The Board of Finance held a regular meeting on Monday, January 12, 2009 in the Conference Room of 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 – First Selectman Joseph Borst, Financial Director Robert Tait, one member of the public and one member of the press.
VOTER COMMENTS – None
COMMUNICATIONS- Mr. Kortze has spoken to the selectman and to Janet Robinson about the upcoming budget. Ms. Robinson did communicate that she was making every effort to go back to re-open labor contracts. She communicated that she has positive feed back from all but one union. Teachers were the largest union and they were meeting last week. She also communicated that it is her goal to have a no increase in their salaries; however, it will be a hard sell if the town side does not do the same. Mr. Borst has sent a letter to the union representatives to ask them to consider re-opening contracts. Mr. Kortze expressed his concern that the town will be hard press to have a zero percent increase with pay raises. Robert Tait said there is a flat budget on the expenditure side with
pay increases. The net result is that if there is a 1.7 or 2 million dollar deficit there will have to be an increase to the mill rate. Other towns and unions are looking at decrease in pay to keep their jobs.
Mr. Kortze attended the legislative sub committee on the CIP. Po Murry articulated that the CIP is not adequate and long range planning is needed. The CIP is not a long range stratgic plan, it is a spending plan. They removed Dickenson infrastructure renovation and pushed it out a year. They added a Park and Rec facility that the BOF took out. They removed a million dollars a year for the next 5 years for open space. This year and next year have been obligated and spent. They moved the police radio’s to the operational budget and out of the CIP. This is going to create additional pressure on the operation budget and a hard time to keep it flat. Mr. Kortze wants to see the analysis of purchasing over developing from Rob Sibley for the property on Walnut Tree Hill Road.
Mr. Kortze will be attending the next Legislative Council meeting and wants to be prepared with the thoughts of the Board.
Open space issue – Mr. Gaston feels strongly that it is a mistake to reduce it. Now that the real estate is low, this is the time to buy. We are going to have budgetary problems until the town has been built out. Once the town has been built up the budget will even out. Mr. Gersten agreed that this is the time to buy. Mr. Kearney wants to know the reason why they reduced it. What is their plan?
How does the board feel about putting the radios in the general fund? Mr. Gaston articulated that if they put it in the operational budget and out of the CIP, they are basically making the decision that there will be no radios. The life of the radios is 7 to 10 years.
The modular class rooms – If they need portables for 2 years then it theatrically should be in there operational budget. Are they going to buy them or lease them? Mr. Kortze asked Mr. Bienkowski for an analysis of that.
MINUTES – Upon motion of Mr. Gersten and seconded by Mr. Waterbury, the minutes of the regular meeting of December 8, 2008 were unanimously accepted as presented.
FIRST SELECTMAN REPORT – The Board of Selectman purchased property on Walnut Tree Hill for $280,000. The property is for open space and connects Al’s trail. Mr. Borst, Mr. Tait, and Ms. Stocker will be meeting with Moody’s to push for an upgrade of the town bond rating from AA2 to AA1. Right now the budget is basically flat from last year; however, they have to wait until the end of January to see what the final tax revenues are in. They are going to present the financial issues of Newtown. These are tough times but we are doing the right thing. The decision will take a few days.
Mr. Borst added that there is a meeting at 8am on the 20th in the Alexandria room to discuss the high school re-design/re-bid. The chair and vice chair of the Board of finance, selectman, as well as the Board of Education are invited. The purpose of the meeting is to discuss if it is appropriate to re-bid or redesign. Mr. Kortze spoke to Selectman about this. His interpretation is that there seems to be 2 things that can happen. Scenario A – the school re-bid comes in under budget, all inclusive. Scenario B – is that it comes in over budget. What does the BOE intend to do if it comes in over. There seems to be some thinking that if it is X numbers over it may be plausible to go back to the public. Mr. Kearney suggested that if they do go
forward with a re-bid, a side by side comparison be done to see where the saving is. Will the savings be materials or deletions in alternates in the bid? Mr. Gaston articulated that if there is a meeting where the BOE decides that if the project is over $2 Million that they would ask for the money. This will give an upper hand to the bidders and they wouldn’t be as competitive as they would have been. Mr. Borst would like to address the state about paying for moving the driveway – they want it moved they should pay for it.
Mr. Portnoy asked Mr. Borst to invite Mr. Murtha of the Pension committee to the Board of Finance meeting. The board would like Mr. Murtha to explain the situation of the investment experience of the pension fund being so far off. The current situation will require that the town will have to contribute more out of their expenses, not this year but years to come.
FINANCE DIRECTOR REPORT - None
UNFINISHED BUISNESS - None
NEW BUISNESS
1. Transfer – Mr. Gaston motioned to accept the transfer from Town Hall Salary Adjustment to Clerical Wages in the amount of $1000. Mr. Gersten seconded, motion unanimously accepted.
2. Transfer – Mr. Gaston motioned to accept the transfer from Contingency to Paramedic Programs in the amount of $35,000 to fund an Ambulance Replacement. Seconded by Mr. Gersten, motion unanimously accepted. Historically, the town funds $70,000 every other year and this would smooth the funding to each year
3. Discussion and Possible Action: Debt Management Policy – Mr. Tait went over a proposed Debt Management Policy that would replace the current policy. There are changes that need to be made. Mr. Tait will revise this and have it for the next meeting.
4. Report on Board of Education strategic planning committee – Mr. Gersten gave an update. He doesn’t believe that they will come up with a large value to the BOF or the BOE but they will give some insight.
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Adjournment – 9:00 PM
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