BOARD OF FINANCE
BUDGET WORKSHOP
MINUTES
April 6, 2011
I. CALL TO ORDER
Chairman Harrison called the Workshop to order at 7:00 p.m. at the Avon Senior Center. Members present: Margaret Bratton, James Speich, Catherine Durdan, William Hooper, Thomas Gugliotti, and Brett Eisenlohr.
II. OLD BUSINESS
10/11-06 FY11/12 Budget: All Three Boards
a. Board of Finance: Set Budget Goals and Objectives
b. Adopt Final Recommended Budget
c. Sign Call of the May 2, 2011 Town and Budget Meeting
Chairman Harrison stated that Section 9.4 of the Charter pertains to the Town Council and the Board of Education. He stated that tonight’s meeting is not a public hearing; there will be no public speaking from the audience.
Chairman Harrison stated that he has asked Dwight Johnson, Town Attorney to address the authority of the Boards regarding the budget process.
Attorney Johnson stated that, regarding the legal structure for interaction between the Board of Education and the Board of Finance, Connecticut has a statute based system. The Board of Education puts together a proposed budget to meet the needs of the children of the Town. Under the Charter and State law, the Board of Finance reviews the budget and has the right to increase or reduced the budget based on their judgment in terms of an adequate education and also the financial condition of the Town. He stated that there are Statutory requirements which state that the Board of Finance cannot reduce the Board of Education’s funding below what is reasonably necessary.
Regarding the obligation of the Board of Finance, Attorney Johnson stated that they can choose to reduce the funding levels requested by the Board of Education. He stated that the Courts have not addressed this issue, although there is no obligation in the Charter for the Board of Finance to specify why it is reducing the budget. The remedy that a citizen can take if they feel that the funding level recommended by the Board of Finance is inadequate is to go to the Courts and challenge the funding level, although this is rarely successful.
Attorney Johnson stated that another question that has been recently raised is to what extent the Board of Finance needs to explain why they might be recommending a lower funding level and point to specific areas where the levels are in excess of what is required. He stated that the Board of Finance can provide as much detail as possible, although this is not required. Another question that has been raised is to what extent the Board of Finance can take into account its estimation of what the citizens would support in a referendum. Attorney Johnson stated that there is nothing that precludes them, but if this is the sole item that is taken into account, it would probably not be acceptable. He stated that the Board needs to also take into consideration the financial condition of the Town.
In response to a question by Barbara Zuras, a member of the Board of Education, Attorney Johnson quoted language regarding the Board of Finance’s ability to reduce the amount of expenditures as proposed by the Board of Education.
Chairman Harrison stated that this workshop is a consultation process by the Board of Finance. The members will state their preliminary comments taking into account what was heard at the public hearing and in email messages that have been received.
Mr. Eisenlohr thanked the Town Council and the Board of Education for their proposals. He also thanked the citizens that participated in the public hearing and spoke out; their voices were heard. He stated that from the people, he heard that there is a need to balance what is essential and to be reasonable and responsible. As a result of these issues, there are a lot of people who cannot afford tax increases. He stated that all surrounding Towns, including Avon have budget constraints. He stated that he is in favor of a tax increase, although less than what is being proposed. Mr. Eisenlohr stated that he would support a budget with a 3.07% increase.
Ms. Bratton stated that in addition to reviewing the Town Council and Board of Education proposals and related information, she took federal, state and economic issues into consideration. She stated that she is at a $1.4 million spending increase, which is over the current budget. This is approximately 2.04%.
Mr. Hooper stated that the public hearing was more civilized this year as a whole, although he apologized for his outburst at the meeting. He stated that he would support an increase that is lower than what is being proposed.
Ms. Durdan stated that she reviewed the proposed budget for the Board of Education and the related information. She has considered the following indicators: available revenue; consumer price index, as well as the unemployment rate. Ms. Durdan stated that she feels the Board of Education has a salary problem. She stated that she would be in favor of a lower budget increase of 2.04%.
Mr. Gugliotti stated that under the circumstances and what is reasonable and appropriate, he feels the budget should be given to the people as presented to be voted on. He feels that the Board of Finance needs to do what is right for the Town for the biggest group in the Town. He feels that the biggest group of people would like to vote on this budget as proposed. He stated that he does look to other Towns and feels that Avon is comparable to these other Towns. He stated that the education of the children of this Town is an investment. One of the biggest targets is teacher’s salaries; these are contractual and they cannot be changed. Mr. Gugliotti stated that he feels that the school system has regressed over the past several years; many personnel reductions have been made; and more will be cut if
the budget gets reduced even more. He stated that the proposed budget would have a median increase of $267 per year. He questioned if this is worth cutting out and losing so much in Avon’s educational system. He is in favor of leaving the Town Council and Board of Education’s budgets as they are being proposed.
