The Board of Finance held a special meeting on Thursday, March 12, 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 7:10 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Joseph Kearney, Harry Waterbury and Martin Gersten.
ALSO PRESENT: First Selectman Joseph Borst, Selectman Paul Mangiafico, Finance Director Bob Tait, Schools Superintendent Dr. Janet Robinson, Accountant Tim Hart, Assistant Superintendent Linda Gejda, Board of Education members Elaine McClure, Lillian Bittman, Kathryn Fetchick, David Nanavaty, Richard Gaines, Kathleen Chrystie, Anna Wiedemann, various department members, approximately 30 members of the public and two member of the press.
PUBLIC PARTICIPATION:
Heather LeBlanc, Waterbury is a second grade teacher at Middle Gate School feels saddened by what’s been said about teachers and feels we should all be on the same team. The teachers are honoring their contracts. Ms. LeBlanc asks that the contract be honored. She gives back every single day, works with less, work extra hours and pay for things out of pocket without reimbursement for the kids.
George Ferguson, 49 Taunton Hill Road, Newtown has been in the non-profit field for thirty years and said that in a recession the non profit organizations revenues go down as the demand for services go up.
Claudia Mitchell, 8 Budd Drive, Newtown is a teacher at the Middle School and stated that in allowing furlough days to become part of the teacher’s contract, the teachers created a give back.
LeReine Frampton, 6 Pebble Road, Newtown is a bus driver in town and also a department head, being one of the registrars of voters. As a taxpayer she expects services from the town and education from the schools and believes we need to be honest about what is being given. She spoke of the Children’s Adventure Center, only because it was the easiest organization to research. They have a $30,000 one line budget item and Ms. Frampton questioned what else is being given. Included in their budget is a 3% salary increase. The town pays for 75% of their health insurance, their heat, electric and custodial work. Half of the building is the Senior Center. This, and other organizations, are not employed by the town and yet the town is carrying their insurance. We need
to be more transparent and look at what is being given to these organizations before taking away services to the taxpayers.
Wendy Olson, 9 Winter Ridge Road, Sandy Hook stated departments and boards have spent endless hours to get to a reasonable budget number. We want the safety, great schools, library and open space to stay awesome and asked the Board to pass the budget as is tot the voters.
Maria Horvath, 220 South Main Street, Newtown has relatives in Europe where there is a recession and some haven’t been paid in months but continue to work. Families have to move in together in order to pay bills and have food. Education is untouched because they recognize it is the future. Consider what can be done to find new ways to support the budget and not cut teachers.
Kathleen Chrystie, 28 Mountain Manor Road, Newtown is the newest member of the Board of Education and believes there is room for maneuvering in the Board of Education budget. Newtown spends an average of $10,911 per pupil ranking us at 137 out of 160 school districts in CT. Newtown is ranked 15 out of 19 in a DRG comparison. Bethel spends 10% more, Brookfield spends 5% more. Roughly 90% of school age children in town attend public schools. In this economic situation the parents of privately schooled children may choose to enroll them in public schools and Newtown will have to accommodate them. Reed students have almost 70% more classroom time for music education than the average student in our state. Reed also provides 100% of the identified gifted student’s special
services. The Middle School provides four times the amount of music education required by the state. Ms. Chrystie agreed that estimated projected enrollments for kindergarten and first grade are hard to pinpoint and noted that there is a possibility that all the teacher position may not be needed. Cutting positions will adversely affect the quality of Newtown schools.
Lillian Bittman, 17 Rose Lane, Newtown is a member of the Board of Education stated that the Board of Education is asking for quality of life issues. As we look at cuts we have to think about what kind of a community we are creating.
Bob Merola, 22 Ashford Lane, Newtown thanked the Board of Finance and asked them to scrutinize, probe and inspect both the town side and the Board of Education. He understands, respects and appreciates the amount of time and effort the Board of Finance expends in performing their responsibility.
Mr. Gaston asked Dr. Robinson to address the drop out level of special education students. Dr. Robinson reported that in 2004-2005 there were 19 dropouts. The Board of Education formed two alternative education programs that accommodate special education students. The first year yielded four drop out students, since that time the special education drop out rate has been zero.
