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Minutes of Board of Finance, 06/24/2019

AGENDA: Board of Finance

RECEIVED 07/01/2019 5:09pm
Kathleen R. Miserendino - Redding Deputy Town Clerk

BOARD OF FINANCE
REGULAR MEETING
WEDNESDAY, 6/24/2019
7:30PM
TOWN HALL HEARING ROOM

Filed Subject to Approval

PRESENT:
Dr. Kimberly Yonkers, Chair; Ward Mazzucco; Rob Dean; Jamie Barickman; Ed Miller (7:35PM); Susan Clark (absent)

ALSO PRESENT:
Steve Gniadek, Finance Director; Pat Moisio, Tax Collector; Wes Higgins, Treasurer; Members of the Public

Chair Yonkers called the meeting to order at 7:30PM.  

  1. TO APPROVE THE MINUTES OF THE BOF MEETING HELD ON TUESDAY, MAY 7, 2019

 MOTION:  Mr. Mazzucco made a motion to approve the minutes of the Tuesday, May 7, 2019 meeting. Mr. Barickman seconded the motion. There were four yes votes (Yonkers, Mazzucco, Dean, and Barickman) and one absent (Miller). The motion Carried.

  1. PUBLIC COMMENT

 Chair Yonkers opened the floor to public comment. There was no public comment.

  1. TAX COLLECTOR’S REPORT

 Ms. Moisio addressed the BOF.

The Town budgeted for $47,072,000 in tax revenue for FY 2018-2019 and collected $48,200,000 in tax revenue.

$1,700,000 of FY 2019-2020 tax revenue has been collected and the tax bills for FY 2019-2020 have been mailed out.

58 real estate parcel taxes have not been paid for FY 2018-2019. 314 vehicle taxes haven’t been paid as well.

The Sewer Treatment Plant project owes $5,000,000 in property taxes, interest, and liens. The delta payment is close to $3,000,000.

The suspense list for unpaid 2015 Grand List vehicles and personal property has been drafted. $35,000 will be dropping off of the list.

The Tax Collector department and the Health department are working together to obtain unpaid personal property taxes from Redding businesses. Businesses that do not pay these taxes can have their license to operate revoked.

  1. FINANCE DIRECTOR’S REPORT

Mr. Gniadek addressed the BOF.

An estimate for the expenditure and revenue variances for FY 2018-2019 has been created. The Town is favorable on expenditures and revenues. Discussion followed concerning the specific savings.

Mr. Mazzucco asked Mr. Gniadek what the cash controls that are in place for the Transfer Station. Mr. Gniadek said that the Transfer Station double counts and signs off on the cash received during the day. He said that the cash is kept in a safe and receipts are produced for every transaction.

Mr. Barickman asked if the expense/revenue variance forecast for the schools are available. Mr. Gniadek said this information is shared by the BOE/Superintendent of schools at BOF meetings.

  1. TREASURER’S REPORT

 Mr. Higgins addressed the BOF.

$400,000 in interest have accrued for FY 2018-2019.

Stone Castle rate is yielding a return of 2.375%.

Mr. Higgins hopes that $375,000 will be achieved for 2019. This number was set back in January.

Mr. Mazzucco shared a document produced by Mr. Higgins concerning his thoughts on the Board of Finance’s investment policy. A discussion followed concerning this investment policy and Mr. Higgins’ suggestions for improvement.

Mr. Higgins said the state statutes allow the town Treasurer to investment town monies with the approval of the BOF. He said the statutes require the Treasurer to make an annual presentation to the BOF about the investment plan for the upcoming FY.

Mr. Higgins said the BOF must produce written approval of any investment that will continue past one year.

Mr. Higgins suggested that the Treasurer should present their yearly investment plan at the November or December BOF meeting.

Mr. Higgins said there needs to be an approval of the individuals who can authorize bank transactions. He said this should be renewed annually.

Mr. Higgins said the investment policy said that the statutes do not give the BOF authority to absolve the Treasurer of personal responsibility concerning investments.

Mr. Higgins asked the BOF if he has to inform them about specific treasury bills he is investing in.

Mr. Higgins said the BOF should not list suitable investments in their investment policy. He said it is the burden of the Treasurer to come to the BOF with investments and the BOF would make judgements on those investments.

Mr. Gniadek explained how the original investment policy was created.

Mr. Barickman asked what investments/funds are long-term. Mr. Higgins said the Janney account is the long-term investment that he works with.

Chair Yonkers asked Mr. Mazzucco if the work group is going to edit the investment policy. Mr. Mazzucco said another draft can be created. Chair Yonkers said this can be presented at a later BOF meeting.

  1. REPORTS FROM INDIVIDUAL BOARD MEMBERS AS ASSIGNED

Mr. Mazzucco asked the BOF about long-term planning and the budget process. Discussion followed concerning what this would entail and how the BOF should proceed.

Mr. Mazzucco suggested the BOF should invite a representative from the BOE and the BOS to come to the next BOF meeting to discuss long-term planning.

Chair Yonkers proposed looking at how other municipalities do long-term planning. She said that the BOE and BOS should have a chance to get on board with this process.

  1. CORRESPONDENCE AND ADMINISTRATIVE MATTERS

There was no correspondence or administrative matters to discuss.

  1. PUBLIC COMMENT

Chair Yonkers opened the floor to public comment. There was no public comment.

Chair Yonkers adjourned the meeting at 8:44PM.

Submitted by,
Zachary Smith

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