TOWN OF REDDING
BOARD OF FINANCE REGULAR MEETING MINUTES
MONDAY, 6/22/2020
7:00PM ZOOM MEETING
Filed subject to approval.
Present:
Dr. Kimberly Yonkers, Chair; Ward Mazzucco, Vice Chair; Jamie Barickman; Rob Dean; Ed Miller; and Jenifer Wyss
Also Present: Steve Gniadek, Finance Director; Pat Moisio, Tax Collector; Wes Higgins, Treasurer; First Selectwoman Julia Pemberton; Selectwoman Peg O’Donnell; Selectman Michael Thompson; Members of the Public
Chair Yonkers called the meeting to order at 7:30PM.
1. To approve the minutes of the BOF Meetings held on Wednesday, 5/27/2020 and Monday, 6/1/2020
MOTION: Mr. Mazzucco made a motion to approve the minutes of the BOF meetings held on Wednesday, 5/27/2020 and Monday, 6/1/2020. Ms. Wyss seconded the motion. The vote was unanimous, and the motion carried.
2. Public Comment
Chair Yonkers opened the floor to public comment.
There was no public comment.
3. Tax Collector’s Report
Ms. Moisio addressed the BOF.
The Tax Collector’s office has distributed tax bills and residents have already started paying.
Chair Yonkers asked Ms. Moisio if residents have had trouble paying taxes. Ms. Moisio said that she won’t know until the end of July if residents are having trouble paying.
Mr. Miller asked for clarification about legal notices. Ms. Moisio said the legal notices are state-mandated and clarify the special situation that Covid-19 has created. They explain the interest rate change for FY 2020-2021 taxes.
Ms. Moisio said the Town of Redding adopted the Low-Interest Rate Program outlined in Executive Order 7S from 4/1/2020. It is below:
Low Interest Rate Program. For municipalities participating in the Low Interest Rate Program, notwithstanding Section 12-146 of the General Statutes, (i) the delinquent portion of the principal of any taxes on real property, personal property or motor vehicles, or municipal water, sewer and electric charges or assessments or part thereof shall be subject to interest at the rate of three (3) per cent per annum for ninety days from the time when it became due and payable until the same is paid, for any such tax, rate, charge, or assessment due and payable from March 10 through and including July 1, 2020, unless such delinquent portion is subject to interest and penalties at less than three (3) per cent per annum. Following the ninety days, the portion that remains delinquent shall be subject to interest and penalties as previously established; and (ii) any portion of the principal of any taxes on real property, personal property or motor vehicles, or municipal water, sewer and electric rates, charges or assessments or part thereof that had been delinquent on or prior to March 10, shall be subject to interest at the rate of three (3) per cent per annum for ninety days from this Order, unless such delinquent portion is subject to interest and penalties at less than three (3) per cent per annum. Following the ninety (90) days, the portion that remains delinquent shall be subject to interest and penalties as previously established.
4. Finance Director’s Report
Mr. Gniadek addressed the BOF.
Bond
The Official Statement (OS) and Standard & Poor’s (S&P) rating were completed. The Town has maintained its’ AAA rating. The bond sale will take place on Tuesday, 6/23/2020 at 11:30AM.
LoCIP
The $279,375 payment from the State has been received. This is being applied to the Communications Upgrade project.
FY 2020 Audit
Kickoff meeting starts on Tuesday, 7/7/2020 at Town Hall with PKF (Joe Centofanti).
Electricity
The town has negotiated a blended electricity rate of $0.0744 per kwh versus the current rate of $0.0792. This applies to the schools as well.
Fuel Oil
For FY 2022, the rate will be $1.765 per gallon. For FY 2021 the rate will be $2.03 per gallon. FY 2020’s rate was $2.105 per gallon.
CARES Act
The Town’s original submission of $7,000 of Covid-19 costs has been allocated by the state. Revised numbers for expenses incurred through 6/30/2020 will be sent to the State.
Discussion followed concerning Covid-19 related expenses and how the Town can be reimbursed for them.
5. Treasurer’s Report
Mr. Higgins addressed the BOF.
Cash balances for the town totaled $17 million at the end of May 2020. This will drop down to $11-12 million after payments for Teacher Summer Pay.
Interest Income will end FY 2019-2020 at approximately $390k.
6. Debt Management Policy
Mr. Higgins addressed the BOF.
The Town’s Debt Management Policy needs to be updated. Chair Yonkers said a sub-committee needs to be formed.
Chair Yonkers, Jamie Barickman, and Jenifer Wyss volunteered to work on this.
Mr. Gniadek said the Debt Management Policy does not address sources of funding for Capital Projects that are between $25k and $99,999. He said there should be a statement that addresses what the BOF can do for these amounts.
7. Other Business
Chair Yonkers asked about the school phone system project.
First Selectwoman Pemberton said this project would be approved if a majority of the BOS and the BOF approved it.
8. Public Comment
Chair Yonkers opened the floor to public comment.
There was no public comment.
Chair Yonkers adjourned the meeting at 8:32 PM.
Submitted by,
Zachary Smith