The Board of Finance held a regular meeting on Thursday, May 27, 2004 in the meeting room at Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 pm.
PRESENT: John Kortze, James Gaston (8:00), Harrison Waterbury, Michael Portnoy, Peter Giarratano, Joseph Kearney
ALSO PRESENT: Schools Superintendent Dr. Evan Pitkoff, Schools Business Manager Ron Bienkowski, Board of Education members – Lisa Schwartz, Andrew Buzzi, David Nanavaty, Tom Gissen, three members of public, one member of press
VOTER PARTICIPATION: Ms. Ruby Johnson, 16 Chestnut Hill Road – feels that the town needs to buy open space. She feels that the public doesn’t understand where the open space funds appear in the budget figures that were published in the newspaper for the referendum. Chairman Kortze advised that the Board of Finance does not decide which open space to purchase. They are responsible for providing funding.
Mr. Peter Vidola, 9 Meadow Woods – feels that the Middle Gate water extension is a #1 priority for good reasons, some of which you are not aware of unless you spend time at the school. There are problems with water flow, as well as bacteria in the water. All problems can be eliminated with the waterline extension.
Mr. Vidola read a letter submitted by Ms. Laura Buzzanca, 4 Kay Lane, asking the Board of Finance to support the funding of the waterline extension to Middle Gate School.
COMMUNICATIONS: None noted
ACCEPTANCE OF MINUTES: Upon motion by Mr. Portnoy, the minutes of the February 25, 2004 regular meeting were unanimously accepted as presented.
Upon motion by Mr. Waterbury, the minutes of the March 4, 2004 special meeting were unanimously accepted as presented.
Mr. Portnoy moved to accept the minutes of the March 8, 2004 meeting. Motion seconded. Mr. Portnoy offered the following correction on page 6 – “Mr. Portnoy explained that $8 million of the total budget, which includes $6 million for schools and $2 million for town employees, is for health insurance. Minutes unanimously accepted as amended.
FINANCE DIRECTOR REPORT: No Report
OLD BUSINESS – None
NEW BUSINESS
Resolution for Middle Gate School Waterline Extension
First Selectman Rosenthal advised that the Board of Selectmen unanimously voted to initiate the special appropriation for this project. In March, the Board of Education had submitted a request to the Board of Finance, however, the waterline extension will be along a town road so this project falls under the Board of Selectmen who are relying on information from the Schools Superintendent regarding an update of the estimate from Fuss & O’Neill indicating that the prior estimate of $500,000 is still reliable.
In order for this project to be placed on the calendar for the bonding commission, the project must be authorized by the town – Board of Selectmen, Board of Finance, Legislative Council and Town Meeting. Mr. Bienkowski stated that the application must be completed by 6/25/04 with notification that the Town Meeting has been scheduled. (Mr. Gaston arrived at this time.)
Chairman Kortze asked what will happen if this project is more than $500,000? Mr. Bienkowski answered that the Board of Education has a few options, such as coming back to the Board of Finance for more funds, or the state loan can be adjusted with town authorization.
Mr. Gaston introduced the resolution entitled “Resolution Appropriating $500,000 For The Design And Construction Of A Water Main Extension To Provide Clean Drinking Water To The Middle Gate School And Authorizing The Issuance Of $500,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose,” and waived the full reading of the resolution as all members received copies prior to this meeting (copy attached to original minutes). Motion seconded and unanimously carried.
Mr. Portnoy moved that said resolution be adopted as introduced. Motion seconded and unanimously carried by roll call vote: YES – Kortze, Gaston, Portnoy, Waterbury, Giarratano, Kearney
Board of Education Reductions to 04/05 Budget
Chairman Kortze had asked the Board of Education to give a brief presentation on the action taken by the Board of Education to reduce the budget by $250,000.
Board of Education Vice Chairperson Lisa Schwartz distributed a copy of the approved adjustments (copy attached to original minutes). When the budget was prepared, there was an estimated staff turnover of $140,000, which has now been adjusted by another $47,167 in savings.
Regarding the $35,031 addition for special education, Mr. Kearney asked why provide more money for this when the anticipated savings is not being shown? Dr. Pitkoff replied that part of the savings will be in a reduction from what the Board of Education estimated for special education. Mr. Kearney asked when will we know what the actual savings are? Mr. Bienkowski answered that the figures will not be known until the end of the coming fiscal year.
Mr. Kortze asked if there are figures to quantify the savings in the operating budget once the Middle Gate waterline is in place. Mr. Bienkowski answered that there will be an annual $8,500 savings for electricity, plus a savings for water testing and for the cost of the bottled water.
Mr. Kortze asked if it would be possible to receive monthly reports vs. quarterly reports which would be helpful for this Board to understand the education side of the budget. Mr. Bienkowski answered that they have monthly internal reports but don’t make formal presentations of those. Mr. Buzzi stated that the Board will discuss what resources they have to make reports available to the Board of Finance. Mr. Kortze thanked them for the consideration.
Mr. Kortze asked if the Board of Education and schools administration feel that they were able to make this reduction without compromising students? Dr. Pitkoff replied that they were.
First Selectman Rosenthal advised that Newtown will be receiving $260,000 more than was originally anticipated from the Governor’s budget. The Legislative Council had added $80,000 in anticipated revenue when they approved the budget so there will now be an additional $180,000 of revenue from E.C.S. and PILOT money. The Council has already set the mill rate so these funds will go into the audited surplus. The town will also receive an additional $55,000 in Town Aid Road money from the state which will replace some of the road money request that was cut from the budget. The TAR funds can only be used for roads and cannot go into surplus. More good news is that the conveyance tax will not “sunset” this year as was anticipated. This estimated $500,000 was not included in the 04/05 revenue and can now go into surplus.
Year End Transfers
Mr. Portnoy moved to authorize the Financial Director to make any nominal transfers that may be required to end the fiscal year 2003-2004. Motion seconded and unanimously carried.
Board of Finance Focus
Chairman Kortze asked Board of Finance members to think about the open space issue and be prepared to discuss at the next meeting.
Having no further business, the meeting was adjourned at 9:15 p.m.
Jan Andras, Clerk
Att: Resolution – Middle Gate Waterline Extension
Att: Board of Education Approved Adjustments – 04/05 Budget
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