First Selectman Borst compared the statistics of New Milford and Newtown and their police departments. (Att. A).
Mr. Portnoy asked about the quasi agencies in town and the aid they receive from town. First Selectman Borst stated that there will be an application process relative to the organizations, financing, salaries and required information to help in the budget process. Carole Ross, Human Resource Administrator stated that the town started carrying insurance as an in kind service to organizations that benefited Newtown and were unable to obtain insurance at the levels the town could as a group. They are on board with the life insurance, long term disability, pension and medical. There were not enough people to make up a group big enough for the quasi agencies to acquire insurance on their own.
Ms. Ross also reported that there was a meeting held with combined union representatives. The unions were given the option of an extension of their one year contract with a zero salary increase or they would face layoffs. An answer was requested by 4:30 of the same day. The Town Hall union and Parks and Recreation union agreed to a salary freeze; Highway will go with layoffs; Police, Dispatchers and Clerical did not respond so it is assumed they will go with layoffs also.
Dr. Robinson reported it would be difficult to negotiate a salary freeze without restitution. The current contract does not require restitution.
Mr. Gaston spoke to a public comment made during the last meeting saying it’s very difficult to get people to volunteer for boards and commissions. Mr. Gaston read a letter to the editor of the Bee (Att. B) and said it is not a question of bullying; it’s a question of solidarity.
Martin Gersten complimented Dr. Robinson stating she is an enormous asset to the town and whatever she is given to work with she will make it work. His view of the budgetary process, in a macro sense, is one that should start with whatever was spent last year before transfers or the lower number should be the baseline budget. In both the school and town budget, year after year, more is budgeted than spent, creating a surplus. This is dangerous because it increases the tax exposure in the town and it creates a surplus fund that is allocable at will. Look to have a zero increase in taxes, with a tolerance of 1%. Mr. Gersten believes the budgetary process is flawed in that there is sufficient surplus on both sides of the budget.
Joseph Kearney noted it is obvious that both the Board of Education and the Board of Selectmen took their job seriously. There are a lot of unknowns involved in this budget, the pension, health insurance and unemployment. The Board of Education budgeted for every person losing their job to be unemployed for the entire time. People have to do more with less. He believes it is prudent to know who we’re giving money to. In the private sector people don’t have the opportunity to vote. He feels he is representing the tax payers and this is going to be a tough year. Mr. Kearney stated he takes his job very seriously and the Board of Finance has worked very hard with this process.
James Gaston agrees the Dr. Robinson and the Board of Education did a great job with the budget. There are three towns that come in less than Newtown’s 1.74% budget, however there are many that come in higher and one as high as more than 4%. Newtown is at or below what other towns are proposing. These are very difficult times. To pass this budget there must be a demonstration of solidarity with everyone being involved. He believes an increase of 1% in taxes will pass. Mr. Gaston is hesitant to take from the Board of Education to make up for the lost revenue on the town side. He thinks numbers can be adjusted on both sides of the budget, look at some of the revenues and the reserve and bring the budget to a zero or 1% increase.
Harry Waterbury is retired and noted he knows of many people who have lost their jobs after working for companies for several years. Everybody who has approached Mr. Waterbury is looking for a zero percent increase in the budget. The Board of Selectman came in with a budget $1,433,331 below last year, the Board of Education came in with a budget $1,150,551 higher than last year, with a net decrease of $282,000. The revenue is down $2,405,820 creating a difference of $2,123,000, which means taxes will have to be raised 2.7%-3%, that will not pass. Mr. Waterbury complimented Bob Tait on his detail. It is the Board of Finance’s job to scrutinize the spending and revenue of the town.
Michael Portnoy complimented the Board of Finance. We are one town that needs to remain unified. The objective is to pass the budget the first time. The town has to make up for the horrific stock market in the pension, creating more of a deficit.
