BOARD OF FINANCE
BUDGET WORKSHOP
MINUTES
June 9, 2008
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:00 p.m. in the Avon Room of the Avon Town Hall. Members present: Margaret Bratton, Catherine Durdan, Tom Gugliotti, Bill Hooper, Tom Harrison, Brett Eisenlohr and James Speich.
II. PLEDGE OF ALLEGIANCE – Led by Brett Eisenlohr.
III. OLD BUSINESS
06/07-21 FY 08/09 Budget: All Three Boards
Chairman Harrison explained that when the budget was defeated, the Charter requires that the Board of Finance confer with the Board of Education and Town Council. The Board of Finance will deliberate and adopt a second proposed modified budget, which will be noticed in the Hartford Courant. A public hearing will then be held on June 16th at 7:00 p.m. on this proposed modified budget, which can then be modified again prior to the June 25th referendum. If this budget were to fail for a third time, the Charter provides that the budget setting then falls upon the Town Council.
Chairman Harrison stated that the Board of Finance is still in agreement that they do not want to use the surplus, which the Town Council also agreed with.
Mr. Gugliotti asked John Carlson, Chairman of the Town Council, what services need to be cut based upon what has already been cut out of the budget over the past two votes. Mr. Carlson stated that the Town Council continues to agree that they do not want to make any cuts from Public Safety and Social Services. He stated that they have already cut eleven Sundays from the Library and they will also stop brush collection next year. The total reductions from the operating budget is $65,600. Additional savings will be $95,000 from the Chidsey Road project and also a savings of $20,000 for the Senior Center roof replacement. These total reductions equal $180,591.
Mr. Gugliotti also questioned what would be next to cut from the operating budget. Mr. Carlson stated that, although the Town Council has not discussed this issue, there are not a lot of options regarding staffing. They have already cut staffing as much as possible. He stated that the operating budget is already very stretched with utilities costing $180,000 along with their normal contractual obligations.
Also in response to Mr. Gugliotti’s question, Mike Egan, from the Board of Education, stated that they will likely have students pay to play school sports. He stated that they are also looking into staffing reductions were possible.
Chairman Harrison asked the Board members for their comments regarding the tax increase.
Mr. Eisenlohr stated that at the last referendum, the no vote was the popular vote. He would err on the side of safety and would suggest that there be a tax increase of 4%, which is a total decrease of over $1 million. He would split this 75% for the Board of Education and 25% for the Town Council.
Ms. Bratton stated that she feels that the no votes should hold more weight than the yes votes and that they also need to keep in mind the economic climate while still using independent judgment. She stated that she would be in favor of a 3.4% tax increase with a split of 90% for the Board of Education and 10% for the Town Council.
Mr. Hooper stated that he would be in favor of a 3.84% tax increase, with a net reduction of $381,974. This would be a split of 75% for the Board of Education and 25% for the Town Council.
Ms. Durdan stated that the second referendum had a wider margin of defeat compared to the first referendum. She stated that she would support a 3.2% tax increase, although she would go up to 3.4% but no higher because of the message that she feels was sent by the voters.
Mr. Gugliotti stated that he would support a 4% tax increase. He stated that the difference between a 4% increase and a 3.84% increase is only an $8 per year difference in the typical tax payer’s payment. The difference between 4% and 3.4% is $31 per year. Mr. Gugliotti stated that the Board of Finance needs to take into account what is best for the Town of Avon. He would split this 75% for the Board of Education and 25% for the Town Council.
Mr. Speich stated that he would support a 3.84% increase with a split of 70% for the Board of Education and 30% for the Town Council.
Chairman Harrison stated that they have received many e-mails from residents. He feels that the no voters are saying that the Town needs to get control of their spending; the voters sent a strong no vote at both referendums. Most people are now aware of the reductions and the impacts of those reductions. Chairman Harrison stated that he did not look at a percentage; he looked at a dollar reduction. He would support a spending reduction of $600,000, which would be approximately a 3.5% tax increase, with a split of 85% for the Board of Education and 15% for the Town Council. He stated that he could not recommend a 2.9% tax increase because that would not be responsible while higher than 3.5% would not be respectful of the voters.
Chairman Harrison stated that the Board needs to come up with a number that would define the reduction; they will then need to figure out how to allocate it.
Mr. Gugliotti and Mr. Eisenlohr stated that they would be willing to go up to 3.84%. Chairman Harrison stated that he would not go above 3.5%. Ms. Durdan stated that she would be staying at 3.4%.
On a motion by Mr. Gugliotti, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance adopt a tax rate increase of 3.84%.
Messrs. Gugliotti, Hooper, Speich, Eisenlohr voted in favor and Mr. Harrison and Mmes. Bratton and Durdan were opposed.
Chairman Harrison stated that by a 4-3 vote, the Board of Finance recommends that they take, to the public hearing, a budget that would require a tax increase of 3.84%.
The Board of Finance discussed the split as to how to allocate the reductions between the Board of Finance and the Town Council.
On a motion by Mr. Gugliotti, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance agrees to split the reductions as follows: Board of Education 75% and the Town Council 25%. The reductions, which total $381,974, are $286,480 for the Board of Education and $95,494 for the Town Council.
Messrs. Gugliotti, Hooper, Speich, Eisenlohr and Harrison voted in favor and Mmes. Bratton and Durdan were opposed.
On a motion by Mr. Harrison, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adopt a proposed modified budget totaling $70,352,037 with the understanding that Town staff may make minor adjustments in this number for the purpose of rounding and mill rate requirements.
Messrs. Gugliotti, Hooper, Speich, Eisenlohr and Harrison voted in favor and Mmes. Bratton and Durdan were opposed.
IV. OTHER BUSINESS
There was none.
V. ADJOURN
On a motion by Mr. Gugliotti, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:06 p.m.
Messrs. Harrison, Gugliotti, Hooper, Speich, Eisenlohr and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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