Board Members Present:  Messrs. Muller, Atkinson, Nichols, O’Brien, Chairman Gerald Sargent and Ms. Kopas.

 

Also Present:  Finance Director Rick Darling, Treasurer Diane Hartman, Police Comm. Chairman Rick Phillips, Chief of Police Tony Land and Secretary Donna M. Anastasia.

 

 

Ms. Hartman discussed the new Investment Policy and how this was developed using other towns as models as well as reviewing State statutes on investments. 

 

Objectives for this policy include liquidity, safety and yield. Most investments are shorter-term due to the six month period of collections. Mr. Muller mentioned a slightly more aggressive approach may prove beneficial. Mr. Sargent stated that the risk factor would most likely impact a greater return than the term. Mr. O’Brien mentioned the 10% margin required of the General Fund. Funds over this amount could be available for investment. Mr. Sargent said the rating agencies look for a 7-8% to maintain AAA rating, we have taken that and have increased it to 10% as our guideline. Mr. O’Brien suggested using some of the available funds and invest those funds not necessarily in high-risk investments but for a longer duration.

 

Ms. Hartman outlined the state statutes for investments required by municipalities. An example would be a bank having a risk-based capital ratio of 10% or greater, a sum equal to 10% of all public deposits held by the depository would satisfy eligible collateral requirements according to State statute. Other programs we currently have is the MBIA and STIF accounts. We receive quarterly updates and annual reports on these accounts.

 

Board members discussed the various financial institutions presented by Ms. Hartman, which is made part hereto.

 

Ms. Hartman suggested for AAA rated investments we have no more than 50% of our available investments go there; AA or better banks, no more than 25%; BBB no more than 15%; and local investments to be determined by the Board.

 

Mr. O’Brien commented that he would not eliminate the opportunity to invest in non-rated local banks up to the maximum FDIC insurance amounts. All accounts are rated with the exception of Wilton Bank and Fairfield County. Mr. Sargent added that the Town must still maintain an association with key local banks as they provide an important benefit to the community.

 

Mr. Atkinson said the STIF being the lowest risk with greatest flexibility and the highest yield. Mr. Atkinson stated with all of the benefits of the STIF perhaps we should not limit ourselves to 50%. Ms. Hartman stated that economic climate often dictates larger or smaller investments in STIF accounts and other investments. Statutes 3-24F through 3-27F address the STIF investments.

 

Mr. Sargent stated that 50% of our funds should not be invested in BBB or worse, whatever funds we move will have to go into STIFS or A+ better banks. Mr. Sargent stated that possibly 5% can be invested in BBB which gives local bank coverage. In summary the breakdown would be as follows:

This 60/60/5 % gives the Treasurer greater investment flexibility.

 

Mr. Sargent suggested that Ms. Hartman have some time to think about greater yield of alternative investments including duration that might address the disposition of currently held CDs or Treasury Bills.  

 

Motion: Mr. Nichols made a motion to accept the policy with changes, Mr. Muller seconded. Chairman Sargent abstained. With no further comments motion passes.

 

 

Chief Land stated that with the approval of the Board of Selectmen, we have hired a new officer who has entered the academy two weeks ago. It will cost the town approximately 35,000. this year to get him through to the October appointment date. This would be the sixteenth officer in anticipation of one retiring officer. Currently we are saving 76,000. per year in salary due to Officer Ferrullo’s leave (military contingencies) allowing the department to keep Officer Mooney working part time.

 

Chief Land stated there has been an increase within the last month due to school traffic. There has been a diligent effort on the part of the school and the Police department to improve safety on School Road. On average we would have 10-14 accidents per year on School Rd and this year we have one reported accident. This does however present a cost issue. The Police department incurs approximately $2,000.00 per month in costs for this service.

 

 

Chief Land stated that although Homeland Security training is mandated it is not funded.

 

Chief Land gave some examples of what impacts overtime i.e. week-end work, incidents to be followed up toward the end of shifts, investigation and paper work.

 

Mr. Sargent suggested an updated report in 2-3 months which would also be in time with budget season. We can compare the reports at that time.

 

Mr. Darling discussed the timing of grants received. Overtime can be incurred and later reimbursed.

 

 

Mr. Darling discussed the new Cash Management Policy which now includes approval for Town depositories and custodians.

Motion:  Mr. Sargent made a motion to accept the new policy with amendments, Mr. Muller seconded and motion passes.

