THESE MINUTES ARE SUBJECT TO APPROVAL BY BOARD OF SELECTMEN
The Board of Selectmen held a special meeting on Monday, January 24, 2011 at the Newtown
Municipal Center, 3 Primrose Street, Newtown. First Selectman Llodra called the meeting to order at 7:00pm.
PRESENT: First Selectman E. Patricia Llodra, Selectman William F.L. Rodgers, Selectman William F. Furrier.
ALSO PRESENT: Finance Director Robert Tait, Economic Development Commissioner members Margaret Oliger and Don Sharpe, Sustainable Energy Commission members Dan Holmes and Desiree Galassi, C.H. Booth Library Board members Martha Robilotti and Bill McCarthy, two members of the public and two members of the press.
VOTER PARTICIPATION: none.
ACCEPTANCE OF THE MINUTES: none.
COMMUNICATIONS: none.
FINANCE DIRECTOR REPORT: none.
NEW BUSINESS:
Discussion and possible action:
- EDC Presentation: Mr. Sharpe and Margaret Oliger were present to discuss the EDC. Mr. Sharpe went over the Economic Development Commission Situation Report (Att. A) explaining that a focus on economic development in Newtown is important to help maintain and grow the commercial/industrial tax base. The EDC supports the Sandy Hook Streetscape program and recognizes the potential for continued economic growth in terms of new businesses, jobs, community pride and increases in property values. The EDC’s draft recommendations for the Plan of Conservation and Development focus on the Tech Park, Fairfield Hills and filling vacant commercial buildings, in addition to the survey action steps. The EDC would like to move ahead immediately by reallocating $10,000 in the current budget to hire an Economic
Development Coordinator to assist the Director of Economic & Community Development, help support business growth by focusing on their specific needs and providing a dedicated outreach program and to broaden the search for ways to increase revenue. The EDC asked for an additional $20,000 to support this position. Mrs. Oliger stated a part time position would allow the town to bring the knowledge of the Director of Economic & Community Development forward and create a plan where there is none. Selectman Rodgers worries about an increase in funding in this economy; the timing is not ideal. Mrs. Oliger said in order to get the tax revenues in and to keep the businesses we have the town really needs someone paying attention and helping to foster and bring in additional revenue. To ignore the request will save $20,000, the problem is opportunities may be missed. The point is to bring in more tax revenue. First Selectman Llodra said there is a
dual focus in the role of the Director of Economic Development. One person can focus on the grant area while the other can be a bridge between the Town and businesses. Efforts to do both of those things in one office with one person, and one part time support person, is compromising the efforts on both points. Mrs. Oliger stated the position being requested is not a clerical position, it is a professional position. An example of what the part time person would do is to develop a process map and initiate the process with the new businesses. This would allow Mrs. Stocker to focus more on grants. Mr. Sharpe said that now is the best time to bring in new revenue to the Town.
- Selectmen 2011-2012 Budget Deliberations: (Att. C, Proposed Budget)
Mr. Holmes and Ms. Galassi were present to discuss the request of the Sustainable Energy Commisison. Mr. Holmes said a lot could be done with $1,000,000 provided projects are chosen with a payback time of eight to twelve years. It is money well spent. If there is a professional grant writer in town it would help to stretch our dollars more. Ms. Galassi said in addition to feasibility studies money has to be available to address the recommendations that come up. First Selectman Llodra said it is right and appropriate to have a Sustainable Energy line item in the budget that includes operational money. The Commission needs resources for efforts such as the Health Fair. Selectman Rodgers agrees a dedicated line item is needed. He said the better way to insinuate yourself into
the system is by charter and organizational change to rise to the oversight entity similar to the Public Building and Site Commission. Mr. Furrier commented on the photophotaic proposal saying that a payback period of nine years is provided. This neglects to consider that a large portion of photophotaic is paid through state grants, essentially state tax dollars. If you look at the total cost, paid for by tax dollars, the payback period grows to 40-45 years which is longer than the system life.
