Board of Finance Minutes
BOARD OF FINANCE
TOWN OFFICE BUILDING
40 OLD FARMS ROAD
WILLINGTON, CT ~06279
REGULAR MEETING MINUTES
Thursday, November 16, 2017
Members Present: Members Absent:
Jim Bulick, Chairman Annemarie Poole – Alternate
John Patton, Vice Chair Alternate - vacancy
Barry Wallett
Peter Tanaka
Robert Wiecenski
Laurie Semprebon
Also Present: Christina Mailhos, 1st selectman; Donna Latincsics, Business Manager; Tish Ignatowicz, Treasurer; members of the public.
Chairman Jim Bulick called the meeting to order at 7:03 pm, welcoming new member Laurie Semprebon. Laurie was elected and sworn in to fill a vacancy for two years.
Seating of Alternates – no alternates present
Approval of Minutes
John Patton motioned to approve the regular meeting minutes of October 19, 2017, Barry Wallett seconded. All were in favor, Peter Tanaka and Laurie Semprebon abstained, motion carried.
Present to Speak
Michelle Doucette Cunningham, Vice-Chairman Willington Board of Education, spoke about the TRB (Teacher Retirement Benefit, the $613,739 collected in anticipation of the required payment into the teacher pensions that never materialized). The Board of Education’s position is that the TRB payment should stay in the board of Education Budget and then be returned to the town at the end of the fiscal year .Their thinking was that it could be used to manage their budget risk (such as unexpected special education outplacements) should they occur. It would set a dangerous precedent if the money was returned to the town general fund now. Barry Wallet disagreed with this assessment saying there is considerable revenue risk right now from the State and we cannot be sure the funds committed to Willington will materialize. As of today, the State was reporting over $170 Million budget deficit.
Linda Miner, Navratil Road, asked about the cost to send students to EO Smith, and wouldn’t it be cheaper to send students to Windham Tech? John Patton explained that it depends and then went into detail explaining how Region 19 costs are divided among Willington, Ashford and Mansfield, and how technical high school options are handled. More detail can be provided by our Region 19 board of education representatives.
New Business
Financial Review of Revenues and Expenses based on the approved CT State Budget.
Donna Latincsics distributed the Budget Summary for the 2017-2018 Fiscal Year. With the most recent CT Budget Agreement, there will only be a shortage of $165,302. Review and discussion followed. It was determined that no mil rate adjustment is needed at this time.
Teacher Retirement Benefit (TRB) collected before the CT State Budget was passed. Can this be returned to the town now rather than at the end of the fiscal year?
Chairman Bulick started the discussion with the Board. There was concern that the TRB money collected could impact the Minimum Budget Requirement (MBR) formula and therefore it may be a good idea to return this back to the town sooner. Also, the town is trying to manage the risk of State Revenues not materializing as promised. Barry Wallett said he saw an article from CCM (Connecticut Conference of Municipalities) suggesting a mechanism may be available to return the money back to the town. The board decided more information is needed from CCM and the Town Attorney before we can proceed further.
Policy Regarding Year End Encumbrances.
Donna Latincsics distributed a draft copy of the policy for review. Discussion followed. The board had difficulty with the policy examples provided for acceptable encumbrances and unacceptable encumbrances. As it was written, it would have caused more confusion rather than guidance. Given that much more work is needed in developing a policy, our auditors had confirmed that our current controls are acceptable, the board decided not to develop an encumbrance policy at this time given the board’s perception of the work/benefit tradeoff.
Old Business
Annual Report for Fiscal Year July 2016 through June 2017 was due September 30. Reminders have been sent out to officials and department heads that still owe reports.
Willington Public School Facilities Study. Detailed handout binders for new board members are with Robin Campbell.
Correspondence
- Letter from Donna Latincsics on 8-Nov regarding LoCIP money to be unfrozen and new requests will now be accepted. Several CIP projects can now proceed.
- Letter from Lynda Breault regarding R19 district meeting on December 14. Time TBD.
- Letter from First Selectman Mailhos 2-Nov regarding memo from Secretary Barnes.
- Letter from Lisa Madden regarding tax collections and outstanding real estate bills.
- Letter from Donna Latincsics on 27-Oct regarding revenue estimates BOF agreed to when setting the mil rate and the newly approved CT State budget.
- Letter from First Selectman Mailhos 26-Oct regarding State Budget Update.
- Letter from Superintendent Jacoby regarding minor corrections to the regular minutes of 19-October. (Will ask architect to cost out possible use of Hall School for PreK-8).
- Various Annual Report emails. No response from Economic Development Commission or Historic District Commission.
- Letter from Donna Hardie clarifying terms. Regular member (to fill a vacancy) ends/start 7-Nov. All others end/start 21-Nov.
- Letter from Lynda Breault regarding R19 negotiations schedule.
GOOD & WELFARE
Chairman Bulick thanked John Patton and Geoff Prusak for their years of service to the Town on the Board of Finance. He added that he appreciated the opportunity to serve as the Board’s Chairman.
ADJOURMENT
The meeting was adjourned at 7:47 p.m.
Respectfully submitted,
Debra L. Lewis
BOF Recording Secretary