BOARD OF FINANCE
WORKSHOP MINUTES
MAY 27, 2004
I. CALL TO ORDER – The meeting was called to order at 8:00 a.m. in the Selectmens Chamber, Town Hall, by Chairman Tom Harrison. Present were members Tom Gugliotti, Bill Hooper, Steve McGuff, Mike Monts and Mark Zacchio. Jim Speich was absent due to a previous obligation. Chairman Harrison reported on the reasons for this meeting and the procedures to be followed. The Town Charter covers the situation after the defeat of the Town Budget Referendum. It requires that the Board of Finance has to consult with the other two Boards and make such adjustments to the budget as it believes to be appropriate and take those proposals to a Public Hearing and after the Hearing, set the new budget as recommended to a
second Referendum which will be scheduled for June 7th. Tonight we will set the Budget for the purpose of the Referendum. The original budget called for a combined spending increase for all Town and Board of Education services of 6.09%. It called for a mill rate increase of 5.5%. That was rejected by a significant margin. We have proposed to lower the combined spending from the 6.09% to 4.75%.
II. OLD BUSINESS
03-04-03 – Recommend FY 04/05 Budget to the Town Council for
Referendum Vote.
The Chairman asked if the Peg Roell, Chairman of the Board of Education, has anything to say on behalf of the Board? She responded right now our contracted salary increases, benefit increases and special ed increases, after taking out the reductions we know about are $105,000 more than our proposed budget.
Dick Hines, Chairman of the Town Council, has a couple of items to talk about. The talk is that the school population has gone up 50% in the last 10 year period, while the Town population increased by 17%. That’s a valid comment. Other Town services are also required such as more roads, more maintenance like plowing, etc. and in addition we have to look at all the new business in Town. They put a great demand on the Police Department and the increased traffic we have in Town has nothing to do with population. A lot of that comes from the West, Simsbury, Farmington, Canton and New Hartford. There are 30,000 cars daily on Route 44 – all of the roads sustain increased traffic. You have to look at our population which has become much older – we’re the 3rd oldest town of the 29 towns in our area. Only Wethersfield and Bloomfield are older. That has necessitated a new person at the Senior Center, we’ve increased the Dial A Ride, the amount of Ambulance requirements. The large
increase in school population has created a need for more recreation, maintaining the fields, more library facilities. Also, the recommendation that we go to a lower bond rating and buy insurance to cover that. If we had a reduction in our AAA credit rating every person in Town would be affected. Property values wouldn’t be as high, businesses wouldn’t be so interested in moving here, if they went out to borrow money, they would have to pay a higher rate. All of these things have a negative impact. Combining services between the Town and Board of Education – that is currently being done, and will continue to be considered.
Mr. Gugliotti commented that this is a difficult year especially with revaluation over which we have no control. He commends taking funds from surplus to offset this problem. Our spending increases of 4.75% is his main concern. He seriously hopes that 4.75% spending increase will be supported by the voters. Mr. Harrison indicated that after a lot of discussion and agonizing, he feels that the 4.75% spending is reasonable. Mr. Zacchio has reported that since the last meeting he has changed his mind; he has been convinced that the 4.75% is fair considering taking the $500,000 from surplus and not planning on State funds (Conveyance tax). Mr. McGuff feels that although he could live with the 4.75%, he does not
feel that the split reflects a fair share of the budget. He would be happier with a 40/60 split would be more acceptable. Mr. Monts is comfortable with the spending increase of 4.75% but he also agrees with Mr. McGuff that the split should be done on a pro-rated basis. He was looking for a 40/60 split. Mr. Hooper agrees with the 4.75% increase because of the growth in the Town. He also feels the split on the reductions is fair.
A motion to change the specific reductions to the Board of Education/Town Council did not receive a majority voted. The Town Manager indicated the finance department would make the finite reductions to arrive at the total budget figure.
On a motion made by Mr. Monts, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance recommends a budget in the amount of
$56,347,979 to be presented to Referendum.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts and Zacchio voted in favor.
On a motion made by Mr. Harrison, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance approve reductions of $500,000 from the
Board of Education and $42,548 from the Town’s budget accounts.
Messrs. Harrison, Gugliotti, Hooper and Zacchio voted in favor. Messrs. McGuff and Monts voted against.
III. OTHER BUSINESS – None.
IV. ADJOURN
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:55 a.m.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:
05/27/04 BOF Minutes
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