BOARD OF FINANCE WORKSHOP
MINUTES
WEDNESDAY, APRIL 6, 2005
I. CALL TO ORDER – Chairman Tom Harrison called the meeting to order at 7:00 p.m. in the Avon Room, Town Hall. He noted members of the Town Council and Board of Education were in attendance. Board of Finance Members Tom Gugliotti, Mike Monts, Jim Speich and Mark Zacchio attended the meeting.
II. COMMUNICATION FROM AUDIENCE – None.
III. OLD BUSINESS
a. 04/05-01 – FY 05/06 Budget
Set Budget Goals and Objectives – Chairman Harrison asked for
comments from the members on the Public Hearing held Monday evening. Mr. Zacchio reported as the Board’s observer on the Board of Education’s negotiations he was pleased to report first. He thanked both the Town Council and the Board of Ed for meeting our targets this year. This has provided a much more stable starting point for us. After careful deliberation, his personal feeling is that he would like to see somewhere around a 3% tax increase, which will require some additional reductions. He could work with a 2.5% or 2.6%; something in this area would be acceptable as a starting point.
Mr. Monts also wanted to compliment each of the other two Boards on the creation of their budget proposals; he felt they were well substantiated. He feels there was close attention to cost control and containment. He also feels that even with the reasonableness he sees, that somewhere near 3% will be acceptable based on the comments from the Public Hearing.
Jim Speich also expressed his appreciation for the work done by both the Council and the Board of Ed. He commented on the increase in the Grand List, the consideration of work to be done on the High School. However, he feels the Capital items are very important this year. He feels any increase should come from cost savings in the operating budgets. He agrees that a 3% increase will be needed for the voters to accept this budget.
Tom Gugliotti’s punch line is that we asked for and got cuts already in these budgets. He wishes he had more control over spending such as gasoline prices and mandates. He feels we get the best value for his money in the Town of Avon. The increment between the combined budgets and what we need to reduce is extremely small. He also feels the Capital items should not be tinkered with this year; these items will come back year after year. He does not feel there is room for any more cuts to the budgets submitted by the Town Council and Board of Ed.
Mr. Harrison thanked everybody who worked so hard to present a reasonable budget, as we requested. He considered the Conveyance Tax which was not extended; no new revenue is being considered, Avon High School has to be considered as do improvements to Buildings 5, 6 & 7 at the Town Hall Complex. In spite of these future expenditures and because of the comments made at the Public Hearing, he still feels we still need some additional reductions. Although he has not conferred with other members, he agrees that 3% will probably be the maximum acceptable to the voters.
To start deliberations, the Chairman proposed that a 2.88% increase in taxes would necessitate $628,026 in reductions. He selected this figure because it is in the exact middle of the configurations on the Town Manager’s chart. They can come from additional revenues, reductions in spending or combinations thereof. The latest projections the Town Manager gave us this morning now has an additional revenue figure of $142,241, not including extension of the Conveyance tax. Taking this off the $628,026, we are at $485,785. The Board of Education has made some clerical adjustments that will provide $17,202, which leaves us with $468,583 to be reduced to attain the 2.88% increase.
His proposal for discussion only is to take $100,000 from the total operating budgets, with a 50/50 reduction leaving a balance of $368,583 from the Capital Items. His personal recommendation is leave in the Roof Repairs, the Roaring Brook Bathroom repairs, and beyond that the two Boards would have the discretion of where to take the balance.
The Board discussed the $100,000 and $368,583 reductions; making total reductions for the Town including the Capital items at $386,649 and $72,202 for the Board of Education. On the possibility that the Conveyance Tax is reinstated, it should be put towards the reduced Capital Items.
The Board of Finance recessed for the Town Council and the Board of Education to caucus.
Mr. Hines, Council Chairman recommended that a reduction 2.98% could be obtained by the Town Council reducing their budget by $381,649 and have the option or making changes as they see fit between Operating and Capital. This would result in a Board of Education budget of $35,290,491, a Town Council Operating Budget of $15,913,180, a Capital Budget of $1,551,500, leaving the Sewer and Debt Service as presented. This would result in an overall mill increase of .70 mills, requiring a 24.16 mill rate for FY 05/06.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance recommends a total budget in the amount of $58,686,957 to a Town Meeting for voting at Referendum.
Messrs. Harrison, Gugliotti, Monts, Speich and Zacchio voted in favor.
IV. NEW BUSINESS – The Town Manager reported in 1995 the High School Renovations were defeated at Referendum; the brochure the Town sent out was based on prior brochures for Middle School, Roaring Brook, Pine Grove. The tax impact statement that was mailed to everybody in Town was faulted for being deficient, not complete. In order to respond to the criticism at that time on the tax impact study, a special committee was created that included members of the Board of Finance, the Town Council, and some citizens that had volunteered. A new template for creating tax impact statements on these large capital projects was created.
We used that template in the second referendum in 1996 and it passed, we used it on the Thompson Brook School and that passed. We are now putting together tax impact information for the Avon High School Addition/Renovations brochure that the Board of Finance usually signs. This is a recommendation that that methodology be modified. Ms. Colligan reported on the difference between the two methodologies so you have a feel why it is being recommended.
Ms. Colligan reported that we have not changed the assumption for projecting the budget at 6.3%. We used the same valuation on a house/market value as determined by the Assessor, so really the biggest change was how to the project what the Grand List was going to be. The Assessor was projecting 1.75% and we’re going to show that in the notes on the tax impact statement. He took into account a market depreciation of 25% impact every 4th year. This is very conservative. Ms. Colligan reported that the 6.3% budget assumptions does not actually show in the brochure. The Town Manager suggested we have a 3 board meeting and we will have a formal presentation of both methodologies and go through the analysis. Mr. Gugliotti indicated he was not comfortable
having something go out over the Board of Finance’s name and he just doesn’t understand what is being proposed.
Ms. Stahl pointed out that the Board hasn’t addressed the surplus, at all. Mr. Harrison responded that is an excellent point and we will have those numbers for you. Mr. Harrison indicated we will reference that at the Town Meeting. He said that was a good question since with bonding on the High School coming up the rating agencies will be interested in that. Ms. Colligan stated she would email this information out to all the members.
V. OTHER BUSINESS – None.
VI. ADJOURN – On a motion made by Mr. Zacchio, it was voted:
VII. RESOLVED: That the Board of Finance Workshop adjourn at 9:00 p.m.
VIII. Messrs Harrison, Gugliotti, Monts, Speich and Zacchio voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
04-06-05 BOF Workshop
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