MEETING MINUTES
June 29, 2009
The meeting was called to order by Chairman Joseph Mooney at 7:46 p.m. Also present were Victor Cassella, Jeffrey Vailette, Charles Shelton, Lorraine Young and Kenneth Kaminsky.
Also present were First Selectman Anthony ‘Unk’ DaRos, Finance Director Jim Finch and Town Clerk Marianne Kelly and Bond Counsel Attorney Joseph Fasi.
1. Approval of the minutes of the Board of Finance meeting from May 18 and 20, 2009.
Mr. Kaminsky made the motion, seconded by Mr. Vailette. The vote was unanimous.
2. The Board of Finance heard a request to act on the following resolution from the Fire Department:
A resolution appropriating $525,000 for the purchase of a new Ladder Truck and authorizing the issue of $525,000 bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose.
And to recommend the resolution for adoption by the Representative Town Meeting.
Mr. Cassella made the motion, seconded by Mr. Kaminsky.
Chairman Mooney read the resolution as prepared by the Town’s bond counsel.
Chief Ahern updated the Board by noting that the original aerial unit was purchased in 1988 and that the department recently encountered an opportunity to purchase a demonstration model for approximately $709,000 excluding the trade in. In addition the Chief noted that the vehicle under consideration would not be subject to the new federal emissions standards. The Chief accompanied by Fire Commissioner LaCroix and Assistant Chief Heffernan reported that the demonstration model would fulfill their needs. The Board discussed the vehicle replacement plan with Jim Finch, Finance Director and the Chief. The current plan indicated that once this unit is purchased no major acquisitions are planned until a number of years out. In addition Mr. Finch noted the plan as distributed could be executed with a smaller appropriation
provided the Board of Selectman waive the bid requirements and purchase the aerial unit. Despite continued concerns about the economy and the outcome of the Tabor Drive Case, the Board ultimately considered the financial benefit of purchasing this unit at a significant discount.
Mr. Cassella moved to reduce the appropriation and bond authorization to $325,000, contingent upon approval of the Fire Commission, which was seconded by Mr. Kaminsky. Further discussion revealed that the need was actually $300,000.
Mr. Cassella withdraw his motion and made a motion to reduce the appropriation and bond authorization to $300,000, contingent upon approval of the Fire Commission, which was seconded by Mr. Kaminsky.
RESOLVED: That the Board of Finance recommends to the RTM an appropriation of $300,000 for the purchase of a Ladder Truck and authorizing the issue of $300,000 bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purchase.
Pursuant to a motion made by Mr. Cassella and seconded by Mr. Kaminsky, the resolution passed unanimously.
3. The Board of Finance heard a presentation from Finance Director Jim Finch, and Town Bond Counsel Atty. Joseph Fasi, regarding Other Post Employment Benefit (OPEB) Trust, and authorizing the Chairman of the Board of Finance to execute the Trust.
Atty. Fasi explained that CGS authorizes the creation of trusts to manage OPEB money. This money accumulates over time and in a manner that is not taxed by the federal government. A Board of Trustees is created and empowered to manage funds. In this case, the Board of Finance will be the Board of Trustees, and similar to the management of the Town’s pension funds, the Board of Finance governs what will be done with these funds. The Trust agreement is between the Town and The Board of Trustees, whereby the Board of Finance will act and sign on behalf of the Trustees and the 1st Selectman will act and sign on behalf of the Town. The issues identified by Board members were how bonding will be handled, who receives and invests money, and how communication between the Town and Board of
Trustees will be handled.
Mr. Cassella made a motion to execute the Trust with the appropriate changes, seconded by Ms. Young.
RESOLVED: That the Board of Finance recommends to the RTM the establishment of an ordinance creating an Other Post Employments Benefits Trust.
The vote was unanimous.
4. The Board of Finance heard a request from the Finance Director to approve the rebalancing of the pension fund, as recommended by the Town’s Investment Consultants.
Finance Director Jim Finch reported that, on the advice of the Town’s investment consultants, a reallocation of funds was recommended. Chairman Mooney stated that it is important to continually examine our risk tolerance and rebalance the portfolio as necessary. The Town will use the new year (FY10) contribution to achieve the following asset allocation:
Asset Class Allocation %
Cash 5.0
Equity 39.88
Fixed 55.12
Pursuant to a motion made by Mr. Vailette and seconded by Mr. Cassella, the reallocation passed unanimously.
5. The Board of Finance heard a request from the Town Clerk for the following transfer:
From: 101-4108-408.54-01 Membership & Meetings ( 300)
To: 101-4108-408.58-01 Training & Education 300
Mr. Cassella made the motion, seconded by Ms. Young.
RESOLVED: That the Board of Finance recommends to the RTM a transfer of $300 as requested by the Town Clerk.
The vote was unanimous.
6. The Board of Finance heard a request from the Town Clerk for the following transfer:
From: 101-4101-401.58-01 Training & Education (1,150)
To: 101-4101-401.52-01 Ordinances 1,150
Mr. Cassella made the motion, seconded by Ms. Young.
RESOLVED: That the Board of Finance recommends to the RTM a transfer of $1,150, as requested by the Town Clerk
The vote was unanimous.
Mr. Cassella made a motion to adjourn, seconded by Mr. Kaminsky. The vote was unanimous.
The meeting adjourned at 9:05 p.m.
Dated this 7th day of July, 2009
Respectfully submitted,
Marianne Kelly, Clerk
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