2007
First Selectman's Office
Essex Town Hall

Present: James Francis, Keith Bolles, Keith Crehan, Campbell Hudson, Joel Marzi.

James Francis called the meeting to order at 7:20 pm.

Others present: Treasurer Robert Dixon, First Selectman Philip Miller.

Approval of Agenda

Motion was made by Campbell Hudson to approve the agenda with two additional items under Selectmen's topics Park and Recreation Summer Program and the Preserve. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes

Motion was made by Campbell Hudson to approve the December 21, 2006 minutes, with one revision to page three, second line, should read "rooms are in the plan for the new wing". Keith Bolles seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. December Year-to-Date Update and
B. School Financial Reports:

Robert Dixon reported that the he is forecasting that we are approximately $185,000 ahead of budget on the revenue side primarily due to higher interest income as a result of the reduced compensating balance requirement from $500,000 to $300,000 and an increased 5% yield. The State revenue is pretty firm. On the expense side we are over approximately $8,000 as a result of a workers' compensation audit and claims. We anticipate electricity to run approximately $6,000 over as well. Mr. Dixon reported that the bottom line is approximately $171,000 ahead of budget with six months remaining. The tax collection rate is on target as well. The undesignated fund balance is forecasted to be $1.7 million, and is approximately 10% of our annual budget, which is ideal for rating agencies as we go out to bond. It was anticipated that the elementary school would be over budget approximately $5,000 for fuel; hopefully, with the warm weather they will be able to cover the expense. There are no school business reports at this time with the transition in process from the retiring business manager.

Motion was made by Campbell Hudson to accept the Treasurer's Report. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

Selectmen's Topics:

A. Viney Hill Brook Park Remediation:

Philip Miller stated that he does not like to seek a mid-year appropriation, however, the Viney Hill Brook Park has absorbed three rain events and has erosion issues needing attention. We have obtained a quote from Rhodes with an estimate of $31,000 to complete the work quickly. The Board of Selectmen and Park and Recreation Commission have approved the work. Dennis Robida was present to answer any questions. There was discussion as to where the funding should come from for transparency and openness. Campbell Hudson asked if the work was of an emergency nature and not anticipated in the budget. Mr. Miller answered that we did not foresee especially considering the weather issues. Mr. Hudson stated that some things cannot be anticipated. Mr. Robida indicated that we had unusual weather-drought and then rains. Keith Crehan inquired about the usual process for using contingency funds. Robert Dixon stated that usually there are funds left in contingency at the end of the year to cover shortages in various budgets. Mr. Miller stated that there are some development funds, which may be used to build a pavilion. Mr. Dixon stated that those funds were donated and are in "escrow" and cannot be used for usual maintenance. Mr. Robida stated that the remediation would minimize maintenance. Mr. Hudson asked if we have all the necessary permits in place for the work with engineering review. Mr. Miller stated that he did not anticipate that we would need additional permits. Mr. Hudson suggested that Mr. Miller touch base with the land use offices to determine what is necessary. Mr. Miller stated he will look into the possible need for permits. Mr. Hudson indicated that we may want to have the remediation project reviewed and to be sure necessary permits are in place.

Joel Marzi stated his concern that the engineering review of the plan was given by an engineer in a volunteer capacity. Mr. Marzi would like the Town Engineer's review as quickly as possible as well as the wetlands permit, if necessary, as soon as possible. Mr. Marzi stated his concern that this was the third time a request for a special appropriation had been made with regard to Viney Hill Brook Park. Mr. Marzi stated that he knows that Mr. Robida is trying to get the remediation done correctly and needs closure to get it done right. Mr. Marzi stated if a wetlands permit is necessary then we would need an engineer. Mr. Crehan inquired as to who would review. Mr. Miller indicated Marian Staye would. Mr. Hudson stated that we need to hold the Town to the standards that we would require our citizens, we need a written understanding from the Zoning Enforcement Officer as to what is required. Mr. Marzi inquired if this remediation could wait until next year's budget process. Mr. Robida responded that sooner is better than later. Mr. Hudson stated that Mr. Miller should convey to Park and Recreation that they need to seriously consider the Park maintenance in next year's budget request to cover such expenses. Mr. Marzi indicated inquired about using funds from the Highway Department for some improvements.

Motion was made by Campbell Hudson to appropriate an amount not to exceed $31,000 from the contingency fund as recommended by the Board of Selectmen for remediation at Viney Hill Brook Park provided that all the necessary permits are obtained. Keith Crehan seconded the motion. Motion carried. Voting in favor: Bolles, Crehan, Francis and Hudson. Voting against: Marzi. Motion carried.

B. Library Crosswalk:

Philip Miller indicated that the present crosswalk situation across Grove Street is not safe. The proposed crosswalk will eliminate one Town Hall parking space. Mr. Miller indicated that the new crosswalk would cross from the island on the Town Hall side and would end on the existing sidewalk at the Library. Mr. Miller indicated that the other sidewalk ending on West Avenue at the Town Hall and beginning on West Avenue at the Library will need to be "ramped-up" as well.

It was the consensus of the Board that the cost of approximately $2,800 be taken from the Highway Department budget and as the year progresses if it cannot be absorbed to let the Board know.

C. Park and Recreation Summer Program:

Philip Miller reported that Essex Elementary School is not available for the summer program this year. We have been offered Valley Regional High School which has some safety and logistic concerns for small children. The preferred school is John Winthrop. We have been turned down by the principal. He and Maria Warnagiris are appealing to the Superintendent for assistance in this important program that so many parents count on. We have the support of the First Selectman in Deep River and Chester as well as the Essex Region 4 Board members. It was the consensus of the Board of Finance that Mr. Miller continue to pursue the John Winthrop

D. Preserve:

Philip Miller reported that there are rumors there may be a different scenario put forth that does not involve Route 153.

E. STEAP Update:

Philip Miller called the Board's attention to a Hartford Courant article regarding the project.

Old Business:

A. Elementary School Project Update:

Joel Marzi reported that there are presently two delays. There were three but one has been corrected.

1. The item corrected was issues the State had with some handicapped access.
2. The 500 year flood line is through the cafeteria. There are four to five deeds for the property. FEMA now has the deeds to review, however, they have a 30 to 60 day window in which to review and the bidding process cannot begin until this issue is clear. Mr. Marzi indicated that we might plead to the state to let us go out to bid.
3. Spencer's Corner land and traffic circle, the State is reviewing this part of the project. Mr. Marzi indicated that they would like to get out to bid as soon as possible.

B. Annual Report Printing Invoice:

James Francis indicated that Maria Warnagiris had met with the printer and the invoice amount for the Annual Report printing had been slightly reduced to the total amount of $3,410.

Motion was made by Keith Bolles to approve the Annual Report invoice in the amount of $3,410. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

New Business:

A. 2007-2008 Board of Finance Budget Request:

Motion was made by Campbell Hudson to approve the Board of Finance budget for 2007-2008 as follows:

PT PAYROLL 1,800
OFFICE SUPPLIES 100
PRINTING SERVICES 3,800
AUDIT FEES 35,000
OTHER/CONSULTANTS 3,000
CONTINGENCY FUND 60,000
TOTAL BUDGET REQUEST 103,700

Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Communications and Correspondence:

A. Connecticut Municipal Consortium for Fiscal Responsibility:

James Francis indicated that each Board member had been provided information from the Connecticut Municipal Consortium for Fiscal Responsibility. The Consortium is looking for participation. Mr. Francis asked that each Board member review the information and that it would be discussed at the next Board of Finance meeting.

Mr. Francis notified each Board member that Town Clerk Fran Nolin has scheduled a Freedom of Information Seminar for March 8, 2007 at 7 pm.

Motion was made by Keith Bolles to adjourn at 9:08 pm. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk