BOARD OF FINANCE
MINUTES
July 23, 2003
I. CALL TO ORDER - Chairman Tom Harrison called the meeting to order at 7:30 p.m. in the Selectmen's Chamber, Town Hall. Present were Messrs. Tom Gugliotti, Steve McGuff, Michael Monts and Mark Zacchio. Messrs. Bill Hooper and Jim Speich were absent.
II. PLEDGE OF ALLEGIANCE - Led by Mark Zacchio.
III. COMMUNICATION FROM AUDIENCE - None.
IV. MINUTES OF PRECEDING MEETINGS - March 24, 26, April 7, 9,
10, 15, May 14, 19,27,28 and June 4, 2003.
On a motion made by Mr. Monts, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance approve the minutes, as listed above, as submitted. Messrs. Hooper, Gugliotti, McGuff, Monts and Zacchio voted in favor.
V. OLD BUSINESS
02/03-01 - Supplemental Appropriation: $98,000; CIP future Roofing Repair, Pine Grove School
The Town Manager reported we are putting this money in a Reserve Fund for future replacement of the Pine Grove School, which is projected to be required in FY06/07 in the current Board of Education's Capital Improvement Program.
On a motion made by Mr. McGuff, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY02/03 Budget by increasing REVENUES Capital Projects Fund (Facil & Equip), Other Local Revenues, Refunds and Reimbursements, Account #02-0360-43612 in the amount of $98,000 and increasing APPROPRlAnONS Capital Projects Fund (Facil & Equip) BOE CIP-Facilities, Roof Repair/Replacement, Account #02.859.53342 in the amount of $98,000 to record receipt of Johns Manville settlement check to be used for construction of Pine Grove Elementary School Roof. Messrs. Harrison, Gugliotti, McGuff, Monts and Zacchio voted in favor.
02/03-02 - Supplemental Appropriation $52,938; Public Works Overtime
In response to a question from Mr. Monts, the Town Manager reported the amount received is a significant settlement. In response to questions from the Board, the Town Manager reported on the method of applying for the grant and how the amount approved was determined. He reported we were very fortunate to receive this amount.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY02/03 Budget by increasing
REVENUES General Fund, State and Federal Grants, FEMA Storm Assistance, Account 01-0330-43360 in the amount of $52,938 and increasing APPROPRIATIONS General Fund, Roadways, Overtime, Account #01-3101- 51015 in the amount of $52,938 for reimbursement from FEMA for costs incurred for snow removal February 17 and 18, 2003.
Messrs. Harrison, Gugliotti, McGuff, Monts and Zacchio voted in favor.
02/03-03 -Review and Discussion FY04/05 Budget Process
The Chairman commented that he wanted to talk about the question of setting some guidance or target to the Council and the Board of Education. It's been recommended that if we are going do that, we do it now, at this stage of the process It will be easier if the Town Manager is a there will be some sort of target and he can factor that in. Mr. Gugliotti agrees that there is a necessity for some direction from this Board; however, he is not prepared to set a number tonight. Mr. Harrison feels it is important to decide, tonight, if we want to do something along this line. If there is a majority in favor of doing this, perhaps in August or September we can announce our decisions. The Town Manager reported from his point of view, October or November would be sufficient to report this to the
Council and the Council then could decide whether or not they want to do that, or whether they want the Manager to do that. Mr. Speich, . a telephone call, indicated he was in favor of doing something like this. Mr. McGuff is also agreeable to setting some guidelines and he feels the October / November time is appropriate. Monts expressed issues that will need to be considered; basically he is in favor of establishing guidelines. Mr. Zacchio feels that we need to present a strong front; however, he feels it is too early in the process. If we do set a number, would this be binding? Mr. Gugliotti feels that we cannot make this decision binding on the Council and the Board of Education because the board can totally ignore it if they so desire. But, also, it's not binding to us - we will present a budget on what is submitted to us, if we feel it is too high, we can ask for reductions; at the same time, we feel it is too low, we can recommend making
appropriate adjustments. He would recommend discussing this at the October meeting to give the alert, and then in November we actually take a vote and establish what we think is an acceptable goal. The Town Manager reported that because of revaluation this year, budget increases will not be directly related to tax increases, or the increase in the Grand List. What's likely to happen is that residential values will go up 100/0 or 12%. Industrial and Commercial values probably won't go up that much and some will actually decline. The Chairman indicated he feels that we should take some sort of vote to communicate to the Boards that we've adopted a policy. I would like something formal so there will be no confusion on the part of the Boards when they start developing their budgets.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That it is the intent of the Board of Finance to provide to the Town Council and the Board of Education suggested parameters or limits for the development of the new budgets for the fiscal year 2004/2005.
WHEREAS, the Board of Finance has not determined any numbers at this point; however, they are resolved that they will, in fact, take that issue up early in the budget process, so that in November the Board of Finance will be prepared to provide a recommended limit on the budget.
It is further resolved: It is the mission of this Board to provide guidance on proposed budget increases in the next budget process.
Messrs. Harrison, Gugliotti, McGuff, Monts and Zacchio voted in favor.
The following comments should be included in a letter to the Board of Education and the Town Council: The Board of Finance recognizes the political responsibilities of the Town Council and the Board of Education, in that they should and must address this issue when preparing their budgets. The approach this year should provide an opportunity to provide greater insight which would lead to greater voter education and hopefully less confusion regarding the underlining elements of the various budgets and the respective needs that they represent. It should, therefore, result in greater support for those budgets, as ultimately, they are recommended to the voters for their consideration.
Each agency should challenge the status quo of all their programs. It is always easier to continue to add items and programs without going back to review existing programs; however, the present economic times force all of us to go back and challenge earlier decisions. We should question whether we can really do without items or accomplish them differently and attempt to find ways to fund those new programs and items without necessarily looking for incremental dollars to accomplish our goals.
The Board of Finance is of the opinion the Board of Education and the Town Council would benefit from a careful review of all existing programs and to the extent that they believe existing programs can be modified, discontinued or changed and they should be prepared to discuss the issues for the benefit of the public.
The concept of need is not necessarily one that is limited to new programs or additions, but should be one that addresses a broader range of activities. It would be advantageous for the boards to identify and describe their budgeting philosophy, how they identify priorities, and the process that is used, in a way that will afford a greater educational opportunity to the public.
The Board of Finance does not want to imply that the Boards have not been doing this in the past, but in these times we should all be looking even deeper than we have and be ready to challenge those programs and services offered. The Board is not providing any direction to any specific department, but personally think it would be helpful when the real questions are asked At our public hearings for all departments to be prepared to respond.
The Town Manager commented on the functions of the Board of Finance vs the Town Council. He reported when the Town Council initiates the budget process, the meetings are open and he strongly suggests that the Board of Finance members attend these meetings as well as the meetings of the Board of Education, to learn what will be included in the budgets and why they are necessary items. This would give the Board advance notice of critical issues, rather than getting the whole budget at one time and then making a deliberation on what you feel the town will accept. The board discussed their budget philosophy and how it affects the development of a budget that will be accepted by the citizens.
Mr. Monts reported he remembers back to a comment made by Jim Speich that he expressed a willingness to invest in technology, to provide funds in order to save money. What he was talking about was really technology investment in a way that if we found technology that could result in labor saving, that spending the money in a way that wouldn't require additional employees, would be very cost effective. And, part of his message was strong encouragement making sure those opportunities in fact were explored. What those opportunities might be, Mr. Monts, has of course, no idea.
The Chairman stated he wanted to discuss the possibility of polling residents. He reported Steve Kushner, Town Planner, has developed a telephone polling system on the question of conservation as it relates to the Town's Comprehensive Plan of Development. It's not a budget related survey but he wanted to remind the Board if any members have any questions they would like to have included to notify Steve. Mr. Monts asked if there would be a follow up report available. The Town Manager commented on the methodology of the survey to develop statistically diversified results. The question is does the Board of Finance want to present questions to the public through that vehicle and if so, we need to get the questions in. The questions will have to be reviewed by the surveying people to make sure they are not
unintentionally directed in terms of the outcome.
VII. MISCELLANEOUS -The Chairman reported that Mr. Santos was present for "Communication from Audience" and he asked if there was anything Mr. Santos wished to present to the Board. Mr. Santos reported he was intrigued with the discussion tonight and felt it was very effective in getting division heads and department heads to think about what they are doing. Why do they exist? What kind of service do they provide to the people? And how much money do they really need in order to provide those services. I think if we go through the process along those lines, thinking about conditions and perspectives, the inputs and the outcomes, we would be better served. People will know better and have a really thorough understanding of how the Town operates, how the Board of Education operates. I think
you should go through that process, making it simply asking the Town Council and the Board of Education to submit to you those elements of the budget. What is your mission? What is your goal? What do you project for this year? When he read the Board of Education's budget, there was just numbers. There was no explanation for increases that they had built into the budget; that kind of information is necessary for the people to understand what they are voting for. Mr. Harrison thanked Mr. Santos for his comments.
VIII. OTHER BUSINESS -None.
IX. ADJOURN
On a motion made by Mr. McGuff, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:45 p.m.
Messrs. Harrison, McGuff, Monts, and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
| 
