BOARD OF FINANCE
Meeting Minutes
November 15, 2007
Treasurer's Office
Essex Town Hall

Present: Jim Francis, Joel Marzi, Keith Crehan, Campbell Hudson.

James Francis called the meeting to order at 7:00 pm.

Others present: Treasurer Robert Dixon, First Selectman Philip Miller, newly elected Board of Finance Member Lee Rowley, Selectman Norman Needleman, Essex Ambulance Chief of Service Judith Reynolds, Essex Fire Department Chief Paul Fazzino and other members of the public.

Annual Report Dedication-Essex Ambulance Association

James Francis presented the 2006-2007 Annual Report dedicated to the Essex Ambulance Association to Judith Reynolds the Chief of Service. Mr. Francis spoke to the good services of the Ambulance Association.

Approval of Agenda

Motion was made by Campbell Hudson to approve the agenda with the addition of New Business, Item A-Invoices. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes

Motion was made by Campbell Hudson to approve the special meeting minutes of October 25, 2007 with the addition of the follow sentences on page three, Item D-Clerical Assistance Request under Selectmen's Topics, at the end of the first paragraph "There was discussion as to whether the need for clerical assistance was an immediate need or if the implementation of additional clerical assistance could wait until the next budget year. The Board concurred, based upon the information presented, that the need was immediate." Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Campbell Hudson to amend the September 20, 2007 minutes, page two Item B-Vision Appraisal under Selectmen's Topics to strike the first paragraph and replace it with the following text: "Philip Miller introduced Assessor Jessica Graves and Vision Appraisal representative Steve Ferreira. Mr. Ferreira reported that he did a quick comparison of current assessments to recent sales. There were 89 single family sales, which represents 3.8% of the single family homes town-wide, historically this number is closer to 2% to 2.5%. Based on this current data single family homes are assessed at only 58% of what they have sold for, on average. This would indicate that single family homes are looking at a 20% to 21% increase in assessment to get them to the statutorily required 70% of market value, however the data they will rely on is October 1, 2008. Mr. Ferreira acknowledged that the market is slowing down." Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. Estimated October Year-to-Date Update:

Treasurer Robert Dixon reported that the budget is tracking well. There is an opportunity for property tax revenue for approximately $20,000 as a result of a property tax audit. Building permit revenues are up. He is carefully monitoring legal expenses. The State bonding has been approved. The Town has not yet received any funds, the interest income loss until we receive reimbursement is approximately $10,000 per month.

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

B. School Financial Reports:

Robert Dixon reported that they are making progress on the MUNIS system. They did not budget for the cost of the post-retirement study for new GASB regulations. They have not yet spent the $50,000 budget for renovation items. Joel Marzi indicated that there will be additional expenses.

Mr. Dixon reminded everyone that the Annual Town Meeting is next Monday, November 19th at 7 pm.

Selectmen's Topics:

A. Sinking Fund Request-Fire Department:

Philip Miller reported to the Board that the Fire Department is requesting the appropriation of Sinking Funds for the purchase of a new pumper truck. The present pumper truck is a 1983 Mack. Keith Crehan asked what the Department would be doing with the Mack once the new truck is received. The answer was to sell it. Chief Paul Fazzino stated that the pumper truck is the last piece of equipment in the ten year plan. Assistant Chief Steve Olsen informed the Board that the Committee worked two years on the truck specifications in order to put out to bid. The winning bidder is Crimson Fire Apparatus of North Brandon, South Dakota. There is an opportunity for a prepayment of $181,709 which will save approximately $6,500 on the purchase price. Treasurer Robert Dixon reported that he had calculated the loss of interest income in comparison to the savings on the purchase price and the amount is about the same, Mr. Dixon recommended the prepayment. Mr. Dixon inquired as to what they anticipate on selling the 1983 Mack truck for. Chief Fazzino responded from between $10,000 to $40,000, and that he believes they will do sealed bids when they do sell. Mr. Dixon stated that there was an opportunity for approximately $25,000 to then be deposited into the Fire Department Sinking Fund.

Chief Fazzino reported that the bid package did not include the large diameter supply hose. The Department will also need to purchase the hose. The approximate cost for hose is $575 per 100 ft, with an anticipated purchase of 2,800 to 3,000 feet. Joel Marzi inquired as to the anticipated life span of the truck. Chief Fazzino responded 20 years. Keith Crehan inquired about the lighting. Chief Fazzino stated that would come from Whelan and that the lighting and radio systems would be shipped to the manufacturer for installation. Campbell Hudson inquired about the prepayment and the potential of a financial risk to the Town. Chief Fazzino stated that there will be a performance bond in place for the entire purchase price of the truck.

James Francis recommended to the Fire Department that as they are winding down their 10 year plan, and proceeding with the next 10 year plan that they look to revise at the five year mark taking into consideration inflation. Chief Fazzino responded that the Department hopes to meet with the Board of Selectmen in the near future to begin review of the proposed next ten year plan.

The Sinking Fund balance is $426,329. The price of the truck, including the prepayment discount is $404,012 with the additional cost of hose at approximately $17,500.

Motion was made by Campbell Hudson to recommend to Town Meeting an appropriation not to exceed $426,329 for the purpose of purchasing a 2008 pumper truck for the Essex Fire Department from Crimson Fire Apparatus, said appropriation to include the prepayment of $181,709 to Crimson Fire Apparatus, the purchase of approximately 3,000 feet of large diameter supply hose, as well as the requirement that the proceeds from the sale of the 1983 Mack pumper truck are deposited into the Essex Fire Department Sinking Fund. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

OLD BUSINESS: None

NEW BUSINESS:

Campbell Hudson stated that tonight is the final meeting of Board member Keith Bolles. Mr. Hudson stated that the entire Board appreciates his contributions over the last six years and that he wanted to formally thank and compliment Mr. Bolles on behalf of the Board.

Motion was made by Campbell Hudson to send a letter to Keith Bolles thanking him for his service and contributions to the Town. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

A. Invoices:

Motion was made by Campbell Hudson to approve the expenses for the Annual Report dedication in the amount of $40.29. Keith Crehan seconded the motion and it was unanimously approved. Motion carried.

Communications and Correspondence: None

Public Comment: None

Motion was made by Keith Crehan to adjourn at 8:30 pm. Campbell Hudson seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk