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BOARD OF FINANCE WORKSHOP
MINUTES
APRIL 13, 2004
I. CALL TO ORDER – Chairman Tom Harrison called the meeting to order at 7:00 p.m. in the Avon Room, Town Hall. Present were members Tom Gugliotti, Bill Hooper, Steve McGuff, Michael Monts, Jim Speich and Mark Zacchio.
II. OLD BUSINESS
03-04-03 FY2004/05 Budget
The Chairman opened the meeting by asking if either the Council or the Board had considered his request to look for possible reductions in the proposed budgets. Town Council Chairman, Dick Hines reported that although the Town Manager has reported an increase in revenues, the Council has not decided at this point, anything else that they felt could be eliminated. He stated when you give us the bottom line, we’ll work on it at that point, the Council came in below your guidelines, so it’s up to you to give us any further instructions. The Town Manager reported on increases in Planning & Zoning fees of $6,000 for permits, on the State level, the Finance Committee has recommended a grant of $34,039 in Educational Cost Sharing, and an additional
$1,075 for Town Aid Road for a total of $43,013. There is also a possibility of the State approving an extension of the conveyance tax revenues that would produce another $250,000 in revenues. However, there is a ”sunset” provision on that – it was a one-year revenue grant in the current year with a sunset of June 30th. We are trying to get it extended at least one more year. If this does sunset on June 30th of 2005, we’ve got to drop our revenue estimates by about that amount, too. Peggy Roell reported the Board of Education took the request of the Board of Finance very seriously, they had a meeting this evening. They went back through the whole process, looked at the budget in many different ways, both Board and administration budgets, and they feel this is a really responsible budget to meet the needs of the Avon children in the most cost effective manner. At this point, if we
were to make any further cuts, the kids would really be affected. We feel the 7.76% is a reasonable budget.
The Chairman announced he was impressed with the communications received and although we need to develop a budget that will pass at Referendum, we will not take any votes tonight; hopefully on Thursday night we will be able to recommend a budget to the Town Meeting and Referendum. He reported he is sure each of the members has ideas on how to accomplish this and he will start by commenting on his thoughts, especially taking revaluation into consideration. Mr. Harrison still wants to keep the spending increase to no more than 5.5%. To accomplish this, he would take $500,000 from surplus, leaving a balance of undesignated funds at 5.47%. To reach the 5.5% in spending, it will still be necessary to decrease $593,000 from the Board of Education, which will bring their increase down to 5.9%. He
would also recommend taking $100,000 from the Town Council, but leave it to their discretion whether to take that from operating or Capital expenditures.
Mark Zacchio reported to reach a 5.5% spending increase will take a reduction of $950,000 total reductions. To achieve this, he would recommend taking $530,000 from surplus, leaving a balance of 5.43%. He would recommend $270,000 be reduced from the Board of Education and $150,000 from the Town Council, again leaving it to their discretion whether to deduct this from operating or Capital items. This would result in a 5.4% tax increase.
Steve McGuff indicated he is still looking to the future and is suggesting a cautious $320,000 from surplus. This would leave a balance in surplus to accommodate emergency appropriations.. He would reduce the Board of Education budget by $220,000 and the Town Council budget by $100,000. This would result in 5.78% tax increase for a mill rate of 24.1.
Jim Speich feels a 6% increase in the combined budgets would be reasonable and could be reached by using $500,000 from surplus, decreasing the Board of Education b $200,000 and a smaller decrease to the Town Council. This would require a 5.7% spending increase.
Tom Gugliotti still feels both Boards have submitted reasonable budgets, but to ease the effect, he would take $500,000 from surplus and submit the Town Council and Board of Education budgets to the Town Meeting, as submitted.
Bill Hooper has reported before the conveyance tax was mentioned he was willing to take $400,000 from Surplus. However, he now feels it will be necessary to take $500,000. He is now recommending $600,000 from the Board of Education, $100,000 from the Town Council and $500 from Capital. He does not think 5% will pass at Referendum. He feels 4.375% would be acceptable – anything under 5%.
Mike Monts is looking to reduce the Town Budget by $100,000, use of the surplus of $300,000 and the Board of Education reduction of $350,000 which should add up to the $793,000 to fill the necessary gap to 5.5%.
The Chairman reported since they have ended up with seven different proposals, the Board of Finance will have a lot of homework to do. They will take these figures under consideration along with public comments. He then asked if any members of the Boards would like to comment. Mr. Hines reminded the Board that the Town Budget came in at 4.6, not 5.5% which should be remembered when asking for more reductions. Peggy Roell asked if there was any money from the Thompson Brook School account that could be used to pay for the Pine Grove Roof, or a portion of it. The Town Manager reported there may be money down the road, but at this point in time, he feels it would be imprudent to start digging into that. Mrs. LaMonica reported at this time, it appears there is nothing to return. She
recommended waiting until the school is closed out and there has been an accounting by the State. Anything left could be used to make up for the $500,000 that we are using this year. Chairman Harrison opened the meeting to the floor and several participants commented or questioned the comments made tonight.
After all residents had been heard, Chairman Harrison declared the meeting adjourned at 9:00 p.m.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:
04-13-04 Workshop
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