2019-05-14 specialSpecial Meeting
TOWN OF BERLIN
BOARD OF FINANCE MEETING
May 14, 2019
"Doc" McIntosh Room
7:00 P.M.
A. CALL TO ORDER
Chairman Lomaglio called the meeting to order at 7:00 p.m.
B. PLEDGE OF ALLEGIANCE
C. ROLLCALL
ATTENDANCE:
Members Present: Sal Bordonaro, Kevin Guite; Mark Holmes, Sam Lomaglio, Gerald Paradis, John
Richards
Staff Present:
Kevin Delaney — Finance Director
Jack Healy — To�vn Manaaer
D. PUBLIC COMMENTS
None.
E. APPROVAL OF PRIOR MINUTES: March 27. 2019
April 9; 2019
Mr. Paradis moved to approve the March 27, 2019 meeting minutes, �vith the follo�ving correction:
replace "General Fund Balance" with "General Fund Fund Balance" throuQhout the document.
Seconded by Mr. Bordonaro.
Vote beinQ 6-0. (MOTION CARRIED)
Mr. Paradis moved to approve the April 9; 2019 meetina minutes.
Seconded by Mr. Bordonaro.
Vote beinQ 6-0. (MOTION CARRIED)
F. OLD BUSINESS
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1. Discuss Health Insurance Fund reserve level
Mr. Chris Monroe; Senior Vice President of USI Insurance Services appeared to discuss Berlin's
health insurance reserves. The To�vn is self-insured and contracts �vith Blue CrossBlue Shield to
serve as plan administrator. The To�vn pays for actual claims incurred for all covered members
up to $150;000, after �vhich point claims are paid by Berlin�s stop-loss coverage. Mr. Monroe
e�plained that t�vo distinct reserves are necessary in this situation: "Incurred But Not Reported"
("IBNR") and "Claim Fluctuation." The IBNR reserve is required to hold on Berlin's balance
sheet as a liability. It �vould be utilized if Berlin's relationship �vith Blue CrossBlue Shield �vas
terminated but claims �vithin the service period �vould continue to be filed for payment. Blue
CrossBlue Shield provides annual guidance to �vhat that reserve should be. The "Claim
Fluctuation" reserve is meant to hold money on hand for those events that are not foreseen but
become payable. The general rule is to set aside 1-2 months of claims for the "Claim
Fluctuation�� reserve.
Berlin's stop-loss policy costs $�00,000 per }�ear. There are currently t�velve members that have
reached 50% of the stop-loss threshold of $1 �0;000; ten members have chronic issues. Mr.
Monroe tracks the To�vn's loss e�perience history and stop-loss cost / benefit.
2. Discuss having a Board of Finance member sign bond documents
Finance Director Delaney discussed this issue with Bond Counsel Joe Fasi �vho stated that Berlin
already has more signatory parties than most of his other clients. Berlin requires three out of the
four follo�vinQ parties: Mayor, Treasurer; To�vn ManaQer or Finance Director. Bond Counsel
Fasi also relayed that he is a�vare of only one event in which a client had a Board of Finance
member sign a bond document.
G. NEW BUSINESS
1. Move to appropriate �9,000 to the salar-y and fringe benefits accounts in the Special Grants
and Donations Fund for the Senior Center funded by a grant from the Community
Foundation of Greater Ne��� Britain Capacity Building Grant.
Mr. Paradis moved to appropriate $9,000 to the salary and frinae benefits accounts in the Special
Grants and Donations Fund for the Senior Center fiinded by a arant from the Community
Foundation of Greater New Britain Capacity Buildina Grant. V
Seconded b}° Mr. Bordonaro.
Vote being 6-0. (MOTION CARRIED)
2. Move to appropriate a donation of 59,760 from the Myrna Pauloz Senior Center ponation
Account to the Furniture Account, Computer Account, and Programs and Activities
Account ���ithin the Senior Center.
�
Mr. Paradis moved to appropriate a donation of $9;760 from the Myrna Pauloz Senior Center
Donation Account to the Furniture Account, Computer Account; and Programs and Activities
Account �vithin the Senior Center.
Seconded bv Mr. Bordonaro.
Vote being 6-0. (MOTION CARRIED)
3. Move to appro��e the transfer of �22,930 from Vehicle Reserve Account to Other Funds
Account for the purchase of ne�v administrative sofhvare for the Fire Departments.
Mr. Paradis moved to approve the transfer of $22;930 from Vehicle Reserve Account to Other
Funds Account for the purchase of ne��� administrative soft�vare for the Fire Departments.
Seconded by Mr. Bordonaro.
Fire Chief Jeff Pajor stated that the Vehicle Reserve Account holds funds generated from sale of
outdated apparatus. The software manages state / federal reportin� and trainina. Fire
Administrator Jim Simons added that the cost to maintain the current server and system �vould be
reduced by going to a cloud-based system, which is in line ���ith the Town's business continuity
movement.
Those votina in favor: Mr. Bordonaro. Mr. Guite. Mr. Holmes, Mr. LomaQlio. Mr. Paradis
Those votinQ a�ainst: Mr. Richards
Vote beina �-1. (MOTION CARRIED)
4. Mo��e to transfer 5237,�00, as detailed on the accompanying spreadsheet, to cover higher
than budgeted e�penditures in identified accounts.
Mr. Paradis moved to transfer $237,�00, as detailed on the accompanyina spreadsheet; to cover
hiaher than budgeted e�penditures in identified accounts.
Seconded by Mr. Bordonaro.
Finance Director Delaney elplained that these transfers are routine to�vard fiscal year-end. He
does elpect the need to request additional transfers for overaaes in the Town Clerk's Office and
Animal Control due to temporary staffing. y
Vote being 6-0. (MOTION CARRIED)
�. Revie�� Financial Status report.
• Receipts — ahead of budget 101.4%. This is due to additional ECS funding from the State of
Connecticut that �vas not reflected in the To«�n's budget. Also, interest revenue is above
budget and the Ta� Office is �vorking year-round to ma�imize collections.
• Elpenditures are slightly higher than budget.
• Pension Fund — no ne�v retirements have been announced. One employee is planning to retire
by November and another is tentatively targeting December.
• Capital Projects —
o High Road bridge is mostly complete.
o Burnham Street bridge renovation has begun —completion is estimated in October.
o Security vestibules —�vork is currently being done at Willard Elementary. The remaining
3 schools �vill be completed during summer.
o Jail cells are being built.
o To�vn Hall door project is in-process.
6. Discuss Open.gov sofhvare as potential option for Berlin
The Board of Finance members deferred further etiploration of this soft�vare until an IT Director
is in place.
7. Discuss & Appro��e Fiscal Year 2020 Proposed Budget
The Board of Finance discussed the need for all bodies of the To�vn government to operate
openly, engaae in honest discussions and trust one another. Although the General Government
budaet failed as "too hiah," it had already been reduced t�vice — first by Board of Finance and
then by To�vn Council. �Board of Finance discussed the need to educate voters on what is in the
proposed budaet and what the To�vn needs in order to operate. The need to routinely purchase
capital items and avoid bonding �vas also discussed.
Board of Education:
After revie�ving the Board of Education actuals throuQh April; Board of Finance asked if the
proposed transfer of $497,000 into Contracted Services �vas meant to fund prepayment of ESS for
fiscal year 2019-2020. Finance Director Delaney �vill ask Superintendent Benigni and Business
Manager Jeff Cuano for elarification and �vill invite Mr. Cugno to attend the June Board of
Finance meeting.�
Board of Finance also stated that encumbrances are not reflected in the Board of Education
financial report. It �vas also noted that some salary encumbrances did not appear on the To�vn-
side financials; althouah Finance Director Delaney said the encumbrances are in place, just not
sho�vn on the report. Board of Finance stressed that encumbrances must be reflected throughout
the To«Tn.
Chairman Lomaalio asked for Board of Finance members' proposals for the Board of Education
budaet. y
Mr. Guite -$1;200,000 increase over prior year's budaet.
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Mr. Bordonaro -$900;000 increase over prior year's budget.
Mr. Holmes —$1,�00;000 increase over prior year's budget (including ESS as an operational
e�pense.)
Mr. Paradis -$1;300,000 increase over prior year's budget.
Mr. Richards -$1;300,000 increase over prior year's budget.
