Thursday, May 28, 2020


 
APRIL 14, 2020
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BOARD OF FINANCE                                           MINUTES – APPROVED 5-12-2020
Via Zoom
 
 
 
 
The following Board members were present:  John Grabowski-Chairman, John Ford, Sharon Huxley, Catherine Erickson, Sally Huyser and Lars Demander.

 

Also in attendance were:  First Selectman Paula Cofrancesco, Finance Director Sheila Lane, Town Attorney Vincent Marino, and Fran Doba, Tax Collector

 

Visitors:  John Accavallo, CPA of AO & Company, LLC, Fred Nevin, Coleen Murray, Rob and Lynette White and Brandy Spargo.

 

1.      Chairman John Grabowski called the meeting of the Board of Finance to order via Zoom at         7:04 p.m. 

 

2.      APPROVAL OF MINUTES

Chairman Grabowski called for a motion of approval for the minutes of the Regular Meeting of     March 10, 2020.  The motion of approval was moved by Member Huyser and seconded by Member Huxley.  There were no changes to the minutes.  Voting for:  Grabowski, Ford, Huxley, Huyser, Erickson, Demander.  Unanimous approval.

 

3.      CHAIRMAN’S REPORT

Chairman Grabowski reported on the following:

·         The Amity Budget was reduced to 2.49% increase.

·         All Towns agreed except Orange, who stated increase has to be 2.0%.

 

4.      FIRST SELECTMAN’S REPORT

First Selectman Cofrancesco reported on the following:

·         Tilcon has started milling on Lebanon Road.  We have started the second phase of road work, which includes 35 roads being paved and additional roads being chip sealed.

·         The stairs between the annexes are being replaced.

·         On the Code Red, I reported last Thursday, April 9th, that Bethany had 6 confirmed cases of Covid-19.  Since yesterday, we are now up to 10 cases.  It is very important to keep practicing social distancing.

 

5.      DISCUSSION AND POSSIBLE ACTION ON RESOLUTION FOR DEFERMENT PROGRAM PURSUANT TO EXECUTIVE ORDER NO. 7S, SECTION 6(A)

First Selectman Cofrancesco had previously distributed copies of the resolution regarding the Deferment Program to Board Members. 

 

The Board discussed the concern of not having enough cash flow to operate the Town if deferment offered to all residents.

 

 

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APRIL 14, 2020

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In discussion, Fran Doba, Tax Collector noted the following:

·         Deferment would be extended from August 3, 2020, to October 1, 2020.

·         Escrow companies are required to pay by August 3, 2020.

 

Town Attorney Marino recommended giving eligible tax payers some relief.  Deferment would extend the date of last payment without penalty from August 3, 2020, to October 1, 2020. After that date, interest would accrue back to the original due date, so 6% interest would be due on October 2, 2020.

 

First Selectman Cofrancesco stated there is a form that would need to be completed to apply for the deferment and that they will make it available online.

 

After discussion, the Board decided not to offer deferment to all residents but just to those who are eligible and this is due to the concern of not having enough cash flow to operate the Town.

 

It was moved by Member Huxley and seconded by Member Huyser to approve the resolution for the Deferment Program Pursuant to Executive Order No. 7S, Section 6(a) for those eligible and qualified taxpayers.  See attached resolution.

Voting in favor:  Grabowski, Ford, Huxley, Huyser, Erickson, Demander.

Unanimous approval.

 

  

6.      DISCUSSION AND POSSIBLE ACTION ON RESOLUTION BY THE BOARD OF FINANCE IN ACCORDANCE WITH EXECUTIVE ORDER NO. 7S, SECTION 7

First Selectman Cofrancesco had previously distributed copies of the resolution to Board Members. 

 

Sheila Lane, Finance Director, stated that we would have to change operating expenses for Park and Recreation in Budget if this is approved for total reduction of $18,000.  Also, Ms. Lane stated the monies would come out of this year’s General Fund for these three items listed in the Resolution.

 

Member Huyser stated that the Town was against the van at the Budget Hearing last year and feels the Board might receive some backlash for approving the appropriation.

 

Chairman Grabowski stated that a lot of misinformation was given by some Town’s people at that Budget Hearing that may have influenced a lot of people and it did not get resolved.  If they have to rent a van or busses, they will spend close to that amount in a short time.

