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Minutes of the special meeting of the Legislative Council held on Wednesday, April 25, 2007 in the Senior Center, 14 Riverside Road, Sandy Hook, CT. Chairman Rodgers called the meeting to order at 7:30 p.m.
PRESENT: William Rodgers, Timothy Holian, Daniel Amaral, Joseph Borst, David Brown, Jeffrey Capeci, Joseph DiCandido, Stacie Doyle, Michael Iassogna, Keith Jacobs, Patricia Llodra, Francis Pennarola. ALSO PRESENT: First Selectman H. Rosenthal, Financial Director Benjamin Spragg, Schools Superintendent Dr. Evan Pitkoff, Assistant Schools Superintendent Alice Jackson, Schools Director of Business Ronald Bienkowski, members of the Boards of Finance and Education, approximately ten other members of public, three members of press.
UNFINISHED BUSINESS.
Fiscal year 2006-2007 annual budget.
Mr. Amaral moved to reduce the proposed budget by $1.2 million, 37% from the Town side and 63% from the Education side. Second by Mr. Holian. Mr. Amaral hopes that more people vote. He is concerned for the taxpayers' ability to pay. He said that this proposal would bring the budget down 4/10 of a mill. Mr. Holian said that this would represent under a 5% increase which historically has passed. Mrs. Llodra asked about revenues to which Mr. Rosenthal said that the Appropriations Committee’s recommendation would give Newtown $54,453 more than the governor proposes. He would have suggested a $600,000 reduction or 2/10 of a mill. Mr. DiCandido said that we do not know the argument that the yes or no vote represents. Mr. Jacobs said that if Mr. Amaral is concerned about the voters, why are his gas prices
higher than others? Mr. Rodgers ruled that Mr. Jacobs was out of order and no longer had the floor. Mr. Brown feels that the vote was by an 8-1 margin because the no shows are a majority vote. He thought the original budget was a good one but $1.2 million reduction may be the number we need. Mr. Pennarola feels that is too draconian with only a 75 vote majority. Mrs. Llodra agrees that this is draconian. We have on two ends $600,000 and $1.2 million. Our job is to respond to the voters. We should discuss the Non-Recurring and other accounts. Mr. Borst asked what percentage of receipts the local revenue and property tax equal, to which Mr. Spragg replied 98.7%. Mr. DiCandido feels we should discuss where the money goes and why. Mr. Rodgers noted that we can rationalize but we do not have control over the Board of Ed line items. Mr. Iassogna said that salaries and benefits are the largest Board of Ed increase as well as property and equipment. The rest of the increase is 2.5%.
Mr. Brown asked for Mr. Rosenthal’s proposal. Mr. Rosenthal said he and Mr. Spragg discussed borrowing $342,000 for the computers which would reduce the debt service by $26,000. This would leave $113,000 to get to $600,000, which is 2/10 of a mill or 5% increase which has passed in the past.
Mr. Rodgers asked if the Council has line item rationale towards the $113,000. Mr. Iassogna questioned why the debt service is only $26,000 for $342,000. Mr. Amaral asked who will provide the services for the $1.7 million to overhaul the roads. Mr. Rosenthal said we bid this out and a reduction means that we do less next year. Mr. Pennarola asked if there will be money left of the $85,000 in Other Legal. Mr. Rosenthal said this year the account is underfunded by $60,000, Mr. Pennarola noted there is $15,000 in Legislative Council for attorneys; Mr. Rodgers noted this is a Charter Revision year.
Mrs. Llodra asked if we would bond the computer purchase over twenty years. Mr. Spragg said that this $342,000 would be added to a December bond issue and a six or seven year bond for computers would go into a twenty year issue. Mr. Rosenthal explained the breakdown of the account for roads and bridges. Mrs. Llodra asked if we could look at the Non-Recurring Fund for the $113,000. Mr. Rosenthal said that we may have to draw on this account next year as it is a reval year and we could also have a shortfall in revenues. He cautions against tapping this account. Mr. Kortze said that much of the surplus is going back as revenue and what you do this year affects this year and the next year. The Board of Finance thought that we could strike a balance with this amount of $500,000 and strongly recommends not touching this
account. Mr. Capeci asked if we could find money in Open Space. Mr. Rosenthal said that some purchases are in installments and some of the $2 million is already obligated. Mr. Borst asked if the $500,000 for design and consultant for a pool in the CIP could be moved out. Mr. Rosenthal said this would only save $44,000 in debt service.
Vote on the motion: YES (William Rodgers, Timothy Holian, Daniel Amaral, David Brown, Jeffrey Capeci , Joseph DiCandido) NO ( J. Borst, S. Doyle, M. Iassogna, K. Jacobs, P. Llodra, F. Pennarola). Motion failed by roll call vote 6-6.
Mrs. Llodra moved to reduce the proposed budget by $750,000. Second by Mr. Brown. Mrs. Llodra withdrew her motion and Mr. Brown withdrew his second.
Mr. Rodgers called a five minute recess at 8:50 p.m. The meeting reconvened at 9:05 p.m.
Mrs. Llodra moved to reduce the proposed budget by $750,000, by reducing the Board of Education budget by $542,000, reducing the Board of Selectmen’s budget by $150,000 and adding to the budget $58,000 in additional revenue. Second by Mr. Brown. Mr. Capeci moved a friendly amendment that this Legislative Council will favorably endorse a special appropriation for the computer purchase in the amount discussed. Second by Mr. Borst. Mrs. Llodra agreed that the amendment would be a part of her motion.