Mr. LomaQlio -$1,400,000 increase over prior year's budget.
The Board of Finance members discussed the Board of Education's need for additional funding to
remodel ttvo classrooms at McGee Middle School prior to the fall; the lack of capital items in the
budaet provided by Board of Education and the Board of Education's apparent intent to prepay
the ESS contracted elpense.
Mr. Holmes moved to add $�00;000 to the failed Board of Education budget total (prior total:
$44,477,844).
Seconded by Mr. Paradis.
Those votinQ in favor: Mr. Holmes; Mr. Lomaglio; Mr. Paradis; Mr. Richards
Those votina aQainst: Mr. Bordonaro. Mr. Guite
Vote beina 4-2. (MOTION CARRIED)
General Government:
Finance Director Delaney asked the Board to entertain a motion to remedy an administrative error
in the proposed budget.
Mr. Holmes moved to increase the Town Cler� Department Head Salary by $2;67� and reduce the
Town Clerk Clerical Salary by $2,67�.
Seconded by Mr. Guite.
Vote beina 6-0. (MOTION CARRIED)
Mr. Richards moved to reduce the State Teacher Pension Fund contribution to zero.
Seconded by Mr. Holmes.
The Board members discussed the fact that the State budget is not yet finalized and the proposed
repayment figure is not yet certain.
Vote being 6-0. (MOTIO\T CARRIED).
�
Mr. Paradis moved to reduce the IT Consultant line item to zero.
Seconded bv Mr. Holmes
Mr. Paradis stated that with the To�vn Manager's resignation; this is likely not the best time to
hire a consultant to make recommendations for a temporary To�vn Manager to consider.
Those voting in favor: Mr. Guite; Mr. Holmes, Mr. Lomaglio, Mr. Paradis
Those voting against: Mr. Bordonaro, Mr. Richards
Vote being 4-2. (MOTION CARRIED)
Mr. Paradis moved to reduce the To�vn Manager Salary line item to $40,000.
Seconded bv Mr. Holmes
Mr. Paradis stated that the To�vn will likely operate with an internal Actina To«m Manager
receiving a stipend. The search for a permanent replacement �vill likely take months and he feels
a reduction of the salary line is appropriate.
Finance Director Delaney stated that search firm bids ran�e from $20,000 to $40,000.
Those votina in favor: Mr. Guite; Mr. Holmes; Mr. Lomaglio; Mr. Paradis; Mr. Richards
Those votinQ aaainst: Mr. Bordonaro
Vote beina �-l. (MOTION CARRIED)
Mr. Holmes moved to reduce the VNA Consultant line item to zero.
Seconded bv Mr. Paradis.
Mr. Holmes stated that the same rationale for elimination of the IT consultant applies to the VNA
consultant. To ask an Acting To�vn Manaaer to consider the VNA recommendations is
unrealistic. Mr. Bordonaro commented that elimination of the consultant translates to no
improved targets for the VNA to be measured against.
Vote beina 6-0. (MOTION CARRIED)
Mr. Holmes moved to reduce the VNA revenue by $�40,000.
Seconded by Mr. Paradis.
�
Mr. Holmes stated that the revenue �vas added to offset the cost of the consultant. Mr. Richards
countered that he; Mr. Bordonaro; To�tm Mana�er Healy and VNA Director Russo felt higher
revenue ��Tas achievable. V
Those votina in favor: Mr. Guite; Mr. Holmes; Mr. Lomaglio; Mr. Paradis
Those votina aQainst: Mr. Bordonaro. Mr. Richards
Vote being 4-2. (MOTION CARRIED)
Mr. Holmes stated he intended to move to add critical capital needs back into the budget.
Additionally; he stated that the Golf Ordinance requires that Timberlin revenue match its
elpenses and rates are set from the draft budget. Items �vere subsequently removed from that
draft budget but golfers are; in effect; paying for those items nonetheless. Mr. Holmes invited
Fleet Manager Jim Simons to comment on the need for routine replacement of police cruisers.
