BoF delays town audit

By MARJORIE NEEDHAM

The Aug. 12 Middlebury Board of Finance (BOF) meeting didn’t become a shouting match as the June 10 meeting did (there was no July meeting), but some BoF members voiced strong objections to money being appropriated for FEMA funds without it having been brought first to the BoF. Because of this, they delayed the annual town audit for a month. They voted to request that town counsel Robert Smith provide a written legal opinion that the town acted legally in the matter of the FEMA funds.

Board of Finance Chairman Michael McCormack also objected strongly to what he sees as First Selectman Edward B. St. John’s failure to address budget overages in a timely manner. And McCormack and St. John both mentioned concerns that BoF meetings might be used to promote the candidacy of one or the other. McCormack is challenging St. John for the first selectman’s spot in the November election, and McCormack’s campaign treasurer, Stephen Ruccio, is a BoF member.

The FEMA funds in question are a reimbursement for snow removal costs during a January 2015 blizzard. Although the discussion of the FEMA funds appropriation was on the agenda under new business, it first was mentioned when Chief Financial Officer Larry Hutvagner was giving his monthly report. McCormack said they might as well discuss it then.

Hutvagner noted in his report that the Public Works and Police Departments were over budget. He said the police department was over budget because they had hired another police officer so they would have the correct number of officers. McCormack interrupted him, saying there was no minimum number of officers required; rather Chief Viadero wanted to hire a supervisor and did so.

Regarding the budget overages, McCormack said, “This board brought up in November, February, March and May that we were going to be over budget. In June, 15 departments were over budget. Why didn’t we take steps during the year to correct this so we would come out on budget? Money needed to be made up. There were no steps taken to do that. Why do we have a budget?”

Hutvagner said it was not up to him. McCormack said it’s up to the first selectman. St. John said the budget is in the black by a net of $48,000.

BoF member David Cappelletti asked about the $95,000+ appropriated in the August special town meeting. He said that was not in the budget, and the Board of Selectmen effectively amended the budget without discussing the matter with the BoF. St. John said the budget amendment was made at by the Aug. 3 special town meeting, not the selectmen.

Cappelletti said the BoF passes a budget that goes to a town vote. He said St. John bypassed the BoF and went straight to a town meeting. “You skipped the Board of Finance. You just made an adjustment to the budget and skipped the Board of Finance?,” he said.

St. John said auditors BlumShapiro suggested the FEMA reimbursements be handled that way. McCormack said to St. John, “You added $95,000 to the budget.”

Cappelletti said “Why don’t you guys just make the budget without us?”

Cappelletti said the selectmen also did the appropriation incorrectly. Noting this was the first time ever something like this had been done outside the BoF, he made a motion that the BoF request a legal opinion from the town attorney stating the appropriation of $95,000 was done legally. His motion passed.

Town attorney Bob Smith, who attended the meeting, said he would put in a request to the Board of Selectmen to direct him to provide the legal opinion.

Discussing the multi-page list of transfers Hutvagner brought to the meeting, McCormack said they should have been done during the year. The BoF delayed action on the transfers pending the legal opinion from Smith.

Hutvagner said that would delay the town audit, which was already scheduled for September.
McCormack, addressing the shouting match at the June meeting, said he requested and got a letter of apology from BoF member Michael Kenausis. He said he also asked for letters of apology from Smith and Hutvagner and received none.

During his chairman’s comments, McCormack said he thinks everyone would agree the six regular and three alternate BoF members don’t play politics. He said the BoF does its best to come up with a budget that town votes on. “To have the town disregard the budget distresses me,” he said.

St. John said a lot had changed over the last few weeks, noting McCormack was now his political opponent and his campaign treasurer, Ruccio, is on the BoF. “I hope going forward over the next three or four months you don’t use your position as Board of Finance chair against me,” he said.

The next BoF meeting will be Wednesday, Sept. 9, at 7 p.m. in Room 26 at Shepardson Community Center.

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