Board of Finance

Approved by the Board of Finance June 17, 2025 MINUTES Vote: Unanimous Vol. 7. Page 456 BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM May 20, 2025 A REGULAR MEETING of the Board of Finance was held on Tuesday, May 20, 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 Members Deborah Iannacito, Laurene Pesce, Wendy Traub, and James Wright. Board of Finance Member Chris Beyus and Christopher Anderson participated via Zoom. 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 Mrs. Traub, seconded by Mr. Wright, the Board voted unanimously to open the meeting to the public. No one from the public wished to speak. APPROVE MEETING MINUTES On a motion by Mrs. Pesce, seconded by Mrs. Iannacito, the Board voted to accept the Regular Meeting Minutes from April 15, 2025. Mr. Wright abstained. On a motion by Mrs. Traub, seconded by Mr. Wright, the Board voted to accept the Special Joint Meeting Minutes from April 29, 2025. Mrs. Iannacito abstained. On a motion by Mrs. Traub, seconded by Mrs. Pesce, the Board voted to accept the Special Meeting Minutes from April 29, 2025. Mrs. Iannacito abstained. On a motion by Mrs. Pesce, seconded by Mr. Wright, the Board voted to accept the Public Hearing Minutes from April 29, 2025. Mrs. Iannacito abstained. On a motion by Mr. Wright, seconded by Mrs. Iannacito, the Board voted unanimously to accept the Special Joint Meeting Minutes from May 12, 2025. FY 24-25 BUDGET AMENDMENTS AND TRANSFER REQUESTS On a motion by Mr. Beyus, seconded by Mr. Wright, the Board voted unanimously to approve the budget transfer requests for FY 24/25 as further described in the Manager of Budgets' letter dated May 13, 2025, having already been approved by the City Council. Mrs. Traub asked if these were standard transfers, Ms. Johnson told her they were budgeted transfers for bonds and prepays for HSA contributions. CITY PERFORMANCE REPORTS On a motion by Mrs. Iannacito, seconded by Mrs. Pesce, the Board voted unanimously to accept the Performance Reports for the City for the current fiscal year through April 30, 2025. Mrs. Traub asked whether invoices tied to encumbered line items would be received by year-end, noting this would provide the Board with a more accurate year-to-date picture before the end of June. Ms. Johnson explained that all encumbrances stem from purchase orders, meaning the expenses have been committed, though not yet paid. Mayor Carbone reminded the Board that only six weeks remain in the fiscal year and that revenues are closely monitored to assess final projections. Ms. Johnson added that the Purchasing Agent will issue a memo halting all purchases after June 6, 2025, unless they are emergent. Mrs. Traub also inquired whether any anticipated State revenue had already been identified as lost. Ms. DeRosa responded that while some revenue is still outstanding, the State is expected to issue payments for budgeted items by mid-June. Mr. Anderson arrived at 5:09 p.m. 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 April 30, 2025. Mayor Carbone drew the Board's attention to the employee benefit line item, reflecting a $4.7 million balance. She said this will be explained in the joint meeting with the Council about what will happen with the BOE surplus. BUSINESS BY DEPARTMENT HEADS On a motion by Mrs. Traub, seconded by Mrs. Iannacito, the Board voted unanimously to consider business by department heads. Comptroller Olivia DeRosa told the Board they are starting preliminary work on the audit and have a planning meeting scheduled. She also praised Erika for the budget work she has done. Mayor Carbone expressed relief that, after several challenging years of staffing issues within the Finance Department, audit work is underway. She praised the department, calling them a great team.  MINUTES Vol. 7. Page 457 BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM May 20, 2025 BUSINESS BY MAYOR & MEMBERS On a motion by Mrs. Iannacito, seconded by Mrs. Traub, the Board voted unanimously to consider business by the Mayor and members of the Board of Finance. Mr. Anderson thanked the Finance Department for their hard work. He also shared his new baby, Vera. Mayor Carbone shared with the Board that following the joint meeting with the Board of Education (BOE) to review the Internal Service Fund (ISF), Olivia reached out to the BOE for their supporting spreadsheet but was informed it had been referred to legal counsel. On May 7, 2025, the BOE agenda included an executive session to consider initiating a forensic audit of the ISF. Mrs. Traub commented that "forensic audit" often implies fraud or mismanagement. She noted her long-standing involvement with the ISF and suggested that discrepancies may stem from differing calculation methods, not mismanagement. She also relayed that Councilor Cavagnero expressed concern about the excessive legal costs related to this matter. Mrs. Traub emphasized that, given tight budgets, it should be possible to resolve the issue together. Mrs. Iannacito asked if a response deadline had been set. Mayor Carbone replied that the item was tabled and has not reappeared on the BOE agenda. Mrs. Iannacito asked if the issue must be resolved before the budget is finalized. Mayor Carbone said no, explaining that the ISF is a non-lapsing fund separate from the operating budget. She added that the City must decide how much more to invest in the issue and that if the BOE proceeds with a forensic audit, the City will cooperate by providing necessary information. ADJOURNMENT On a motion by Mrs. Iannacito, seconded by Mrs. Pesce, the Board voted unanimously to adjourn at 5:23 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK CAROL L. ANDERSON, CITY CLERK