Minutes

Board of Finance - Minutes - Jan 20, 2026

Jan 20, 2026

A public record published by the Town of Simsbury (simsbury-ct.gov). mySimsbury indexes it and makes it readable; it is not the official copy. View the original file.

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Town of Simsbury
Board of Finance
Regular Meeting Minutes - Amended February 17, 2026
January 20, 2026
Present:
Members in attendance: Lisa Heavner, Art Wallace, Bert Helfand, Lalitha Shivaswamy, and Regina Pynn.
Others in attendance included: Amy Meriwether, Finance Director; Marc Nelson, Town Manager.
Call to Order:
Ms. Heavner called the meeting to order at 5:46 p.m.in the Main Meeting Room in the Simsbury Town
Hall.
Pledge of Allegiance:
Everyone stood for the Pledge of Allegiance.
Ms. Heavner noted that while the meeting agenda was properly noticed with the Town Clerk in accordance
with the Freedom of Information Act, the agenda was not posted to the Town website until the day of the
meeting. She apologized for this oversight and asked the Town Manager to ensure that agendas are
consistently posted online. In light of this, Ms. Heavner requested that the Board table the supplemental
appropriation agenda item. Dr. Shivaswamy made a motion to table the Supplemental Appropriation –
Aquarion Water Paving Funds agenda item until the February meeting of the Board of Finance. Mr. Helfand
seconded the motion. All were in favor and the motion passed unanimously.
Dr. Shivaswamy made a motion to amend the agenda to add an item to discuss Board input on the new
website. Mr. Wallace seconded the motion. All were in favor and the motion passed unanimously.
Ms. Heavner expressed concern that management is considering keeping only ten years’ worth of minutes
on the new website. She also expressed concern that minutes have to be downloaded from the website in
order to be viewed, and requested that in-browser viewing be implemented. Ms. Pynn agreed that access
to meeting meetings further back than ten years is practical and necessary. Dr. Shivaswamy also noted that
future boards should be able to look back at the action taken by the current board. By consensus, the Board
recommended keeping minutes accessible for more than ten years and requested in-browser viewing
capabilities.
Ms. Heavner reported that the Board of Finance was well represented at the Martin Luther King, Jr. event
and noted the participation of former member Dr. Art House as well as current vice chair Dr. Shivaswamy.
Ms. Heavner requested an update on the 2 Farms Village and Performing Arts Center (PAC) projects from
the Town Manager. Mr. Nelson reported that the closing on the property at 2 Farms Village closing is
expected on January 22 or January 23, as final lien releases are being coordinated between the parties’
attorneys. He offered to facilitate tours of the building for interested Board of Finance and Board of
Selectmen members.
Mr. Nelson reported that the PAC submitted their donated funds on time. He noted that the referendum on
the supplemental appropriation is scheduled for Saturday, January 24. Mr. Helfand asked for further detail
on when the program at 2 Farms Village will be up and running. Mr. Nelson said that this is a few months
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out but that the program demand is strong and the Board of Education is eager to get into the space.
Mr. Helfand also inquired about the supplemental appropriation for the PAC project, specifically whether
the amount of $388,000 is still accurate. Ms. Pynn also asked whether the $30,000 related to fire
suppression is included, or whether that is outside the scope. Mr. Nelson confirmed that this amount is
included in the $388,000. Mr. Wallace reminded staff that the Board had requested that they approve the
use of the contingency. Mr. Nelson said that the agreement was to keep the Board involved, but that
additional approvals would not be required. Mr. Wallace said that he recalled an agreement to have regular
reports on the expenditures. Ms. Heavner said that the final $188,000 in contingency funds would have to
be approved for use by the Board if necessary. Ms. Pynn said that this is why she inquired about the $30,000,
and whether that amount crosses into the contingency. Ms. Heavner confirmed that the motion approved
previously requires staff to obtain approval from the Board to spend the final $188,000.
Mr. Wallace asked about the tuitions expected from out-of-town students for the program at 2 Farms
Village, and whether the break-even point was being tracked. Ms. Meriwether said that the FY27 program
budget is essentially flat; the financial benefit is anticipated once the program opens up to elementary
students. She said that the program budget will be presented in conjunction with the FY27 budget, tying
back to the original analysis presented with the initial program proposal. Mr. Wallace requested a periodic
update on this.
Finance Director’s Report (Pages 1-3):
Ms. Meriwether directed the Board to page 3. She said that there were a couple of changes in regards to
investment income. In regards to the STIF account, the return was reported at 4.05% last month and this
month the return is 3.87%. The money market account was reported at 3.82% last month and this month
the return is 3.75%. She said that the FY26 budget used a target of 3.75%. Ms. Meriwether noted that the
3-month CD was cashed out and is now in the money market account. She said the 6-month CD has a rate
of return of 4.07% and the 9-month CD is at 3.83%. She said that she used this information to inform her
year-end projections.
