The Board of Finance held a special meeting on Wednesday, March 8, 2006 in the cafetorium at Reed Intermediate School, Trades Lane, Newtown, CT. Chairman John Kortze called the meeting to order at 7:40 pm.
PRESENT: John Kortze, James Gaston, Harrison Waterbury, Michael Portnoy, Joseph Kearney, John Torok
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg, Schools Superintendent Dr. Evan Pitkoff, Assistant Superintendent Alice Jackson, Schools Business Manager Ron Bienkowski, Board of Education members Elaine McClure, David Nanavaty, Andrew Buzzi, Paul Mangiafico; 26 members of public, one member of press
VOTER PARTICIPATION: (The size of the cafetorium made it difficult to hear speakers, including the public and members of the boards.)
Ms. Michelle Hankin, 48 Mt. Pleasant Road, stated that she was disappointed with the turnout at the public hearing. She has been asking around and feels that many people are frustrated, feeling that they take the time to come to meetings and are ignored. People feel they are not listened to at this point in the process. People want to preserve quality education but feel it is futile to come out to support it. The perception is that this board does not listen. A few hundred thousand dollars reduction can be a small amount to each taxpayer but mean a great deal to the school budget. Restore the taxpayer’s confidence in participating in the community and the budget process.
Karen Pierce, 11 Nettleton Avenue, asked if the Board of Finance takes into consideration the state and federal monies being reduced when they cut the school budgets. She read statistics for federal budget cuts and education. In addition, Connecticut will be losing Title 21 funding.
COMMUNICATIONS: Chairman Kortze received a letter today from Dr. Pitkoff requesting that the Board of Finance increase debt service in the proposed budget by $169,330 for the Hawley HVAC project to cover a partial cost of $2.4 million for the first year financing with an estimated full cost of $5.9 million.
Mr. Kortze then opened the floor to questions from the Board of Finance members to the Schools Administration, Board of Education members and First Selectman.
Mr. Torok asked Dr. Pitkoff if they were requesting adding debt service funding for the Hawley HVAC to this budget tonight? Yes. Mr. Portnoy asked if they were asking to put money into debt service for a proposed project that has not been bid. Yes. Mr. Portnoy asked if they are requesting debt service for a $5.9 million project, increased from $5.4 million. Yes. Mr. Buzzi advised that they are planning to start this project from the beginning. They expect to begin preparation for a bid package. Right now, there are no real numbers, only estimates based the bid prices from the former process, plus inflation. Mr. Portnoy asked if the Board of Finance is allowed to take a request from the Board of Education to increase the
municipal side of the budget which has already been presented by the Board of Selectmen. Chairman Kortze feels it would be unorthodox to take it up at this point but feels the circumstances are a bit different. This issue is one that has been addressed before, although there are still some unanswered questions about the project. When the Capital Improvement Plan was presented to the Legislative Council, the Board of Finance did include a statement that this project may come back in the near future. The need for this project has not gone away. The Board of Finance does have the ability to set the debt service at this point. First Selectman Rosenthal agreed that the Board of Finance has the choice to increase or decrease the budget. When the municipal side of the budget is being prepared, debt service is determined by what is in the Capital Improvement Plan that was approved by the Legislative Council. Mr. Gaston asked what amount the
Board of Education is requesting be put into debt service. Mr. Bienkowski calculated $169,330. Mr. Gaston reiterated that this is not in the CIP. He asked why this project can’t proceed with the next CIP that comes out between June and October and the following fiscal year budget. At that time, we will know how much the project will cost. He asked if we could expect an economy of savings if this project is bid with the high school. Dr. Pitkoff stated that the architect does not feel there is any efficiency in combining these two totally different projects. Mr. Bienkowski added that we can not make it a requirement that someone bid on both projects. The high school is a state reimburseable project while the Hawley HVAC is not. Mr. Gaston wanted to know why the process was not followed and this was not presented to the Board of Selectmen for inclusion in the municipal side of the budget. Mr. Bienkowski stated
that this would have been included in the Selectmen’s budget if it were in the CIP but it fell off the CIP. Mr. Torok asked how long it would take to put together the bid package. Mr. Bienkowski answered that they would like to follow the same schedule as originally planned. The project would be phased and would begin during the Christmas break. They would like to have a contract in place by the last week in November after bidding in early August.
Finance Director Ben Spragg feels that the $169,330 should be closer to $200,000. He is concerned about calculations using the 4% interest rate. This type of financing would mean that nothing could be spent until December and since funds would need to be available earlier, he would have to do some short-term borrowing. Mr. Spragg reminded that the current budget (05/06) contains debt service for the original $3.3 million figure for the Hawley HVAC project. The request being made tonight for a $2.4 million partial could be financed by those funds in the current budget. Then, if the project is approved, at the end of the year, the Legislative Council could be asked to “continue” the $200,000 into next year. We would not
need to put $200,000 into next year’s budget. Mr. Waterbury stated that he cannot understand how this can be requested to be put in the budget when the Legislative Council turned down the project. Mr. Kortze suggested leaving the budget as is and trying to make arrangements for the Board of Education to go to the Legislative Council to get their approval for the project. There may then be time to work back through the process with the CIP.
