TOWN OF SOUTH WINDSOR
MINUTES
TOWN COUNCIL/BOARD OF EDUCATION JOINT BUDGET WORK SESSION
ROOM ALT. 6 DATE: APRIL 6, 2010
TIMOTHY EDWARDS MIDDLE SCHOOL TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:00 p.m.
2. Roll Call
Town Council
Members Present: Mayor John Pelkey
Deputy Mayor Edward Havens
Councillor Gary Bazzano
Councillor Janice Favreau
Councillor Kathryn Hale
Councillor Kevin McCann
Councillor Cary Prague
Members Absent: Councillor Tom Delnicki
Councillor Keith Yagaloff
Also Present: Town Manager Matthew B. Galligan
Board of Education
Members Present: Chairperson Lisa Maneeley
Vice Chairperson Janice Snyder
Sheila Appleton
Diane Behler
Carol Driscoll
David Joy
Timothy Kenefick
Richard Mabey
Brian Salerno
Also Present: Superintendent of Schools Dr. Robert Kozaczka
Asst. Superintendent Kate Carter
Business Manager Donna McKenty
ITEM:
Mayor Pelkey requested that the video recording being done tonight be sent to the Town in order to be aired on Channel 16.
3. Public Participation
None
4. Items for Discussion
- Board of Education and General Government Proposed Budgets for Fiscal Year 2010/2011
Mayor Pelkey began by stating these are challenging times. Presently there is a budget with a proposed increase of 8% which needs to be worked on cooperatively between the Town Council and Board of Education to bring that increase down. A number of times the Town Council has requested to have a discussion regarding shared services. The following are four suggestions which will save money and increase productivity:
- Merge Finance Departments of the Board of Education and Town together. This item could be jurisdiction of the Board of Education or the Town.
- Merge Maintenance Departments together which could be housed at the Board of Education.
- Merge Athletic Department and Recreation Department together. Recreation Department would oversee fields and Recreation activities and program.
- Merge Health systems together.
Mr. Galligan stated that the next few years are going to be tough economically. If we are going to survive as “One Town One Future” there are steps that will need to be taken. The first suggestion was to merge the Finance Departments of the Town and Board of Education together. The budgets will need to be reviewed. There is no reason why the Finance Department could not combine. There would be a large savings on health. One insurance budget would create a large savings. This could be controlled by a Risk Manager. There would be 821 employees which would be under the health benefits. Alternative health such as HSA would save in the budget $899,000 which is on the worksheet under alternative 1. Alternative 2 would create a savings of $1,092,000 and
alternative 3 would create a savings of $2,700,000.
ITEM:
4. A. (Continued)
A discussion was held with the Director of Finance who would be willing to be the Risk Manager. The staff at the Town could then be moved to the Board of Education. There could be a savings with payroll also. Having one Facility Manger would benefit both the Town and Board of Education and could find savings out there if both entities were combined. If this Town does not do business differently there will be large issues in the future. These ideas would be running the Town like a business and would not hurt anyone. The Town Council and Board of Education should sit down and try to work this out.
Mayor Pelkey stated that if anyone else has any suggestions that could create savings, please come forward with their ideas.
Councillor McCann felt that the four suggestions are appropriate ways to save money.
Answering questions from Councillor McCann, Mr. Galligan explained that all Town employees except Public Works, whose contract is not up yet, are on the HSA benefits. The employees have been happy with the benefits especially the younger employees because what happens is the money in the account stays there if not used and give employees more money than the deductibles.
Councillor McCann felt that combining health insurance coverage to HSA’s would be a solution to a problem that is going to get larger because cost of insurance gets higher each year. Councillor McCann also felt that each year it is going to get harder to acquire funds from the State so finding ways to reduce costs will be a way for the Town and Board of Education to acquire funds.
Councillor Hale stated that she is in support of this idea with HSA benefits. This is a program that uses pre-tax dollars so there will be savings. This idea will be beneficial to all employees.
Mr. Kenefick brought to everyone’s attention that the employees on the Board of Education side do have HSA’s as an option but it is not mandated.
Mr. Galligan explained that through negotiations this health insurance coverage has been instituted. It does not change the employees benefits, it just changes the way it is paid.
ITEM:
4. A. (Continued)
Mr. Kenefick stated that his family is covered under an HSA and it has been a good plan. At this time the Board of Education would not be able to change coverage until contracts are negotiated.
Mr. Galligan responded that negotiating this health coverage did save jobs on the Town side. Mr. Galligan then suggested to the Board of Education to try to open up negotiations to put this coverage in.
Councillor Favreau stated that shared services has been used by various businesses. This approach needs to be looked at closely and discussed between the Board of Education and Town.
Answering questions from Mr. Mabey, Town Manager Galligan explained that the time line for implementing items is approximately three to four weeks. There are shared services that could be implemented. The Board of Education should discuss the idea of HSA benefits with teachers. The Board of Education and Town need to work together and trust each other.
Mr. David Joy stated that the Town Council and Board of Education should recognize that ideas discussed tonight come with consequences. If the bargaining units would be willing to discuss the HSA’s there could be a benefit, but do not think this could be done in one month. Combining Finance Departments could cause a lot of problems. These ideas need a lot more time to be discussed prior to being initiated.