Ms. Heavner asked for an update on the policies following the fraud risk assessment. Ms. Meriwether said
that this project is in progress but has been delayed due to staff absences. Ms. Heavner asked for an
estimated completion date, and Ms. Meriwether indicated that it would be April at the latest.
Ms. Heavner asked for additional information on the DEEP 2025 Recreational Trails grant. Ms. Meriwether
said that she would get more information and follow up.
Agenda Items:
a) Supplemental Appropriation – Aquarion Water Paving Funds (Page 4)
This item was tabled.
b) Fiscal Year 2025/2026 Town Budget Status Report as of December 31, 2025 (Pages 5-49)
Ms. Meriwether started on page 8, walking through the budgeted revenue for FY26 as compared with
the actual year-to-date, as well as the projection for the end of the year. She specifically noted the Town
Clerk’s office, indicating that she is projecting revenue to be approximately $75,000 higher than the
budgeted amount due to an increase in conveyance fees.
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Dr. Shivaswamy asked about the Information Technology revenue item; Ms. Meriwether explained that
this figure represents payments from the Board of Education for IT services, which is paid in
installments throughout the year.
Ms. Heavner asked about how staff budgets for conveyance fees. Mr. Nelson said that staff relies on
historical trends and macroeconomic trends. Ms. Heavner asked for a trend analysis to be presented on
this revenue line during the FY27 budget process. Mr. Nelson said that this item would not necessarily
be based on a straight historical average, as there are other contextual factors that impact it, such as
interest rates.
Ms. Heavner also inquired about the amount to be budgeted for building fees in FY27. Mr. Nelson noted
that the development of his budget is still in progress, but that this line item could be significantly
impacted by a development that is under active litigation. Discussion ensued regarding how to best
budget for an anticipated one-time revenue increase.
Ms. Meriwether moved on to the current tax revenues, which will be better projected following the
January collections. She said she uses a placeholder based on the budgeted collection rate. Mr. Nelson
mentioned a delinquent payment and a tax appeal as two factors specific to this year’s tax collection
that could have an impact. Ms. Heavner asked about the impact of tax appeals on the tax revenue. Mr.
Nelson said that we will look at that more closely in advance of the next revaluation in 2027.
Ms. Meriwether said that the Board of Education revenue is currently projected as being under budget
by approximately $96,000. She said she is looking into this, as it could be a matter of timing. She did
note that we lost two tuitions, one from Hartland and one from Granby.
Ms. Meriwether noted that we received a members’ equity distribution from our liability insurance
company, which is not always guaranteed each year.
Ms. Meriwether said that the current year-end projection shows general fund revenues coming in at
approximately $835,000 over budget.
In regards to expenditures, Ms. Meriwether noted several lines that reference a pending transfer from
contingency; she said the Board will look at this further next month along with the mid-year transfers.
This refers primarily to the collective bargaining agreement settlements and reallocations to the specific
department lines from contingency. Dr. Shivaswamy asked where the contingency would have been
budgeted, and Ms. Meriwether directed her to the contingency reserve account.
Ms. Meriwether reported that there is anticipated savings in the Police Department of approximately
$320,000 due to staffing vacancies. She noted a corresponding savings under the employee benefits line
item. Discussion ensued regarding how to best budget for potential staffing vacancies in the Police
Department as well as the organization-wide vacancy rate. In addition, discussion ensued regarding how
to best capture and use those anticipated savings.
Ms. Meriwether said that debt service is anticipated to come in under budget by approximately
$395,000, largely related to the closeout of the Henry James project as well as other bond-funded
projects that came in under budget. Those savings were reallocated to other bond-funded projects,
allowing us to not bond for FY26 and providing $1 million towards FY27 approved bonded projects.
Ms. Meriwether also noted savings due to the timing of the bond sale this past spring, which capitalized
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on lower interest rates. Dr. Shivaswamy inquired about how our bonds are sold; Ms. Meriwether
described the strategy behind the timing of the bond sale, who advises on this, and the basics regarding
how the bonds are sold.
Ms. Heavner noted that the Board should discuss and provide guidance on how the $1 million that is
now available for FY27 is used. Discussion ensued regarding whether to use that $1 million to reduce
borrowing, and how that will be factored into the FY27 Capital Improvement Plan in light of the current
guidance to bond no more than $10 million every two years. Ms. Heavner said that she believes a 20-
year capital plan is necessary in order to plan for the Squadron Line project. Mr. Nelson said that while
long-term strategic planning is critical, the accuracy of the six-year plans has not been strong in terms
of accurately projecting which projects are actually funded. Dr. Shivaswamy discussed her experience
with long-term capital planning, noting that the first few years of the plan should be solid, with
specificity in the out years being refined over time.
