Wallingford Fire District No. 1

 MINUTES OF THE PRUDENTIAL COMMITTEE MEETING
 February 13, 2008

The official copy of these minutes can be obtained at Wallingford Fire District #1 Office.

Called to Order:

Chris Rabtoy called the meeting to order at 7:00 p.m.   Also present were Chris McPhee, Rose Regula and Stephanie Biagini/Clerk-Treasurer.  

Visitors:

Jeffrey Allen, Warren Allen, Don Emery, Richard Kendall Jr., Bob Minter, Scott Sendra, Stearns Stewart & Fred Thurlow  

Proposed Lighting for Memorial Flag:

Mr. Thurlow and Mr. Emery came before the board to offer feedback from Central Vermont Public Services (CVPS) regarding lighting the flag pole on South Main Street .  There would be no cost for the fixture to be installed or maintained and there is an obligation to retain the service for one year.  The cost varies from 55 cents to 62 cents per day depending on the type of bulbs used.   C. Rabtoy made the motion to accept the installation of the light that would illuminate the American flag on South Main Street and have the Fire District incur the charges that would be approx. $200.00 per year.  C. McPhee seconded the motion.  No further discussion.  Motion carried (3/0).  

Fire Protection Budget:

Jeff Allen, Warren Allen, Richard Kendall Jr. & Bob Minter attended the meeting at the request of Frank Bruce.  There was discussion about the warning and the dollar figure that was on the ballot.  The amount came from the budgeted expenses that were voted on in December at a budget meeting.  The warning was read and a lengthy discussion about the budget figures ensued.   

Calls and e-mails had been placed to the accountant for answers to questions.  R. Regula said that she had called the accountant as a taxpayer and hadn’t received a call back.  The questions were taken into consideration and will be address with the accountant as soon as he returns the calls to the office.  

The answer to the question about why the employment taxes are taken out of Water/Sewer and not the other funds, it’s because Quickbooks does not separate those taxes, therefore they disbursed at that end of the year to the prospective accounts.  

R. Regula made the statement that we are not a corporation.  She didn’t agree with the statement the accountant made about Water/Sewer being a company.  She said “that’s not a company in her book”.  C. Rabtoy responded that according to the State of Vermont and John West our Chief Water/Wastewater Operator, we could actually make a profit on Water and Sewer.  R. Regula made the statement that this year we should go back to our cash basis and not actual.  

Treasurers Notes - Information About GASB 34 – (General Accounting Standards Board)  

If your municipality uses a certified public accountant (CPA) for its year-end audit, the CPA will need to conduct a GASB 34 compliance audit, and if financial statements are not GASB 34 compliant then the auditor will issue an adverse opinion (which might raise some eyebrows among your constituents). If your town expects to bond for projects, the town’s financial statements may need to be GASB 34 compliant.  And if dollars in revenues are less than $10,000,000, the phase-in date is June 30, 2004 . Phase 3 governments (under $10,000,000 in annual revenue in their fiscal year beginning after June 15, 1999) must begin reporting all infrastructure assets newly acquired during their fiscal year beginning after June 15, 2003 Regardless of the size of your water system, now is the time to prepare: Proper planning and implementation of the GASB-34 system are the keys to keeping pace with public water systems of the future.  

“Basis of accounting” is a term that indicates the method used for the recording of transactions. The difference between cash, modified accrual and accrual basis is in the timing of the transactions. · Cash basis accounting records revenue as it is received and expenses as they are disbursed regardless of their relationship to the budget or if the receipts were earned or the expenses incurred.· Accrual basis matches sources of funds to their uses. In other words, revenues are recognized when earned and expenses when a liability is incurred.  All public government agencies, which include public water systems, will experience a significant change in accounting over the next several years. The change is called Government; Accounting Standards Board Statement No. 3, These GAAP set the criteria that the government must follow—or in this case public water system—to obtain “clean opinions” from their auditors. A clean opinion means you have good credit and is very important when a state or local government wants to issue bonds, procure financing for long-term construction projects, and obtain performance bonds.  

