The Board of Finance held a special meeting on Thursday, February 21, 2008 in the Borough Meeting Room at Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, James Gaston, Martin Gersten, Joseph Kearney, Michael Portnoy, Harrison Waterbury.
ALSO PRESENT: Members of the Board of Education and Legislative Council, approximately fifteen members of public, one member of press.
VOTER PARTICIPATION. Virginia Jess, 48 Appleblossom Road, president of Canine Advocates, is delighted that the Board of Selectmen put the dog pound back into this year’s budget. The pound is deteriorating and had flooding last week. A sick dog made many others ill because there is not adequate ventilation. We cannot wait but must replace this building now.
Dan Amaral asked that the budget be kept at 3%. There is $2 million for road improvements but the work is contracted out and overtime is way up.
COMMUNICATIONS: Mr. Kortze received an email from a Legislative Council member requesting that certain information be put on line. Mr. Kortze feels it would be more prudent if questions were answered in a public forum through the chairs of the various commissions. Email can be cut and pasted and take on a life of its own and may not be consistent with the actual reply.
FIRST SELECTMAN REPORT: Mr. Borst distributed an executive summary for the Town side of the budget. He said that the Board of Selectmen cut $2.9 million out of the original requests; the proposed budget is $40,027,988 for the Selectmen. He said that salaries include new salaries for the Technology Department. The operating budget increase is 5.4%; $1.42 million is for new debt service items.
FINANCE DIRECTOR REPORT: Mr. Spragg distributed “BeePUBLIC HEARING2008” (Attachment A to original minutes) which will be published in the Bee prior to the Board of Finance’s public hearing on Wednesday, February 27, 2008. He noted that the total proposed budget for the Boards of Selectmen and Education is $106,959,032 and that if approved would represent a mill rate of 23.7. Mr. Spragg distributed “BeeDebtService2008-4%” (Attachment B to original minutes). He took the budget down to 4% which is the rate that we have been borrowing at for the last couple of years. This would represent a $60,000 to $70,000 reduction in debt service. Mr. Spragg presented “ReserveFundForCap&NonrecurrExpFeb19,2008” (Attachment C to original minutes). He recommends that we take the
$257,000 available in this fund and put it into Revenue. Mr. Spragg did an analysis of homeowners’ assessments in 2006 which was not a reval year compared to 2007 which is a reval year. He said the results were mixed, with some impacted significantly and some not at all. Mr. Spragg said that historically during a reval year, 1/3 see an increase, 1/3 stay the same and 1/3 experience a reduction.
UNFINISHED BUSINESS. None noted.
NEW BUSINESS.
Board of Selectmen’s proposed budget for FY 2008-2009. Mr. Kortze noted that the Board of Finance will take Q&A on the Board of Selectmen’s budget tonight, the public hearing is on February 27, Q&A on the Board of Education’s budget next week on February 28, and deliberations by the Board of Finance on March 3. Last night the Legislative Council did not vote on the CIP. This is critical to the Board of Finance because the debt service figure is not known. The Council will not meet again until March 5 at which meeting the Council proposes a joint meeting with the Boards of Finance and Selectmen. If there are any changes to the CIP Mr. Kortze recommends that some type of recommendation also be made for making up the difference for any increase. Any CIP change would have to come back to
the Board of Finance. He proposes that any changes that may be made on March 5 be addressed that night by the Board of Finance.
Mr. Kortze asked for questions of Mr. Borst or Mr. Spragg by the members of the Board of Finance. Mr. Portnoy asked Mr. Spragg why motor vehicle revenue is projected to drop from $650,000 to $600,000; Mr. Spragg said this is due to a drop in the mill rate during a reval year. Mr. Spragg said that Parks & Recreation projection is reflective of the closing of Dickinson.
Mr. Kortze asked Mr. Spragg to explain the issue the Board of Education activities fees. Mr. Spragg said that a few years ago the Board of Ed was running items through the student activity fund that were not student activities. The Legislative Council approved a special appropriation of $100,000 that would allow them to legalize this expenditure. The Board of Ed felt they could raise $200,000 more so their budget was increased by $300,000. The Board of Ed would turn back into the general fund the difference between the budget increase of $300,000 and the fees that were taken in. The Board of Ed has now taken in $126,000. Mr. Kortze noted that the budget was increased by $300,000 but that though $126,000 was taken in the difference was not turned back to the Town.
Mr. Waterbury asked about the $97,000 increase in Technology for Bridgeport Hall and when will this be used. Mr. Borst said in June or July when construction starts; Mr. Spragg said next fiscal year.
Mr. Gaston said that it is difficult to discern what the cut of $138,000 to Non-Recurring represents because it is not noted which items were cut. Mr. Borst will prepare a line by line itemization of what the $2.9 million reduction represents. Mr. Kearney said it appears that the Landfill generates $400,000 in fees but costs $1.4 million to operate. Mr. Spragg suggested that Public Works Director Hurley should speak to this but he said that the fees are for the Transfer Station and items such as bulky waste are paid in taxes not in a user fee. Mr. Borst noted that recycling is free to residents. He said that tonnage fees were raised from $30 to $39 by the Board of Selectmen. Mr. Kearney said it appears that recycling is costing $1 million.
Mr. Gersten asked for identification of those services that would be provided by the school board but found their way into the Selectmen’s budget. Mr. Spragg said that the Town maintains the parking lots by plowing them and provides school crossing guards. He said that school grants to the town are based on how much is spent on education. He will provide a listing of these services.
Mr. Gersten asked if there is any thought on the part of the Board of Selectmen to move money for the Senior Center back into the budget. Mr. Borst said that there is an addition being built onto the Senior Center. He noted that Parks and Recreation and the Commission on Aging have discussed sharing a building but that seniors have signed a petition that they want a stand alone building. He does not see how the Town can afford this. Mr. Kortze asked Mr. Borst if he anticipates a new direction on this whole issue in the next month or two, or how realistic is it that the Board of Selectmen may recommend some reinstatement in the CIP in the next two months for a Senior/Recreation Center. Mr. Borst feels that this is not very realistic. LeReine Frampton, Commission on Aging alternate member, said that she feels that a
consensus has been reached with the seniors and that this building will be OK with them.
Mr. Gersten asked about a reduction in Selectmen Other Repair and Maintenance from $233,000 to $18,000. Mr. Borst said that some Technology Department funds were transferred to the Board of Ed because the Town and the Board of Ed now pay for their tech personnel separately and that a new account was created so that this is a wash.
Judge Bill Lavery discussed the Library budget request. He said that a gala raised $30,000 which was used for security, a digital projector for the meeting room, technical matters and a zoning sign. He distributed some of the results from the survey by the Harrison Group (Attachment E to original minutes). The Library had requested $30,000 for a technical person which is the Library’s number one priority. The Board of Selectmen cut $14,000. The Library requests that the $16,000 remaining be left in the budget for a technical person for ten hours a week. He noted that all beneficiaries of the Mary Hawley Trust plan to get together to try to remove the trustee because all of the groups are losing income. He said that the Library will accept the proposed budget which was reduced from $1,800,000 to $1,007,000
by the Board of Selectmen. Mr. Kortze noted that the Board of Finance appreciates the fact that the Library has done a lot of work to show the Board of Finance where the Library’s money goes.
Mr. Kortze asked Mr. Spragg what the assumed collection rate is; Mr. Spragg replied 98.8% which is a five year average. Mr. Kortze noted that there is an impact of the slower growth in town with the fund balance which is down $600,000 as of June 2007 compared with June 2006. Mr. Spragg recommends using the $257,000 that will be available in this account for revenues to offset some of this.
Mr. Kortze noted that the total budget is up 5.4%, of which $1.4 million is debt service and of that $360,000 is the Town debt service and the remainder the Board of Ed. The proposed increase in the operating budget for the Town is 4.25% without debt service.
Mr. Kortze asked Mr. Borst what he would say to the average taxpayer about a 4.25% increase. Mr. Borst said the question is do we stay with what we have; if not, some services will have to suffer. Mr. Kortze said you are asking us to ask the taxpayers for a larger increase than last year. We will be funding a multimillion budget increase for the next twenty years. He asked Mr. Borst why he is asking for more money than last year. Mr. Borst said increases in fuel and electrical are some factors. He said that collective bargaining mandate most of the increases. Mr. Portnoy asked if Town employees contribute 10% to health insurance; Mr. Spragg said it is less because the quasi agencies pay a higher fee than the bargaining units. Mr. Portnoy noted that teachers pay 15-16% and why are Town employees paying so little. Mr.
Borst said that is one item for consideration in the contracts coming up for Police and Highway. Mr. Spragg noted Parks and Recreation.
Mr. Kearney asked Mr. Spragg if it would be feasible for the Town to have centralized purchasing. Mr. Spragg is not sure that there would be savings as we now have a decentralized program. Mr. Kearney asked if the Police budget is for 41 officers or 47; Mr. Spragg said 47. Mr. Portnoy questioned the note that one police car is not in service each day.
Mr. Kortze noted that the public hearing on the budget will be on February 27 at 7:30 p.m. in the Middle School Auditorium. The Board of Education budget will be reviewed at the February 28 meeting. Mr. Borst will provide a list of items comprising the $2.9 million reduction for the March 3 meeting. Mr. Spragg will prepare a list of the services that the Town provides for the schools and a list of employees added to both sides of the budget. Mr. Borst will ask the Director of Public Works and the Chief of Police to attend the March 3 meeting.
Mr. Spragg said that the Legislative Council discussed adding a Parks and Recreation facility back into the CIP. He feels that Mr. Rosenthal and Mr. Mangiafico would be very concerned about Parks and Recreation going to the Legislative Council around the Board of Selectmen after the Board of Selectmen recommended eliminating this item, and that Parks and Recreation should go back to the Board of Selectmen. Mr. Kortze said that if the Board of Selectmen in the end makes a recommendation for a change to the CIP, the CIP should go back to the Board of Finance in order to add anything back. The Board of Finance made it clear that to add something back we need a comparable amount for a counter reduction. Mr. Spragg said that Parks and Recreation needs to go back to the Board of Selectmen not the Legislative Council about
putting an item back into the CIP. Mr. Kortze was surprised that the Legislative Council did not vote on the CIP. It is difficult to finish the process if we don’t know what the debt service is.
Mr. Kortze said he received a request to publish what the increase would mean to the taxpayer on the website. He cautions that every meeting is public and has minutes. He is not in favor of this because if we put numbers on the website before the Board of Finance or Legislative Council votes on them officially, we would be doing a disservice to the town as the numbers and the mill rate are not known.
ADJOURNMENT Having no further business, the meeting was adjourned at 9:25 p.m.
Ann M. Mazur, Clerk
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