740 Economic & Community Development
Selectman Rodgers moved to increase the Economic & Development budget by $5,000 for discussion. Selectman Furrier seconded. Selectman Rodgers stated this was a difficult issue. He would be more comfortable supporting a larger dollar amount if specific details were given as to how a person hired to encourage businesses to expand and increase tax revenue would proceed in a tough environment. He is more interested in the existing businesses and what can be done to help them. Mr. Furrier said it is difficult not to support the desire to increase their presence and capacities. The EDC is headed in the right direction trying to meet the changing dynamics. He doesn’t know if this is the right strategy. We should support the efforts but think more about whether this
is the right proposal. First Selectman Llodra said that small businesses seek more attention; we need to reach out and reduce impediments to their success. She said she cannot support any increase in any aspect of the budget unless funds were taken from another place so that the bottom line of the budget is not increased anymore than what the First Selectman is proposing. Selectman Rodgers modified his motion to create an additional part time payroll line, 01740 1004 with an initial funding amount of $5,000. Selectman Furrier seconded. All in favor. Selectman Rodgers moved the bottom line of account 740 Economic & Community Development in the amount of $121,315 which reflects the $5,000 increase. Selectman Furrier seconded. All in favor.
755 Sustainable Energy Commission
Selectman Furrier moved to add a line item #01755 0000, Sustainable Energy Commission, in the amount of $5,000 and moved the bottom line of account 755 Sustainable Energy Commission in the amount of $5,000. Selectman Rodgers seconded. All in favor. Selectman Rodgers suggested members of the Sustainable Energy Commission sit in on department head meetings.
550 Parks & Recreation
Selectman Rodgers moved the bottom line of account 550 Parks & Recreation in the amount of $1,835,296. Selectman Furrier seconded. All in favor
310 Police
Selectman Furrier moved to AMEND by reducing line item 01310 5080 Capital by $15,000. Selectman Rodgers seconded. All in favor.
Selectman Furrier moved to AMEND by increasing line item 01310 2035 Professional Services by $15,000. Selectman Rodgers seconded. All in favor.
Selectman Furrier moved the bottom line of account 310 Police in the amount of $4,134,206. Selectman Rodgers seconded. All in favor. Selectman Rodgers would like to see the mileage on the cars at the time of retirement. He is not embracing the Mobile Vehicle Recording system replacement plan but is in favor of replacing three failing MVR’s.
500 Highway
Selectman Rodgers moved to AMEND by decreasing line item 01500 2018 Street Lights by $3,000. Selectman Furrier seconded. All in favor.
Selectman Rodgers moved the bottom line of account 500 in the amount of $5,039,864. First Selectman Llodra seconded. All in favor.
510 Winter Maintenance
Selectman Rodgers moved the bottom line of account 510 Winter Maintenance in the amount of $700,000. Selectman Furrier seconded. All in favor.
515 Landfill
Selectman Rodgers moved the bottom line of account 515 Landfill in the amount of $1,399,013. Selectman Furrier seconded. All in favor.
650 Public Building Maintenance
Selectman Rodgers moved to AMEND by decreasing line item 01650 2018 Electricity by $17,000. Selectman Furrier seconded. All in favor.
Selectman Rodgers moved the bottom line of account 650 in the amount of $601,344. Selectman Furrier seconded. All in favor
300 Communications
Selectman Rodgers moved the bottom line of account 300 Communications in the amount of $870,616. Selectman Furrier seconded. All in favor. The increase is in capital to replace GPS units that are tower based.
320 Fire
Selectman Rodgers moved the bottom line of account 320 Fire in the amount of $1,179,018. Selectman Furrier seconded. All in favor.
330 Emergency Management/Dive Team
Selectman Rodgers moved the bottom line of account 330 Emergency Management/Dive Team in the amount of $40,130. Selectman Furrier seconded. All in favor.
340 Canine
Selectman Furrier moved the bottom line of account 340 Canine in the amount of $112,034. Selectman Rodgers seconded. All in favor.
460 Building Department
Selectman Rodgers moved the bottom line of account 460 Building Department in the amount of $259,002. Selectman Furrier seconded. All in favor.
