The Board of Finance held a meeting on Thursday, March 9, 2009 at 7:00 p.m. in the Lecture Hall of the Newtown High School, 12 Berkshire Road, Sandy Hook, CT. Chairman John Kortze called the meeting to order at 7:05 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Joseph Kearney, Martin Gersten and Harry Waterbury.
ALSO PRESENT: First Selectman Joseph Borst, Selectman Paul Mangiafico, Finance Director Bob Tait, various department heads and employees, 20 members of the public and one member of the press.
VOTER PARTICIPATION:
Karen Pratt-Szilagyi, employee in the finance department and the President of the Newtown Town Hall Employees Chapter CSEA/SEIU Local 2001 respectfully urged the Board to recommend that the Board of Selectmen reconsider their February 9 decision to reject extending their current collective bargaining agreement with the Town. The Town agreed to a similar contract with the Highway Department and the Parks & Recreation Department in November. (Att. A).
SELECTMEN BUDGET
Lake Zoar Authority: Bob Mouchantat, Underhill Road, Newtown, Vice Chair of the Lake Zoar Authority explained that each of the four member towns share 25% of the budget saying that there was an agreement in the 1970’s to equally share the linear footage. The Authority also receives a $3,000 stipend from First Light Energy. The two biggest area of the budget are safety enforcement and weed control. Mr. Mouchantat explained that Monroe has not confirmed they will fully fund their portion of the budget this year. Each town has liability for the patrols.
(Att. B).
Economic Development: Mr. Gaston noted that the Community Development Officer was originally part of Land Use and asked if, by separating these positions, are we losing any economy of scale, are we duplicating services. First Selectman Borst stated that the comparison to the Danbury part time position is an unfair comparison as Danbury is a much bigger city with a large engineering department; we have one person. Mr. Borst felt Land Use and Economic Development should be separate departments. He noted that there are consultants that work with Ms. Stocker on some grants.
George Benson, Director of Land Use explained that he reorganized the Land Use Department, changing jobs within the department, economizing the department to make it more effective. Mr. Benson feels now that the job roles have been more defined to identify the areas that each position is responsible for, it is better for the Town and believes there is a need for both positions.
Ted Krenick, Vice Chair of the Economic Development Commission spoke in support of the Economic Development position saying that it is critical in retaining businesses and attracting business to town and also in looking at Brownfields and agriculture.
Amy Dent, 10 Country Squire Road, Sandy Hook spoke in support of Economic Development.
Newtown Youth Academy Lease Amendment: David Grogins, Town Attorney, explained that because the Town was unable to provide the parking to the Newtown Youth Academy Mr. D’Amico suggested building the parking lot himself, for $3.5 million, and having the town reimburse him over fifteen years. Originally this was in the budget as a reimbursement but has been changed to debt service. Mr. Grogins stated this is a reimbursement not a debt service, it was not a capital expenditure and was never characterized as such. Mr. Tait reported it is in debt service because when doing financial statements it will be classified under debt service. Mr. Grogins stated it is subject to the budget process each year. Mr. Tait said that there is legality and there is
accounting and there is a non appropriation clause that can be classified as debt service. Mr. Gaston stated that the Board of Finance needs to know what’s going through the Capital Improvement Plan in order to plan for it. Mr. Tait reported that the lease states this is a reimbursement plus any interest over time. He said the cheaper way to do this is to bond the money. Mr. Borst reported that the town is waiting for a definitive number on the total cost of demolition and the building of the parking lots. Mr. Kortze questioned why this wasn’t presented in a plan at the end of the year, even though it was known of in June. Mr. Borst was unable to answer. Selectman Mangiafico stated the towns plan was in two phases, time consuming and costly. The Selectman agreed to move forward with Mr. D’Amico’s plan to build the parking lot, considering it to be an expense. The Selectmen also spoke of bonding and
paying off at a lower interest rate. Mr. Gersten stated that this is a capital asset and should have been in the Capital Improvement budget. Mr. Kearney stated he thinks this not only bypassed the Capital Improvement process but also good purchasing practice. Mr. Kortze pointed out that the intent was to bond the money; therefore it should’ve been in the Capital Improvement Plan that was just approved. Mr. Gaston noted when the town is incurring debt of more than $270,000 for a capital improvement it has to come before the Board of Finance because it effects the planning.