Ms. Meriwether directed the Board to the health insurance line item on page 13. She said that we are
projected to have a loss of approximately $316,000 based on the claims analysis done by our consultant.
She also reviewed the health insurance fund balance analysis, which indicates that we have a total
projected fund balance of $5.8 million. Ms. Meriwether said that this level represents approximately
35% of expected claims, and noted that our consultant recommends that our balance should be between
20%-25%. For any amount above that level, we can use one-third of the amount to offset costs. Ms.
Meriwether said that based on our expected claims at 25%, our target balance would be $4.1 million.
One-third of the difference between $4.1 million and the projected balance is approximately $550,000
which is the amount that could be used to offset costs. Ms. Heavner asked what the figure would be if
we targeted a balance of 20%; Ms. Meriwether indicated that it would be approximately $823,000.
Board members discussed how these estimates compare with the amount assumed to be used for the
FY26 budget, which is $1 million. There was consensus that this assumption should remain as is until
additional claims data comes in.
Mr. Helfand asked about the “incurred but not reported” (IBNR) figure, which adds to the fund balance.
Ms. Meriwether explained that those claims are essentially pre-paid, so we have to retain a reserve to
pay them out. In other words, this figure represents costs associated with existing claims for which
payment has not yet been made. Ms. Meriwether added that those claims show on our balance sheet as
already paid.
Ms. Meriwether directed the Board to the information on the pension fund, starting on page 41. She
noted that this data is reported as September 30 rather than December 31 due to the fact that we close
our books on the 10th of the month while pension statements do not arrive until the 15th of the month or
later.
Ms. Meriwether reviewed the capital projects schedule on page 45, which provides an update on all
open projects as of December 31, 2025. Ms. Heavner inquired about the status of the Meadowood barn
restoration project. Mr. Nelson said that the grant funding is much less than is required for the project.
Ms. Meriwether said she would check on the status of the grant. Ms. Heavner noted that authorizations
lapse after three years if there are no expenses against the project. Board members request that a
notation be added to this schedule to indicate which projects will be approaching that deadline.
Ms. Meriwether also reviewed the capital non-recurring projects schedule. She noted that any projects
that overspend by $5,000 or more need Board of Finance approval. Ms. Heavner said that moving
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forward, authorizations for vehicles and equipment will lapse after one year.
c) Fiscal Year 2025/2026 Board of Education Budget Status Report as of December 31, 2025 (Pages
50-51)
Ms. Meriwether reviewed the quarterly report for the Board of Education, staring with grant revenues.
Ms. Heavner asked how the anticipated revenues compare with what we budgeted. Ms. Meriwether
said the grant revenues are fairly consistent year to year. She said the Open Choice Attendance grant
does show an increase due to an increase in the number of students. Dr. Shivaswamy noted a net
decrease in grant funding, and asked whether that is normal. Ms. Meriwether said that the excess cost
reimbursement is contingent upon the needs of special education students, so that figure changes year
to year. She said that the decrease in IDEA funds of approximately $23,000 is out of the ordinary, and
is a result of less funds coming into the state of Connecticut from the federal government.
In regards to expenditures, Ms. Meriwether said there is nothing significant to note and that the
presented categories are within budget. Dr. Shivaswamy asked if we are doing anything differently that
results in this performance. Ms. Meriwether said that the FY26 budget included increases related to out
of district placements to ensure proper budgeting.
d) Fiscal Year 2026/2027 Debt Scenarios
Ms. Heavner said that the updated grand list projections reflect a higher increase in new revenue than
previously anticipated. Ms. Meriwether said that the original projection was a 0.46% increase in the
grant list, or approximately $526,000 in new revenue, and the updated projection is now a 0.81%
increase, or approximately $918,000 in new revenue. Ms. Heavner said that any new revenue should
not be spent and should instead go towards mill rate relief. She reiterated the Board guidance of limiting
expenditure increases to 3.5% for the Town and School operating budgets. She directed the Board to
the debt service line item, and discussed options for managing that figure, including the use of capital
reserves to offset the increases.
Ms. Meriwether walked through the budget model, including the expenditure and revenue assumptions
in the out years. She reviewed the line that presents debt service as a percentage of the operating budget,
noting that the Board of Finance policy caps this figure at 8%. Ms. Heavner indicated that the 8% cap
was to accommodate the Latimer Lane renovation project, and that the goal has been to get back down
to 7%. Ms. Meriwether said that the Henry James project comes off the debt service schedule on June
30, 2036 and Latimer comes off on June 30, 2045. Ms. Heavner said that ideally we would not have
the Squadron project start until after 2036, but that it may need to be sooner in order to capitalize on
state reimbursements.
