TOWN OF SOUTH WINDSOR
SPECIAL WORK SESSION MINUTES
TOWN COUNCIL MONDAY, MARCH 22, 2010
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:01 p.m.
2. Roll Call
Members Present: Mayor John Pelkey
Deputy Edward Havens
Councillor Gary Bazzano (arrived 7:02 p.m.)
Councillor Janice Favreau
Councillor Tom Delnicki
Councillor Kathryn Hale
Councillor Kevin McCann
Councillor Cary Prague
Councillor Keith Yagaloff (arrived 7:04 p.m.)
Also Present: Matthew Galligan, Town Manager
3. Public Participation
Mr. Don Gonsalves, 40 Bayberry Trail came forward and stated information should have been provided to the Council for the Joint Meeting with the Town Council and Water Pollution Control Authority being held on March 24, 2010.
Mr. Larry Torff, 521 Quarry Brook Drive came before the Town Council and requested that the public hearings for the General Government and Board of Education be swapped because the Town budget is not ready for a public hearing on April 5, 2010.
4. Communications
None
5. Town Manager’s Report
None
6. Items for Discussion
A. Board of Education – Budget Presentation
Mrs. Lisa Maneeley, Chair for the Board of Education came before the Town Council to present the Board of Education budget for fiscal year 2010/2011. The Superintendent came to the Board of Education with a budget totaling $65,193,687. After the Board of Education reviewed the proposed budget, it was reduced $306,280 for a total of $64,887,407. The budget is proposed to have an increase of
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ITEM:
6. A. (continued)
5.69% or $3,494,350 over last year’s budget.
Answering questions from the Council, Dr. Kozaczka explained that the ARRA funding is shown as an expense item because Mrs. McKenty and the Personnel Officer were required to take existing personnel in the budget and transfer their personnel expense to the $1.8 million dollar fund. Doing the accounting this way gives the Board of Education the ability to show that the ARRA funds are being used to support personnel. When the Board of Education receives these funds from the Federal Government, the funds are immediately dispersed to the Town. In 2011/2012 budget there will be a shortfall of $1.8 million dollars in the budget if the Town does not receive ARRA funding.
Dr. Kozaczka then explained that an 80/20 split between personnel costs and program costs is typical throughout Connecticut. The Board of Education becomes concerned when personnel costs begin to inch up in percentage beyond 80% as it has done this year, it has increased to 81% in the budget. Presently health care cost is driving the personnel cost.
Councillor Hale questioned why the healthcare cost is so high this year?
Dr. Kozaczka stated that the Town and the Board of Education have enjoyed modest increases in the healthcare costs. After becoming self insured, costs tend to be driven by the actual medical expenses and prescription expenses that are incurred. Recent history has been increasing medical costs which increase premiums. Mr. Galligan added that there seems to be peaks on claims and the recent claims which are high are what the premium is being based upon.
Councillor Delnicki requested that the Manager find out what the cost for traditional Blue Cross Blue Shield covers is so that the Town Council can compare that number with the self funding cost.
Ms. Donna McKenty, Business Manager stated that there is presently $972,000 in the healthcare reserve fund.
Council members discussed the six positions that would be eliminated from the budget and the five positions that would be added to the budget. Dr. Kozaczka explained that in the past the Board of Education has been able to off set reductions in staff through retirements or through teachers moving to other districts.
Mr. Galligan explained that with an 8% tax increase, a house that is $200,000 would have an increase of taxes of approximately $250 to $300 per year. When the town compares taxes to other communities, the town has to look at communities that supply the same services as South Windsor. Mr. Galligan then stated that in 2011
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ITEM:
6. A. (continued)
and 2012 federal monies may not be available and the Town Council needs to be concerned about that and plan ahead for that.
A. General Government – Budget Presentation
Town Manager Matthew Galligan came before the Town Council to review the overall budget. He explained that the Board of Education budget has a proposed increase of $3,494,350 or 5.69%; the Town Government Operating budget is proposed to have an increase of $804,073 or 3.18%; debt service has a proposed increase of $80,490 or 1.87%; Capital leases has a proposed increase of $27,720; Pension has a proposed increase of $315,258 or 32.73%; GASB 45 has a decrease of $15,000 or -8.67%; and Capital Projects, which includes Board of Education and Town Government projects, is proposed to have no increase over last year. The total budget being proposed to the Town Council, including the Board of Education is $98,747,333, which is an increase of 8.04% and would produce a mill rate of 30.08. Mr. Galligan reviewed with
the Town Council how the general government budget was produced.
Councillor Hale requested that when department come in to present their budgets they come in with spreadsheets including costs for each program, number of people served with program, etc. Public Works had a clear format last year that should be followed.
At 8:00 p.m. Mayor Pelkey recessed the Work Session in order to call the Regular Meeting to order. The Work Session was reconvened at 8:01 p.m.
Answering questions from the Council, Mr. Galligan explained that there is no discretionary payment of principle with debt service. The Town’s debt schedules goes out for 20+ years and are required payments. The Capital Projects Committee will be determining how much will go toward repaving. The Town Council will have to concentrate on the expense side of the budget because there is not really anything the Council can do with the expense side other than using fund balance. The Town Council will have to review programs and make policy decisions. The Town Council will also have to determine is using a private company would be cheaper than having the town do a certain program.
Councillor Delnicki stated that taxpayers can not afford an 8 tax increase.
Councillor Hale stated that if the Council were to raise fees on different services or permits, then the Town would not have to raise taxes.
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ITEM:
6. B. (continued)
Mayor Pelkey thanked Mr. Galligan for his presentation and stated that he appreciated the fact that Mr. Galligan is thinking about the next two years. The Town Council will have to look at different ways to do things and change the policy of how we operate the Town.
7. Executive Session
None
8. Adjournment
At 8:13 p.m. Councillor Delnicki made a motion to adjourn the Work Session. Councillor McCann seconded the motion; and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Clerk of the Council
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