Building: John Poeltl reported that new homes are down but the commercial work is up (Att. C). If the high school goes through there will be two inspectors there almost every day for two years. In addition the building department will re-inspect three hundred swimming pools.
Board of Fire Commissioners: Michael Burton explained that the five fire companies have paid their own insurance for trucks, building, liability and last years total was $59,000. They have asked to substitute that amount of capital to reimburse them for the insurance. Mr. Kortze wants to know if the fire companies have any money and how they make money. Mr. Kearney asked if there were financial statements, wage statements or earnings statement. Mr. Burton said that any money the Board of Fire Commissioners receives from the town goes through the finance department and is audited like other departments. (Att. D).
Unions: Carole Ross, Human Resource Administrator, Town of Newtown stated there are five unions within the Town. Police negotiations are currently in mediation, Dispatchers Union will start negotiations next week, Town Hall will start negotiations tomorrow, Parks & Recreation is closed with a three year contract with a 3.5% raise. The Highway contract has been extended for one year with a 3.5% increase. All but one union has agreed to open to discuss a zero percent increase in salary, provided all unions, including Board of Education, do the same. The one exception is opening negotiations next week. Mr. Portnoy asked Mr. Borst how he can justify an increase of 3% when other towns and unions are giving no increase or instituting pay cuts. Mr. Borst explained
that he asked the department head not to request any more than 3% a couple of months ago and agreed we should be opening contracts to discuss salaries. Mr. Tait reported the savings to the Town, with a zero percent increase, would be $300,000. Mr. Portnoy noted that Mr. Gaston calculated a salary freeze vs. a furlough for the Board of Education would save an additional $570,000. Mr. Tait reported that the budget, as presented now, would generate a 2 ¾% - 3% tax increase. Mr. Borst reported that if the budget fails the first direction he will take is to look at capital. Mr. Borst said he would approach the unions now.
Professional Organizations: Mr. Kearney stated that he would like to see financial statements, wage information, assets; revenues and information on what the organizations do, in order to decide if these organizations need money from the Town. Mr. Kortze asked the First Selectmen if the Board of Selectmen did due diligence in approving these items. Mr. Borst said that although some submitted information, others did not and still received money. Mr. Gaston suggested that a representative for each organization appear at the Board of Selectmen budget deliberations. Mr. Portnoy would like to see audited or unaudited financials.
Public Works Department: Fred Hurley, Director of Public Works reported that $850,000 in the budget will cover one bridge and one dam that are a top priority because they are safety issues. If stimulus money comes in there will be more money to use for other issues. Mr. Hurley reported that salt is treated to be non-corrosive and has increased from $40 a ton to $85 a ton over the last three years.
Management fees at Fairfield Hills: Mr. Tait reported that the town would save $50,000 by managing the new municipal building. Mr. Hurley reported there are increases for electricity and natural gas and a decrease for fuel oil and diesel fuel. The increase was a standard increase from CL&P.
Police: Mr. Portnoy stated there New Milford has a police force of five police officers overseen by a State patrol trooper and asked how our police department compares. Mr. Borst replied that Newtown is more densely populated and there have been so many speeding complaints that the department has enacted a traffic control patrol.
Pension: Ms. Ross explained that the pension for elected officials was originally started when historically elected officials and their staff were only in the office for two to four years. There is a lump sum payout. Mr. Borst said that Mr. Mangiafico would like to meet to discuss a plan of action in regards to the pension plan being underfunded. Mr. Portnoy noted the Board of Finance would join in that discussion.
Mr. Mangiafico said the budget going forward has to be acceptable, with no tax increase. There has to be coordination between the Town and Board of Education unions.
COMMUNICATIONS: none noted.
ADJOURNMENT: The meeting was adjourned at 9:50 p.m.
Susan Marcinek, Clerk
Att. A: Karen Pratt-Szilagyi handout
Att. B: Lake Zoar Authority Budget
Att. C: Building Department Commercial Projects
Att. D: Fire Commission Fire Department insurance allowance
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