Mrs. Llodra said that computer savings would be $342,000, $26,000 would be added to the debt service and there would be a $33,000 reduction in health insurance. This would leave $143,000 not identified as to what line items it would come from. Mr. Rosenthal said that the Legislative Council has the authority to initiate a special appropriation and that a special appropriation is the only way that the Board of Ed will get the computers. Mr. Iassogna will not support a twenty year bond for computers. Mr. Spragg said this loan will be satisfied in a few years. Mr. Amaral said we should not bond the money there. Mr. DiCandido asked if this amendment would be acceptable to the public. Mr. Rodgers feels that the voters can understand this.
Mr. DiCandido moved to amend the main motion by reducing the proposed budget by $800,000, 1/3 from the Town budget and 2/3 from the Education budget. Second by Mr. Brown. YES (William Rodgers, Timothy Holian, Daniel Amaral, David Brown, Jeffrey Capeci , Joseph DiCandido NO (J. Borst, S. Doyle, M. Iassogna, K. Jacobs, P. Llodra, F. Pennarola). Motion failed by roll call vote 6-6.
Mr. Amaral moved amend the main motion and to reduce the proposed budget by $900,000, 63% from the Education budget and 37% from the Town budget. Second by Mr. Holian. YES (William Rodgers, Timothy Holian, Daniel Amaral, Jeffrey Capeci , Joseph DiCandido) NO (J. Borst, D. Brown, S. Doyle, M. Iassogna, K. Jacobs, P. Llodra, F. Pennarola). Motion failed by roll call vote 5-7.
Mr. Capeci moved to amend the main motion and to reduce the proposed budget by $750,000, 2/3 from the Education budget and 1/3 from the Town budget. Second by Mr. DiCandido. Mr. Capeci feels this would give the Board of Ed more flexibility in deciding where to make reductions and we would not bond any money. YES(William Rodgers, Timothy Holian, Daniel Amaral, Jeffrey Capeci , Joseph DiCandido, Michael Iassogna). NO (J. Borst, D. Brown, S. Doyle, K. Jacobs, P. Llodra, F. Pennarola). Motion failed by roll call vote 6-6.
Discussion returned to the main motion.
Mr. Rodgers feels that this level of bonding is small enough to listen to the Legislative Council’s concerns. Mr. Holian feels that the friendly amendment in the main motion gets us involved in the Board of Ed’s line items. Mr. Pennarola feels the cut is too severe. Mr. Holian asked if there is another way to guarantee the availability of the $342,000. Mr. Rosenthal said we could lease computers. Mr. Spragg said we could raise the principal payments in the first 5-6 years to pay off the computer debt or lease. Mr. Rosenthal said that after he just conferred with Mr. Kortze, it is noted that a special appropriation has to go back to the Board of Finance and senses that they do not favor this type of borrowing. But the Legislative Council could appropriate this if the Board of Finance does not. Mr. Kortze
then said that he feels that the Board of Finance would be concerned with bonding computers for twenty years. Mr. Spragg said that the Reed School had twenty year bonding that probably included computers and the High School also. Mr. Rodgers is bothered about the end run around the perception in reducing the budget. Mrs. Lllodra takes exception to the idea that there is any subterfuge intended or communicated. It is a different way of using resources. Mr. Rodgers concurred that there was no subterfuge intended or communicated but his worry about perception remained.
Main motion was voted on at this time:
YES (Timothy Holian, Joseph Borst, David Brown, Jeffrey Capeci , Stacie Doyle, Keith Jacobs, Patricia Llodra, Francis Pennarola.) NO (D. Amaral, J. DiCandido, M. Iassogna, W. Rodgers). Motion passed by roll call vote 8-4.
Mr. Holian moved to increase the Debt Service by $26,000, reduce the line item of Health Insurance by $32,000 and to authorize the Board of Selectmen to reduce line items totaling $143,000. Second by Mrs. Llodra. YES (William Rodgers, Timothy Holian, Daniel Amaral, Joseph Borst, David Brown, Jeffrey Capeci , Joseph DiCandido, Stacie Doyle, Michael Iassogna, Keith Jacobs, Patricia Llodra, Francis Pennarola.) NO (Joseph DiCandido, Michael Iassogna). Motion passed by roll call vote 10-2.
PUBLIC PARTICIPATION. Po Murray, 38 Charter Ridge Drive, wished that more people had voted. She said in the future perhaps the Charter Revision Commission could add advisory questions. She had hoped that the Council would have looked at the Town side as she had suggested. She does not believe in a 1/3 2/3 split.
John Kortze, 52 Cobblers Mill Road, is concerned about the obligation that we have taken on with the friendly amendment. Tomorrow night the Board of Finance is going to take up another small amount. These small amounts add up and make an impact. He suggests a Charter change where the Board of Finance and the Legislative Council can talk about these things before action is taken.
Paul Mangiafico, 15 Kent Road, said it is a mistake to take an operating budget item out and put it into bonding and feels there will be a backlash from the voters.
Elaine McClure, Chairman of the Board of Education, urges the public to vote and urges the Legislative Council to support the budget. We are in a precarious position with our superintendent leaving. She feels that the town will be closely looked at and we need to be united or it may cost us a superintendent.
ANNOUNCEMENTS. Mr. Rosenthal said the referendum will be on Tuesday May 9. Mr. Rodgers urges the Board of Education forces to rally the troops.
ADJOURNMENT. Upon motion of Mr. Borst, the meeting adjourned at 10:15 p.m.
Ann M. Mazur, Clerk
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