John Kortze thanked Bob Tait and commended the Board of Selectmen for the budget. He recognized the outreach and communication from Dr. Robinson and the Board of Education has been refreshing. Mr. Kortze thanked the PTA for inviting him to speak at a meeting. The PTA have focused on informing the tax payers what they are getting for their money and not shaming them into voting one way or the other. He sees first hand what the teachers do having two daughters in the school system and understands what extra is done that doesn’t show up in their paychecks. The town is battling with the lack of revenue from the state. The two options are to pass it on to the taxpayers or to reduce spending. The shortfall of revenue was not produced by the town. Mr. Kortze noted
that there is an issue with overhead. He sent a letter in January that spoke of the issue of fixed costs. The Board did not vote on a 95% budget because they wanted to go through the budget process. He read from minutes of 2007 & 2008 in regards to concern about overhead. The option of a salary freeze was to help the budget and to keep staff. When considering the budget, think of all the people who have lost their jobs, the people who have not turned out to voice their opinions and a defeated referendum can only be viewed as too high. A protest vote of no will be interpreted as the budget needs to go lower, not higher.
Mr. Kortze asked Ed Marks of the Parks and Recreation Commission if $50,000 could be drawn out of Contingency to be used for another Parks & Recreation capital item.
Mr. Cragin of the Board of Fire Commissioners explained the Hawley tanker is 21 years old and rusting. The refurbishment takes ten months, if it is put off one budget year it has to last two more years. Mr. Tait stated a special appropriation can be done towards the end of the year.
FOLLOWING ARE THE MTIONS FROM THE MEETING.
Town Proposed Budget for FY 2009-2010:
Mr. Portnoy moved to add $250,000 to the Pension fund. Mr. Waterbury seconded. Mr. Tait explained the pension calculation is figured on a five year blending average. It is prudent to add something. Mr. Mangiafico would recommend this not be done. The Board of Selectmen or the trustees will have this issue more defined in the immediate future. Mr. Portnoy is concerned with the pension fund assets and believes the $250,000 is a start. He suggests the Board of Selectmen look at the asset allocation, saying 62% of the fund is receiving very low interest rates. Mr. Kearney questioned why the pension committee didn’t ask for money. Mr. Kortze amended the motion to take action pending the Selectmen meeting and if the Council has more information to act on,
they can remove it. All in favor.
Mr. Portnoy moved to reduce the Lake Zoar Authority $13,750 for a bottom line of $24,425. Seconded by Mr. Waterbury. All in favor.
Mr. Portnoy moved to reduce NW Safety $656. Mr. Waterbury seconded. All in favor.
Mr. Portnoy moved to reduce Public Building Maintenance $16,155 with the proportionate subtractions of Contractual Services of $104,410 in addition of fuel, oil, electricity and water to net out a reduction of $16,155. Mr. Waterbury seconded. All in favor.
Mr. Portnoy moved to reduce the Fire line item Capital $100,000 to $86,836. Mr. Waterbury seconded. All in favor.
Mr. Portnoy moved to reduce Highway Payroll $66,390. Mr. Waterbury seconded. All in favor. This is consistent to what Carole Ross presented
Mr. Portnoy moved to reduce Fairfield Hills Campus $56,220. Seconded by Mr. Waterbury. All in favor.
Mr. Portnoy moved to reduce Contingency $11,044. Mr. Waterbury seconded. All in favor. This is consistent to what Carole Ross presented.
Mr. Portnoy moved to reduce Sworn Personnel $80.786. Mr. Waterbury seconded. All in favor. This is consistent to what Carole Ross presented.
Mr. Portnoy moved to increase Assistant Building Official $50,000. Seconded by Mr. Waterbury. All in favor.
The Town Hall union contact requires two part time members be laid off prior to a full time position being laid off.
Mr. Portnoy moved to reduce Contingency $26,606 and $16,363. Mr. Waterbury seconded. All in favor.
Mr. Gaston moved to reduce Contingency and additional $57,000 to reflect savings. Seconded by Mr. Waterbury. All in favor.
Mr. Gaston moved to reduce Police budget in respect to Police cars by $95,000. Mr. Portnoy seconded. Mr. Gaston believes that everybody is cutting back and we should get an additional year or two out of the cars. Motion passed YES 5, NO 1 (Kortze).
Mr. Gaston moved to reduce Police Overtime $25,000. Mr. Portnoy seconded. Motion passed YES 5, NO 1 (Kortze).