Under the GASB-34 method, governments must account for revenues and expenditures for the period in which they are earned or incurred (accrual basis accounting). In addition, all current and long-term assets and liabilities, such as infrastructure and general obligation debts, need to be reported within the balance sheet.  Communities that don’t follow GAAP may pay more to issue debt in relation to their bond rating since the bonding agency will not be able to easily compare their financial health with statistical information. Public water systems that refuse to adapt or implement the new accounting procedure may also become casualties by not being able to obtain loans due to a poor bond rating, thus, making them unable to replace non-repairable or outdated infrastructure.  

Why is it important for a municipal or public water system to comply?

Under the U.S. Environmental Protection Agency’s drinking water state revolving fund (DWSRF), where monies are provided to the states in order to provide drinking water loans, one eligibility criteria is that each water project undergo financial analysis to ensure the ability to repay the loans. The financial analysis will have a more complete picture of the overall financial stability of the state and local governments once the GASB-34 conversion is completed. This analysis will give auditors the necessary information to decide whether current-year revenues

were sufficient to cover the costs of current-year services. This information also will allow the analyst to determine whether the rates that are currently being charged are adequate to meet the future needs for loan repayments.  

Old Business  

Caretaker Contract:

C. McPhee made the motion to table the contract on hold until the next meeting.  R. Regula seconded the motion.  No further discussion.  Motion carried (3/0)  

Fuel Oil:

Today’s price for Patton Oil is $2.99 per gallon.  During the summer months is when the oil companies have pre-buy contracts available.  There was brief discussion regarding the cost of fuel and the possibility of having another fuel company deliver.  C. Rabtoy made the motion to contact Suburban Oil to have them stop deliveries.  C. McPhee seconded the motion.  No further discussion.  Motion carried (3/0).  

Prudential Committee Pay Order:

C. McPhee made the motion to approve the pay orders as presented.  C. Rabtoy seconded the motion.  No further discussion.  Motion carried (2/1).  

Approval for Minutes:

The minutes were not reviewed, so therefore they will be presented at the next meeting for review and approval.  

New Business  

Water Meter T-Pad Installation for The Pub:

C. Rabtoy made the motion that a letter be sent informing them that the Fire District will hire someone to install the T-Pad and be billed for the extra T-Pad that they have lost, plus the T-Pad that will be installed and the cost of person to install.  Due to the business hours it’s been difficult to read the meter in the basement.  C. McPhee seconded the motion.  No further Discussion.  Motion Carried (3/0).  

Responsibility for Water Testing:

Mr. Rabtoy made the motion if the resident would like the test to be done we will do it and if the test comes back negative then the cost of test would be incurred by the resident.  Mr. McPhee seconded the motion.  No further discussion.  Motion carried (3/0).

Public Comments 

None

Other Business/Announcements

Cost of Heating South Wallingford Fire Station:

There was a brief discussion regarding the South Wallingford Fire Station and possible ways to cut down the heat that it’s currently being used.  C. Rabtoy said that he would be willing to assist in re-directing the heating ducts along with some of the volunteer firefighters.  The building does need to be heated due to chemicals that are stored there.

South Wallingford Fire Truck Out of Service:

Warren asked the committee if they wanted to have the fire truck put back in service.  C. Rabtoy said in the interim while investigating a new truck he requested Warren to obtain quotes for the truck repairs. 

Executive Session:  None.

Next Meeting: 

The next regularly scheduled meeting of the Prudential Committee will be held on February 27, 2008 @ 7:00 p.m. – Town Hall.

Adjournment: 

C. Rabtoy made the motion that the meeting be adjourned.  C. McPhee seconded the motion.  No further discussion.  Motion carried (3/0).  Meeting was adjourned at 8:20 p.m.  

Respectfully Submitted:

Stephanie P. Biagini - Clerk/Treasurer                                       Date Approved:   February 27, 2008

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