The Board of Finance held a budget meeting on Thursday, March 1, 2007 in the Lecture Hall at Newtown High School, Berkshire Road, Sandy Hook, CT. Chairman John Kortze called the meeting to order at 7:40 p .m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Harrison Waterbury, John Torok, Joseph Kearney
ALSO PRESENT: First Selectman Herbert C. Rosenthal; Finance Director Ben Spragg; Schools Superintendent Dr. Evan Pitkoff; Asst. Supt. Alice Jackson; Schools Business Director Ron Bienkowski; Board of Education Chairman Elaine McClure and members Andrew Buzzi, David Nanavaty and Tom Gissen; Legislative Council members Pat Llodra and Jeff Capeci, one member of press, approximately 12 members of public, including members of town departments, boards/commissions and school principals
VOTER PARTICIPATION: Ms. Po Murray, 38 Charter Ridge Drive, spent time yesterday in the Town Clerk’s office to look at the Town’s budget binder. She feels that having only one copy available to the public is inadequate. Information should be put on the website. The questions she asked last night at the public hearing have not been answered. She hopes to get answers before decisions are made tonight. Are we approving the expansion of the Senior Center or a new Senior Center?
Mr. Tom Gissen, 35 Horseshoe Ridge, (member of Board of Education) apologized for not being available at meetings the two previous evenings. He feels this is a very lean budget, possibly too lean. There were items he wanted to see added back in that were not. In an ideal world, there are items that should be in this budget.
2007/2008 Proposed Budget
Mr. Kearney advised that although he was not available for the meetings the two previous evenings, he has gone over all of the information about the Education budget and he was at the meeting when the Board of Selectmen budget was presented.
He had questions about the Fire Department request for a Response Program. Mr. Kevin Cragin and Mr. Michael Burton were present from the Board of Fire Commissioners. First Selectman Rosenthal advised that the Board of Selectmen strongly support this proposal. When it was presented last year, it was deleted from the budget because there were questions about how it would be administered. The Commission has now spent months developing this more comprehensive program which is more clear about how it will be administered. The need is clear. The Fire Departments have not grown in membership during the time that the population has doubled. A lot of people work out of town and we have trouble getting coverage during the workday. We
need to make sure that the trucks can get to the scene quickly.
Mr. Burton stated that this proposal involves a $50 per day stipend (with 1099 forms being issued), being paid quarterly to qualified firefighters who agree to be available at the station during the day in order to get the equipment to the scene within an acceptable response time. It will be offered to any qualified volunteer member. Mr. Kearney asked if it would be better to increase the tax abatement offered to fire volunteers instead. Mr. Rosenthal answered that State Statutes only allow for a $1,000 tax abatement limit.
On behalf of the Police Commission, Chief Michael Kehoe was present along with Commission members Carol Mattegat, Richard Simon and Gerald Finnegan. Mr. Gaston asked about the replacement of a two 2-year old cruisers with 90,000 and 94,000 miles. Bridgeport police drive cars up to 140,000 miles. Chief Kehoe replied that from professional standards on fleet replacement, the sooner you take out a car, the better in terms of spending money on major repairs for that vehicle. Transmission and engine replacements can be very costly and they seem to wear out quicker in police vehicles. The mileage is actually more than shown on the odometer because of idle time on the engines. As we get close to 100,000 miles, they start to break down and are out
of service more often, making it difficult to keep enough cars on the road on a given day. Routine maintenance is done by our Public Works Department and they do an excellent job. More specialized repairs have to be sent out. Mr. Portnoy asked about the request for a traffic enforcement unit. Is this necessary due to a personal shortage? Chief Kehoe replied that he has a severe personnel shortage. Right now we are down four officers.
On behalf of the Library, Trustee Kelly Urso was present. Mr. Kearney thanked them for the excellent financial information provided but he is still searching for an idea of how many users who have cards actually use those cards during a specific 12 month period. Mr. Urso said that she was unable to find that information when he had asked – perhaps if she had more time to find a way to quantify it through the Bibliomation system. She asked the Librarian who said that she would guess at least 72%.
Ms. Mary Griffin of T. R. Paul was present to answer further questions about health insurance. She explained that they expect to have more precise numbers by May for the school systems when they have a better idea of enrollment in the two different health insurance programs.
Mr. Portnoy asked about the Special Education program. We are adding special education teachers and partially offsetting the cost by eliminating educational assistants. In the elementary schools, the ratio seems to be one special education teacher to 5.7 teachers. In the Reed School, there is a ratio of one special education teacher to 3.8 teachers. Dr. Pitkoff explained that the number of special education teachers needed is specific to the children diagnosed with special education needs. Some may require one-on-one assistance and those could be in any school.