Mr. Speich thanked everyone who attended the public hearing. He stated that there has to be a balance; they need to look at the ability of residents to pay and to raise revenue. He stated that it is hard to get budgets to work, although he feels that they need to be concerned with the economics. Many people are unemployed; he feels that the economic climate will not be changing anytime soon. He stated that Avon is well run; they have low taxes and a good school system. The Town Council, in terms of the infrastructure, has been hit hard with cuts. With all these considerations taken into account, Mr. Speich stated that he would be supportive of a 2.46% mill rate increase, which is a spending increase of 2.3%.
Chairman Harrison stated that Avon is part of the State and that he looks at the budget from the point of view of the wider world. He stated that the fiscal problems of the nation and State impact Avon. He focused on, in terms of reaching his decisions, looking at the economy in terms of the unemployment rate and the ability of modern government at all levels. He stated that there has been a great deal of discussion regarding spending reductions and not revenue enhancements. He stated that there needs to be a balance; obligations in terms of services provided and education. Chairman Harrison feels that adjustments need to be made to the budget proposals. He stated that he could support the budgets if this was the only increase in taxes that Avon residents would face, although there will be increases in
State
sales tax as well as others. He stated that a reasonable spending increase, in his view, would not be $2.7million although it would not be zero either. Chairman Harrison stated that he would be in support of a $1.7 million increase, which would be a mill rate increase of 2.3% - 2.4%.
In response to a question by Mr. Hooper regarding the Police Department’s Capital Improvement Projects, Mr. Robertson stated that there is a balance left in CIP, although he is not sure what the value of that balance is. He stated that this amount would go to surplus. Mr. Hooper stated that a dividend check from the insurance company was received by the Town in the amount of $21,000. He questioned if that included the Board of Education. Mr. Robertson stated that this included both. In response to a question by Mr. Hooper regarding unemployment, Mr. Franzi stated that they have incurred additional social security costs because of Federal laws. Also, the categories of unemployment regarding those who can collect have been broadened.
Mr. Hooper stated that he would support a budget increase of between 2.86% and 2.66%, although he would go down to 2.46%.
Mr. Robertson, Town Manager, stated that he took a close look at the non-tax categories. There was some shift in line items in the non-tax, although the bottom line remains the same. There is no money to add back.
There was a discussion regarding where cuts could be made from the Board of Education’s budget. Mr. Mala stated that cuts would need to be made to personnel. Ms. Roell stated that they have already increase fees, including: Pay-to-Play, graduation fees, lunch prices, etc.
On a motion by Mr. Speich, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance recommend a mill rate increase of 2.45%.
Messrs. Harrison, Hooper, and Speich voted in favor. Mmes. Durdan and Bratton and Messrs. Gugliotti and Eisenlohr voted in opposition. The motion failed.
Mr. Gugliotti made a motion to recommend the proposed Board of Education and Town Council budgets as presented. The motion was not seconded. The motion failed.
On a motion by Ms. Bratton, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance recommend a mill rate increase of 2.25%.
Mr. Gugliotti stated that he feels this is too low. He does not see how the Board of Finance could recommend this in light of all the emails received and the comments at the public hearing. He stated that recommending this would cut programs and he feels this would make Avon have second rate schools.
Ms. Bratton withdrew her motion. Ms. Durdan withdrew her second.
On a motion by Ms. Durdan, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance recommend a mill rate increase of 2.45%.
Messrs. Harrison, Hooper, and Speich and Mmes. Durdan and Bratton voted in favor. Messrs. Gugliotti and Eisenlohr voted in opposition. The motion passed.
On a motion by Mr. Hooper, seconded by Mr. Harrison, it was voted:
RESOLVED: That the Board of Finance allocate that 80% of the reductions come from the Board of Education and 20% of the reductions come from the Town Council. The Board of Education and Town Council will determine if these reductions are taken from the Capital or Operating budgets.
Messrs. Harrison, Hooper, Gugliotti, Eisenlohr and Speich and Mmes. Durdan and Bratton voted in favor.
A short recess was taken and the meeting was reconvened at 9:10 p.m.
Mr. Zacchio stated that the Town Council would take $62,000 from their Operating budget and the remainder from CIP. He stated that they would smooth the Fire Department’s request over 3 years instead of 2 years for the balance.
On a motion by Mr. Harrison, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance recommend to the voters of Avon for FY 11/12, a combined spending increase of $74,584,980.
Messrs. Harrison, Hooper, and Speich and Mmes. Durdan and Bratton voted in favor. Messrs. Gugliotti and Eisenlohr voted in opposition. The motion passed.
On a motion by Mr. Harrison, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance delegate to the Town Manager, the authority to make minor adjustments so the numbers are rounded so the mill rate is expressed in two digits.
Messrs. Harrison, Hooper, Gugliotti, Eisenlohr and Speich and Mmes. Durdan and Bratton voted in favor.
III. NEW BUSINESS
There was none.
IV. OTHER BUSINESS
There was none.
V. ADJOURN
On a motion by Mr. Gugliotti, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:20 p.m.
Messrs. Harrison, Eisenlohr, Gugliotti, Speich, Hooper and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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