Board of Finance Minutes - September 14, 2006

Board of Finance

Meeting September 14, 2006

8:00 PM Town Hall, Commission Room

Board Members Present: Messrs. Muller, Atkinson, Chairman Gerald Sargent, Nichols, O’Brien and Ms. Kopas. Also present were Town Administrator Tom Landry, Superintendent of Schools Dr. Lynne B. Pierson, Finance Director Rick Darling, Director of Finance & Operations (Schools) Dr. Joanne Keating, Building and School Building Committee Chairman Richard B. Wolf, Board of Education Chairman Ellen H. Uzenoff, Board of Education Member Les Wolf, Brian Gioiele from the Weston Forum. and Secretary Donna M. Anastasia.

1) Review and approval of minutes of June 13^th and July 13^th, 2006.

The approval of the June 13 and July 13 minutes have been postponed until

final drafts have been completed. Item moved to October meeting.

2) Review of June 2006 and July 2006 cash position – Diane Hartman

Diane Hartman gave an overview of the current cash/investment position.

				Amount	% to Budget
Interest Budget 2005-06				1,000,000
				.
Interest Earned Year-To-Date				93,073	9.3%

Estimated Interest To Be Earned 2005-06				1,000,000	100.0%

	Risk		% of	Interest	#
Bank/Fund	Ratio %	Investment $	Total	Rate	Days

MBIA Class	n/a	6,796,122	18.1	4.88	available daily
State Invest Fund	n/a	11,345,426	30.3	5.339683	available daily
State Invest Fund - Bond Funds	n/a	5	0.0	5.339683	available daily
JPMorgan Chase Money Market	16.22	6,150,111	16.4	5.02	available daily
JP MorganChase Lock Box	16.22	1,336,386	3.6	0	available daily
Wachovia/First Union	11.47	1,195,429	3.2	4.99	available daily
Wachovia Bond/Ban Fund	11.47	2,320,271	6.2	various
Bank of America	0.00	256,829	0.7	Sm Accts	available daily
Bank of America Money Market		9,087	0.0	2.73	available daily
TD Banknorth, N.A.	11.37	923,569	2.5	Sm Accts	available daily
TD Banknorth, Money Mrkt	11.37	5,386,674	14.4	5.05	available daily
TD Banknorth CD	11.37	48,766	0.1	3.50	275 DAYS
TD Banknorth Bond Fund	11.37	41	0.0	5.05	available daily
Peoples	16.40	51,815	0.1	1.5	available daily
Ridgefield Bank	11.05	1,637,709	4.4	5.35	available daily
Ridgefield Bank Bond funds	11.05	8	0.0	5.35	available daily

Total		37,458,247	100.0

3) Discussion and recommendations on investment policy – Diane Hartman

Discussion regarding tax collection net of deferment and abatement is approximately 99%. Timing depends on the lock box. There is a big volume at the end of July however a more accurate figure would be the end of August. August reflected an additional 4.7 million in the lock box. Approximately 53% is collected in July.

Discussion regarding the recommendations on future investments. Ridgefield Bank now known as Fairfield County Bank is discussed. Asset size or deposits depending on the institution, thrifts having higher deposit-asset ratio than commercial. Yield being the third element after safety and liquidity. Capital on liquidity ratio of a bank would also be a safety measure. State statute limits levels of capital and where funds can be invested. In addition there is also some value in small local institutions, adding diversity and goodwill. Currently Fairfield County Bank and TD Banknorth hold some accounts in turn contribute to the community. There is discussion regarding the risk factor of small banks.

Mr. Sargent suggested a table of the measurements by which the board would judge appropriate investing; asset size, total deposits for both banks and thrifts. If there is a deposit rating (Fitch or S&P) would be included. A proposed percentage investment for each would be helpful.

Follow-up: Diane Hartman to prepare a chart and recommendation including numerical and rating data and recommendations recognizing safety, liquidity and yield to be discussed at the next meeting.

4) Review of Special Funds Policy status and compliance progress – Rick Darling

Discussion with Mr. Darling concerning the status of Special Revenue fund accounts and auditing recommendations concerning these accounts. Letters were sent to department heads regarding Special Funds accounts and three department heads responded. It is recommended by Mr. Sargent that the board meet with the Finance Director of the Board of Education and Mr. Darling to discuss Special Funds policy.

Follow-up: Mr. Sargent will arrange for Finance Director, JoAnn Keating to attend a meeting. Mr. Sargent will send letters out to department heads to discuss these accounts at a future meeting.

5) Discussion of Parks and Recreation Special Funds question

Mr. Sargent received an email from Dave Juneau requesting a separate “fund” for Parks and Recreation to invest in small capital items. Currently the excess generated by Parks and Rec (Enterprise Fund) is returned to the general fund. It is the general opinion of the board that Parks & Rec should not operate as a separate profit center of the town. It is also noted that Parks & Rec is a part of the budgetary process along with other town owned departments. There are also allocated expenses that would have to be considered, possibly causing a deficit rather that a profit.

Follow-up: Mr. Sargent will meet with Mr. Juneau to discuss details further.

6) Update on deposit/cash management policy progress – Rick Darling

Mr. Sargent noted the recommendation by auditor Scott Bassett to separate out cash management controls from the investment issue. Mr. Darling is working on a Financial Policy and procedure manual.

7) Information update on HS roof project and financing – Dan Clarke/Rick Darling

Discussion regarding the repairs to the High School roof.

Follow up: Mr. Sargent will meet with Dr. Pierson and possibly the School Building Committee to discuss the roof.

8) Gift policy alignment with Board of Selectmen

Discussion regarding the Board of Education gift policy. This item to be discussed at a later date with the Selectmen and JoAnn Keating.

Mr. Sargent made a motion to adjourn, motion passed unanimously.

Meeting adjourned at 9:04 PM

Respectfully submitted

Donna M. Anastasia, Secretary