670 Library
Ms. Robilotti and Mr. McCarthy were present to discuss the Library budget. A revenue decrease is anticipated and a modest increase is requested for employees; increases have not been given in three years. The library employees have agreed to a less costly insurance plan. The Friends of the Library support is consistent, they have been responsible for about 90% of the library collection. Library use has increased. First Selectman Llodra said the capital fund is insufficient to meet facility demands. Mr. McCarthy said that anticipated capital expenditures have been noted and he believes the library will meet the $250,000 CIP threshold. Selectman Rodgers noted that maintenance of a capital item is not a capital expense, it is an operational expense. He said that almost all of
the quasi agency fundraising efforts do go partly to operational costs. He suggested true capital improvements to the building would be a logical next step if the Friends of the Library were to expand from what they currently give.
Selectman Rodgers abstained from voting as his wife is a member of the Board of Trustees for the Library.
Selectman Furrier moved to AMEND by decreasing line item 01670 000 Library by $3,000. First Selectman Llodra seconded. Motion passed.
Selectman Furrier moved the bottom line of account 670 Library in the amount of $1,030,552. First Selectman Llodra seconded. Motion passed.
160 Probate
Selectman Rodgers abstained as his wife was recently the Judge of Probate for the Town of Newtown. He said that one reason to consolidate the probate system was to save the state money. We need to make sure that doesn’t come at the direct expense of municipalities. Newtown and other courts were money generating courts and he believes the consolidation move was ill advised and will not ultimately save the state money. Being a new system this would be the time to support it. However, it is mind boggling that the contribution for the Town of Newtown would nearly double with consolidation of four courts into one physical location with one judge and staff on salary with the state of CT. Whatever action should be communicated to the court with some awareness and tough direction in
questioning. First Selectman Llodra said that the budget for the Probate Court when located in Newtown was $3550; the share to support the additional courts will be $6,860. Judge Egan inquired of towns he thinks are similarly constituted as our four town region. We should support the request knowing that we are not going to pay any part toward their budget until it is acceptable to the four Selectmen in the region. Selectman Rodgers thinks the comparison to existing courts of the same size is a politically naïve one. Budgets of existing courts of that size reflect years of fighting and increases. This new consolidation is a creation, it is not stepping into an existing court of that size and the consolidation was for cost containing purposes.
Selectman Furrier moved the bottom line of account 160 Probate in the amount of $6,860. First Selectman Llodra seconded. Motion passed.
432 Emergency Medical
Selectman Rodgers moved the bottom line of account 432 Emergency Medical Services in the amount of $270,000. Selectman Furrier seconded. All in favor.
360 Lake Authorities
Selectman Rodgers moved the bottom line of account 360 Lake Authorities in the amount of $56,110. Selectman Furrier seconded. All in favor.
370 Health District
Selectman Furrier moved the bottom line of account 370 Health in the amount of $264,449. Selectman Rodgers seconded. All in favor.
490 Land Use
The increase is contractual services for USGS, monitoring stream gauges for the Pootatuck River. There is possibility of reimbursement if United Water extends the water line from Hawleyville to Greenridge. We are hoping they will become active participants in the USGS stream gauge contract.
Selectman Rodgers moved the bottom line of account 490 Land Use in the amount of $486,461. Selectman Furrier seconded. All in favor.
870 Fairfield Hills
The onsight time of Maria DeMarco has been cut in half. The landscaping contract will be moved to the control of Parks and Recreation and will be rebid. The Engineer House will become a Police substation and will take on the administration of the security contract. Selectman Rodgers said that the changes taking place are reflective of the changing situation and it can change back. Fairfield Hills Authority duties were predicated on a certain development pace and a certain economy. It is appropriate now to maintain Fairfield Hills as a town asset. There may come a time when the Fairfield Hills scope of duties may increase again but for now this is an appropriate, open minded reflection of change. Selectman Furrier is happy to see the reduction and that Fairfield Hills is moving
toward town management.
Selectman Furrier moved the bottom line of account 870 Fairfield Hills in the amount of $326,216. Selectman Rodgers seconded. All in favor.
230 Town Hall Managers
Selectman Furrier moved the bottom line of account 230 Town Hall Managers in the amount of $170,000. Selectman Rodgers seconded. All in favor.
