BOARD OF FINANCE
May 17, 2007
First Selectman's Office
Essex Town Hall

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

James Francis called the meeting to order at 7:30 pm.

Others present: First Selectman Philip Miller, Treasurer Robert Dixon, Park and Recreation Director Maria Warnagiris

Approval of Agenda

Motion was made Campbell Hudson to approve the Agenda with the addition of Voting Machine Storage under Old Business. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes:

Motion was made by Campbell Hudson to approve the April 19, 2007 minutes with one correction to page 8 the last sentence for item one, the sentence should read "Campbell Hudson complemented the Committee for the tremendous time they have spent and that he has great faith in the work they have done." Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. April Year-to-Date Update:

Treasurer Robert Dixon reported that for revenue we are approximately $220,000 ahead of budget, as opposed to the estimated $225,000 last month as a result of an adjustment to forecasted Town Clerk fees. For expenses we are $36,000 over budget that has a revenue offset due to the pumpout boat. Mr. Dixon stated that the legal fees need to be closely monitored. Mr. Dixon indicated that for the month of May we had $30,000 for the Regional Recycling fee.

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

B. Appointment of Auditor:

Treasurer Robert Dixon stated that he is satisfied with the current auditors Carlin, Charron & Rosen. There was discussion as to their fees.

Motion was made by Keith Crehan to appoint Carlin, Charron & Rosen LLP as the Town of Essex auditors for 2006-2007 at a fee not to exceed $40,000--$2,500 for a single audit, $7,500 for the Essex Elementary School and $30,000 for the Town. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

C. School Financial Reports:

Treasurer Robert Dixon reported that he received reports today. It appears that the Elementary School is running $71,000 favorable and the Region $86,000 favorable. There was discussion that the Region has receive greater than anticipated Education Cost Sharing funds which offset shortfalls in many other areas.

Selectmen's Topics:

Philip Miller provided the Board with the following updates:

• The 4th restroom stall is complete downtown with donations from the merchants. There may be a budget quandary because he would like to increase the wages of the person who cleans because she has one more to do. It may impact the budget by up to $2,000 next year. The Board of Finance requested that Phil inquire of the merchants if they may want to participate in the funding.
  
• Viney Hill Brook Park is moving forward Cliff Rhodes and Bob Doane have been working on the project.
  
• The Essex Elementary School Project site work was rebid. Budget provided for $650,000 the first bid round amount was $950,000 the second bid round came in at $848,000.
  
• He is working on a possible open space project with the Essex Land Conservation Trust and will keep the Board informed.

Maria Warnagiris the Director of Park and Recreation was in attendance at the meeting. She reviewed with the Board issues with regard to the Grove Street Park Tennis Courts. As a result of nature and time, there are heaves and cracks that are dangerous. Park and Recreation has closed the courts until such time as they can be properly repaired. The company she is working with is one that comes recommended by Bruce Glowac. The Commission budgeted $4,050 in next year's budget for repairs, however that will not be enough for proper repair or for funding. They have received a quote for $13,000 which includes $5,400 for cracks, $1,000 for net footing and $6,600 for color coding stripping. Treasurer Robert Dixon recommended that the repairs be completed now and not wait until next year.

Motion was made by Keith Crehan to transfer an amount not to exceed $13,000 from the Contingency Fund (10409-508400) to the Park and Recreation Tennis Courts account (10416-505600-508). Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Campbell Hudson inquired about the status of the road budget for the 2006-2007 fiscal year. He asked for follow-up on what roads would be completed in the current and next fiscal year.

Motion was made by Campbell Hudson to move New Business before Old Business on the Agenda. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

New Business:

A. Set Mill Rate for 2007-2008:

Treasurer Robert Dixon reported that there were three different scenarios or opportunities for the mill rate.

1. 16.7 with no increase to the undesignated fund - a 3% increase.
2. 16.8 to adjust for reductions in anticipated grants, and additional interest expense of $31,500 due to the higher bond debt, with no increase to the undesignated fund - a 4% increase
3. 16.9 to include #2 above plus approximately $100,000 to the undesignated fund - a 4.3% increase

There was discussion regarding the undesignated fund balances as it relates to bond rates. Mr. Dixon does not believe a 8.3% to 9.2% undesignated fund balance to budget is sufficient enough to be out on the bond market. Mr. Dixon anticipates going out to bond in July or August.

Motion was made by Keith Crehan to set the mill rate for the 2007-2008 fiscal year at 16.9. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

James Francis stated that we have been very carefully building the undesignated fund balance and that he does not believe we will need to build it as much in the future.

Campbell Hudson stated for the record that we have been following a plan to build up to 10% and that we are close to the end of that goal and that we have pursued a prudent part of the plan.

Old Business:

A. Voting Machine Storage:

James Francis stated that additional funds are need to build the appropriate voting machine storage area. The Board has already appropriated $6,000 for the storage area and an additional sum of approximately $715 is required to complete properly..

Motion was made by Campbell Hudson to appropriate an amount not to exceed $1,000 from the Contingency Fund to be included with the previously appropriated $6,000 for voting machine storage. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Keith Crehan to adjourn at 8:53 pm. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk