The meeting was called to order by Chairman Joseph Mooney at 7:30 p.m. Also present were Victor Cassella, Jeffrey Vailette and Charles Shelton, Lorraine Young and Kenneth Kaminsky.
Also present were First Selectman Anthony ‘Unk’ DaRos, James Finch, Finance Director and Marianne Kelly, Town Clerk.
1. Mr. Kaminsky made the motion, seconded by Mr. Vailette to approve the amended minutes of the September 25, 2008 special meeting. The vote was unanimous.
2. Mr. Cassella made the motion, seconded by Mr. Vailette to add an item to establish a project expenditure account for the 2008 Small Cities grant. The vote was unanimous.
3. The Board of Finance heard a presentation from Tim Hasselman from the Lockton Group regarding their analysis of the advantages and disadvantages of instituting a full medical self insurance program for the Town and Board of Education.
Discussion followed and Chairman Mooney thanked Mr. Hasselman and stated that further discussion would take place in the future. If the board decides to take action, it will take place in FY10.
4. The Board of Finance heard a request from Tashie Rosen, Business Manager for the Board of Education, to establish a cash account with Bank of America for the receipt and disbursement of funds for the Branford Board of Education Section 125 Flexible Benefits Plan.
Mr. Cassella made the motion, seconded by Ms. Young.
RESOLVED: That the Board of Finance does hereby establish a cash account with Bank of America for the receipt and disbursement of funds for the Branford Board of Education
Section 125 Flexible Benefits Plan. The vote was unanimous.
5. The Board of Finance heard an overview of the FY 08-09 and FY 09-10 budgets from Finance Director Jim Finch. The highlights of which are listed below:
2008-09
· Falling interest rates are working against our efforts to meet our interest income revenue estimates.
· Departmental receipts will be tempered by a weakening economy.
· The State’s revenues are falling due to declining incomes in Fairfield County and lower capital gains income. As a result the State’s ability to maintain municipal aid is
questionable in the future.
· The level of appropriations from fund balance during the last two fiscal years cannot be sustained.
· Losses in the pension fund (s) will increase the unfunded liability and potentially result in higher contributions going forward.
· Tax collection rates are slightly lower compared to 2008 and we are concerned about the second half collections.
· Department heads need to shift their orientation from staying within their budget to coming in under budget and to appreciate that ones ability to spend is directly influenced
by the revenue stream.
2009-10
All of the concerns listed in 2008-09 carry over into the 2009-10 year. The Finance Director shared a projection of what the 2009-10 fiscal year presents as it relates to the budget and taxes using the following assumptions:
Expenditures
· Town and Board of Education operating budgets will increase by 4%
· Debt service will increase by 3.5%
· Town and Board Capital budgets will remain flat
Revenue
· Non tax revenue will fall 4%
· Grants including ECS will fall 10 %
· Tax collection rate will be 98%
· Tax appeals, lower car sales and building activity will cause the net taxable grand list to grow by a mere 0.3%.
The net result of these marginal adjustments would yield an increase in expenditures of 3.8% coupled with a decrease in revenue of -8.8% causing a 1.56 mill increase or 6.7% increase in taxes. In the past the Board of Finance used the following budgetary guidelines to develop their recommendations to the RTM:
· Maintain the current level of existing services while refraining from adding new programs;
· Fund current and future liabilities;
· Preserve the undesignated fund balance so that it remains within the Board’s target of 9% of expenditures;
· Continue to invest in new vehicles and equipment to ensure continued service delivery;
· Preserve the Town’s investment in its properties and buildings;
· Continue to fund many capital items on a pay-as-you-go basis so as to limit the amount of outstanding debt;
· Maintain compliance with externally imposed mandates;
· Continue the investment in technology as evidence of Branford’s commitment to enhance municipal operations and service delivery.
The Finance Director acknowledged that these guidelines served the community well in the past and town leaders often shared these budgetary priorities with the rating agencies. However in the next few months the Board of Finance may wish to review these guidelines in an effort to reaffirm or amend them as we move into the 2009-10 budget cycle.
As a final note First Selectman Unk DaRos acknowledged that he would be reviewing all purchases over $250 with an eye toward reducing current expenditures. The Superintendent of Schools Dr. Halligan also stated that she is also taking a proactive approach to reducing expenditures.
Chairman Mooney thanked Finance Director Finch for his presentation and advice.
6. The Board of Finance heard a request from the Finance Director to establish a project expenditure account with Webster Bank for the receipt of funds awarded for the 2008 Small Cities Grant.
Mr. Cassella made the motion, seconded by Ms. Young.
RESOLVED: That the Board of Finance does hereby establish a project expenditure account with Webster Bank for the receipt of funds awarded for the 2008 Small Cities Grant.
The Vote was unanimous.
A motion to adjourn was made by Mr. Kaminsky, and seconded by Mr. Cassella. The vote was unanimous. The meeting adjourned at 8:50 p.m.
Dated this 29th day of September, 2008
Respectfully submitted,
Marianne Kelly, Clerk
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