205 Technology Department
The increase is due to laying fiber optic at Trades Lane and the Engineers House.
Selectman Rodgers moved the bottom line of account 205 Technology Department in the amount of $313,182. Selectman Furrier seconded. All in favor.
260 Pension Fund
The increase reflects the economic activity in pension and investment funds and is the recommendations of the pension actuary. The reduction of the rate of return and wage assumption effects next years pension and may help offset an increase next year. Mr. Tait said he expects the investments to perform better next year and that will help to offset an increase.
Selectman Rodgers moved the bottom line of account 260 Pension Fund in the amount of $854,389. Selectman Furrier seconded. All in favor.
270 Employee Benefits
The medical benefits line item represents the contribution to the medical self insurance fund which shows the amount the Town contributes to the plan. Typically the fund balance should be between two and three months of claims but we will get to that in five or seven years.
Selectman Furrier moved the bottom line of account 270 Employee Benefits in the amount of $3,302,500. Selectman Rodgers seconded. All in favor.
350 Insurance
Worker’s Compensation is increased 5% but may go down due to experience.
Selectman Rodgers moved the bottom line of account 350 Insurance in the amount of $974,911. Selectman Furrier seconded. All in favor.
580 Debt Service
The increase reflects the bonding that will be done in February which includes a note coming due on the NHS addition and small projects approved in the CIP. There have been three refunding of bonds; the savings was applied to this debt service schedule.
Selectman Rodgers moved the bottom line of account 580 Debt Service in the amount of $9,684,563. Selectman Furrier seconded. All in favor.
570 Contingency
Selectman Rodgers feels this is tight and would like to think of ways to augment that amount by $99,000., if possible, through the process. First Selectman Llodra said if we find areas of savings through the process the savings could be moved to contingency.
Selectman Rodgers moved the bottom line of account 570 Contingency in the amount of $400,000. Selectman Furrier seconded. All in favor.
860 Reserve Cap & Non-Recurring Exp.
This account is used as a pay as you go for some capital items. Typically ¼ of 1% of the budget is put away into the Capital & Non- Recurring. There are some capital items and the re-evaluation that we need to start budgeting for. Selectman Rodgers prefers to use this account for non-recurring rather than capital enabling. Selectman Furrier likes the account for the re-evaluation but prefers to see capital items in the CIP; he would rather see the budget reduced by a large amount and push those items to the CIP. He understands the pressures of the debt cap but believes the benefit of the debt cap is not only to manage debt but to limit spending. First Selectman Llodra said the account is for capital and non-recurring. This is to save for known expenses; purposely saving
for something you know is coming up. She does understand that the approach could be manipulated in a way that would cause you to spend more on capital purposes than what was intended to spend. The CIP is sent forward with the recommendation that we use capital non-recurring as a way to offset the impact of those expenses. A town meeting will be held to approve the capital item purchases. The rating agencies like pay as you go, it saves money in interest. Selectman Furrier says that with a total budget increase he believes this account is an easy target and believes decreasing this account will lower the budget increase. First Selectman Llodra hopes it doesn’t get to that and likes the financial discipline, holding ourselves to the expectation that we are going to use savings in anticipation of expenses rather than not doing it and getting hit with the bill. Selectman Furrier said that reducing the account to $100,000 could get the
budget to 2.5%. First Selectman Llodra asked what we do when the equipment fails. Everything in the budget contributes to the increase. This account represents good practice and common sense.
Selectman Rodgers moved the bottom line of account 860 Reserve Cap & Non-Recurring Exp. in the amount of $225,000. Selectman Furrier seconded. All in favor.
Mr. Tait reported that with the adjustments the budget is at a 2.70% increase. If you take away debt service the budget is at 2.20%
VOTER COMMENT: none.
ANNOUNCEMENTS: none.
ADJOURNMENT: Having no further business the Board of Selectman adjourned their
special meeting at 10:20 pm.
Respectfully submitted,
______________________________
Susan Marcinek, Clerk
Att. A: Economic Development Commission Situation Report
Att. B: Selectmen Proposed Budget 2011-2012
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