Town Board
April 22, 2007
-The Gates Town Board held a Special Town Board meeting on Tuesday, April 22, 2008, at the Gates Town Hall, 1605 Buffalo Road, beginning at 9:00 A.M. Those present for the Special Town Board meeting were as follows:
Ralph J. Esposito Supervisor
Frank X. Allkofer Councilman
Christopher B. DiPonzio Councilman
Mark A. McIntee Councilman
Elaine P. Tette Councilwoman
John DiCaro Town Attorney
Richard Warner Town Clerk
9:00 A.M. SPECIAL TOWN BOARD MEETING
SUPERVISOR ESPOSITO called the meeting to order at 9:00 A.M. He stated that this Special meeting was called to consider the transfer of unexpended surplus funds from the Town’s General Fund to the Town’s Highway Fund within the 2007 budget.
He stated that the Town Board has received the draft audit, and have talked briefly about some of the numbers in it. One of the numbers is quite clear that the town has a surplus at of $700,000 at the end of 2007. There is a1.2 million surplus in the General Fund and a deficit of $500,000 in the Highway Fund. It is his recommendation and the reason for this special meeting, that we transfer $600,000 from the General Fund to the Highway Fund, thereby giving us a surplus in both accounts and establish a better ground to go to Moody’s to increase our Bond rating. In his conversations with Moody a few years back, they stated that they would consider that, once both accounts were in the black. This is an opportunity to have both accounts in the black and acknowledge the fact that we do have an overall surplus in the General and Highway Funds. It has been a tremendous accomplishment and he thanks the Town Board and Department Heads. This is an outstanding achievement to be able to turn around a deficit of $2.8 million to get to a positive surplus of $700,000 in basically a two year period. He thanked everyone for getting to this point.
SUPERVISOR ESPOSITO noted for the record that if we take no action today, we will still have a $700,000 surplus, it would just be allocated differently in terms of the audit. If we take action today it would require a shift of funds and a change of some initial language that is already in the audit, but will not change any other figures.
RESOLUTION 98-08: MOTION by Supervisor Esposito who moved its adoption:
Be It Resolved, by the Town Board of the Town of Gates as follows:
That, pursuant to New York Town Law, Article 8, Section 113, the Town of Gates Finance Director, is hereby authorized to and directed to transfer unexpended surplus funds in the amount of $600,000, from the Town’s General Fund to the Town’s Highway Fund, within the 2007 budget, and
Be It Further Resolved, that the transfer of said amount shall be deemed made effective as of December 31, 2007.
Seconded by Councilwoman Tette.
UNDER DISCUSSION
COUNCILMAN MCINTEE stated that he thinks that we should make sure that we have the money in the General Fund before we transfer it.
SUPERVISOR ESPOSITO asked Councilman McIntee what he meant.
COUNCILMAN MCINTEE stated that if you look at the expenditures in the General Fund, it’s just over 9 million dollars. My monthly statement through November had expenditures of just under 9 million, which is an average of about $800,000 a month, which would put our expenditures in the General Fund at about 9.8 throughout the year. In fact if you look through
December it actually shows 9.6 before all the bills are paid. If my monthly financial statement says 9.6 million in expenditures in the General Fund, how can the audit only say a little over 9 million.
SUPERVISOR ESPOSITO stated that there are reasons why the figures might be different. Monies may go into different budget accounts for example. They may be shifted into different years, as we have talked about a number of times. For example, our snow and ice maybe put all in 2007, in fact the auditors will put some in 2008. Those kind of things happen all the time. You have to understand that obviously the monthly financial statements you get are a snapshot of a particular time. The audit is the audit after all of the figures, documents and bills are accumulated and paid, and is the final documentation we vote on and not the monthly statement.
COUNCILMAN MCINTEE stated that is correct and I understand that. My issue happens to be though, if we spent say 9.6 million dollars ok, that we spent according to the financial statement, how can we have less spending in that fund.