 

 

Mr. Darling highlighted some items including a surplus in Administration due to a proposed salary study which was not completed; a surplus in the Health Insurance line that the Board of Finance voted upon last month to designate a portion toward insurance stabilization; Legal Counsel reflected a deficit due to a retainer paid toward union negotiations and litigation related to land use cases; Planning & Zoning shows a large surplus due to positions that remain vacant; Police overtime showed a deficit which the Board was aware of due to prior supplemental appropriations; Public Works reflects a deficit due mainly to snow removal costs. See item#2.  Mr. Darling explained that a FEMA grant for the February blizzard was received for Public Works but not during the fiscal year; if the grant had been received during the fiscal period we could have accrued the grant against the expenses. The grant was approximately $40,000.00.

 

Motion: Mr. Atkinson made a motion to accept the amended policy, Mr. Nichols seconded, motion carries. Chairman Sargent abstained.

 

 

Mr. Darling explained that the capital transfers have been something that has been presented to the Board annually in recent years. Discussion regarding the Middle School Pool wall, the temporary repair of the High School roof which appears to be on hold while a final plan is in progress. Mr. Darling explained he codes capital projects in the year the project is approved as a fiscal reference, specifically the Valley Forge Bridge repair.

 

The result of the Capital Account surplus/deficit balance of plus $7,772.32 to be transferred to the General Fund.   See Capital Account statement attached

 

Motion: Mr. Muller made a motion to approve the $7,772.32 Capital Account transfer to the General Fund, Mr. O’Brien seconded, motion passes. Chairman Sargent abstained.

 

 

Mr. Darling presented the proposal resolution prepared by Dr. Keating concerning the Internal Service fund for the sole purpose of recording all business related costs and administration of health insurance programs for the Town of Weston and the Weston Public Schools. The Fund shall be under the authority of the Finance Director, Rick Darling.

 

Motion:  Mr. O’Brien made a motion for the Board of  Finance to approve the authorization of the Town of Weston to establish an Internal Service Fund for the sole purpose of recording all business transactions related to the cost and administration of health insurance programs for the Town of Weston and the Weston Public Schools. This fund shall be under the care and direction of the Town Finance Director, Rick Darling.

 

Motion: Mr. Atkinson moved the motion to create an Internal Services Fund, Mr. O’Brien seconded. Chairman Sargent abstained. Motion passes

It is further moved that the Board of Finance authorizes the transfer of $325,000.00 into the Internal Services Fund. The funds for such transfer shall come from the Board of Education health insurance line item surplus from the fiscal year 2005-2006 operating budget.  

 

Motion: Mr. O’Brien made a motion to transfer $325,000.00 into newly created fund, Mr. Nichols seconded, Chairman Sargent abstained and motion passes. 

 

 

Mr. Sargent gave a brief description of the Capital Committee and the purpose of such committee. The school project is winding down and the committee will serve to “clean up” the remaining items related to the school project. The committee will also serve to target other areas and become pro-active in the objectives/completion process. An example would be bleachers and a booster barn; the committee would outline the process by which we can identify items that may be needed or wanted and move forward. This would include procedural guidelines for donors involved in projects. The Board of Education, senior administration, town administration, Building Committee and two members from the Board of  Finance currently represent the Capital Committee. We will be attending our third meeting November 29^th and should have a compilation of potential projects which includes a “wish list” of projects for the committee to look at. We will then develop criteria and prioritize items to discuss. Both new items and old items that have been on hold will be addressed. Mr. O’Brien mentioned that one area in the public sector by major entities have adopted a “state of good repair” policy as a procedural guide for facilities to be maintained before deterioration or “breakdown”. It is much less expensive to maintain facilities in good working order than to undergo major repairs or replacement when worn or become dangerous to the public.  Unfortunately “preventative maintenance” can often be more easily deferred or cut before other budget items.  

Mr. Sargent mentioned that Mr. Darling and Dr. Keating both have experience in inventory and surveys of properties which would be very useful to the committee. 

 

 

 

Approval of October 12^th minutes will be postponed until all corrections are made.  

 

 

Motion: Mr. Muller made a motion to adjourn, Mr. Atkinson seconded,

 meeting adjourned at 9:30 PM. 

 

 

Respectfully Submitted

Donna M. Anastasia

11/29/06