BOARD OF FINANCE
June 21, 2007
First Selectman's Office
Essex Town Hall

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

James Francis called the meeting to order at 7:02 pm.

Others present: First Selectman Philip Miller, Treasurer Robert Dixon

Approval of Agenda

Motion was made Joel Marzi to approve the Agenda with the addition of Selectmen's Topics-Item C-Small Cities Grant and an Executive Session for the purpose of Pending Litigation after New Business. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes:

Motion was made by Joel Marzi to approve the April 11, 2007 Regular Meeting Minutes. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Campbell Hudson to approve the May 17, 2007 Regular Meeting Minutes with one correction on page 2, Item C-School Financial Reports-third line should read received. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. May Year-to-Date Update:

Treasurer Robert Dixon reported that we are realizing a drop in interest revenue inasmuch as we are expending funds for the school project and cannot charge the loss of interest to the school project. Mr. Dixon indicated that we are in good shape and that he forecasts finishing the year with an increase in the undesignated fund of approximately $300,000.

Motion was made by Keith Crehan to accept the Treasurer's Report. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

B. School Financial Reports:

Treasurer Robert Dixon reported that the Essex Elementary School is forecasting $52,000 ahead with some items questionable with offsets for a net of approximate $42,000 ahead. The savings are attributed to $35,000 from Education Cost Sharing and $12,000 in lower out of district tuition with offsets to some overtime charges for packing and moving.

There are no regional financial statements at this point in time.

C. Bank Resolutions:

Motion was made by Keith Crehan to authorize the Treasurer to invest any portion of the General fund as specified amounts that may be available in direct obligation of U.S. or certificate of deposit or specified regular savings account for the fiscal year 2007-2008; to approve Bank of America, Essex Savings Bank, M.B.I.A., Liberty Bank, New Alliance Bank, Citizen's Bank and the State of Connecticut Short Term Investment Fund (STIF) as depositories for investments and for regular checking accounts for the fiscal year 2006-2007; and to approve various banks as depositories for the Town of Essex investments and for regular checking accounts, Bank of America, Essex Savings Bank, M.B.I.A., Liberty Bank, New Alliance Bank, Webster Bank, Citizen's Bank and the State of Connecticut Short Term Investment Fund (STIF), for the fiscal year 2007-2008. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

D. Budget Transfer Requests:

Treasurer Robert Dixon stated that there were two transfers that were required one for the Planning Commission and one regarding Capital/Sinking Funds. Mr. Dixon stated that the Planning Commission was looking to transfer in the 2006-2007 budget year from traffic services to planning services in the amount of $16,000. Mr. Dixon stated that they would be contracting for services for those funds and would be encumbering in the 2006-2007 budget year. Joel Marzi stated that he supports the $16,000 transfer that would provide for planning services and ultimately free up some of the Zoning Enforcement Officer Marian Staye's time. There was discussion regarding monitoring the services and evaluating their outcome.

Motion was made by Campbell Hudson to transfer $16,000 from the Planning Commission, Traffic Studies account (10411-503275-377) to Planning Commission, Miscellaneous Planning Services account (10411-503275-379) for the fiscal year 2006-2007 budget. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Mr. Dixon reported that when the 2006-2007 budget was prepared $30,000 was approved for the capping of the landfill and $30,000 was approved for the Septic Lagoon closure. At the time the budget was prepared these items were allocated under Capital Municipal Property Improvements; however, the funding will be spread over more than one year and will require a Sinking Fund scenario. Mr. Dixon stated that a transfer would be required of these funds in order that they not be turned back into the general fund at the end of the fiscal year.

