BOARD OF FINANCE
March 13, 2008
Meeting Room A
Essex Town Hall

Present: James Francis, Keith Crehan, Campbell Hudson, Joel Marzi, Lee Rowley, Fred Vollono.

James Francis called the meeting to order at 7:02 pm.

Others present: Deputy Treasurer Kelly Sterner, First Selectman Philip Miller, Park and Recreation Commissioner James Rawn.

Approval of Agenda

Motion was made by Lee Rowley to approve the Agenda with the addition of Item A - The Preserve under Old Business. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes

Motion was made by Campbell Hudson to approve the February 21, 2008 minutes with the following correction to the third and fourth sentences of the Treasurer's Report, the sentences should read "There may be an additional downward adjustment to anticipated Town Clerk fees due to current housing market. There may also be additional revenue adjustments due to the substantial decline in the interest rate we are earning on our investment account." Lee Rowley seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. Estimated January Year-to-Date Update:
B. School Financial Reports:

Deputy Treasurer Kelly Sterner reported that there will be a full Treasurer's Report at the March 27, 2008 Board of Finance Meeting.

Selectmen's Report:

A. 2008-2009 Board of Selectmen Proposed Budget:

James Francis expressed his concern with regard to the Valley Courier article on the budget. There was overall concern expressed that the revenue numbers in the article did not clearly articulate that the numbers are preliminary. The Board of Finance requested that future budgets reflect that revenues are preliminary and a best estimate. There was also concern that the article stated Philip Miller's intention to remove Town Hall improvements from the 2008-2009 budget and utilize other funds. Joel Marzi stated that he felt the article was troubling and expressed his concern about the overall approach to remove the funds and the origination of that possibility. Mr. Francis stated that the overall Selectmen's budget contains approximately $200,000 in virtually no choice items.

Mr. Miller highlighted budget areas, excerpted from the budget book:

• Fringe Benefits (B10) increased by $39,344, which reflects increased medical insurance costs, as well as FICA costs to be more aligned with current actual costs and the addition of a fringes for a Full-Time Park and Recreation Director.
  
• Technology (page B14) increased by $22,808, which reflects the replacement of the five existing Town Hall servers (utilizing leasing), the continued cycling of desktop computers, the replacement of two printers, the purchase of a recording system to be used by the land use Commissions, as well as increased support services from the vendor that maintains the Town's technology infrastructure.
  
• Police Services (page B34) increased by $27,006. In calendar year 2007 both Police Officer Trainees graduated from the academy with one officer completing field training and the other scheduled to complete in early 2008. The budget provides for four full-time officers (five through the first quarter) and a part-time officer (providing the ability to have experienced replacement for officer vacations, illnesses, etc). Other increases include contractual longevity, officer training and vehicle operations and fuel.
  
• Resident State Trooper (page B35) increased by $22,077, which represents the fee assessed by the State of Connecticut Department of Public Safety. This amount represents 70% of the actual cost of the Resident Trooper in Essex.
  
• Highway Department (page B45) increased by $32,887, which reflects increased contractual wages, the addition of $10,000 to provide park maintenance and upkeep (on behalf of Park and Recreation) and the addition of ten hours of clerical assistance to the Director of Public Works.
  
• Director of Health (page B37) decreased by $20,806. Last year, we had proposed hiring a Full-Time Director of Health. This year's budget does not include that proposal. Legislation has not yet been passed requiring this position. We plan to explore further opportunities in the coming year. Also reflected in the budget is the restructuring of the Health Department and changes in the administrative support of the Zoning office as a result.
  
• Interest (page B47) increased by $196,854, which reflects the interest increase as a result of the Essex Elementary School Renovations bond.
  
• Notes Payable (page B48) decreased by $204,852, which reflects the retirement of the Fire House Construction Bond.
  
• Libraries (page B49) increased by $44,000, which is in keeping with the commitment made to the Essex Library ($30,000) to increase operating cost support and with the goal of providing the Ivoryton Library ($14,000) with approximately 70% of their operating costs.
  
• Capital and Sinking Funds (page B50) increased by $50,000, which reflects continued improvements to the Town Hall facility and Town Garage. Also included is an additional $5,000 for the Revaluation Sinking Fund to prepare for the next Revaluation, an additional $20,000 to the Open Space Sinking Fund and an additional $10,000 to the Fire Department Sinking Fund.
  
• Wages: It should be noted that for non-collective bargaining employees the proposed increase is 4%, a net effect on the budget of approximately $12,000 over a 3% increase. The proposed budgets for Tax Collector and Town Clerk reflect longevity for both of these elected positions. In the past elected officials have not received longevity and I am recommending that change.
  

Mr. Miller reported that there is an adjustment to the Planning Commission budget, resulting in a new reduction of $11,000 (eliminate the Traffic Study (-15,000) and increase Planning Services ($4,000).

An additional noteworthy item in this year's budget is the Park and Recreation Commission (pages B21 and C1). A Special Revenue Fund entitled "Recreational Programs Fund" is proposed for the program responsibilities of the Park and Recreation Commission. A Special Revenue Fund, by definition, may be a self-sustaining fund where services provided by a government are intended to be fully or almost fully self supporting by charging a fee to the users of the services. By removing all but the subsidy from the General Fund, the operations of the Fund are reported similar to a private business. The presentation of revenue and related expenses highlights the extent to which the program supports itself. Additionally, this allows for sustained growth in Recreational Programs of self-supporting programs without distorting the general fund budget. The budget proposal for the Recreational Programs Fund and its details for Park & Recreation may be found in Section C, page 1 of this budget proposal. The budget provides for a Full-Time Park and Recreation Director. It should be noted that the Program Manager and Summer Camp Payroll, as well as all program related costs are now reflected in the Recreational Program Fund.

There was discussion with regard to coordinating the new Park and Recreation Director responsibilities and reporting structure (administratively to First Selectman and procedurally to the Park and Recreation Commission. The Selectmen's Office and Commission will work together to prepare a position description.

There was discussion with regard to using the funds received from CRRA toward the Town Hall improvements or other capital one-time projects or costs. Joel Marzi stated that the CRRA reimbursement was intended for the users. The Town did not pay the fees, our citizens did through their trash vendors. He would like to see the funds considered. Mr. Marzi stated his belief that the Board of Selectmen needs to show an example with a minimum budget increase. Mr. Marzi stated that the Board of Selectmen's budget was not a unanimous vote and perhaps there was opportunity for unanimous support if the budget was reduced further.

OLD BUSINESS:

A. The Preserve:

James Francis asked that Philip Miller coordinate a conference call with Campbell Hudson and Attorney Matt Ranelli with regard to the status of the Preserve matter, to include the Town's expectations and involvement and future costs. It was the consensus of the Board that it was important that this call be made as soon as possible.

Motion was made by Joel Marzi to adjourn at 9:55 pm. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk