REGULAR TOWN BOARD MEETING
August 13, 2008
Page 21


Governmental Accounting Standards Board (GASB)

GASB 34

Frank Basile explained GASB 34, which requires a municipality to record the historical cost of vehicles, land and land improvements, easements, buildings and other infrastructure.   Lack of compliance causes adverse opinion on a municipality’s bond rating.  The New York State Office of Comptroller encourages compliance.  Copies of the proposal submitted by Industrial Appraisal Services to provide an appraisal for the Town for fixed asset accounting control and insurance valuation purposes had been submitted to the Town Board, who had reviewed same:

  • $3,450 – for the recording and valuation of Infrastructure Assets
  • $5,205 – for the proposed inventory and appraisal services

The appraisal would be completed by December 31, 2008.  The GASB 34 law statement came out in 1999 and based on the Town’s gross revenue, the Town was supposed to be compliant in 2002.  Mr. Basile recommended that the Town Board accept the referenced proposal. 

GASB 45

Mr. Basile explained that GASB 45 deals with the cost and obligation for future post employee health care, etc.  The State establishes the guidelines and the State Comptroller’s Office encourages complete compliance.  Lack of compliance also causes an adverse opinion on a municipality’s bond rating.  Armory Associates, LLC, Division of Fiscal Advisors, submitted a Sixty-five Hundred Dollar ($6500) proposal for an Actuarial Valuation of Post-employment Benefits to be completed by December 31, 2008. 

Mr. Basile recommended that the Town Board accept this proposal, stating he wants the highest opinion on the Town’s financial statement.  Compliance with GASB 34 and 45 are the only deficiencies in the Town’s audit.  Updates can be done each year at an additional cost. 

Thereafter, Councilman Payne introduced the following Resolution for adoption; seconded by Councilwoman Krupa:

(RESOLUTION NO. 201 OF 2008)

RESOLVED that the New Hartford Town Board does hereby accept the proposal of Industrial Appraisal Services in the total amount of Eight Thousand Six Hundred Fifty-five Dollars ($8,655) for Inventory and Appraisal Service and for the recording and valuation of Infrastructure Assets, and does further accept the proposal of Armory Associates, LLC in the amount of Sixty-five Hundred Dollars ($6500) for an Actuarial Valuation of Post-employment Benefits. 

A roll call vote was duly held and resulted as follows:

Councilwoman Krupa                        -            Aye

Councilman Woodland            -            Aye

Councilman Payne                        -            Aye

Councilman Reynolds                        -            Aye

Supervisor Reed                        -            Aye.

The Supervisor declared the Resolution unanimously carried and duly ADOPTED.