SUPERVISOR ESPOSITO stated that he appreciates where Councilman McIntee is coming from, all that he is pointing out to him is , if there is any discrepancy between the two, the audit always controls. There maybe discrepancies, but I can tell you that the final figures are going to be from the audit, which have been checked and rechecked several times. These are the figures that are going to be sent to Albany, reported to the Comptroller’s office and that are going to be reported to Moody, not the monthly statements that you receive. The bottom line is that we will check whatever discrepancies you’re talking about and try to make you comfortable with those figures. You certainly have to be comfortable with the fact that there is a $700,000 surplus.
COUNCILMAN MCINTEE replied correct, but I want to make sure that it’s there. If you look under Debt Principal the audit is showing that we actually paid a little over $351,000. If you look at our financial statement, that the Finance Department does every month, our Debt Principal we paid is over $1.1 million, how the big difference?
SUPERVISOR ESPOSITO stated that these questions should be brought up at the May meeting. As we talked about earlier, this is not to discuss the audit, or the financial statements, it is to discuss the fact that we have 1.2 million and should we transfer $600,000.
COUNCILMAN MCINTEE stated that’s his concern, do we have it?
SUPERVISOR ESPOSITO stated that Councilman McIntee is asking him the questions and he is saying yes, now he can take it from there. We have it.
COUNCILMAN MCINTEE asked who do I trust, do I trust this audit or do I trust our Finance Department?
SUPERVISOR ESPOSITO stated that he thinks he can trust them both. The bottom line is that they are different figures that you have the right to have answers to. But those questions are more appropriate for the May meeting than this meeting.
COUNCILMAN MCINTEE stated that if the money is not there , that’s a concern.
SUPERVISOR ESPOSITO stated that if the money is not there then we’re all in trouble. He asked Councilman McIntee if every time he takes a vote, does he know that the money is in the budget, when he votes on the monthly statements that he approves each month.
COUNCILMAN MCINTEE replied he hopes it there.
SUPERVISOR ESPOITO replied that’s right. That’s what you’re doing here, you’re hoping its there.
COUNCILMAN MCINTEE stated but this is an $800,000 difference.
Mr. DiCaro, Town Attorney, stated that as Supervisor Esposito has pointed out when he started, the surplus is there, whether you move it between funds or not, it’s there. If it is not there it doesn’t matter if you move it. The question you are asking is not relevant to this motion. That’s reality , because if it turns out, which I do not believe it will, that the money isn’t there its irrelevant whether you move the money or don’t move it. There’s going to be a significant problem. It doesn’t effect the motion on the table.
COUNCILMAN MCINTEE stated that it would effect it if the money wasn’t there down the road.
SUPERVISOR ESPOSITO stated that every single vote you take effects that. You have no clue that we’ve received 14 million dollars for the budget when we start the year, do you? You rely on faith, reports of the finance director, comments from me, and other things. You make many votes on faith, this is no different.
COUNCILMAN MCINTEE asked that this be looked into before the May meeting to make sure.
SUPERVISOR ESPOSITO stated that Councilman McIntee’s questions would be answered.
COUNCILMAN MCINTEE asked when the audit draft will be presented to the public.
SUPERVISOR ESPOSITO replied as soon as we get the final report.
COUNCILMAN MCINTEE asked why we were waiting till the final report.
SUPERVISOR ESPOSITO replied this is just a draft where figures maybe changing, such as today.
COUNCILMAN MCINTEE stated that once it is given to the media doesn’t it become a public document.
SUPERVISOR ESPOSITO stated that he believes it is a working document but if the public puts in a FOIL request they would receive a copy.
COUNCILMAN MCINTEE stated that he will probably vote to move this money, but he stated that we need to research this, because it concerns him that the figures do not match.
SUPERVISOR ESPOSITO stated keep in mind that the monthly reports are a guide, and that’s all they are meant to be, they are snapshots of that particular day. Sometimes those monies are moved from one account to another after December 31, after you get the reports. The snow and ice figure is an example.
VOTE: Allkofer –aye; DiPonzio – aye; McIntee – aye; Tette – aye; Esposito – aye.
Motion Carried.
Supervisor Esposito adjourned the Special Town Board meeting at 9:15 A.M.
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Town Clerk