Motion was made by Keith Crehan to transfer $30,000 from the Municipal Property Improvements, Landfill account (10496-508800-897) to the Sinking Fund Allocation, Landfill account (10496-508350-897) for the fiscal year 2006-2007 budget. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Keith Crehan to transfer $30,000 from the Municipal Property Improvements, Septic Lagoon Closure account (10496-508800-896) to the Sinking Fund Allocation, Septic Lagoon Closure account (10496-508350-896) for the fiscal year 2006-2007 budget. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Mr. Dixon distributed the presentation that was prepared for the bonding agencies. Mr. Dixon reported that they had met with Moody's and First Southwest on Tuesday and that it went very well. Mr. Dixon noted that during the process the agencies informed us that the national average for the undesignated fund balance is 20% of the operating budget.

Selectmen's Topics:

A. Tree Committee Sinking Fund Request:

Philip Miller reported that the Board of Selectmen had approved a request from the Tree Committee in the amount of $870 from their Sinking Fund.

Motion was made by Keith Crehan to recommend to Town Meeting the appropriation of $870 from the Tree Committee Sinking Fund. Campbell Hudson seconded the motion and it as unanimously approved. Motion carried.

B. Tree Work Funding Request:

Philip Miller reported that Board of Selectmen at their last meeting had approved a recommendation to the Board of Finance in the amount of $6,000 for tree work to be done surrounding Town Hall. Mr. Miller indicated that in the event of an emergency event, such as a storm, the Town Hall would be the emergency headquarters. Mr. Miller would like to prevent tree damage to Town Hall and indicated that are problematic trees surrounding the building. Tree Warden August Pampel evaluated the trees needing attention and received a quotation for the work in the amount of $6,000. Campbell Hudson stated that he would have preferred that this had been a budgeted item and not a request for a special appropriation.

Motion was made by Keith Crehan to transfer an amount not to exceed $6,000 from the Contingency Fund (10409-508400) to the Highway Department, Building Maintenance and Repairs account (10450-505150). Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

C. Small Cities Grant:

Philip Miller reported that the Essex Court Small Cities grant is moving along and that there is a requirement for some architectural fees not provided for in the budgeting and bid packages. Wagner Associates had foreseen architectural services necessary for paving and grading only and had budgeted accordingly. CHFA wants architectural services for the other three portions; roofs, doors and windows, hence the need for monies beyond the $600,000 scope. Mr. Miller reported that John Beveridge, a resident and architect has agreed to do the architectural work CHFA is requiring at a reduced rate of $2,500. Mr. Miller indicated that the Housing Authorities reserve is approximately $9,000.

Motion was made by Keith Crehan to approve the expenditure of an amount not to exceed $2,500 from the Contingency Fund (10409-508400) for architectural services for Essex Court in accordance with the Small Cities Grant. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Joel Marzi stated that a contract should be required from John Beveridge for the scope of the work.

Old Business: None

New Business:

A. 2006-2007 Annual Report:

Cindy Varricchio reviewed the Annual Report process with the Board. There was discussion with regard to deadlines and schedules, past dedications and the submission process. Ms. Varricchio provided the Board with a draft submission form that could be distributed to the various departments, boards and commissions and community groups. There had been a desire in the past to limit submissions to approximately 400 words. The drafted submission form is a form that contributors can type directly into and limits them to approximately 400 words. The following schedule was reviewed:

Annual Report Schedule/Deadlines

The goal of the schedule is to set in place mechanisms to avoid confusion and to ensure all the necessary steps are taken. The Board discussed who would be preparing the report and determined they would make that decision at their next meeting. Ms. Varricchio stated the purpose of presenting the information this evening is to start the process.

Motion was made by Keith Crehan to start the Annual Report process and to issue a memo with the submission information to all contributors. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Fred Vollono to recess regular session. James Francis seconded the motion and it was unanimously approved.

Respectfully submitted,

Cindy Varricchio

Motion was made by Campbell Hudson to enter Executive Session for the purpose of Pending Litigation. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.
EXECUTIVE SESSION

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

Invited Guests: First Selectman Philip Miller

Motion was made by Campbell Hudson to exit Executive Session. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Campbell Hudson to adjourn at 8:35 pm. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted

James D. Francis
Chairman
Board of Finance