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Minutes of Board of Finance, 04/22/2013

AGENDA: Board of Finance

RECEIVED 04/25/2013 8:30am
Michele R. Grande – Redding Town Clerk

Minutes

Present: Alvarez (Chairman), DeSalvo, Dolan (7:34 pm), Guffey, Mazzucco, Yonkers

Also present:   Finance Director Gniadek, First Selectman Ketcham, Tax Collector Moisio, three members of the public, and a representative of the Redding Pilot.
Chairman Alvarez called the April 22, 2013 meeting to order at 7:30 pm.
APPROVAL OF MINUTES

Motion: move that the Redding Board of Finance approve the minutes of the March 26, 2013 meeting as submitted. Mazzucco, DeSalvo. Approved. Unanimous.
TAX COLLECTOR’S REPORT

Tax Collector Moisio reported that as of today, 99.7% of the budget has been collected.
Information on a recent development on an assessment appeal was announced by First Selectman Ketcham.  Earlier this year the Supreme Court had ruled in Redding’s favor on the assessment appeal.  Following that, the property owner asked for a rehearing on the appeal.  It was decided on last Thursday, April 18, that the Supreme Court would not consider a rehearing or appeal, and that the ruling was final.  The owner of the property had withheld 10% of the property taxes owed over the years, or approximately $735,000, which is the legally allowable during the appeal process.  The current total due to the Town of Redding, with the interest on that amount, is $1,034,381.41.  Payment of this is typically due within 20 days. Mrs. Ketcham proposed that the Board of Finance consider using this money, or a portion of the money, to reduce the mill rate for the 2013-14 budgets.  Board member discussed the allocation of the money, including the possible reduction of BAN or long-term debt, but no decision was made.
FINANCE DIRECTOR’S REPORT

Mr. Gniadek reported on the following:

  • Current budget status:  Mr. Gniadek projected revenue for the year to end with a favorable $101,000, and expenses are estimated to be $62,000 favorable.  Most departments are on target with their budgets.  The Highway Department is overexpended in the line items related to storm maintenance (overtime & salt), but Mr. Hansen anticipates the overage will be offset with an underexpenditure of the road repair account.
  • Long Range Financial Planning Committee:  the quarterly meeting was held last week and the group reviewed and discussed the pending projects.
  • Sale of equipment:  the Transfer Station has three pieces of equipment for sale listed on an online auction site specifically for municipalities.

TREASURER’S REPORT

Treasurer O’Donnell was not present but submitted a written report. The cash balance in the General Fund was $17,145,197. The cash balance in the Capital Nonrecurring Fund was updated to $911,037, including approved encumbered items.
Ms. O’Donnell is working to finalize the formal request for proposal for banking services and the paperwork for the online purchase of CDs.
MILL RATE DISCUSSION

Board members reviewed the mill rate worksheet in anticipation of the budget referendum scheduled for May 7, 2013.  Mr. Gniadek suggested showing the current year mill rate as adjusted, calculated to show the value of the property as adjusted to reflect the revaluation process.  This would provide the public with a more realistic change in their tax bill as a result of the increase in the mill rate. The current mill rate of 23.28 would be 28.6 if the adjustment to the property revaluation was made. The decision on the mill rate will be made when the budget referendum is approved. The Board of Finance will meet on May 7, 2013, following the conclusion of the budget referendum vote.
PUBLIC COMMENT

James Miller, Middlebrook Pond Road:  Mr. Miller asked that the Treasurer report the cost of conversion for banking services in her report.
ADJOURNMENT

Motion: move that the Redding Board of Finance meeting be adjourned. Dolan, Mazzucco. Approved. Unanimous.
The meeting adjourned at 8:19 pm
Respectfully submitted,

Mary Maday, Recording Secretary

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