BOARD OF FINANCE
February 21, 2008
First Selectmen's Office
Essex Town Hall

Present: James Francis, Keith Crehan, Campbell Hudson, Joel Marzi, Lee Rowley, Fred Vollono.

James Francis called the meeting to order at 7:11 pm.

Others present: Deputy Treasurer Kelly Sterner, First Selectman Philip Miller

Approval of Agenda

Motion was made by Fred Vollono to approve the Agenda. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes

Motion was made by Fred Vollono to approve the January 17, 2008 meeting minutes with the following corrections, page 11, beginning of fourth paragraph should read "Jon Samburg stated his…" and last sentence of the same paragraph should read "Dr. Samburg asked how can we not host this program"; page 12, beginning of third paragraph should read "Mr. Hudson indicated that from a purely financial standpoint it does make sense to approve this program at Essex Elementary School provided that there is…".Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. Estimated January Year-to-Date Update:
B. School Financial Reports:

Deputy Treasurer Kelly Sterner reported that Tax Revenues are at 88.9% of budget and 85.2% of billed. It is anticipated that the collection will exceed budget for this fiscal year. There may be an additional downward adjustment to anticipated Town Clerk fees due to a substantial decline in the rate we are earning on our investment account. We are now investing in a 90-day flexible CD with an interest rate of 2.86%. The expenses are running pretty much the same as last month. There will be an adjustment to the general insurance forecasted expenditures to reflect two individuals receiving workers' compensation at this point. They are both union employees where the Town pays at full wage and receives the 60% reimbursement from insurance. We have not hired a Director of Health so there are savings there. Sanitary Waste Commission will go over on the Household Hazardous Waste line because of the usage by our residents, however, the overall Sanitary Waste Commission is expected to remain within budget. The Legal Budget has approximately $15,049.24 remaining. There is a savings for SEC filings. The Zoning Commission has outstanding litigation. There was discussion with regard to the OPEB study that is required and that the Elementary School budget does not provide for the study. There was discussion with regard to the $50,000 budgeted for costs associated to the construction project and the status of funds spent to date.

Selectmen's Report:

Philip Miller reported that on the following:

• The Preserve: the trial court agreed with Essex and upheld the Old Saybrook Wetland Commissions' decision denying River Sound's application to conduct regulated activities. The Court found that there was not only substantial evidence in the record of adverse impacts to the wetlands but also that River Sound failed to demonstrate that there were no feasible and prudent alternatives with less wetland impact. The Judge specifically focused on the potential to shorter or reduce the golf course and to cluster some of the proposed estate homes.
  
• Essex Court: The project is well received by the residents. Paving and grading will begin this Spring.
  
• STEAP Grant Application: The finishing touches are being completed for the grant application for the Main Street boat launch, public access on Novelty Lane and 1,000 feet of sidewalk in Ivoryton.
  
• Main Street Park: Restitution has been made in full for the incursion. Mr. Miller working with the Garden Club to facilitate the restorative planting.
  
• Essex Land Conservation Trust Tax Waiver Request: The Board of Selectmen voted unanimously to recommend to the Board of Finance the tax waiver request of the Essex Land Conservation Trust in the amount of $1,428.22 for the recent purchase of the Land Trust of the Platt Property. The waiver requires Board of Finance and Town Meeting approval. James Francis suggested that at Town Meeting there be a timeline of the taxes owed so that it is very clear to those in attendance at the Town meeting.

Motion was made by Campbell Hudson to recommend to Town Meeting the tax waiver request of the Essex Land Conservation Trust in the amount of $1,428.22 for the recent purchase of the Land Trust of the Platt Property. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

There was discussion with regard to the upcoming 2008-2009 Budget process and the proposed implementation of an Enterprise Fund for Park and Recreation. Enterprise Funds may be used for those services provided by a government which are intended to be fully or almost fully self supporting by charging a fee to the users of the services. By removing all but the subsidy from the General Fund, the operations of the enterprise fund are reported similar to a private business. The presentation of income and related expenses highlights the extent to which the program supports itself. Additionally, this allows for significant growth in the enterprise fund program without distorting the general fund budget. The Board would like information from Town Counsel as to how to implement and whether an ordinance is required or an amendment to Park and Recreation ordinances are required.

The Board requested that an agenda be posted for the Board of Finance at the March 5, 2008 Board of Selectmen meeting to provide both Boards the opportunity to discuss the budget together. There was discussion with regard to sinking funds for the Elementary School roof.

There was discussion with regard to the increasing costs for employee medical insurance. The Board has requested that a review of past insurance costs and how the plan is implemented regionally be conducted. Keith Crehan volunteered to participate in the review.

Motion was made by Keith Crehan to adjourn at 8:55 pm. Lee Rowley seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk