The Board of Finance held a regular meeting on Thursday, July 23, 2009 in the meeting room at Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:35 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Martin Gersten and Harry Waterbury and Joseph Kearney.
ALSO PRESENT: First Selectman Joseph Borst, Finance Director Robert Tait, one member of the public and one member of the press.
VOTER PARTICIPATION: none
COMMUNICATIONS: Mr. Kortze reported that he requested another Board of Finance member attend the teacher negotiations and was rebuffed by Elaine McClure, the Board of Education chair, saying that she could not determine the composition of the group. Attorney Floyd Dugas instructed Ms. McClure it had to be discussed in public and decided upon by the entire Board of Education. To date there has been nothing in the minutes, nothing scheduled and there has been no Board of Education discussion on the composition of the group. One of the concerns is that the one person may not be able to attend all of the meetings. Five of the eight meetings are scheduled for the afternoon. Mr. Portnoy cannot attend five because of this and was not informed of the schedule before inquiring himself. Unless another member is allowed, the Board of Finance will be non-existent through the negotiations. This is a horrific example of working with other boards and commissions. The Board of Education
has not scheduled an executive session to discuss teacher negotiations. There are two people acting on behalf of the entire Board of Education without any input in the single largest contract that the town is undertaking.
ACCEPTANCE OF MINTUES: Upon motion by Mr. Gersten the minutes of the meeting of 6/25/09 and 7/1/09 were unanimously approved.
FIRST SELECTMAN REPORT: First Selectman Borst reported the town received an interest rate of .4380% on a $12,000,000 seven month BAN.
FINANCE DIRECTOR REPORT: Mr. Tait reported that within three months, compared to ten or twelve other towns with BANS of up to a year, Newtown received a lower rate than all but one or two other towns. The town did very well on the rate. The Town is going ahead with additional $11,000,000 refunding the first week of August. There will be up to a 2.6% savings, or $350,000 to $400,000. It is fiscal year end; books will be adjusted until the end of August. A $2.6 million deficit was budgeted; it looks like the deficit will be $500,000. Salaries and travel has been frozen. Taxes will be short approximately $550,000, taxes were collected at 99% however, the deficit is related to reevaluation. Mr. Tait will have a list at the next meeting showing the largest decreases to the grand
list.
NEW BUSINESS:
Discussion and possible action:
Proposed Ordinance on Tax Abatement for Transfer of Certain Rights: George Ferguson, the Vice Chairman of the Newtown Conservation Commission explained that there is a piece of legislation at the states level that they are looking to adopt at the town level allowing the town to purchase the development rights on property for the consideration of abatement on property taxes. A draft piece of legislation has been given to the assessor, tax collector and the finance director for review and comment. The finance director, the Board of Finance, the Board of Selectmen and the Legislative Council would determine if the opportunity is worth abating taxes. The primary purpose is for open space conservation. The same assessment process is used. Mr. Kortze noted that this would
have to meet certain criteria. He would like to see an example. He wants to make sure the town would be in control after buying the development rights. Mr. Gersten said this precludes the owner from building on it; this is a cheap way to restrict development. The Board of Finance and the Legislative Council should be inserted in the graph because this affects revenue. (Att.A).
Transfers (fiscal year 2008-2009): Mr. Gersten moved the transfer from Traffic Guard, 01310-1007, in the amount of $950.00 to Sworn Personnel 01310-1003. Mr. Gaston seconded. Mr. Tait explained this is a year end transfer. The Police contract was just settled for 2008-2009, that 3% was not in that budget. All in favor.
Mr. Kearny moved the transfer from Civilian Personnel, 01310-1004 in the amount of $2,00.00 to
Sworn Personnel, 01310-1003. Mr. Portnoy seconded. All in favor.
Mr. Gersten moved the transfer from Marshall Fees, 01320-1001 in the amount of $967.00 to
Secretarial Fees, 01320-1005. Seconded by Mr. Kearney. All in favor.
Mr. Gersten moved the transfer from Contractual Drainage, 01500-4061 in the amount of $37,500.00 to Equipment Fuel, 01500-2016. Mr. Tait noted the contract has increased by 46%. All in favor.
Mr. Gersten moved the transfer from Payroll, 01500-1003 in the amount of $3,500.00 to Street Electric, 01500-2018. Mr. Waterbury seconded. All in favor.
Mr. Gaston moved the transfer from Winter Contractual, 01510-4060 in the amount of $1,532.00 to Winter Overtime, 01510-1003. Seconded by Mr. Gersten. All in favor.
Mr. Gaston moved the transfer from Part Time Staff Salary, 01550-1008 in the amount of $2,000 to Park Maintainer Overtime, 01550-1003. Mr. Gersten seconded. All in favor.
Transfer (fiscal year 2009-2010): Mr. Gaston moved the transfer from Interest, 01580-2002 in the amount of $134,999.54 to Principal, 01580-2001. Mr. Gersten seconded. Mr. Tait explained this is the principal we pay on bonds and the interest.
Transfer from Contingency, 01570-2000 in the amount of $92,059.80 to Trans. Out – Cap. Project, 01890-0000 was not addressed. This has to go to the Board of Selectman first.
Re-appropriations (fiscal year 2008-2009): Mr. Gersten moved the re-appropriation of Public Works, Building Capital, $55,800; Capital Road, 01500-5-081, $147,900 and Capital Road, 01500-5081, $34,800. Mr. Gaston seconded. Mr. Borst reported the $55,800 is for the sunroom at the Senior Center, the $147,900 is for the drainage job on Hi Barlow/Eden Hill Road and the $34,800 is for work on Towns End Road. All in favor.
Mr. Gaston moved the re-appropriation of Technology, Selectman Other, nonrecurring, $100,521 and $26,000. Mr. Gersten seconded. Mr. Tait explained this was put in the budget because we thought we would be moving into the new municipal building this fiscal year. It is for the necessary hardware and software. All in favor.
UNFINISHED BUSINESS:
Discussion and possible action:
Legislative Council Ad Hoc Maintenance Committee: no report.
Update on Teacher Negotiations: no report.
ANNOUNCEMENTS: none
ADJOURNMENT: Having no further business, the meeting was adjourned at 8:30 p.m.
_____________________________
Susan Marcinek, Clerk
Att. A: Proposed Ordinance on Tax Abatement for Transfer of Certain Rights graph
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