BOARD Of FINANCE – WORKSHOP
December 15, 2003
I. CALL TO ORDER - The Special Workshop was called to order at 7:30 p.m. in the Avon Room, Town Hall, by Chairman Harrison. Present were Messrs. Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio. Also present were Town Manager Philip K. Schenck, and Clerk Elinor Burns.
II. PLEDGE OF ALLEGIANCE – Recited by all.
III. COMMUNICATION FROM AUDIENCE – None.
IV. OLD BUSINESS
03/04-03 Review & Discussion FY 04/05 Budget Process
Chairman Harrison stated that the purpose of this meeting is to develop a procedure that will allow the Town Council and the Board of Education including the Capital Budgets to be developed along lines that will be acceptable to the voters. Such guidelines will not be in the form of a mandate, rather the purpose is working together to present an overall budget that will be accepted at the first referendum, scheduled to be on May 12th.
Mr. Harrison reported there will be no vote tonight; this discussion is to develop some guidelines. He reported that the past two years have indicated there is a need to consider some type of spending cap. The Board members thought it would be helpful to have this informal workshop at which we can consider various options that might accomplish this goal. We could do that by suggesting a percentage of dollars, or a percentage of the tax increase. We could do it in terms of proposing dollar limits and suggest the Boards work together to come up with a budget within that dollar configuration. The Town Manager has supplied a package of materials to assist us in that process which include such items tracing back 10 or 12 years, including percentage increases in the mill rate,
percentage increases in the operating budgets, dollar increases, cost of living, impact of the new assessments on property values and possible taxes. He feels the presence of revaluation will have a major impact. People will have new assessment values - and basically if we apply the current year’s mill rate, which is 28.3 mills, which raised about 47 million this year, if we apply that figure to the new valuations there would be a substantial increase in taxes due. We need to estimate what might be an acceptable level of expenditures, from very little to something moderate. Last year we were not inclined to recommend a tax increase to the voters that would exceed 6%. We asked the operating Boards to come in with budget requests that would not require a tax increase above that figure.
Tom Gugliotti stated we are all mindful of the duties of the Board of Finance under the Charter. This gives this Board the obligation to make such revisions as the Board of Finance deems desirable and shall recommend the budget so revised to the annual budget meeting. Actually we are the last stop before the budget goes to the voters. We all realize this is a difficult thing to do but one that should be done to get the process started earlier rather than later.
As the Chairman indicated he has talked with Board of Finance Chairs from Granby, Simsbury, Farmington, Burlington and Canton. Burlington is not really comparable as they are part of a regional school district so their Board of Finance does not get directly involved the way we do. As to the other Boards; Simsbury seems to recommend a percentage tax increase; Granby has done it that way. Canton has a new Board of Finance Chair and they will meet tonight; they are leaning towards doing a percentage of tax increase. Mr. Hooper indicated the other boards will not be aware of the new assessments; he feels a percentage of increase in spending would be more equitable.
Board members discussed possible figures that could result from the new valuations and how the general public would be affected. Mr. Gugliotti commented when we take all things into account, all parts of the budget, Town Operating, Board of Ed, Capital, Debt Service and then take into account as well the Grand List which is going to go up, isn’t the only real thing that makes any difference to the average tax payer is the mill rate. Several methods to consider the impact of the revaluation were discussed and some were deemed too complicated for many voters to comprehend. Percentages of increase in assessments differs from residential, to commercial, to condos. The Town Manager stated that what all the members are saying is correct; there is an interplay of numbers. How do you present
this to the public seems to be the question, since there has been a shift from industrial and commercial to residential. The problem is we don’t really know how that will impact the mill rate. Mr. Schenck reported on the items that will affect the revenue side of the budget.
After reviewing and discussing the information the Town Manager provided in response to our prior requests, the consensus of the Board was to recommend a not-to-exceed percentage increase in the budget. After obtaining additional information regarding Debt Service and contractual agreements as well as the “big rocks”, items over which we have no control, and the best estimates from the Assessor regarding the revaluation, the Board of Finance will be better armed to decide what they feel will be a reasonable increase at the next meeting on December 22nd. The Board reiterated that any figure they recommend will not be a mandate but more of a goal, and that any comments made by the voters at the Public Hearing in May could result in an increase or a decrease of the number we reach. The ultimate goal is to present a budget that will be acceptable to the voters.
V. MISCELLANEOUS – None.
VI. ADJOURN - On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:35 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns
12-15-03 BOF
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