Ms. Meriwether walked through the debt modeling, showing $10 million in bonding every two years
after FY27. The model increases to $16 million in bonding for FY34 and FY35 projects because
capacity will be built up at that point. Ms. Meriwether said that the model assumes the use of cash for
capital in the amount of $2.5 million per year based on the CNR needs, including the traditional payback
on both the Town and School budgets, plus an additional average amount that we spend from capital
reserve. She said she applied a 3% annual increase to this figure for budget modeling purposes. Ms.
Meriwether said that the amount of cash needed to meet those needs will be feathered into the budget
through a combination of the capital reserve fund plus a small contribution to “cash for capital” from
the operating budget which would increase over time, gradually decreasing the reliance of the capital
reserve fund. This will ultimately lead to the current year budgets to support current needs, with less of
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a reliance on capital reserve for annual needs. Dr. Shivaswamy asked if decreasing the use of capital
reserves is the goal. Ms. Heavner noted that there will always be needs and a use for the reserves. Ms.
Heavner said that this model increases taxes approximately 2% per year, and asked the Board for
feedback on that. Dr. Shivaswamy said that we should keep the increases as low as possible. Ms.
Heavner noted that this model does not include the impacts of the 2027 model, which will hit in FY29.
Ms. Meriwether walked through an alternative scenario, which includes bond funding for the Squadron
Line project in 2035 and 2036. She said this would limit our ability to continue to contribute to cash
for capital from the operating budget, but that we could use the capital reserve fund to offset the
increased debt service.
Discussion ensued regarding the compounding increases in the tax rate over time, and how the next
revaluation will impact this. Board members expressed concern about the shift from the commercial
tax base to the residential tax base. Mr. Nelson said that efforts to fill vacant properties are unlikely to
occur in time to impact the next revaluation, and that incentivizing the conversion of space to mixed
use or residential is a more practical approach.
Ms. Meriwether walked through another alternative scenario, which includes bond funding for the
Squadron Line project in 2031 and 2032. She said this results in no cash for capital from FY32-FY36,
no use of capital reserves through FY33, and no additional bonding from FY30-FY33. Mr. Nelson noted
that these scenarios do not contemplate the alternative to a full renovation project, which is a repair and
maintenance plan. Ms. Heavner said the Board would need to model that option. Ms. Meriwether
indicated that the state reimbursement may not be available for repairs and maintenance, so the net cost
of the plans could end up being fairly close. Nr. Nelson noted that there would also be needs at Squadron
in the meantime that are not being shown here. Ms. Heavner said this is the reason that the Board needs
to see more than a five-year capital plan if we are going to fund the Squadron renovation project.
Ms. Heavner asked for feedback from the Board on how to account for the additional $1 million in bond
funds for FY27. She indicated that the Town Manager should use his best judgment on this when
presenting his capital plan. The Board reiterated the guidance of no more than $10 million in bonding
every two years.
e) Fiscal Year 2024/2025 Annual Report Draft
Ms. Heavner said that this report should take the annual financial audit and make it user-friendly and
accessible for the public. She pointed to Board of Education’s annual report as a good example, and
said that there is more work to do on the Town’s annual report. She said Mr. Doyle and Dr. Shivaswamy
offered to work with staff on this.
Review of Minutes:
f) December 16, 2025 Regular Meeting Minutes (Pages 52-55)
Ms. Heavner had two grammatical edits: at the bottom of page 52, when referencing the grand list
projections, the reference should be that the increase is “by 0.46%” not “of 0.46%” and on page 53,
“COLA” should be in all capital letters.
Mr. Helfand made a motion, effective January 20, 2026, to approve the minutes of the December 16,
2025 Regular Meeting, as amended. Dr. Shivaswamy seconded the motion. The motion passed with
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Ms. Heavner, Mr. Helfand and Dr. Shivaswamy in favor. Mr. Wallace abstained.
Communications:
g) Board of Finance Meeting Agenda Planning Document (Pages 56-57)
Ms. Heavner said that this is a draft. She said the auditors will come in February instead of January and
that the July date should be the 21st, not the 17th.
h) Simsbury Performing Arts Center Band Shell Expansion Project Update (Pages 58-93)
Ms. Heavner said this is the required monthly report from Public Works Director Tom Roy.
Adjourn:
Mr. Helfand made a motion to adjourn the Regular Meeting of the Board of Finance at 8:48 p.m. Dr.
Shivaswamy seconded the motion. All were in favor and the motion passed unanimously.
Respectfully submitted,
Melissa Appleby
Budget Director