Mr. Kearney moved to reduce CCM $15,103, NLC $1,861 and COST $1,225. Mr. Portnoy seconded. Mr. Kearney acknowledged that HVCEO is a valuable source of information but CCM provides information that can be obtained through other sources. It's time to consider dropping the dues. NLC is a National organization that doesn't have current information on the web site. Mr. Kearny suggests keeping HVCEO and dropping the others. Mr. Gaston explained that CCM is a very strong and effective lobbying group on behalf of the municipalities; NLC is national and lobbies for municipalities on the national level, it is not a frivolous expense. Someone from CCM should present at the budget next year. Motion failed NO 5, YES 1 (Kearney).
Mr. Gaston moved to reduce Winter Maintenance (Salt) $50,000 to $240,000. Mr. Portnoy seconded. All in favor.
Mr. Waterbury to reduce Parks & Recreation Capital (01550-5080) $50,000. Mr. Gaston seconded. All in favor.
Mr. Gaston moved to appropriate $100,000 from debt service that has not been spent (01580-2001). Mr. Portnoy seconded. Mr. Tait explained the debt service has a balance from open space grants that is required to be put into a debt service fund to offset debt service. All in favor.
Mr. Gaston moved to appropriate $2,000,000 from the fund balance as revenue. Mr. Waterbury seconded. All in favor.
Mr. Gaston moved to put $200,000 LoCIP funds into the general fund. Mr. Portnoy seconded. All in favor.
Mr. Gersten moved to reduce 01190-1002 Assessors Data Entry Clerk $10,000. Mr. Gaston seconded. Mr. Tait explained the part time position in the assessors office has been made full time. The new assessor has experience in doing reevaluations and will save money on partial evaluations. Motion failed NO 4 (Waterbury, Kortze, Portnoy, Gaston), YES (Gersten, Kearney).
Mr. Gersten moved to reduce 01190-4061 Assessor Field Service Account to $5,000. Mr. Portnoy seconded. Mr. Tait explained the assessor wants to be more aggressive with personal property. Motion failed 5 NO (Kearney, Gaston, Kortze, Waterbury, Portnoy), 1 YES (Gersten).
Mr. Gersten moved to reduce Selectmen budget an additional $340,000 which would raise the total reduction to almost $1,000,000. Mr. Portnoy seconded. Mr. Gersten noted most of the adjustments have been made on the income side, not the expense side. In prior years there has been $1,000,000 - $2,000,000 surplus built into the budget. Motion failed 3 NO (Kortze, Kearney, Waterbury), 2 YES (Gersten, Gaston, Portnoy).
Mr. Portnoy moved to reduce the Selectmen budget by $200,000. Mr. Gersten seconded. Mr. Gaston moved to amend the motion to reduce the Selectmen budget by $300,000. Mr. Gersten seconded. Motion failed 3 YES (Gersten, Gaston, Portnoy), 3 NO (Kearney, Kortze, Waterbury).
Mr. Portnoy moved to reduce the Selectmen budget by $200,000. Seconded by Mr. Gersten. Motion passed 4 YES (Portnoy, Waterbury, Gaston, Gersten), 4 NO (Kearny, Kortze).
Mr. Gersten moved to reduce the Board of Education budget by $1,000,000. Mr. Waterbury seconded. Mr. Gersten believes that the Board of Education will be able to work with this reduction. Mr. Gaston thinks by taking the zero freeze, furlough, travel and revenue into account an acceptable reduction to the Board of Education would be $578,000 but is worried about the budget passing with more than a 1% increase. Mr. Portnoy supports the motion saying figuring to reduce special education, unemployment, salary, six positions and supplies. Motion passed unanimously.
Mr. Gersten moved to empower the Finance Director to make any clerical adjustments. All in favor.
Mr. Gaston moved the total at $103,516,694. Mr. Gersten seconded. All in favor.
ADJOURNMENT: The meeting was adjourned at 10:24 p.m.
Susan Marcinek, Clerk
Attachment A: Police statistics
Attachment B: Letter to the editor
Attachment C: Board of Education handouts
| 
