Board of Finance Regular Meeting Agenda (PDF)

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
PHONE: 860-442-0553
www.waterfordct.org
BOARD OF FINANCE oa
AGENDA a —
Waterford Town Hall _ October 12, 2022 _
Regular Meeting 7:00pm. i. 7
“1. Establishment of a quorum and call to order.
2. Public Comment.
3. Approval and acceptance of minutes from September 7, 2022.
4. To consider and act on request from Brian Flaherty, Recreation & Parks Director, for an
additional appropriation in the amount of $12,250 to line item 10137-53080 Maintenance
of Vehicles, to cover the cost of unbudgeted repairs to the. 2015 Chevrolet Silverado
Dump Truck.
5. Old Business:
a. Board review and possible action on DRAFT Board of Finance Investment Policy.
b. Board review of updated Board of Finance webpage data and Board of Finance
Policy and Procedure Manual
c. Director of Finance update on Capital Projects Fund
6. New Business: .
a. Review and possible action on the proposed Board of Finance Regular Meeting
and Budget hearing schedules. Attached are last year’s schedules a breakout o
the 2023 holidays.
b. Board review and possible action on FY24 Budget Guidelines.
7. Liaison Reports

Board of Finance Agenda, October 12, 2022
Page 2
8. Correspondence
a. Virginia Bielucki, Town Accountant, Status of Contingency Fiscal Year 2023 dated
September 9, 2022.
b. Virginia Bielucki, Town Accountant, Periodic Financial Statements FY23 dated
September 16, 2022.
c. Virginia Bielucki, Town Accountant, Status of General Fund Unassigned Balance
dated October 3, 2022.
d. Quarterly ARPA Project Update.
e. FY23 CIP Capital Project Quarterly Report
9. Adjournment
Glenn Patterson, Chairman

PIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
SS S PHONE: 860-442-0553
, on www.waterfordct.org
Board of Finance . Wednesday, September 7, 2022
Regular Meeting Minutes Town Hall Auditorium — 7:00 p.m:
Present: Chairman Glenn Patterson, John Sheehan, Ronald Fedor, Robert Tuneski, Baird
Absent:
Elected:
Staff:
Welch-Collins, Kevin Petchark
Joe Filippetti
Robert Brule, First Selectman, Jody Nazarchyk, Selectwoman Abbas Danesh,
Treasurer, Thomas Dembek, RTM
Kimberly Allen, Director of Finance
Shea Moses, Office Coordinator
Establishment of a quorum and call to order
A quorum was established and the Regular Meeting of the Board of Finance was
called to order at 7 p.m., September 7, 2022
Public Comment: No Public Comment
Approval and acceptance of minutes:
Regular Meeting on July 20, 2022
Motion by John Sheehan and seconded by Kevin Petchark to approve the
minutes of the July 20, 2022 Regular Meeting with the following correction to
place heading “Board of Finance and “Minutes”.
Vote: 6-0-0 Motion Passed

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 2
4. To consider and act on a request from the RTM to appoint a Board of Finance
member to the RTM Ad Hoc Energy Task Force.
Motion by John Sheehan and seconded by Kevin Petchark to approve the
request to appoint a Board of Finance member Baird Welch-Collins to the RTM
Ad Hoc Energy Task Force.
Vote: Unanimous Motion Passed.
5. = Toconsider and act on request from Gary Schneider, Director of Public Works,
for an additional appropriation from the unassigned fund balance of the General
Fund of $38,500 to CIP Project Remove UST Tank at Cohanzie Fire House, line
item 33021-55867.
Motion by John Sheehan and seconded by Baird Welch-Collins to approve the
appropriation in the amount of $38,500 from the unassigned fund balance of the
General Fund to CIP Project Remove UST Tank at Cohanzie Fire House, line item
33021-55867 and forward onto the RTM as required.
There was a discussion on why the 10% contingency. Director Gary Schneider
estimates what the well driller will encounter as far as materials. They have to
drill as far as they can to extract the groundwater and need to spend what is
required.
VOTE: 5-1-0 Motion passed..
6. To consider and act on request from Marc Balestracci, Chief of Police, for an
additional appropriation of $2,496 for the Cell Bench Safety Overlay, due to
increased cost of materials.
Motion by John Sheehan and seconded by Baird Welch-Collins to approve an
additional appropriation to read as follows:
To decrease 10121-59010, Contingency by $2,496 and increase CIP Project Cell
Bench Safety Overlay, project 32923-55897, due to increased cost of materials.
VOTE: Unanimous Motion passed.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 3
7. To consider and act on a request from Kim Allen, Director of Finance, for a FY23
Out of Series Transfer as follows:
APPROVED CURRENT REVISED
Buclpet Available Available
Ong Code Object Code Object Description: Agvount Budipet Burdipet
Lapa Si 10) 8.Dat NISTRATION LES 255.00 LST,S1RSF oy {25,5004 142,525)
LL smao PREPESBIONAL FEES 250.00 ooo 25,050 a 23,000
o
a
a)
a
®
8
Li)
TOTAL 25,6006 i258 pect
Motion by John Sheehan and seconded by Ronald Fedor to approve the ‘
decrease of Assessor budget line 10104-51110 Administration by $25,000 and
increase the Assessor budget line 10104-52030, Professional fees by $25,000.
VOTE: Unanimous | _Motion passed.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 4
8. To consider and act on a request from Kim Allen, Director of Finance, for an FY23
Inter-Department Out of Series Transfer as follows:
APPROVED CURRENT ACCOUNT ACCOUNT REVISED.
7 Budget Available Increase [Decrease. | Available
Org. Code Object Code Object Description Amount Budget Budget
10111 52040|SERVICE CONTRACTS _ 185,178.00 | 185,178.00 . 46,392 231,570
10135 52040| SERVICE CONTRACTS 36,330.00 36,330.00 (23,196) 13,134
40137 52040] SERVICE CONTRACTS 37,436.00 37,561.00 (23,196) 14,365
0
0
0
0
Ae)
a)
0
0
is)
TOTAL 46,392 (46,392)! .
Motion by John Sheehan and seconded by Baird Welch-Collins to approve that
Senior Citizens Commission line 10135-52040 Service Contract be decreased by
$23,196 and Recreation & Parks line 10137-52040 Service Contracts be
decreased by $23,196 and Building Maintenance line 10111-52040 be increased
by $46,392.
Director Kim Allen commented that she is not aware of any other maintenance
“contracts that will require transfer of funds.”
VOTE: Unanimous
‘Motion passed.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 5
10.
Pending BOS approval, to consider and act on a request from Brian Flaherty,
Director of Recreation & Parks, for a new capital project in the amount of
$21,236 from Capital and Non-recurring line #205-31520 Undesignated Fund
balance to a new account number to be determined.
Motion by John Sheehan and seconded by Ronald Fedor to approve an
Additional Appropriation from the Undesignated Fund Balance line 205-31520 of
the Capital and Non-recurring Expenditure Fund of $21,236 to fund New Project
(Account Number to be assigned) Repair of Pleasure Beach Sidewalk/Pathway
and forward to the RTM as required.
Approved at BOS on September 6, 2022 for the amount of $22,766.
Baird Welch-Collins commented about better signage apart from the repair of
the sign on Shore road for the parking lot.
Director Brian Flaherty explained that he worked with the First Selectmen,
Robert Brule to include this in the operating budget but equipment repairs
consumed the funding. He also noted that there have been more concerns about
the area wash out and with the ADA “project at Waterford Beach” being
‘complete. Residents had inquired about Pleasure Beach being done as well.
VOTE: Unanimous Motion passed.
Pending BOS approval, to consider and act on a request from Gary Schneider,
Director of Public Works, for an additional appropriation in the amount of
$11,775.56 from Capital and Non-recurring line #205-31520 Undesignated Fund
balance to account 20530-57743 (Jordan Cove Bridge Replacement).
Motion by John Sheehan and seconded by Ronald Fedor that an Additional
Appropriation from the Undesignated Fund Balance line 205-31520 of the
Capital and Non-recurring Expenditure Fund of $11,776 to Account 20530-57743
Jordan Cove Bridge Replacement and forward to the RTM as required. ,
Approved by BOS on September 6, 2022.
Director Gary Schneider informed the Board that most projects are 80 % Federal
and 20% local funding. The State estimates the cost for managing the project and
the money is normally paid upfront to the State. Gary commented that this is the
last project with a demand deposit.
VOTE: Unanimous Motion passed.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page6é -
411. Old Business
a. Discussion of the letter from the Town Attorney to the BOF regarding the
Human Services reorganization
b. Pending Board review and possible action on DRAFT BOF Investment
Policy.
Motion by John Sheehan and seconded by Ronald Fedor to postpone the
approval of this policy until the October meeting of the Board of Finance
pending further edits and verbiage from Abbas Danesh, Treasurer.
Discussion and suggestions from the members on how to clean up the
document were discussed. It was agreed that the Treasurer is responsible
to establish an “internal controls structure” and that the Director of
Finance shall oversee the internal control structure and establish a
process for an external audit. | .
Vote: Unanimous Motion Passed.
12. New Business
a. Discuss proposed BOF Policy Manual formatting and numbering.
Motion by John Sheehan and seconded by Robert Tuneski to discuss and
approve the BOF Policy Manual.
John Sheehan commented that the Finance Director should renumber
the Policy The Board of Finance Budget Guidelines as 1.01, and renumber
the rest follow in the numbering system. Also the policies and procedures
should be named the exact title that they have been given. There is was
also a comment on the Board of Education Policies should say BOE-Non-
Lapsing Account.
Robert Tuneski commented that the name should be changed BOF Policy
Manual to “BOF Policies and Procedures Manual”.
VOTE: Unanimous Motion passed.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 7
13.
14,
b. John Sheehan also commented on the new requirements for the Utility
Commission department. John Sheehan commented that we should have
at least 2 certified Engineers within the department.
c. John Sheehan also made a comment regarding the performance index
decrease of Waterford Schools during Covid-19 and Remote Learning.
The performance index rate for the school year 2018/19 compared to
2021/22 was as follows:
2018/19 The ELA performance rate 73.1
2018/19 The Math performance rate 70.2
Vs.
2021/22 The ELA performance rate 69.3
2021/22 The Math performance rate 64.9
Liaison Reports: None
Correspondence
a. Clifton Larson Allen LLP (CLA), letter to the Board of Finance regarding the
audit for the Town of Waterford dated August 16, 2022.
b. Virginia Bielucki, Town Accountant, Revised Periodic Financial Statements
FY22 dated August 17, 2022.
John Sheehan commented on that the in the CNR Fund, Jordan Village Sidewalks
should not be undesignated it should be in designated funds as it inflates the
undesignated fund balance and it is funded by grants.
John Sheehan also commented on the Capital Project Funds, that we need to
find a way to close out the balance (erase the debt owed) of the Early Childhood
Learning Center and Waterford High School.
Finance Director to update BOF at October’s meeting.
c. Virginia Bielucki, Town Accountant, Status of Contingency FY22 dated July 22,
2022.
d. Virginia Bielucki, Town Accountant, Status of Contingency FY23 dated July 22,
2022.
e. Treasurer’s Quarterly Report dated July 29, 2022.

Board of Finance Regular Meeting Minutes — September 7, 2022
Page 8
15. Adjournment
Motion by John Sheehan and seconded by Baird Welch-Collins to adjourn the
Regular Meeting.
Vote: Unanimous Motion passed.
Meeting adjourned at 8:18 p.m.
Respectfully submitted,
WAGs KG
Johy Sheehan, Clerk | Shea Moses, Office Coordinator

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
PHONE: 860-442-0553
www.waterfordct.org
September 9, 2022
Mr. Glenn Patterson
Chairman
Board of Finance
15 Rope Ferry Road
Waterford, CT 06385
Mr. Patterson,
On September 6, 2022, the Board of Selectmen approved an additional appropriation
request from the Recreation & Parks Director, Brian Flaherty, in the amount of $12,250
_ for operating budget line 10137-53080 (Vehicle Maintenance).
As Finance Director, I recommend that the Board of Finance consider funding this
additional appropriation from the Contingency AAccount 10121-59010. The current
balance in this line is $261,729.
If approved by the Board of Finance, the appropriation would be transferred into line
10137-53080.
Respectfully,
Kimberly Alew
Kimberly Allen
Finance Director

FIFTEEN ROPE FERRY ROAD
PHONE: 860-442-0553
WATERFORD, CT 06385-2886
www.waterfordct.org
September 7, 2022
Mr. Glenn Patterson
Chairman
Board of Finance
15. Rope Ferry Road
Waterford, CT 06385
Dear Chairman Patterson,
The Board of Selectmen, at their meeting on Tuesday, September 06, 2022 voted to approve the
following request for an additional appropriation;
Recreation & Parks: To consider and act.on a request. from Brian Flaherty, Recreation & Parks
Director, for an additional appropriation in the amount of $12,250 to line item 10137-53080
Maintenance of Vehicles, to cover the cost of unbudgéted repairs to the 2015 Chevrolet
Silverado Dump Truck, and forward to the Board of Finance.
Therefore, I respectfully request that you consider and act on this requests. [have attached
pertinent back up material from the designated department,
Sincerely,
Rofert rule
Robert Brule
First Selectman
cc! Kimberly Allen, Director of Finance.

‘FIFTEEN ROPE FERRY ROAD WATERFORD, CT 06385-2886
. Recreation and Parks Commission
DATE: ——. August 18, 2022
TO: -. Glenn Patterson, Chairman BOF
FROM; Ryan McNamara, Assistant Director R&P
RE: Maintenance of Vehicles Additional Appropriation
The Fleet Management vehicle tagged. as “R11” is a 2015 Chevrolet Silverado Dump
Track with only 37,572 miles recorded. A thorough review frorn the Public Works garage
identified safety issues that need repair before allowed to be operational. These repairs
were unanticipated considering the age and mileage of the vehicle.
Recreation and Parks always takes a three (3) year average to appropriately fund this line
with a current request of $7,000 dedicated towards maintenance of trucks. The repair cost
is $12,250 (attached quote), The request is being made in full to avoid repetitive attempts
to fund the expected fleet servicing needs for the remainder of the fiscal year. .
We respectfally request the additional appropriation to the Maintenance of Vehicles
line item 10137-53080 in the amount of $12,250. This will allow for continued
anticipated fleet maintenance as budgeted for FY°23.
J am available for any questions or concerns and can be contacted at the Reoréation and
Patks Office at 860-444-5881.
Thank you. ‘for your time and consideration, of this request.

HARTFORD TRUCK = #$QUOTATION
EQUIPMENT Quote: 063022-SB3
9% John Fitch Blvd, Sonth Windsor, OF Ref::Chevy 60° CA DRW
BBG.290.9B16 Hartford truck,cim End User:
© © sales@hariferdnuck.com Date: 06/90/22
Town of Waterford - Garon
We are pleased to quote on the following:
One (1) Reading 9’ Marauder dump body, Including-
9' long x 96" OD wide, 2.0-4.0 yard capacity
A60 galvannealed stee] construction
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22" H 10 g. three panel reinforced tail gate
Single lever quick release tailgate w/ hitch pin gredse zerks, 1/2 cab shield with window
Electric hydraulic double acting scissors hoist in sub-frame
Body prop, urethane prime body & painted black
Marker ST&T lighis (LED) and reflectors
3 year warranty
Manual load cover installed w/ built in front and rear hooks
Back-up alarm
Body up warning alarm
Two (2) rear mud flaps (with anti-sail brackets)
Removal of Existing Dump and Hoist and disposal
‘ . ’ Installed Municipal Price: $ 12,250.00 —
Mandatory if vehicle is equipped with:
Back. up camera - Mount camera and tie Into OEM system 100.00
Back up camera - New back up camera system w/ screen (Mirror $695, 6” screen $795, GM wi OnStar $895)
Back Up Alarm ~ 97 decibel back up alarm for GM with auto headlamps 100.00
OPTIONS: (Circle Desired Add-Ons)
Poly Fenders installed in lieu of Mud Flaps _ | 600.00
30" x 18” x 18" Black Steel Underbody Box (installed) 500.00
36" x 18" x 18" Black Steel Underbody Box (Installed) 525.00
In Lieu of Black Steel(ADD)(DP Aluminum 125)(Black DP Aluminum 175){Smooth Aluminum 300)(Stainless 300)
Initial : Vin: : Date:
Terms: Net.Due = ETA: TBD.
For additional terms and signature complete 2"! page
Respectfully Submitted: Sean Breslin Hartford Truck Equipment Inc.
“REV: P 6/20/2021

HARTFORD TRUCK = QUOTATION
EQUIPMENT Quote: 063022-SB3
88 Iohn Fitch Blvd, South Windsor, CF Ref:Chevy 60" CA DRW
880.290.9516 Hartfordtrack,com End User:
©) ©) salas@hartfordtock.com Date: 06/30/22
Terms: Deposit may be required, Balance due upon completion. ,
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REV: P 6/10/2021 .

TOWN OF WATERFORD
INVESTMENT POLICY
I, Introduction:
The purpose of this investment policy is to provide a written document establishing the guidelines
governing the short-term investing procedures and best practices for the Town of Waterford (“The
Town”). This investment policy is designed to conform to standards set by the Government Finance
Officers Association and the requirements of the Government Accounting Standards Board. ,
II. Governing Authority:
This investment program shall be operated in conformance with federal, state and other legal
requitements. Specifically, the Treasurer of the Town of Waterford is responsible for managing
short-term investments. The scope of those investments is mandated undet Connecticut General
Statutes 7-400 and 7-403a and 7-362, which outline the type and term of permissible investments.
III. Scope: .
This policy refers to the investment of Town’s operating and administrative funds, hereafter referred
to as investment funds and specifically excluding the investment of employees’ retirement funds and
post-employment benefit funds. Proceeds from bond issues as well as separate foundation ot
endowment assets are not specifically addressed in this policy.
Consolidation (though no co-mingling) of investment funds fot investment purposes shall occur
except for cash in certain restricted and special funds. The purpose of this is to maximize earnings —
potential and increase efficiencies with regard to investment pricing, safekeeping, and administration.
Investment income is allocated to various funds dependent on their respective and proportional
participation and in accordance with general accepted accounting principles (GAAP).
The Town of Waterford segregates individual endowments made to the Town over time to
distinguish them from investment funds. The Town has the option to choose an outside investment
manager to handle these investment funds or may handle them internally.
IV. General Objectives:
The ptimaty objectives of the Town of Waterford Investment activities shall be safety,
liquidity and yield. There may be other factors, which can influence investing decisions but
none that would violate the inherent principles of safety, liquidity and yield.
I. Safety:
Safety of principal is the top objective of the Town of Waterford’s investment program. The
methods of preserving principal are through limiting credit tisk and interest rate tisk.
A. Credit Risk including Concentration Risk:
Credit tisk can be defined as the potential loss due to failure of the security issuer or backer. Pte-
qualifying institutions with which the Town may do business limit credit risk. This authorization
process will be defined in a later section.
1) Credit risk is also lessened by limiting the type of acceptable investments by type of financial
vehicle ot security, which the Town is authorized to invest in. This is governed by
Connecticut General Statutes.
Page 1

2) Credit Risk can also be limited by avoiding concentration risk in a portfolio e.g, having too
much of one type of secutity or one institutional issuer or backer. The explicitly stated
exception is the Connecticut Short-Term Investment Fund, which is a short-term fund rated
AAA by Standard and Poors and run by the Treasurer of the State of Connecticut. The
Connecticut Short-Term Investment Fund (“STIF”) represents a diverse pool of assets and
underlying investments. The Treasurer, in coordination with the Finance Department, will
set up credit/concentration limits for each institution the Town of Waterford does business
with in a separate document. Those credit limits shall be reviewed from time to time.
3) Credit tisk also involves pre-qualifying and authorizing transactions with broker/dealers,
intermediaries and advisors who do business with the Town.
B. Interest Rate Risk:
1) The Town of Waterford will minimize interest rate tisk, which is the risk that the market
value of the securities will fall due to changes in the market intetest rate, by structuring the
‘investment portfolio so that the securities matute to meet cash requitements for ongoing
operations and avoiding the need to sell securities on the open market prior to maturity.
2) Investing in short-term securities, money market funds of similar investment pools and
limiting the average maturity in the portfolio in accordance with this policy minimizes
interest Rate Risk.
3) This policy does not expressly state when the Treasurer may move the portfolio into fixed
or floating rate securities that would be impacted by interest rates, as that is a market
condition or trend left to the expertise and discretion of the Treasurer. The Treasurer
would be expected, in strategizing, to react to market conditions to make investments that
are prudent and without incurring unnecessary interest rate swings. Further, the Treasurer
must adjust investments due to the seasonal nature of the Town’s cash flow needs.
2, Liquidity:
The second objective of the investment program is that the pottfolio shall remain sufficiently liquid
to meet all operating requirements that may be reasonably anticipated, including express seasonal
needs. This is accomplished by structuring the portfolio so that securities mature concurrent with
cash needs to meet anticipated demands. Further, since all cash demands cannot always be
anticipated, the portfolio should consist of securities with active secondary or resale markets.
. Alternatively, a portfolio in parts or its entirety may be invested in money market mutual funds or
local government investment pools that offer same-day liquidity for short-term funds. It is a pre-
requisite that all investment vehicles meet Connecticut General Statute standards, regardless of
liquidity.
3. Yield:
The third objective of the investment program is that the investment portfolio shall be designed with
the objective of attaining a market rate of return throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs. Return on investment is of
secondaty importance to the primary importance of safety and liquidity as described above. The
portfolio should be limited to low risk securities. These securities should eatn a fair return relative to
the risk being assumed. Securities should be held to maturity with the following express exceptions:
A. A security with declining credit maybe sold early to minimize potential loss of principal.
B. A secutity purchase and sale that would improve the quality, yield or target duration in
the portfolio. (Security purchase and sale means trading one investment for another
investment, not the “swap” connoted as a detivative product. Detivatives are not
allowed in the portfolio.
C. Unforeseen liquidity needs of the portfolio requiting that the security be sold.
Page 2

V. Portfolio Construction:
1. Maximum Maturities:
The maximum maturity value of all investments exceeding 2 years shall not be more than 5% of the
total budget for current Fiscal Year. The average weighted maturity of all investments exceeding 2
years shall not be more than 5 years and no more than 50% of the maturity value of those
investments may exceed 5 years in duration.
2. Foreign Currency Risk:
‘The Town does not and will not invest in any foreign investment pursuant to statute. The Town
does not accept payment for Town services in any foreign currency, only US dollars. The Town of
Waterford will not engage in any foreign currency risk.
VI. Standards of Care:
1. Prudence
The standard to be used by investment officials shall be the “uniform prudent investor act” standard
and shall be applied in the context of managing an overall portfolio. The treasurer acting in
accordance with written procedures and this investment policy and exercising due diligence shall be
relieved of personal responsibility for an individual security’s credit tisk or market price changes,
provided deviations from expectations ate reported in a timely fashion and the liquidity and the sale
of secutities are carried out in accordance with the terms of this policy.
2. Ethics and Contlicts of Interest
Town officials and town employees involved in the investment process shall refrain from personal
business activity that could conflict with the proper execution and management of the investment
program or that could impair their ability to make impartial decisions. Employees and officials shall
disclose any material interests in financial institutions with which they conduct business. They shall
further disclose any petsonal financial/ investment positions that could be related to the
performance of the investment portfolio. Employees and officials ate prohibited from undertaking
personal investment transactions with the same individual with which business is conducted on
behalf of the Town of Waterford.
3. Delegation of Authority
Authority to manage the investment program is granted to the Treasurer of the Town of Waterford
by provision of the following CY General Statutes: CGS 7-400. The Treasurer (Investment Officer)
shall act in accordance with established written procedures and internal controls for the operation of
the investment program consistent with the Town’s investment policy. Procedures should include
teferences to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire
transfer agreements and collateral/ depository agreements. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures. The investment
officer shall be responsible for all investment transactions undertaken and shall establish a system of
controls with the cooperation of the Director of Finance of the Town of Waterford to regulate the
activities of subordinate officials.
In the event of an absence, the Treasurer may expressly transfer specific powers and ‘responsibilities
to an appropriate person in the Finance Office, either the Director or Staff Accountant. However,
that transfer must be made in writing (or electronically) and state specifically the time and duration of
the transfer powers. The Director and Staff Accountant during that period would be bound by all
the same rules and standards to which the Treasurer would be subject en absentia. Further, the
Director of Finance and Staff Accountant must report all actions and transactions to the Treasurer
upon the Treasurer’s return.
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VII. Authorized Financial Institutions, Depositories and Broker/ Dealers
L. Authorized Financial Institutions, Depositories and Broker/Dealers
A list will be maintained by the Treasurer of financial institutions and depositories authorized to
provide investment services. In addition, a list will be maintained of approved security
broker/dealers selected by creditworthiness (e.g. a minimum capital requirement of $10,000,000 and
at least five years of operation). These may include “primary” dealers or regional dealers that qualify
under the Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All
financial institutions and broker/dealers who desite to become qualified for investment transactions
must supply the following as appropriate:
A. Audited financial statements demonstrating compliance with state and federal capital
adequacy guidelines ,
B. Proof of Financial Industry. Regulatory Authority (FINRA) certification (not applicable to
Certificate of Deposit or Bank money fund counter patties)
Proof of state registration
Completed broker/dealer questionnaire (not applicable to Certificate of deposit or bank
money fund counter parties).
Certification of having read and understood and agree to comply with the Town’s
investment policy.
F. Evidence of adequate insurance coverage.
m oO
An annual review of the financial condition and registration of all qualified financial institutions and
broker/dealers will be conducted by the Treasurer in coordination with the Ditector of Finance.
2. Minority and Community Financial Institutions:
From time to time, the Treasurer may choose to invest in instruments offered by minority and
community financial institutions. In such situations, a waiver to certain parts of the criteria listed
above may be granted. All terms and relationships will be fully disclosed prior to purchase and will
be reported to the appropriate entity on a consistent basis and should be consistent with state or
local law. These types of investment purchases would require the exptess approval of relevant
Boards (both Selectmen and Finance Boards). In addition the Treasurer would take into account any
advice of the Director of Finance. ~
VIII. Safekeeping and Custody
1. Delivery vs. Payment
All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that
secutities ate deposited in an eligible financial institution prior to release of funds.
2. Safekeeping
Securities will be held by an independent third party custodian selected by the Town and accepted by
the Town, evidenced by safekeeping receipts in the Town of Waterford’s name. The safekeeping
institution shall annually provide a copy of their most recent report on internal conttols.
3. Internal Controls
The Treasuret/Investment Officer is responsible for establishing and maintaining an internal control
sttuctute designed to ensure that the assets of the Town of Waterford are protected from loss, theft
or misuse. The internal control structure shall be designed to provide reasonable assurance that these
objectives ate met. The concept of reasonable assurance recognizes that 1) the cost of the control
should not exceed the benefits likely to be detived and 2) the valuation of costs and benefits requires
estimates and judgments by management.
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The internal controls structure include the following points:
Control of collusion
Separation of transaction authority from accounting and record keeping
Custodial safekeeping
Avoidance of physical delivery securities
Clear delegation of authority to subordinate staff members
Printed confirmation of transactions for investments and wire transfers authorizations of
wire transfers
The wite transfer agreement with the lead bank and third-party custodian which is usually
requited by the bank.
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a)
The Director of Finance shall oversee an annual independent review by an external auditor to assure
compliance with policies and procedures ot alternatively, compliance should be assured through
Town of Waterford’s annual independent audit.
TX. Suitable and Authorized Investment
Investment Types:
The Town of Waterford investments are consistent with and in accordance with Connecticut
General Statutes Please refer to the CGS 7-400, 403a, 362, which delineates the parameters of the
Town of Waterford’s investment activities.
Collateralization:
Collateralization for Town of Waterford investments is consistent and in accordance with
Connecticut General Statute 36a-336.
Repurchase Agreements:
Repurchase agreements for the Town of Waterford should be consistent and in accordance with
Connecticut General Statute 7-400. Additionally, repurchase agreements should follow the required
need for collateral that is put aside to back up any repurchase agreement. The amount of collateral
depends on the type of collateral that is pledged (Treasuries, Ginny Mae’s etc.).
X. Investment Parameters
Dryversification: :
Investments shall conform to state statute and further be diversified-by:
A. Limiting investments to avoid over concentration from a specific issuer or business sector
(excluding U.S. Treasury securities and the State of Connecticut Short-Term Investment
Fund also known as “STIF”) .
Limiting investments in securities that have higher credit tisks
Investing in securities with varying maturities (the exception being keeping the portfolio in
daily funds which are completely liquid)
D. Making sure at least a portion of funds ts liquid enough to meet ongoing obligations of the
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Town of Waterford.
. Appropriate portfolio diversification should also take into account the seasonality of the
Town of Waterford’s funds and invested to complement that cash cycle.
Maturity:
A. All maturities must conform to state statute.
Page 5

B. There must always be funds invested on a daily basis to ensure liquidity since cash
forecasting cannot always accurately predict all calls on the Town’s financial needs.
C. When contemplating an investment the Treasurer must look at two of mote soutces
(institutions) before placing money.
XI. Reporting
Methods
The Treasurer shall prepate an investment report at least quatterly including a management summary
that provides an analysis of the status of the current investment portfolio. This management
summaty will be ptepared in a timely manner and will be prepared in a way that will allow
comparison to the Town’s investment policy. The report should be provided to the Board of
Selectmen of the Town of Waterford, the Boatd of Finance and the Representative Town Meeting as
well as others upon request.
The report should show where the portfolio is currently placed (by institution) and the revenue
generated during the quarterly period. Individual transactions will be available for audit.
Performance Standards:
The investment portfolio will be managed in accordance with the parameters specified within this
policy. The portfolio should obtain a market average rate of retutn during the matket/economic
environment. The standard benchmark for determining whether market yields are being achieved
will be the yields of the State Treasurer’s Investment Fund (STIP).
XII. Policy Consideration
Any investment currently held that does not meet the guidelines of this policy shall be exempted
from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only
as provided by this policy.
XY. Approval of Investment Policy
The investment policy shall be formally approved by the Board of Finance and Treasurer and
reviewed annually. The opinions and advice of the Director of Finance will be included in the
teview.
Town of Waterford, Investment Policy — Draft 09/20/2022
Page 6

ob
WEB PAGE DATA
The Board of Finance meets on the second Wednesday of every month. Meetings are held at the Town
Hall Auditorium, 15 Rope Ferry Road at 7:00 pm. :
During the annual budget process, the Board of Finance conducts many budget review meetings, as well
as, a budget public hearing to provide a thorough review and public input-on the proposed budgets by
the Boards of Selectmen and Education.
’ The Board of Finance welcomes public attendance at all of their meetings.
The Board of Finance consists of seven elected members and its duties and responsibilities are carried
out in accordance with Connecticut State Statutes Chapter 106, Sections 7-340:349. In accordance with
State Statutes the Board is specifically responsible for:
1. Preparing the town budget.
2. Setting the property mill tax rate.
3. Approving special appropriations and department transfers.
4. Arranging for an annual audit of town accounts.
5. Publishing the annual town report.
The Board of Finance is responsible for managing the town’s budget, working closely with the Finance
Department and other town departments with budget preparation, and monitoring both income and
expenses throughout the fiscal year.

Financial Policies
' The Waterford Board of Finance recognizes that financial decisions for our community
are driven by our fiscal health. We understand that our citizens expect their town
government to deliver essential services such as public safety, education, sound
infrastructure, recreational opportunities and more. To fulfill these expectations, we
must invest in infrastructure, reserve funds and other obligations to assure our financial
wellbeing for years to come. Effective financial policies can help elected officials,
management and staff make sound decisions for our citizens now and into the future.
What are Financial Policies? .
Financial policies provide written guidance for how local government elected officials,
management and staff should approach fiscal issues and core financial areas.
Effective financial policies are essential to our community's fiscal health. They provide
stability and continuity by establishing what actions are acceptable and unacceptable,
identifying who is responsible for taking certain actions and providing standards to
measure your jurisdiction’s performance..
Financial policies are used during the annual audit to assess compliance, by credit
rating agencies to help determine our fiscal stability and by other financial professionals
as a basis for providing services.
Benefits of Financial Policies |
Among many benefits, financial policies can:
e Outline a clear vision of how we will manage © our financial resources to provide
the best value to our community
e Increase accountability and minimize confusion by identifying who can take what
actions
Support good bond ratings and reduce the cost of borrowing
Promote long-term strategic thinking
Manage and reduce risks to our community’s fiscal health
Help our community comply with established best practices identified by
organizations such as the Government Finance Officers Association (GFOA)
e ¢ oe @

Key Components of a Comprehensive Financial Policy
Financial policies and procedures can include a wide variety of topics. The Board of
Finance has embarked upon preparing financial policies.
The following Policies have been adopted: (ALL WILL BE LINKS)
1—General Policies/Procedures
e BOF 1.01—- Board of Finance Budget Guidelines
e BOE 1.02 - Policy Regarding Submission of Agenda Items
e BOF 1.03 — Fund Balance Policy
e BOF 1.04 — Investment Policy
e BOF 1.05 — Post-Issuance Compliance Procedures for Bonds, Notes and Other Debt at Obligations
2 ~ Policies on Expenditures
e BOF 2.01 —Policy Regarding Expenditure of Funds for Services or items Not Disclosed in Annual
Budgets
3 ~ Capital Project Policies ;
e BOF 3.01—Capital Project Review
e BOF 3.02 — Requesting New Capital Project Approval Outside the Budget Cycle
4 — Board of Education Policies
e BOF 4.01 —Board of Education Non-Lapsing Account
As the Board of Finance progresses adopting policies, the policies will be made
available on the Town’s website.
Any questions regarding policies may be directed to the Finance Director at 860-444-
5842 or kallen@waterfordct.org

