The Board of Finance held a regular meeting on Thursday, October 28, 2004 in the Lower Conference Room, Town Hall South, 3 Main Street, Newtown, CT. Chairman Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, James Gaston, Harrison Waterbury, Michael Portnoy, Peter Giarratano, Joseph Kearney.
ALSO PRESENT: First Selectman Herbert Rosenthal, Financial Director Ben Spragg, Director of Parks and Recreation Barbara Kasbarian, Economic Development Chairman Chet Hopper and member Kim Danziger, one member of press.
PUBLIC PARTICIPATION: None noted.
ACCEPTANCE OF MINUTES: Upon motion by Mr. Gaston, the minutes of the 10/12/04 meeting were unanimously approved.
COMMUNICATIONS: Mr. Kortze noted that Mr. Spragg has been sending the month end summary. He has not received from the Board of Education their listing of year end transfers. At the last Board of Ed meeting, he said that Paul Mangiafico and Elaine McClure asked if it would be more prudent to do monthly accounting rather than quarterly.
FIRST SELECTMAN’S REPORT. Mr. Rosenthal reported that the Legislative Council rejected the Board of Education’s administrators’ contract. He believes that arbitration is the next step. Mr. Portnoy was personally stunned that this happened. He said that the salary increases were in the ball park and the medical premiums that they agreed to pay were above anything in the state. Mr. Rosenthal said that the Legislative Council was not happy with the fact that they did not have much time to review the contract but he does not know if that was why it was rejected. Mr. Kortze said that those Council members that he spoke to said they were angry that they only had two weeks to review it though it was filed with the town clerk two weeks prior to when they received it. Mr. Kortze said that the Board of
Finance never had time to review the contract.
School Transportation Costs. Mr. Kortze reported that the Board of Finance had discussed the busing schedule. Mr. Bienkowski was asked to have someone meet with the Board of Finance to explain the Board of Education’s position. Mr. Bienkowski was not able to attend this meeting. When contacted about attending the next meeting, Mr. Bienkowski said that anyone who had any questions could call him. Mr. Gaston feels that this is irresponsible and confrontational. He said that it seems that the Board of Ed made a good decision, but if Mr. Bienkowski is not willing to defend his position, he must think that he made a mistake.
Mr. Rosenthal said that he had tried to make the Legislative Council aware of the pitfalls of rejecting the contract. He said the odds are that this rejection will cost the town money. Mr. Portnoy feels that the Legislative Council is a year late. He thought that the Board of Ed wanted to get the medical portions up to bring the teachers up when they negotiate.
FINANCE DIRECTOR’S REPORT. Mr. Spragg said that Mr. Bienkowski had informed him that the Capital Improvement Plan (CIP) was missing two items from the Board of Ed. However, these items had been deleted from the CIP by the Board of Finance. Mr. Kortze said that they were two separate projects and did not meet the threshold. Mr. Spragg agrees. Mr. Kortze will write Mr. Bienkowski a letter explaining why the items were omitted.
OLD BUSINESS
Business Incentive Plan. Mr. Hopper distributed figures indicating the maximum that the state allows us to offer as tax abatements(A). He said that the program would apply to new businesses or expansion of a present business. We cannot give rebates on personal property taxes. Ms. Stocker would offer the plan to a business. A business may get part of the rebate and not necessarily the maximum. The program would be available for the First Selectman to negotiate and would be a guide for businesses coming into Newtown. The “Tax Abatement with a Personal Property Multiplier” is an adjusted abatement for someone with a lot of personal property. The abatement is for a three year period. Mr. Giarratano asked how we would know if the business would have come to town without the abatement, to which Mr. Hopper
replied that we may not know. Mr. Kortze asked about a company that came in just before the program was approved. Mr. Hopper said something could be included in the program to offer an abatement to such a company. Mr. Rosenthal said that he could negotiate but the legislative body has to approve the abatement. He said that without a plan the statutes allows the CEO and the legislative body to offer abatements. He said that with a written program it is easier to negotiate and people know what to expect. Mr. Kortze asked what is the objective of this program? Mr. Hopper said to encourage enterprises that will create employment and raise the tax base. He said that some expansion results in job loss so that the criteria of additional employees should not be considered. Mr. Gaston asked if the purpose is to increase revenue or employment. Mr. Hopper replied revenue. Mr. Danziger said that the program is slanted to high tech high value properties. Mr. Gaston said that more employees who
come into town increase the costs to the town and that high tech is preferable. He said that if there is an increase in housing this should be considered. He is concerned that if every individual knows this is here they will not come into town unless they get the benefit. Mr. Rosenthal said that every business asking about coming to Newtown asks if we have such a program. Mr. Hopper said that if a business leaves town prematurely the taxes will still be there. The agreement is with the owner of the property. Future owners would have to renegotiate. Mr. Hopper would like this program to be in place when we market the technology park. Mr. Kortze asked how many inquiries the town gets. Mr. Rosenthal said that sometimes businesses call realtors or a business owner directly so that we do not know how many inquiries are made. We only know of those who contact him or Ms. Stocker. Mr. Hopper said that we would meet with the realtors directly if this program is approved to make them
aware of the program. Mr. Kortze thinks this is too subjective. It is at the selectman’s discretion and sounds like it would have the pitfalls of the former plan. Mr. Gaston asked what if one company is given an abatement and another is not? Mr. Danziger said that the package says this is subjective. This could be a way to keep out undesirable businesses, by not offering them an abatement. Mr. Kortze thinks the Board of Finance should have a say in this program and he would like some understanding of the impact to the town. Mr. Rosenthal feels that this Legislative Council would refer this to the Board of Finance. Mr. Danziger said that we want to streamline the program so that the Board of Selectmen and the Legislative Council manage the program. Mr. Kortze supports this program. Mr. Rosenthal said that he referred this program to the Board of Finance so that they could look at the big picture. Mr. Spragg would like the program to apply only to the technology park because
that is town property. Mr. Portnoy thinks it would be good to have a plan in place and that it is good to be discretionary. Perhaps the Board of Finance should look at applications at a certain level and make a recommendation to the Legislative Council. It is supply and demand. Mr. Kortze agrees it is supply and demand. He feels it should be at the First Selectman’s discretion. Mr. Danziger said that almost all the commercial sites in town have a limitation or a problem and this is going to help. Mr. Waterbury said the Board of Finance would like to know about all financial impact on the town. Mr. Hopper said that the Economic Development Commission could provide the Board of Finance with a report after the Board of Selectmen and then the Council acts. Mr. Gaston moved to approve the Newtown Business Incentive Plan as presented. Second by Mr. Portnoy for discussion. Mr. Gaston moved a friendly amendment to include that there be a favorable recommendation from the Board
of Finance to the Legislative Council for any particular property with an abatement in any one year of $25,000 or more. Second by Mr. Portnoy. Mr. Portnoy moved to amend to state a recommendation, not favorable or unfavorable. Second by Mr. Gaston. Main motion as amended unanimously approved.
OLD BUSINESS.
Artificial Turf at Treadwell Park. Mr. Rosenthal said that Parks and Recreation will go out to bid if they receive conceptual approvals for the project. He said that the Board of Selectmen did not agree to a special appropriation. Mrs. Kasbarian said it was her understanding that we did get authorization to transfer money from Oakview to Treadwell. Mr. Rosenthal said we need authorization for a special appropriation. He said that approval by the Board of Finance and Legislative Council is not needed to use the encumbrance for another purpose. Mr. Portnoy moved that the Board of Finance agrees to the concept of a synthetic field. Second by Mr. Giarratano. Mr. Gaston recommends long grass. Mrs. Kasbarian said that is what they are considering. Mr. Giarratano supports the concept and would like to see
that we will save money. Mrs. Kasbarian said we will save in man hours with painting, mowing and watering. Mr. Gaston moved that the Board of Finance conceptually likes the idea. Second by Mr. Kortze and unanimously approved.
Dickinson Pond/Pool. This item was eliminated from the CIP. Mrs. Kasbarian has requested RFP’s and will have a study completed including costs. She said that we are non-conforming to the DEP regulations as the pool is very close to Deep Brook. The options are to either: repair the pool, construct a 25 yard pool or a 50 meter pool.
Health Insurance Alternatives will be tabled.
NEW BUSINESS.
Mr. Gaston moved to transfer $17,860 from Account 01570-2000 Contingency and to transfer $17,860 to Account 01105-2013 Non-recurring. Second by Mr. Portnoy and unanimously approved. This is for codifying the regulations and ordinances into one book.
Having no further business, the meeting adjourned at 9:45 p.m.
Ann M. Mazur, Clerk Pro Tem
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