Fleet Manaaer Simons stated that all Police vehicles currentl}T in use are safe and road �vorthy but
delaying the purchase of ne�v cruisers still effects the To�vn. A Police Officer spends the majoritv
of his/her shift in the cruiser. and it makes sense for those vehicles to be the newest and most
efficient of the Town's fleet. All retired cruisers are reused throughout the Town; and the lonaer
the cruisers are utilized by Police; the longer the administrative users must rely on an aaing fleet
of retired cruisers. Fleet Manager Simons prefers that the To�vn invest in new cruisers than be in
a position to invest in a replacement administrative vehicle.
Mr. Holmes moved to add 2 police patrol cars totalinQ $7�;000 back into the budget. The motion
was not seconded. y
Mr. Holmes moved to add $2�,000 to the Senior Center capital list.
Seconded by Mr. Guite.
Town Manaaer Healy e�plained that the original budget contemplated repair of faulty flooring
(which causes seniors to trip and fall), upgrades to the aaing kitchen cabinets and air handlinQ
(�vithout �vhich the Senior Center may lose its food license and ability to serve meals) and y
removal of the leakina greenhouse (to be replaced �vith outdoor porch area).
Those votina in favor: Mr. Bordonaro; Mr. Guite; Mr. Holmes, Mr. Lomaglio
Those votina a�ainst: Mr. Paradis. Mr. Richards
Vote beina 4-2. (MOTION CARRIED)
Mr. Holmes moved to add $ 9�,000 for school phone uparades.
Seconded by Mr. Richards.
To�vn Manager Healy stated that the $9�;000 is a budgetary figure; not an actual quote. Mr.
Richards observed that several safety and security-related items are being discussed, he feels that
the aQing fleet of vans that transport special needs students represents a critical safety need and
should also be considered.
Vote being 6-0. (MOTION CARRIED)
Mr. Bordonaro asked about the electricity target savinas. Finance Director Delaney replied that
the full-year of bills is just complete and any refunds from the vendor (for less-than-guaranteed
savinas) �vill be in the ne�t fiscal year.
Mr. Holmes moved to add $1;000;000 to Fund Balance (reducing Assianed Fund Balance).
Seconded by Mr. Paradis.
Finance Director Delaney stated that the ratinas aaencies �vant to see about a 16% balance, last
year Berlin's unassigned Fund Balance �vas l4%.y
Those votina in favor: Mr. Holmes
Those votina aaainst: Mr. Bordonaro. Mr. Guite. Mr. Lomaalia Mr. Paradis. Mr. Richards
Vote being 1-�. (MOTION DEFEATED)
a. Mo��e to send the Board of Education budget of S4=t,977,84=� to the Town Council.
Mr. Paradis moved to send the Board of Education budaet of $4'�.977.844 to the To�vn
Council. y
Seconded by Mr. Holmes.
This budaet reflects the addition of $�00,000 to the budaet that �vas passed by Town Council
and rejected by voters as being too lo�v. (3.2% year-over-year increase.)
Those votina in favor: Mr. Holmes; Mr. LomaQlio, Mr. Paradis, Mr. Richards
Those votinQ aaainst: Mr. Bordonaro. Mr. Guite
Vote beina 4-2. (MOTION CARRIED)
b. Mo��e to send the General Government budget of 54�,=t3=�,070 to the To���n Council.
��
Mr. Paradis moved to send the General Government budget of $4�;434;070 to the To�vn
Council.
Seconded by Mr. Holmes.
This budget reflects a net reduction of $178;840 to the budget passed by To�vn Council and
rejected by voters as being too high.
Vote being 6-0. (MOTION CARRIED)
Finance Director Delaney stated that the combined budget results in a 1.�2 mill increase; bringing
the mill rate to 34.02. The impact on a$2�0;000 home �vould be an increase of $266. (The failed
budaet represented an increase of $233 per $2�0;000 home.).
The Budget Referendum will be held on May 28; 2019. The Board of Finance �vill meet on May
29; 2019 to set the mill rate (if the budaets pass) or discuss the referendum results and ne�t steps
(if the budaets fail). �
7. Comments from Board of Finance members.
G. ADJOURNMENT
Mr. Holmes moved to adjourn at 9:23 p.m.
Seconded by Mr. Paradis.
Vote beina 6-0. (MOTION CARRIED)
Submitted by,
Dana Boraes
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