 |
BOARD OF FINANCE WORKSHOP
MINUTES
MAY 19, 2003
I. CALL TO ORDER – Chairman Tom Harrison called the meeting to order at 7:00 p.m. and noted that Messrs. Tom Gugliotti, Bill Hooper, Steve McGuff, Michael Monts, Jim Speich and Mark Zacchio were present. Mr. Harrison explained that this meeting with the Town Council and Board of Education is required under the Charter to discuss and establish modifications to the recently defeated budget. A second Referendum is tentatively scheduled for June 4th and to accomplish this schedule, it is necessary that the Board of Finance establish its recommendation to present to the voters at a Public Hearing scheduled for May 27th.
On May 28th, the day after the Public Hearing, the Board of Finance will recommend to the Town Council a budget to be voted upon. The Public Hearing and the Voting will take place in the Community Room at Avon Senior Center, 635 West Avon Road, at 7:30 p.m.
The Chairman reported that at tonight’s workshop, public comment will be allowed. However, in consideration of those citizens who have a need to leave early, perhaps we will allow public comment for about a half-hour then we will deliberate how we will develop a budget that will be acceptable to all the voters. He asked that each person announce their name and address before they speak, and that they keep their comments to about two minutes.
Robin Schwartz, Harris Road – Denise Rinehart(?) -Bill Huebner, Moravia Road – Eli Simon, Manitook Mtn. Road – Larry Merlin, Highgate Drive – Sam Levine, Cotswold Road – Doug Ramasdell, Farmington Woods – Valerie Farro, Cotswold Way – Linda Merlin, Highgate – all spoke to the Board and offered suggestions and comments on how to make the budget more acceptable to the voters, making pleas to the Board to carefully consider the educational needs of the children. The Chairman thanked the speakers for their comments and assured the attendees that the Board will work diligently to come up with the best budget they can. He reported on statistics of the voting history on the Budget in the past three years since we went from a Town Meeting vote to a
Referendum.
Town Council Chairman Dick Hines reported the Town Manager has indicated an increase in revenues of $28,500 as shown in his “possible budget adjustments” submitted to the Council.
Mr. Hines also requested that the Town Council be allowed to make decisions on where reductions are to be made, i.e. Capital budget or Operating budget. Also, for all the reasons previously stated, he feels strongly that we should not use any amount from Surplus. With revaluation coming next year he feels it is imperative that we have money available, should it become necessary, so that there will not be a huge increase in taxes. Mr. Hines reported that although Council member Diane Hornaday could not attend tonight, she indicated that she was also against using Surplus.
Councilman Joe Woodford feels that anything under 5% would be acceptable. However, he is against using any surplus to attain this goal, at this time. Councilman Bill Shea also stated he is against using surplus and agrees that the Council should be allowed to decide where cuts are to be made because many Capital items are committed and cannot be cut. Councilman John Carlson agrees that Surplus should not be used at this time. He feels 4.5 to5% increase would be acceptable to the voters.
Peggy Roell, Board of Education member spoke to the increase of 125 students and the additional dollars necessary to address the education of them. Dave Shopis reported the Board of Education has not yet had a chance to meet to consider the results of the Referendum, but he indicated that class size would be a priority. Dr. Kisiel, Superintendent of Schools, indicated the Board of Education submitted a budget they considered to be reasonable and acceptable; however, the voters turned it down and it’s now time to move forward. He realizes that reductions will have to be made and the Board of Education will adjust their budget as necessary. Dr. Kisiel indicated that class size is still his priority and he will do all in his power to maintain class size. However, he is worried mainly
because of the increase in student population that has been projected.
Chairman Harrison asked for the Board of Finance member’s opinions and was advised:
Mr. Zacchio indicated he feels the budget was too high – it was not the ability to pay that defeated the budget, he feels it is an entire community issue. His consideration is that 4% to 4.15% tax increase range, which represents a 1.3% mill increase, is reasonable, split $250,000 to the Board of Education and $166,000 to the Town Council. That still represents an increase in the amount of money for both the Board of education and the Town Council.
