Select Page

Minutes of Board of Finance, 09/22/2014

AGENDA: Board of Finance

RECEIVED 09/24/2014 11:47am
Michele R. Grande – Redding Town Clerk

Minutes

Present: Alvarez (Chairman), Clark, DeSalvo, Mazzucco, Yonkers
Also present: three members of the public, Selectman Karvelis, Finance Director Gniadek, Tax Collector Moisio, Board of Education Chair Gaspar, Peggy Sullivan & the videographers

Chairman Alvarez called the meeting on September 22, 2014 to order at 7:30 pm in the Hearing Room of the Redding Town Hall.

APPROVAL OF MINUTES
Motion: move that the Redding Board of Finance accept the minutes of the August 25 2014 meeting as corrected. Mazzucco, DeSalvo. Approved. Unanimous.
Correction: page 1, under Nutmeg Network, the Town Hall will be connected to the Police Department via cable.

DISCUSSION OF BOARD OF EDUCATION UNEXPENDED 2013-14 OPERATING BUDGET
Mrs. Sullivan stated that the operating budget unexpended balance for 2013-14 is $88,180, pending final audit. She proposed, and the Board of Education approved, the creation of a Board of Education Capital Reserve Fund, pending Board of Finance approval. If the Board of Education is permitted to create a capital reserve fund, unexpended funds can be transferred to the fund, and the use of the funds would be restricted to educational purposes. She indicated further, however, that the use of the funds require Board of Education and Board of Finance approval, and approval at a Town Meeting for expenditures over $20,000. It was unclear how expenditures from the fund would be handled for MBR purposes

Mr. Alvarez suggested that the topic be discussed further by the MBR (Minimum Budget Requirement) Committee. He felt further discussion by the committee, and a recommendation would be appropriate.

TAX COLLECTOR REPORT
Mrs. Moisio reported that 52.37% of the total Grand List taxes have been collected. The tax sale process has begun for 10-12 properties. Mrs. Moisio noted that since the process began, about half of the properties have been cleared by the owners, and she anticipates the others to be paid soon.

The Town notified the relevant parties that it would begin the foreclosure process on the GLDC project. Since then a meeting was held that included representatives of the Town, the State of Connecticut, the debt holders and the equity holders. A four-party conceptual agreement was reached and that agreement is being put into a binding document for further review by the parties. There are a number of things that must be done in preparation of the document. Execution of the agreement will allow the project for the river wall work and Intersection #3 to move forward. The State has extended the deadline on the grant to 10/6/2014. Mr. Karvelis noted that a public informational meeting is being planned for October 20, 2014.

FINANCE DIRECTOR REPORT
Mr. Gniadek reported on the following:

  • Elderly Tax Benefit Program/Senior Tax Benefit Program: Mr. Gniadek reported that he met with the Tax Collector and the Assessor to begin planning for the enforcement of the current ordinance. Town counsel advised separating the affidavit from the application and Mr. Ford is working on that now.
  • Comprehensive Annual Financial Report (CAFR): Mr. Gniadek reported he has completed the 17 required Statistical schedules which have a 10 year history. Also completed is a draft of the Introduction, narrative, and organization chart. They are on target to submit the report to the GFOA for review by December 31st. They will respond to us in 4-6 months with a grade assigned to each section, and a list of specific comments or suggestions for improvement. By incorporating their comments into next year’s CAFR, Mr. Gniadek is confident they will receive their award and public recognition of such. The cost for their review is $ 505. He also expects there will be some incremental cost from the auditors to help him complete the 80 page Preparer Checklist prior to submission
  • Ban Sale: The 9-month BAN for $7,873,000 was sold with an interest rate of 15.8 basis points.
  • Credit card payments: Park & Rec accepts credit card payments, and the Heritage Center has been added to the program. The Town Clerk is considering adding that option, where permitted by statute.
  • Building Permit Revenue: Mr. Gniadek reported that the building permit as of now is at $51,000 compared with $25,000 at the same time last year.

TREASURER REPORT
Treasurer O’Donnell was not present but provided a written report on the status of funds and investments. She also reported on the $7,873,000 BAN sale at 15.8 basis points. The report indicated that she is continuing to look at additional CDs.

INDIVIDUAL BOARD MEMBER REPORTS
Mr. Alvarez provided a report for Mr. Dolan. He is continuing to reaching out to other communities on the process used for the creation/review of the Elderly Tax Benefit/Senior Tax Benefit Programs.

PUBLIC COMMENT
James Miller, Middlebrook Pond Road: Mr. Miller commented that the title of the Elderly Tax Benefit Program should not be changed until the ordinance creating the program is changed. He also asked about the payment of the credit card fees and if this was passed on the payer. Mr. Gniadek noted that the fee is not passed on.

Steve Hunter, Chestnut Woods Road: Mr. Hunter commented on school enrollment and the existing projections for a decline in population. He questioned the accuracy of the Prowda projections that are used by the schools, adding that they should be used with care.

ADJOURNMENT
Motion: move that the Redding Board of Finance meeting be adjourned. Mazzucco, Yonkers. Approved. Unanimous.

The meeting adjourned at 8:01 pm

Submitted by Mary Maday, Recording Secretary