Mayor Pelkey stated that the Town Council has advocated for dialogue between the Town Council and Board of Education regarding shared services. Both entities need to figure out how to get things done to help with the budget.
Ms. Driscoll said that she is in favor of the HSA concept and all four initiatives. The Town needs this type of approach to do business differently in order to find savings.
Ms. Appleton requested that the report from Ovations be distributed to all Board of Education members as well as Town Council members.
Councillor Bazzano stated that if the Town Council and Board of Education worked together these initiatives could be utilized, jobs could be saved and savings could be found.
ITEM:
4. A. (Continued)
Ms. Behler felt this is a step to try to do things better and differently. Should find a way to make these suggestions happen. Other ways of savings should be evaluated to find savings in the next few years.
Mr. Salerno stated that he is encouraged that something new is being reviewed. Something has to be done differently in order to find savings.
Vice Chairperson Snyder stated that all these ideas have been around for a while. Shared Services that presently exist should be reviewed and expanded upon. Our forefathers thought wisely when they separated Education Government and Town Government because they wanted educators to worry about educating children and Towns to govern the Town. The HSA benefits are an interesting way to do business, but there is a lot of bargaining that needs to be done which takes time. Vice Chairperson Snyder stated that she would like direction from the Town Council regarding the present budget.
Mayor Pelkey discussed the ability for the Director of Recreation and the Athletic Director to work together on different issues, mainly the scheduling of fields.
Mr. Galligan stated that having the Board of Education and Town as two different entities has created a division between the Board of Education and the Town instead of having the Board of Education and Town working together, things need to change.
Board of Education members and Town Council members discussed the seven period schedule at the high school and the single tier elementary school busing and how these items would affect the budget.
Councillor Hale felt that there is a lot of work that needs to be done on the Town and Board of Educations budgets. The ideas presented should be reviewed closely. Sub-Committee’s should be established, one for HSA benefits and the other to address the other shared services.
Deputy Mayor Havens stated that the Board of Education and Town’s budgets both need to be decreased and ideas need to be worked in for future budgets.
ITEM:
4. A. (Continued)
Mr. Kenefick explained that eleven more teachers would be necessary to help alleviate the problem of having too many study halls at the high school. Going to a seven periods would help alleviate this problem. The Board has tried to be reactive to certain items in the budget in order to save money. One area of uncertainty in this year’s budget is health care. The Board of Education is paying for items out of this year’s budget for next year. There is no hidden money in the budget. Shared services should be worked on as well as HSA benefits. The Maintenance Department, Finance Department and Athletic Department would not see a tremendous amount of savings. Programs, union concessions, closing an elementary school or larger classrooms are different things that will
happen if the Board of Education budget is cut. The Board of Education and Town need to work together.
Mr. Mabey stated that he thinks that nobody disagrees that an 8% increase to the budget is nothing anyone wants. There are costs in the long run if they were taken out now that will be a lot more costly in the future. The budget presented is a strong budget and brings the Town in the right direction. Communication and commitment between the Board of Education and Town are very important. Shared services should be reviewed.
Mr. Joy felt that the Board of Education needs to understand where the budget is going tonight. The only savings that would be accomplished through the shared services presented tonight would be if positions were eliminated. Combining the HSA benefits with the Town and Board of Education has a cost savings but is something that the bargaining unit would have to decide upon. The Town Council needs to be more transparent to where they would like the Board of Educations budget to be.
Councillor McCann stated that the Town Council could use the HSA proposals for a basis in which to cut the Board of Education budget. This would be a reasonable approach. The Board of Education in the past has discussed closing an elementary school and that would be appropriate for costs savings but there should be more time in order to inform residents. One tier busing would be better implemented when the Town goes from five elementary schools to four elementary schools. The Town Council is also looking at a plan for Safe Routes to School, but it will not make sense to do this plan if there is not going to be any savings on transportation. There are no limits to innovative ideas. This year the Board of Education should focus on savings going to HAS benefits rather than to one tier
busing.
ITEM:
4. A. (Continued)
Ms. Donna McKenty, Business Manager with the Board of Education explained how the three tier busing would work and explained there is only a 9% increase which equal $200,000 which would also compliment seven period schedule and four elementary schools.
Answering questions from the Board of Education, Mr. Galligan explained that an 8% increase on a home of $300,000 would equal to approximately $479.00 per year, or $40.00 per month.
Chairperson Maneeley stated that the Board of Education needs a number in order to figure out where cuts should happen. Ninety-Six percent of the budget increase for this budget is because of health care and wages. HSA benefits could be looked at in next year’s budget. The Town Council should fully fund the Board of Education’s budget. Can not cut any further without hurting the school system.
Dr. Kozaczka pointed out that the plan to eliminate one elementary school and only have four elementary schools in Town instead of five would be for new and renovated facilities.
Mr. Galligan stated that hard negotiations should be used to negotiate the HSA benefits. Policy decisions need to be made by the Town Council and Board of Education.
In closing remarks, Mayor Pelkey stated that the Town Council came here tonight with old ideas and new thoughts. The Town Council will work hard to create a reasonable budget. Sub-Committees will be formed to discuss everything that has been discussed tonight. A lot of individuals could not afford a $479.00 increase per year in taxes.
5. Executive Session
None
ITEM:
6. Adjournment
The meeting adjourned at 9:40 p.m.
Respectfully submitted,
Deborah W. Reid
Clerk of the Council
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