Mr. Speich indicated he would not like to see Surplus used this year. He feels there is not a lot in the Capital budget to decrease. And, as the town grows, the town hall also needs to grow. He feels a 6.3% increase in dollars would result in a 4.3% mill rate increase. He would recommend a $350,000 reduction but he does not have an opinion of the split at this time. Mr. McGuff would recommend taking the $350,000 from the Capital Program at this time because of the discussion tonight. This could be deferred until next year. Mr. Hooper agrees with not touching the Surplus this year, possibly in the reval year, but if we lose our AAA rating and interest rates go up just ¼ of a percent, that’s $25,000 per year on a 10 million bond. He feels we want to be under
4% tax increase; if we look at 3.9% tax increase, we’re still getting a 5.9% increase to the total budget. He would like to see a 60/40 reduction. Mr. Monts expressed appreciation for the comments tonight. Clearly the budget that was defeated was a budget that he favored but the voters rejected it. He sees a fair amount of caution in the area because of economic conditions and due to the increase in student population, he favors a heavier reduction to the Town budget, especially looking at the Capital budget. He feels the increase cannot exceed 4.4 to be acceptable to the voters. Mr. Gugliotti – No Surplus this year. 4.4 – 4.5% mill rate increase which would require finding another $250,000 to $300,000. He would like to leave it to the Council where they make any cuts that are needed. He’s not decided on the split. Mr. Harrison is looking at 3.9%. The Board of Finance originally
requested no more than a 6% increase from each of the two boards; the Council did comply, the Board of Ed did not. He feels we need more than just a token reduction to this budget. If we set the Board of Ed’s portion at the 6% request we had back in February, that would require about $350,000 additional reduction to the total budget. I think the voters will support 3.9% or 1.05 mill increase; we need $529,893 in reductions to get there. The Board of Ed at 6% increase in dollars over the present year’s budget would result in a 5.9% overall budget increase. I would recommend a $350,000 reduction from the Board of Ed and $185,000 from the Town. I’m really concerned about passing this budget. I think I agree that we need something that sends a message.
A poll of the members indicated Messrs. Harrison, Hooper, Speich and Zacchio preferred a 3.5 to 3.9% increase, while Messrs Gugliotti, McGuff and Monts were looking at 4.3% increase.
Dr. Kisiel reported at 6% there would be no new library books, no multi-media material, no computer software – we’re right back to where we were on the line item budgets for this year. We’d have to carry over the same number of personnel as we have this year, not necessarily the same services or programs because to keep the same class size with the increase in enrollment we’re going to have to give up something. That’s my initial thinking. Mr. Shopis reported the 6% would basically cover new contracts that have been negotiated, fixed cost for transportation, fixed costs for insurance and the balance would cover services and miscellaneous costs for utilities. The 1.8 million increase includes nothing new, not even text books.
The members discussed submitting a range (3.9% to 4.5%) to the voters for discussion at the Public Hearing before a final budget figure was developed. After presentations, perhaps the Board will have a clearer picture of the preferences of the voters and the split would depend upon the final figure to be determined at that time. Mr. Gugliotti indicated he would prefer to have a definite plan before we go to the Public Hearing. After further discussion:
On a motion made by Mr. Gugliotti, seconded by Mr. McGuff, it was voted:
RESOLVED: That for the sake of discussion only, and in no way binding, it is the sense of the group to recommend a 4.3% mill rate increase to the total budget.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
On a motion made by Mr. Hooper. Seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board recommends a non-binding split of 60/40 on the reductions required; 60% for the Board of Education and 40% for the Town.
Messrs. Harrison, Hooper, Speich and Zacchio voted in favor, Messrs. Gugliotti, McGuff and Monts voted nay.
III. OTHER BUSINESS – None.
IV. ADJOURN
On a motion made by Mr. Speich, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:10 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
| |