Mr. Kearney asked about the modular units for the high school and whether the figures in the budget are for a yearly lease or if we have committed to longer. Mr. Bienkowski replied that we have not gone to bid but are getting ready to go to the Planning & Zoning Commission for approvals first. They plan to ask for lease pricing for a minimum of three years with an option to extend.
Mr. Gaston asked if we have equipment that lasts for 30 years that we do not bond. First Selectman Rosenthal answered that we have equipment, such as excavators or graders, costing more than $200,000 which is the threshold for inclusion in the CIP, that we purchase. These probably do not last 20 years like a fire truck, more like 10-15 years. Fire trucks can cost twice that much but do last for 20 years and are bonded.
Mr. Portnoy asked about the paid fire apparatus drivers. Is that a necessity or are we moving towards something that will impact us down the road such as a full paid department. Fire Commission Chairman Kevin Cragin stated that the Commission does not expect to see a paid fire department in the near future. The two drivers they are requesting are for Hook & Ladder and the Sandy Hook Fire Department. The average time to get a piece of apparatus out is 6-8 minutes but it takes longer than that on weekdays during working hours when volunteers have to leave their jobs and get to the station to get the trucks. They are looking for drivers who can be at the station and can get trucks out immediately. On weekends there is no problem.
The five fire departments in town average 1,200 calls per month, with 800 of those being on weekdays. Hook & Ladder and Sandy Hook go to almost all fires during the week. They have been talking about this for three years but this is the first year it was requested in the budget and discussed with the Board of Selectmen. First Selectman Rosenthal advised that enough money was put into the budget for two drivers, with the stipulation that the second driver would only be hired if approved for a matching grant. If the grant is not approved, there will only be one driver hired next year.
Mr. Waterbury moved to reduce line item 01500-5081 Capital Road Improvement by $100,000. Motion seconded and carried: 5 YES – 1 NO (Portnoy)
Mr. Portnoy asked about the health insurance numbers. First Selectman Rosenthal stated that our claims experience over the past 12 months ending January 2006 have been good with the town showing 61% of premium and the schools at 81% of premium, with an average of 75%. If this trend continues, Blue Cross could reconsider the preliminary increase we received and we might have a more favorable renewal for both budgets.
Mr. Portnoy moved that if quantifiable numbers are available from the insurance carriers before the Legislative Council has acted on the budget, that a subsequent reduction be made on both sides of the budget. Motion seconded and unanimously carried.
Mr. Gaston moved that if there is additional revenue from the State that an addition be made to the revenue side of the budget. Motion seconded and unanimously carried.
Mr. Waterbury moved to reduce the 2006/2007 Education Budget by $250,000. Motion seconded. Mr. Waterbury stated that he has studied the line items in this budget and believes that it is a good budget but there is still some room. Mr. Gaston stated that he has looked, historically, at the mill rate increases. He feels that an increase of 6.5% tends to be supported by the taxpayers but a 6.9% increase is not so sure. He believes that both budgets are very good and an excellent job was done by the Board of Selectmen and Board of Education.
MOTION UNANIMOUSLY CARRIED
Mr. Gaston moved to add $181,897 from the Capital Non-Reserve Fund to the Board of Selectmen Revenue. Motion second and after discussion unanimously failed.
Mr. Portnoy moved to approve the Board of Selectmen 2006/2007 Budget in the amount of $35,359,052. Motion seconded and unanimously carried.
Mr. Portnoy moved to approve the Board of Education 2006/2007 Budget in the amount of $61,172,154. Motion seconded and unanimously carried.
Mr. Portnoy moved to approve the Total 2006/2007 Budget in the amount of $96,531,206. Motion seconded and unanimously carried.
Mr. Gaston moved to approve Board of Selectmen Revenue in the amount of $11,349,986. Motion seconded and unanimously carried.
Mr. Gaston moved to approve Board of Education Revenue in the amount of $4,351,238. Motion seconded and unanimously carried.
Mr. Gaston moved to approve the amount to be raised by Taxation for FY 2006/2007 in the amount of $80,829,982. Motion seconded and unanimously carried.
Mr. Portnoy moved to approve a 2006/2007 Mill Rate in the amount of 27.8 mills. Motion seconded and unanimously carried.
Mr. Gaston moved that the Financial Director be authorized to make any mathematical corrections that might be required in the appropriations and revenue and report back to the Board of Finance. Motion seconded and unanimously carried.
Having no further business, the meeting was adjourned at 10:00 p.m.
Jan Andras, Clerk
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