BOARD OF FINANCE
MINUTES
January 23, 2006
I. CALL TO ORDER – The Regular Meeting was called to order at 7:30 p.m. by Chairman Tom Harrison in the Selectmen’s Chamber, Town Hall. Present were members Margaret Bratton, Cathy Durdan, Tom Gugliotti, Bill Hooper, Mike Monts and Jim Speich.
II. PLEDGE OF ALLEGIANCE – Ms. Bratton led the Pledge.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEDING MEETING – November 28, 2005 and
January 5, 2006.
On a motion made by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the November 28, 2005
Meeting as amended to show that under 06/07 Budget Process, line 8,
The overall tax increase should read 2.98% - not 2.8%.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich and Ms. Bratton and Durdan voted in favor.
On a motion made by Mr. Gugliotti, seconded by Mr. Monts, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the January 5, 2006
Meeting as amended to show that the vote to appoint Mr. Gugliotti as secretary shows that Mr. Harrison voted in favor.
Messrs. Harrison, Monts, Speich and Ms. Bratton and Durdan voted in favor. Mr. Hooper abstained.
V. OLD BUSINESS
05/06-01 – 06/07 Budget Process – The Town Manager reported that the draft budget figures distributed do not include the Board of Education Budget; that’ budget is not required to be submitted to the Town until February 15th. Under the Town’s portion of the budget as the Manager is recommending to the Town Council, is up 5% which is the target the Board of Finance recommended. There is a strong possibility that the Council may decide to move things around within that 5%. Their work session is all day February 11th, and the Board of Finance is invited to attend to hear the individual Town Departments presentations. The Town Budget will likely be distributed to the Town Council at their next meeting. At this point, the Town Budget is increased by 5%, at the target level that you requested. He reported that it was difficult to reach this level due to increases in personnel services and health benefits in particular. One of the biggest increases this year are energy
prices, everything from gasoline to natural gas; anything associated with energy is up substantially throughout the budget. He further commented on areas where there were rather large increases.
The problem of the electronic voting machines was discussed; eventually we will have to include funds for this. However, because no machines have yet been approved by the State or the Federal Government, we have no indication of how much money to appropriate. There is also a delivery problem; we do not know how long it will take to manufacture the items which will determine when the funds will be needed. In the 07/08 year we can reserve money if we know what the cost will be, and also in the 08/09 year.
In response to a comment by Mr. Harrison, the Town Manager stated he does not want to look too closely at revenues. We just included revenues to balance this budget out. In general the whole legislative session is in front of us so we don’t know what may be changed – the school funding formula for instance. The Governor has set up a commission to look at the Educational Cost Sharing plan. There are some groups that are questioning funding who have brought suit against the State for the failure of the State to appropriate money they either would or needed to appropriate to fully fund the educational costs at 50% for the State. That suit is moving along, but we don’t know where it will go. We will have other increases in some areas, but some of the increases, such as the
conveyance tax, will sunset in June, that means next year they won’t be there the following year. We would like them to accrue to surplus and then take them out as needed.
The Town Manager commented on various revenue sources that will affect this budget, however, it is too early to make any definite recommendations on sources such as permits, interest income. The Grand List had a slight increase which we anticipated. We will also have to have some slight increases in fees in Town. Those types of increases will be made by the Town Council.
Mr. Harrison asked about the “cover sheet” that was proposed last year. Mr. Monts reported the forms were sent to the Town Council and the Board of Education. If they wish to make any changes we are open to any such requests, but at present we are waiting to hear from them. He asked the Town Manager to express our thoughts to Dr. Kisiel and Gary Franzi because it is very close to when we will need it. The Town Manager reported in the Manager’s letter with the budget he is including information that will cover the items in question.
The critical dates for the budget to get to referendum were discussed; the Town Manager reported that the Board of Finance should have finished their deliberations by April 17th in order to have legal presentation for the May 1st Town Meeting, which will be adjourned to a Referendum on May 10th. A second Referendum could be held on June 5th, if needed and also June 26th. In order to complete the review, we will need to be finished by April 17th. April 13th is Passover and April 14th is Good Friday, and the following week is school vacation. Workshops were tentatively set to be held the week of April 3rd , specifically, Wednesday, April 5th and the following Monday April 10th with a
backup date of Wednesday, April 12th, with second meeting and a backup date the early part of the week of April 10th.
VI. NEW BUSINESS
VII. MISCELLANEOUS – The Town Manager reported the High School Building Committee is working diligently with the Architect, the Construction Manager, the staff and the Board of Education to go through the Ed Specs in an effort to try to reduce the cost of the project without reducing its quality or scope substantially. They’ve come up with a list of potential modifications, deferments, etc. but it’s still being worked. They will be coming to the Town Council who has asked the Chair of the Building Committee to come to the February 2nd Town Council meeting to at least give them an updated briefing on where they stand on the process. The Committee is actually going to wait for the bids to come in before they officially appear before the Town
Council. The bids are not going to be received until the end of March. The Architect and Construction Manager will need time to evaluate the bids but we do have a Town Council Meeting on April 6th. It’s my assumption that by April 6th the Building Committee will be coming in to the Town Council to say here are the bids, here’s our recommended reductions – we can make it under the Referendum Amount or we can’t and here’s how much additional money we will need. They will then need to meet with the Board of Finance or Board of Education. This will probably delay the process to the end of May and possibly into June.
VIII. OTHER BUSINESS - None
IX. ADJOURN - None
On a motion made by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:20 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich and Ms. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
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