Mr. Portnoy stated that we are 8 months into the current school budget and asked if there is any feel for where we are in the large accounts, i.e. salaries, fuel, energy? The Board of Finance receives monthly statements from the town side showing the percentage expended to date in each line item. Are we positive or negative in the school accounts? Mr. Bienkowski answered that they have 1,200 accounts. In the salaries, we will be cutting it close this year in the certified salaries but in the non-certified, we may have some shortages, i.e. custodial and overtime. There may be some balances in the educational assistants salaries because of turnover. He feels that the benefits line item will produce a balance of $50,000 to $80,000.
Regarding energy, we have already identified there could be a balance of up to $120,000 in the fuel oil account. That balance will be used for new seats in the auditorium at the Middle School. In electricity, he estimates we may be “in the hole” $30,000 to $40,000.
Mr. Kortze complimented both the Board of Education and Board of Selectmen on their budgets. The availability of information has come a long way and he thanked all of those responsible. The role of the Board of Finance is advisory. We must find a balance between the needs and financial stability of the town. This Board will try to make more financial information on the website in the future, as has been requested by members of the public. He then read prepared comments (copy attached). He also stated that in speaking with voters, there seems to be a perception that certain capitol projects are causing others to be discarded or delayed and that is not the case. The public should clearly understand that we have not changed any of
the priorities presented, other than delaying the Hawley HVAC project.
Mr. Kortze explained that the surplus is currently $1,050,000 higher than we had last year. The Board of Selectmen are recommending putting $750,000 of that additional surplus into the Capital Reserve Fund. The surplus is always from one year previous so we never know how much there will be from year to year, and with building in town decreasing, income is decreasing.
Mr. Kortze made the following recommendations: a) a reduction in budgeted amount for health insurance by $60,000 on the town side and $174,000 on the schools side; b) $100,000 reduction in the Capital Road account; c) a reduction in fuel oil estimates by $100,000 on each side of the budget; d) reduce by $250,000 the amount being put into the Capital Reserve Fund. He also stated that he is not in favor of adding to overhead by the addition of two new buses for $175,000 and not in favor of two additional teachers at the Middle School. He feels we can still be close to Board of Education guidelines on class size without them for a savings of $132,000. He believes we should be focusing more on re-allocating resources as opposed to
addition overhead. The total of these suggested Board of Education items is $581,000.
Selectmen Budget
Mr. Gaston moved to decrease line item 01860-5000 Reserve Fund by $250,000 (total $500,000). Motion seconded and unanimously carried.
Mr. Gaston moved to decrease line item 01500-5081 Capital Road Improvement by $100,000 (total $1,700,000). Motion seconded and unanimously carried.
Mr. Gaston moved to decrease line item 01500-2016 Equipment Fuel by $100,000 (total $277,000). Motion seconded and unanimously carried.
Mr. Gaston moved to decrease line item 01270-2001 Health Insurance by $60,000. Motion seconded and unanimously carried. There was discussion about recommending to the Legislative Council that this could be decreased further if better numbers are known at the time they begin their deliberations.
Board of Education Budget
Mr. Gaston moved to decrease the Board of Education Budget by $581,000. Motion seconded and unanimously carried.
Total Budget
Mr. Kortze reminded that the Board of Finance wanted funds, possibly $15,000, for consultant fees to get more information about the total build out of the town. First Selectman Rosenthal stated that money could be used from the existing consultant line items or, if necessary, taken from Contingency.
Mr. Gaston moved a TOTAL BOARD OF SELECTMEN BUDGET in the amount of $38,049,719. Motion seconded and unanimously carried.
Mr. Gaston moved a TOTAL BOARD OF EDUCATION BUDGET in the amount of $64,184,158. Motion seconded and unanimously carried.
Mr. Gaston moved a TOTAL 2007/2008 BUDGET in the amount of $102,232,877. Motion seconded and unanimously carried.
Mr. Gaston moved 2007/2008 REVENUE for the Board of Selectmen in the amount of $11,927,673 and for the Board of Education in the amount of $4,675,312. Motion seconded and unanimously carried.
Mr. Gaston moved the TOTAL AMOUNT TO BE RAISED BY TAXATION in the amount of $85,629,892. Motion seconded and unanimously carried.
Mr. Gaston moved to recommend a 2007/2008 Mill Rate in the amount of 28.9. Motion seconded and unanimously carried.
Mr. Gaston moved to authorize the Financial Director to make any necessary mathematical corrections and to report them back to the Board of Finance. Motion seconded and unanimously carried.
Mr. Portnoy moved that the Board of Finance recommend to the Legislative Council to take into consideration any health insurance savings and reduce both the Board of Education and Board of Selectmen budgets to reflect those savings. Motion seconded and unanimously carried.
Voter Participation: Ms. Po Murray asked to speak again. She is concerned that there was no discussion between the members tonight. She wants to know why they made the decisions that were made. It appears “discussion was made before this meeting”. Mr. Kortze assured her that any member of this Board would be happy to tell her their position.
Having no further business, the meeting was adjourned at 9:05 p.m.
Jan Andras, Clerk
Attachment: Comments by Mr. John Kortze
Comments by Board of Finance Chairman John Kortze
Let me start by complimenting the Bd of Ed and Bd of Selectmen on the presentations of their budgets. For better or worse, I’ve seen a number of these now and, in my opinion, this is the most comprehensive and well prepared budget I can recall. So, my thanks to all on behalf of the Bd of Finance.
Since the municipal process is complex at the least, I thought I would take a second to capitalize on the venue and number of people in the room to try and communicate some specifics and answer some of the questions posed.
As many of you know, we have always viewed our role as advisory. We have always believed that our focus should be a balance between the needs of the town and the financial stability of the town. For that reason, our decisions are rooted in trying to provide for those needs within our guidelines which we believe are in the best interest of the long term financial health of Newtown.
Clearly, as evidenced of late, any position can and should be debated. And in that vane, as evidenced by countless public meetings and debates, by the Bd of Finance alone, we have done just that. The government has given birth to many of the policies and guidelines we currently follow.
We, as the Bd of Finance, have endeavored to come to our conclusions and recommendations based on fact. We do not believe our role is as a political one. We view our role as one to vet the issues, reach substantiated and fact based recommendations and to present them to the political side of the equation…the legislative council.
As a citizen participating in the process, we know you have many questions. The Bd has attempted to answer as many of those as we can and has also offered on more than one occasion to accommodate a particular group or two with a special meeting whose purpose would solely by Q&A. And many of the Bd members have taken time beyond scheduled meetings to meet with groups to help answer questions.
Mr. Davis’s request for better access to info is well intentioned and well founded. We will try to do just that and we owe the public that. To that end and to some of the previous night’s questions, we will try to improve the info and access available. Bear in mind, all this is currently available at the Town Hall, but we will try to improve upon the ease of access. People like Ben Spragg, the Town Financial Director and Jan Andras, Mary Kelley and Carole Ross do a fantastic job of helping this cause. Also, and concurrent with last night’s requests, I have made a request to the Town that we clarify the public notice and have with me a specific breakdown of the town’s current indebtedness.
In so far as some of the other issues and questions:
It’s very apparent that the voters have expressed, quite clearly, their concerns for various issues that need to be addressed, especially when it comes to the schools. We hear you and offer some thoughts. Please understand that the Bd of Finance and in turn, the Council, only has bottom line authority to the Bd of Ed’s budget. We can come to a consensus on specific issues, but can only affect the bottom line. The details are squarely in the hands of the Bd of Ed.
Also, on a similar topic, I tend to speak to many voters, as do my colleagues, and its clear to us that there seems to be a perception that certain capital projects are causing others to be discarded or delayed. This is not the case.
We create a plan based on requests directly from the Bd of Ed and Selectmen. Those requests are prioritized by them as we believe they are more capable to perform that task than we are. We then combine that list to a master town plan. The public should understand clearly that we have not changed any of the priorities presented. Nor have we changed any of the scheduling of those projects except for Hawley HVAC. Although that project is not without other issues previously expressed, it was postponed because of the large expenditure of the high school expansion. As we all do in our personal lives, if we need a new car, the new sofa may have to wait a year. It is critical that the public understand that the Bd of Finance has adopted a plan that has provided for 98% of the projects
asked for, in the level of priority asked for on the schedule asked for.
That answers the first couple of questions from Po, Ruby and Gary and I’m sure many others. In so far as open space, the questions was confusing as I don’t think we would recommend a bond for land if none were left to purchase, however, I understand the tenor of the question. Our feeling on open space is simple. It fits in the CIP, it was and remains to be an important project to many taxpayers, and it enhances the quality of life in town. Lastly, we have demonstrated financially that purchasing the correct parcels is cheaper than having it developed and goes a long way to holding down taxes and preserving what we all enjoy about town. In that endeavor, we have partnered with the Council and are looking to engage outside help to endeavor to find out exactly what the build
out of Newtown will look like and how many more homes we will have, when they will come and how it effects the finances, public services and educational system in this town. Although we do not believe that this responsibility lay solely in our lap, it certainly will effect our decisions and needs to be understood. Our goal is to accomplish this within the construct of the plan of conservation and development…tremendous work the town has already completed.
There was also discussion of the surplus. Remember that the surplus on the town side, by Charter, must be returned and added as revenue. On the Education side, it is my understanding that they are legally prohibited in ending the year in the red. If the Bd of Ed ends the year with a purported $9000 surplus for example, one must look further to the dollars spent prior to ending up at that number before a conclusion can be reached. That being said, both sides of the budget are large and complex and I would argue it is impossible to get it exactly right in any year.
Hopefully, this will answer many of the questions posed and, as I’m quite sure in at least one particular instance, give rise to more. We continue to welcome your input and thank you for your suggestions.
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