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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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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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10, 2020
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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
