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The Board of Finance held a Public Hearing on Wednesday, February 28, 2007 in the Auditorium at Newtown High School, Berkshire Road, Sandy Hook, CT. Chairman John Kortze called the hearing to order at 7:35 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Harrison Waterbury, John Torok
ABSENT: Joseph Kearney
ALSO PRESENT: First Selectman Herbert C. Rosenthal; Finance Director Ben Spragg; Schools Superintendent Dr. Evan Pitkoff; Schools Business Director Ron Bienkowski; Board of Education Chairman Elaine McClure and members Andrew Buzzi, David Nanavaty and Paul Mangiafico; Legislative Council members Pat Llodra, Jeff Capeci, Fran Pennarola and Joseph Borst, one member of press, approximately 20 members of public
Public Comments on Proposed 2007/2008 Budget
Mr. Andrew Buzzi, 38 Obtuse Road (member of Board of Education) reiterated the figures he distributed last night when the Board of Education presented their budget. He had divided this into three main areas showing how much of the requested budget increase is contractual and we have to pay no matter what; how much more are we asking for because of the growth or decline in student population; and how much more that is related to program and district needs. He feels this is a simplistic way to look at what the Board of Education is requesting.
Ms. Ruby Johnson, Chestnut Hill Road had two questions. What is the difference between the Contingency Fund for $200,000 and the Capital Reserve Fund shown in the amount of $750,000? Chairman Kortze asked the First Selectman to respond. Mr. Rosenthal stated that the Contingency Account is an operating line item in the budget each year. It is normally for two purposes. As we negotiate labor contracts, we anticipate the amount to settle and put it into the Contingency Account so that it can not be identified by the labor groups how much we are prepared to pay. Another reason is that we try to fund the winter maintenance account over a five year rolling average. We put some money into Contingency in case there is an extremely bad
winter and a lot more is required than what we budget in the winter maintenance account. Next week, it is going to be necessary to request a transfer of money from the Contingency account to cover a very large unexpected expense for a lawsuit that has been filed against the town. The Capital Reserve Fund is something the Legislative Council created a number of years ago. It is not an “operating” account. It is an account that helps to manage the surplus. The Charter does not have a provision to manage the surplus and determine how much should be put away for future use and how much should be used to reduce taxes. In our Charter, whatever prior year surplus we have has to go solely for revenue for reducing taxes in the next fiscal year. So, some years ago, the Council created a Reserve Fund (savings account) to help increase our credit rating and so there would not be large fluctuations in the mill rate from year to year – money from the Reserve Fund could be used to
stabilize it. Over the years, we have gradually built up this fund to a fairly substantial amount. The goal is to have at least 5% of the current operating expenditures set aside in the Reserve Fund. Moody’s looks at that and considers it a mill rate stabilization account. This year, the surplus was $1,050,000 higher than the previous year. The Board of Selectmen is recommending putting $750,000 of that increase in surplus into the Reserve Fund. The only way money can come out of the Reserve is to be appropriated at budget time or to go to a Town Meeting vote.
Ms. Johnson asked about an article in the Bee saying that the town is approved for a $650,000 grant from the State DECD supporting the Fairfield Hills Authority’s interest in closing and securing several existing structures at Fairfield Hills. The bonding was supposed to be for mothballing buildings. Mr. Kortze asked Mr. Rosenthal to respond. The First Selectman stated that we are anticipating borrowing the remaining $6 million of the $21 million Fairfield Hills appropriation for the uses originally approved, i.e. demolition of buildings, playing fields, town and school offices. We have not yet received the $650,000 grant but are still hoping to get it from the state. It was supported by the DECD but not yet approved by the Governor or the
bonding commission. We are working on securing as many grants as possible to do things originally planned for Fairfield Hills. We are hopeful that the school offices planned for the town/school office facility will be eligible for the CT School Building Grant for $750,000. If we get “mothballing” money, we would use that obviously. If we do not, then we will have to use some of these funds to complete the playing fields and demolish/mothball buildings.
Mr. Richard Gaines, Blackbridge Road, Hawley School PTA supports the school budget. When he moved here 15 years ago, education was a clear reason even before he had children. Only .5% of the proposed education budget is for growth. Only 1% is for improvements in programs. Over half of that is to complete technology upgrades necessary for schools. It is time to say that education is important to Newtown.
Ms. Po Murray, 38 Charter Ridge Drive, asked if the Board of Finance is expecting to vote tomorrow night? If the budget fails, it returns to the Legislative Council for adjustments, not the Board of Finance. Please make fiscally responsible decisions tomorrow night. We must do a better job of funding education in Newtown. Our wealth rank is moving up while our spending per pupil remains low. The NEASC report confirms that we need to spend more on education. Regarding the Board of Selectmen budget, she asked why there is more than a 10% increase. She had a written list of questions she wanted answered before tomorrow night which she submitted to the Chairman. She feels voters are confused about what the debt service is
for.
Ms. Gianine Crowell, 26 Canterbury Lane, questioned consultant fees for Fairfield Hills for North American Realty and DeMarco Management plus $25,000 in consultant fees for the Commerce Road Tech Park. Is the budget being increased unnecessarily by consultant fees? Mr. Rosenthal was asked to comment. He advised that DeMarco Management is not a consultant but is the property management firm that handles operations at Fairfield Hills such as security, landscaping, maintenance, etc. The only consultant is North American Realty who the Fairfield Hills Authority hired to help them develop marketing strategy and to advise how to structure leases if we can encourage private investment in some parts of the Fairfield Hills property.
Mr. Gary Davis, 23 Charter Ridge Drive, asked for greater “transparency” in the budget process. The Board of Education provides information at their meetings.
Ms. Desiree Gallassi, 151 Huntingtown Road, stated that the Middle Gate PTA supports the Superintendent’s budget. Hopefully, you will support the Board of Education budget. She asked to be cautious in cuts from Middle Gate, specifically for conversions to the PC’s. Chairman Kortze reminded those present that the Board of Finance does not have line item control in the schools budget, only in the municipal budget.
Mr. Kevin Cragin, 22 Georges Hill Road (Chairman, Board of Fire Commissioners), The Fire Departments do not submit requests for items they don’t need. This is the second year, they are requesting a Response Program. The number of fire personnel we have during the daytime is no more than we had 40 years ago and since then, the population has doubled. The fire department personnel is made up of old Newtown families that go back multi-generations. Very few new residents join as volunteers. Municipalities are now being sued for not getting fire equipment on the scene according to requirements. We need a response program to help with this. The program being recommended would pay a stipend to qualified volunteer firemen
who are willing to stay at the firehouse during the day (i.e. their vacation or time off from work) in order to be able to get equipment to the scene sooner.
Mr. Joe McEnaney, 15 Arthurs Court, has lived here for 20 years. The budgets keep going up. He understands the increases are probably justified. At some point, we need to get our arms around all of the variables that lie ahead and what will help us with these increasing costs.
Hearing no further comments, the hearing was closed at 8:25 p.m.
Jan Andras, Clerk
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