 

Also, Chairman Grabowski asked if there are quotes for the Town Hall electrical work and the floor for the Fire Department and would like the Board to review paperwork on bids.  Also, it was mentioned the monies for the electrical system for Town Hall, has increased from $60,000.  First Selectman Cofrancesco will check with Rod White, Facilities Director, for copies of quotes and bids.

 

 

 

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Member Erickson stated she doesn’t feel comfortable with the numbers without seeing a quote.

 

It was moved by Member Huyser and seconded by Member Huxley to approve the Resolution of the Board of Finance in Accordance with Executive Order No. 7S, Section 7 regarding the Board of Finance authorizing a supplemental appropriation for capital projects.  See attached resolution.

Vote 5 to 1.

Voting in favor:  Grabowski, Ford, Huxley, Huyser, Demander.

Opposed:  Erickson.

Passed.

 

 

7.      ADDRESS CONTROL ISSUES

It was moved by Member Ford and seconded by Member Demander to table this item.  Unanimous approval.

 

 

8.      DISCUSSION AND POSSIBLE ACTION ON 2018-2019 AUDIT

Present for this discussion was Mr. John Accavallo, CPA of AO & Company, LLC.  All Board members previously received a copy of a letter from AO & Company, LLC, dated February 20, 2020, regarding the 2018-2019 Audit conducted, with attached report on Identified Deficiencies in Internal Control.

 

Some items noted by Mr. Accavallo in the review of the report were:

·         Opinion on financial statements for 2018-2019 was clean.

·         Issue with reconciliation with Town and Board of Education.  Communication between Town and Board of Education is not accurate.  Would be glad to assist in showing how to correct this issue which is part of the monthly close.

·         Finance Director Sheila Lane was extremely helpful when we asked for anything and would provide information to us in a quick manner.

 

It was moved by Member Huxley and seconded by Member Huyser to accept the preliminary draft of the 2018-2019 Audit of Financial Statements performed in accordance with Government Auditing Standards dated February 20, 2020.

Voting in favor:  Grabowski, Ford, Huxley, Huyser, Erickson, Demander.

Unanimous approval.

 

9.      DISCUSSION AND POSSIBLE ACTION ON 2020-2021 BUDGET

Finance Director Sheila Lane distributed copies previously of the Budget, Capital Items, Mill Rate Calculations and Fund Balance Analysis to the members of the Board of Finance.

 

 

 

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Finance Director Sheila Lane stated she updated the Budget with the 2.49% increase from the Amity budget.  Ms. Lane also stated she will adjust the Capital Item list for the fire truck deposit, park and recreation van, electrical work at Town Hall and new floor at Fire Department, which will come out of the General Fund in 2020.

 

Member Huxley was concerned with the library budget and command vehicle for Fire Department which is a capital item and that due to not having the Town Meeting would like more input on these items.  First Selectman Cofrancesco will ask for more specifics on these items.

 

Finance Director Lane stated we cannot have the Town Meeting due to the Covid-19, and that the Board of Finance has been given the authority to approve the Budget.  We will be sending out a mailer, and the draft budget, after authorized by the Board of Finance, will be posted online for public comment for Town input with a deadline.  All comments will be forwarded to the Board of Finance for review.  Would like to get this out by end of this week.

 

The Board also discussed the mil rate calculations based on a 90% and 80% collection rate.

 

Member Erickson asked to see the lease for the solar panels for clarification.  Ms. Lane has requested a copy of the lease.

 

Fran Doba, Tax Collector, stated that the State of Connecticut changed the Motor Vehicle registration from 2 to 3 years and some people only pay when they have to register a vehicle so we anticipate less revenue from motor vehicle taxes.

 

Chairman Grabowski stated that the Board of Finance will be voting on sending out the draft budget as is for public comment and will get this feedback before the next Board of Finance meeting.

 

It was moved by Member Huxley and seconded by Member Huyser to approve the distribution of the draft Budget for 2020-2021 as is.

Voting in favor:  Grabowski, Ford, Huxley, Huyser, Erickson, Demander.

Unanimous approval.

 

10.  ANY OTHER MATTER PROPER TO COME BEFORE THE MEETING

Member Huxley stated we have to get back to control issues from the auditor report.  Chairman Grabowski stated that Finance Director Lane is working on the control issues and we have closed a few bank accounts and looking at more.

 

 

 

 

 

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11.  ADJOURNMENT

At 8:30 p.m. there being no further business, it was moved by Member Huyser and seconded by Member Erickson to adjourn the regular meeting. 

Unanimous approval.

 

Respectfully submitted,

 

 

Antonia R. Marek