Board of Finance

Approved by the Board of Finance April 15, 2025 MINUTES Vote: Unanimous Vol. 7. Page 447 BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM March 18, 2025 A REGULAR MEETING of the Board of Finance was held on Tuesday, March 18, 2025. Attendance was in person and by Zoom. Present at City Hall were Mayor Elinor Carbone, Comptroller Olivia DeRosa, Deputy Comptroller and Manager of Budgets and Planning Erika Johnson, Treasurer Dan Farley, and Board of Finance Member James Wright. Board of Finance Members Wendy Traub, Deborah Iannacito, and Chris Beyus participated via Zoom. Board of Finance Members Christopher Anderson and Laurene Pesce were absent. Mayor Carbone called the meeting to order at 5:02 p.m. beginning with the Pledge of Allegiance. OPEN TO THE PUBLIC On a motion by Mr. Wright, seconded by Mr. Beyus, the Board voted unanimously to open the meeting to the public. Tomasz Kalinowski, Fire Chief for the Drakeville Volunteer Fire Department requested the $60,000 already allocated under the Volunteer line item to be used for Drakeville's FY 25/26 stipend. With the Torringford Volunteer Fire Department closing, Drakeville will take on most volunteer fire services for the City. It was noted that Drakeville has experienced rapid personnel growth, leading to increased expenses. Plans are in place to host an open house for public officials, with the date yet to be determined, once finalized, they will reach out. Support for this request is crucial to ensure Drakeville's long-term sustainability. APPROVE MEETING MINUTES On a motion by Mrs. Traub, seconded by Mr. Wright, the Board voted to accept the Regular Meeting Minutes of February 18, 2025. Mr. Beyus abstained. On a motion by Mr. Wright, seconded by Mrs. Traub, the Board voted unanimously to accept the Special Joint Meeting Minutes with the City Council from March 5, 2025. AUDIT PRESENTATION Leslie Zoll and Gabe Epstein from Clifton Larson Allen (CLA) presented the FY24 Audit findings. Ms. Zoll provided detailed explanations on the Audit Scope, Executive Summary, Financial Statement Highlights, Federal and State Single Audit, Governance Communication, Management Letter Recommendations, and Industry Insights and Emerging Issues. Ms. Zoll stated that no material weaknesses or significant deficiencies were noted in the financial statements, the federal single audit, or the state single audit. Mr. Epstein reviewed the management letter’s recommendations, explaining that prepaid expenditure represents a right to receive services in a future period. He noted that the Board of Education (BOE) had made prepaid expenditures in FY24 for FY25 that were not properly recorded. He recommended that year-end expenditures be reviewed before the cutoff to ensure accurate reporting. Mr. Epstein also discussed the health insurance fund and suggested that the City seek a legal opinion, as the BOE had not fully contributed its budgeted amount to the plan. Additionally, he recommended that the BOE review internal controls over the new plan. He addressed fund deficits (a timing issue), information technology assessment, cybersecurity strategy, and the importance of conducting fraud risk assessments for both the City and the BOE. Mr. Beyus commended the Finance Department for resolving the administrative errors from FY23. He also noted the audit’s findings on the Health Insurance Fund and the BOE’s failure to properly fund it, which created a financial gap. Mayor Carbone informed the Board that they are working to obtain all health insurance documents from the BOE and have secured outside legal counsel for review. She thanked CLA for their dedication over the past three years, acknowledging the challenges posed by timing and the pandemic. She also mentioned that Comptroller Olivia and Deputy Comptroller Erika Johnson are preparing for the next audit. Mrs. Traub noted that the BOE’s June expenditures were recorded in the audit as prepaid expenditures, which is what she thought. They need to be reported properly for transparency. Mrs. Iannacito expressed gratitude to the Finance Department for their hard work and collaboration with CLA. FY 24-25 BUDGET AMENDMENTS On a motion by Mrs. Iannacito, seconded by Mrs. Traub, the Board voted unanimously to approve the budget transfer requests for FY 24/25 as further described in the Manager of Budgets letter dated March 12, 2025, having been previously approved by the City Council. Mrs. Traub asked if the funds budgeted are estimates because we don’t know what the increase could be from year to year, Mayor Carbone said that yes, they are a rough estimate. CITY PERFORMANCE REPORTS On a motion by Mr. Wright, seconded by Mr. Beyus, the Board voted unanimously to accept the Performance Reports for the City for the current fiscal year through February 28, 2025. BOARD OF EDUCATION REPORTS On a motion by Mr. Wright, seconded by Mrs. Traub, the Board voted unanimously to accept the Board of Education Budget Performance Reports for the current fiscal year through February 28, 2025.  MINUTES Vol. 7. Page 448 BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM March 18, 2025 BUSINESS BY DEPARTMENT HEADS On a motion by Mrs. Traub, seconded by Mrs. Iannacito, the Board voted unanimously to consider business by department heads. Treasurer Dan Farley provided an update on the Bond and Note sale on February 26, 2025. Mr. Farley said for the sale of $22,350,000 in General Obligation Bond Anticipation Notes, they received six bidders, the winning bidder was Janney Montgomery Scott LLC, with a net interest cost of 2.8148, paying a premium of $264,154.65. He also said that for the sale of $15,900,000 in General Obligation Bonds, they received fifteen bidders, and the bid was awarded to Cabrera Capital Markets Inc., with a true interest cost of 3.2672, paying a premium of $1,313,268.49. Mr. Farley said the rates were better than expected, and they have received one of the lowest rates in the State of Connecticut so far this year. Comptroller Olivia DeRosa said they have an Assistant Deputy Comptroller starting March 31, 2025. Deputy Comptroller and Manager of Budgets and Planning Erika Johnson told the Board the Budget Subcommittee has started the meeting. Soon they will start looking at the revenues, along with the reevaluation, to see how the numbers will have an impact on the funds coming in. Mayor Carbone added there is an uneven distribution on how this will impact the taxpayers. Ms. Johnson also shared how they are looking at budget book software, which is digital and will be a cleaner format. It shares the background of the municipality and the demographics in Torrington. This is a cloud-based program. BUSINESS BY MAYOR & MEMBERS On a motion by Mr. Beyus, seconded by Mrs. Traub, the Board voted unanimously to consider business by the Mayor and members of the Board of Finance. Mr. Wright asked if the State is going to repair Route 4 after the construction, Mayor Carbone said they would be paving from Riverside to Main Street. Mr. Beyus asked when Migeon Ave will be paved, Mayor Carbone said yes, it will be a long project, and the City is asking Eversource to hurry installing the gas lines, to get everything started. Mrs. Traub said it was announced at last week's Budget Subcommittee meeting that the Torringford Volunteer Fire Department was closing. She raised concerns regarding comments, questions, and targeted attacks, with a reminder that volunteer organizations can face challenges beyond recruitment. She encouraged individuals to reach out to the Mayor for further information. Mayor Carbone added that a Volunteer Fire Department cannot operate without volunteers. ADJOURNMENT On a motion by Mr. Wright, seconded by Mr. Beyus, the Board voted unanimously to adjourn at 5:45 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK CAROL L. ANDERSON, CITY CLERK