GOSHEN BOARD OF FINANCE
MINUTES SPECIAL MEETING
MAY 26, 2010
CALL TO ORDER: Chairman Allan D. Walker called the meeting to order at 7:30 P.M.
ATTENDANCE: Allan D. Walker, John D. Garvey, James Korner, alternates Dexter Kinsella and Wilrose Duquette. Excused absence Ned Bixler. Absent Scott Tillmann. Donald Pardon joined the meeting at 8:20 P.M. Also present was First Selectman Robert Valentine.
Presented to the Board for review from the Fiscal Office were the Town of Goshen Year-end projections as of May 25, 2010 along with Revenue Estimate for the same period which detailed how each tenth of a mil increase would increase the amount needed to be collected in taxes.
Under the Year-end projections, Robert Valentine noted the Board approved amount of $650,974.00 to be used from Fund Balance for the 2009/2010 Fiscal Year. The estimated amount of fund balance to be used at this time for fiscal year ending 6/30/2010 is $355,389.49 leaving a year end dollar under budget estimate of $295,584.51 that will not be expended under the 2009/2010 budget. It was stressed that these are estimate numbers, the Revenue will be greater than anticipated and the expenditures will be substantially less that budgeted,
leaving a year-end Fund Balance of 1.8 million or 18%.
The Board reviewed the spread sheet showing the Revenue Estimate which detailed each tenth of an increase in the mill rate to meet the proposed budget thus reducing the amount to be used from fund balance. Robert Valentine spoke of the conservative measures taken by the Board in the past to keep a healthy fund balance and the reason for taking that stand. Noting caution has been taken on both the Tax Revenue side as well as caution on the budgeting of receipt in State Revenue. The Public Works line item for winter snow removal is also base on estimated cost and a favorable winter can lower that expense. Financial Consultant Debbie Franklin looks at the actual numbers and amortizes out over a twelve month period what the estimated expense will be. Robert Valentine next reviews those numbers based on experience for
the past six years to see where the budgets are going with one month left in the fiscal year and If necessary, will speak with the Department heads relative to year end numbers.
SEATING OF ALTERNATE: Allan Walker reported that he had heard from Ned Bixler who informed him that he would be late but would be there for and after the Town Meeting. A MOTION WAS MADE BY John D. Garvey seconded by James Korner to seat Alternate Dexter Kinsella as a regular member. No discussion, SO VOTED. A MOTION WAS MADE BY John D. Garvey seconded by Dexter Kineslla to seat Alternate Wilrose Duquette as a regular member. No discussion, SO VOTED.
Discussed was the tenth of a mil increase vs. the use of surplus and the reasonable percentage to keep in surplus.
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A round table discussion was held with each board member present stating their position at this time relative to any increase in the mil rate vs. use of surplus dollars. Wilrose Duquette stated that in his opinion the mil rate would need to be increased to a level that would not, if at all possible, result in a tax increase for the 2011/2012 fiscal year and even with the use of some fund balance still be able to maintain a healthy fund balance of 10% to 12%,. John D. Garvey stated that his position was to split it down the middle with use of mil increase and use of Fund Balance to equal out the budget, thus keeping a healthy fund balance while not putting a big burden on the taxpayers. James Korner stated that he feels the Town cannot keep dipping into the till. Expenses keep going up, money is required to meet the budget
therefore there needs to be a substantial mil increase to meet the budget. Dexter Kinsella took the opposite position stating that if a mil increase is needed, that it be kept as minimal as possible. He does not feel it is fair to ask taxpayers for money for projects that are not going to be done during the budgeted fiscal year. Robert Valentine noted the unknown variables in State Revenue Dollars and the variables in budget increases. There needs to be an increase in the mil rate. With the continued cost of doing business, the Town cannot continue to cut spending for major projects and will find it very difficult to continue to come in with a no increase budget next year. Chairman Allan Walker stated that his position was that of minimal mil increase along wirh minimal use of Fund Balance.
RECESS: The Meeting recessed at 7:49 P.M. to allow for the Board Members to attend the Town budget Meeting.
RECONVENE: The meeting reconvened at 8:20 P.M. In attendance at the reconvened session was Board Member Donald Pardon, selectman Thomas Breakell, John McKenna reporter for the Republican/American and Henry Moore reporter for the Register Citizen.
Chairman Allen D. Walker under opening comments noted the unanimous passing of the proposed Town Budget 2010/2011 proposed budget. Finance Board members present were again asked to give any further thoughts on the setting of the mil rate and use of Surplus.
Dexter Kinsella stated that in his opinion, minimal mil increase was needed and would support a ½ mil increase. James Korner believes a higher increase is needed and would recommend a least a 3/4 mil increase. John D. Garvey continued to support 6 tenth of a mil increase, with 50% being taken out of Fund Balance. Wilrose Duquette continued to worry that there is no light at the end of the tunnel and feels that an 8 tenth of a mil increase would leave a healthy fund balance. Donald Pardon felt the need for a one mil increase. There was no further discussion on the setting of the mil rate.
SETTING OF MILL RATE: A MOTION WAS MADE BY John D. Garvey seconded by Donald Pardon to raise the mill rate by 6 tenth of a mil, setting the Mil Rate for Fiscal Year July 1, 2010-June 30, 2011 at 15 mils. Under discussion on the motion it was made clear that with a 15 mil rate
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for 2010/2011 it would be necessary to us approximately $400,000.00 from undesignated fund balance to offset the 2010/2011 budget leaving between a 14% - 15% undesignated fund balance. Not wanting to go for a major tax increase of 2011/2012 both James Korner and Wilrose Duquette felt that a 15.2 mil rate was needed. There was no further discussion on the motion. Voting in favor of the motion were John D. Garvey, Dexter Kinsella, Donald Pardon and Allan D. Walker, voting against were James Korner and Wilrose Duquette. MOTION CARRIED.
The Mil Rate for Fiscal Year 2010/1011 was set at 15 Mils.
There was no other business to come before the meeting. A MOTION TO ADJOURN WAS MADE BY James Korner seconded by Wilrose Duquette. The meeting adjourned at 8:28 P.M.
Respectfully submitted,
GOSHEN BOARD OF FINANCE
Joan M. Lang, Board Clerk
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