BOARD OF FINANCE
POLICY AND PROCEDURE NUMBERING
1—- General Policies/Procedures
© BOF 1.01— Board of Finance Budget Guidelines
@ BOE 1.02 - Policy Regarding Submission of Agenda Items
e BOF 1.03 — Fund Balance Policy
e BOF 1.04 — Investment Policy
® BOF 1.05 — Post-issuance Compliance Procedures for Bonds, Notes and Other Debt Obligations
2-Policies on Expenditures
-e BOF 2.01 — Policy Regarding Expenditure of Funds for Services or Items Not Disclosed in Annual
Budgets
3 — Capital Project Policies
e BOF 3.01 — Capital Project Review
e BOF 3.02 — Requesting New Capital Project Approval Outside the Budget Cycle
4—- Board of Education Policies
e BOF 4.01 — Board of Education Non-Lapsing Account

' BOF 1.02
BOARD OF FINANCE. A
POLICY REGARDING SUBMISSION OF AGENDA ITEMS —
The Board of Finance agenda is typically issued one (I) week before the meeting. Agenda items
and supporting documentation should be sent to the Board of Finance Secretary by noon one
week prior to the meeting date.
On the rare occasion that a late agenda submission is unavoidable, the Board of Finance may
* vote to add the item to the regular meeting agenda or defer the item to the next scheduled
meeting. The request to add the item to the agenda must be accompanied by an explanation as
to why the submission was late. Please note that State Statute Section 1-225 (c) requires an
affirmative vote of2/3 of the Board members present.
If there is a need to provide additional information to the Board after the agerida has been
sent, please send or give it to the Board of Finance Secretary. Do not distribute the information
to the members prior to the start of the meeting as this does not allow for review of the
information.
If you are requested to provide additional information by the Board, please send that
information to the Board of Finance secretary who will distribute the information to the
members. Do not send the information directly to the Board of Finance members.
Adopted: May 18, 2016

BOF 1.03
TOWN OF WATERFORD
FUND BALANCE POLICY
OBJECTIVE
The Town of Waterford feels it necessary to maintain an adequate unrestricted fund balance in the
General Fund to provide for a sound financial base for current and future budgets as well as mitigating
risks such as revenue shortfalls or unexpected expenditures. An adequate level of unrestricted fund
balance will also assist the Town in maintaining its bond rating.
DISCUSSION
Waterford recognizes the new Fund Balance components below i in accordance with Government
Accounting Standards Board (GASB) Pronouncement #54.
¢ Non Spendable Fund Balance-Amounts that cannot be spent because they are either:
a Not in a spendable form such as long-term receivables, inventory, or prepaid expenses.
= “Legally or contractually required to be maintained intact, such as an endowment fund
“e Restricted Fund Balance - Amounts that have legally enforceable constraints placed on their use
by external parties or external laws and regulations.
¢ Committed Fund Balance -Amounts that can only be used for spécific purposes pursuant, to
constraints imposed by formal action of the government’ s highest level of decision- making a
authority (RTM)
® Assigned Fund Balance - Amounts intended to be used for specific purposes, but are neither
restricted nor committed
e Unassigned Fund Balance-Amounts that do not fall within any other classification.
POLICY
The Town will maintain an unassigned fund balance as of June 30th of each year between 10% and 13% ~
of the subsequent fiscal years budgeted General Fund revenue.
The use of General Fund Unassigned Fund balance in excess of the. maximum level shall be limited to
one-time, non-recurring purposes. Examples include Capital Projects, transfer to Capital Non-recurring
fund, emergency/storm response, debt service mitigation, land acquisition, and other one-time,
nonrecurring uses determined to be in the best financial interest of the Town.
The General Fund Unassigned Fund Balance may be appropriated aas authorized by the RTM upon
approval by the Board of Finance.
General Fund Unassigned Fund Balance in excess of the maximum level will not be allocated to ongoing
operations to avoid a revenue © gap in subsequent budget years.
For purposes of fund balance classification, expenditures.are to be spent from restricted fund balance
first, followed in order by committed fund balance, assigned fund balance and lastly, unassigned fund
balance.
If Unassigned Fund Balance falls below the minimum level, the Board of Finance will propose a plan to
restore it to the minimum 10% level within three years.
ADOPTED:. November 18, 2015

BOF 1.04
TOWN OF WATERFORD
INVESTMENT POLICY
I. Introduction:
The purpose of this investment policy is to provide a written. document establishing the guidelines
governing the short-term investing procedures and best practices for the Town of Waterford (“The
Town”). This investment policy is designed to conform to standards set by the Government Finance
Officers Association and the requirements of the Government Accounting Standards Board.
Il. Governing Authority:
This investment program shall be operated in conformance with federal, state and other legal
requitements. Specifically, the Treasurer of the Town of Waterford is responsible for managing
short-term investments. The scope of those investments is mandated under Connecticut General
Statutes 7-400 and 7-403a and 7-362, which outline the type and term of permissible investment