MINUTES
SPECIAL JOINT MEETING
BOARD OF FINANCE AND BOARD OF COUNCILMEN
MAY 27, 2004
A SPECIAL JOINT MEETING of the Board of Finance and the Board of Councilmen was held on Thursday, May 27, 2004, in the Council Chambers.
Those in attendance included Mayor Owen J. Quinn, Jr., members of the Board of Finance Daniel Farley, James Zeller, Joseph Nader, James Nichol, Roger Dickinson, and Bruce Cornish, Councilors Thomas C. Jerram, Paul F. Samele, Jr., Marie P. Soliani, James F. McKenna, Paul W. Summers, and Drake L. Waldron, Corp. Counsel Albert Vasko, Comptroller Alice Proulx, Treasurer Richard J. Friday, Fire Chief John Field, Deputy Fire Chief Jaye Giampaolo, Business Services Administrator for the Board of Education James Gaskins, and members of the Board of Education Robert Kelly and Hans Reichardt.
Mayor Quinn called the meeting to order at 7:10 p.m.
PRESENTATION/DISCUSSION MAYOR’S BUDGET #020
On a motion by Councilor Jerram, seconded by Councilor Waldron, the board voted unanimously to present and discuss the Mayor’s Budget for fiscal year 2004/2005.
Mayor Quinn stated that he had given all department heads the directive to submit a zero based budget, other than contractual. He commended Mr. Cornish for serving as the liaison between the City and the Board of Education and was happy to report that the Board of Education had submitted a responsible budget. In looking at the city as a whole rather than two entities, Mayor Quinn said we have continued to make huge impacts on shared services. The downside of zero based budgeting for a number of years in a row is that the municipality goes backwards and he didn’t believe it should be a long term solution.
He stated that a tremendous amount of effort has been invested in shared services. Combined efforts are on-going within the financial management and vehicle maintenance departments, and other options are being researched. Increased shared services in the future are on the horizon.
The combining of the Board of Education and Municipal Finance Departments is now in the planning stages. Vehicle repairs for both the Board of Education and Municipal departments are being done by the city’s Equipment Maintenance Department. The Board of Education’s Facilities Maintenance Department and the City’s Public Works Department are looking for better ways to maintain parking lots and playing fields. We are looking to have a Facilities Director that will have an aggressive maintenance program for both, the city and the Board of Education.
Health costs continue to plague both the private and public sectors. The City of Torrington continues to encourage training opportunities and aggressive Back To Work Programs for injured employees. These initiatives have contained costs to a certain extent but more work needs to be done in the future. Cost share options and alternative plans have to be reviewed in all contracts. The city needs more cost effective benefit packages for employees and more aggressive negotiations with all collective bargaining units. Recent contract renewals have provided for an additional $25,000.00 in contributions from employees for their portion of medical costs. The city has recently won new language changes in the Fire Department’s contract that will cause the city to derive savings in the future.
The city will continue to press for new language in contracts from all collective bargaining units.
The most aggressive change made in the year 2003/2004 was the restructuring of the solid waste removal process where commercial solid waste was no longer considered part of the municipal budget and accountability was placed with business owners. Great strides are on-going in this area, i.e., charging for bulk pick up. Automated collection will begin October 1, 2004, saving the city $5,000.00 per month. This program will incur costs to the city initially to purchase receptacles.
The following is the CITY COUNCIL’S TENTATIVELY APPROVED BUDGET:
City Budget $ 44,751,652
BOE Budget $ 49,467,657
Estimated Income ($ 33,380,434)
Surplus TBD
Budget Balance $ 60,838,875
Tax Rate Adj. ($ 834,653)
(Varies with mill rate)
Net Budget $ 60,004,222
Net Grand List $1,785,422,764
Tax Rate 33.61
Prior Year Rate * 30.99
Increase 2.62
*Prior Year Mill rate of 38.28 calculated on current revaluation assessments.
THE MAYOR’S RECOMMENDED BUDGET IS AS FOLLOWS:
City Budget $ 44,400,212 $1,996,580 increase or 4.71%
BOE Budget $ 49,467,657 $2,101,917 increase or 4.44%
Estimated Income ($ 34,078,745)** $ 396,784 increase or 1.2%
Surplus ($ 400,000)
Budget Balance $ 59,389,124
Tax Rate Adj. ($ 852,900)
(Varies with mill rate)
Net Budget $ 58,536,224
Net Grand List $ 1,785,422,764
Tax Rate 32.79
Prior Year Rate * 30.99
Increase 1.80
** Includes $400,000 Blue Cross/Blue Shield Surplus
Mayor Quinn said it was important to note that the increases in the city’s budget were primarily due to contractual obligations or state mandates. Included in those are employee wages and pensions, Heart & Hypertension Benefits, and Health Insurance.
The proposed changes Mayor Quinn was recommending after being given Tentative Approval were as follows:
Reduction of $13,900.00 in Assessor’s software
Reduction of $18,600.00 in Boards and Agencies (Funding for Susan B. Anthony and the Library were brought back to last year’s levels. Request for $5,000.00 from the Veteran’s Office, new to this year’s budget, remained intact.)
Increase of $15,000.00 for Southeast School maintenance
Reduction of $87,500.00 in Street Equipment (Plow Truck and Milling Equipment will be paid from Town Aid)
Increase $70,000.00 Health-Refuse to purchase receptacles
Reduction of $25,000.00 in Workers’ Compensation Insurance through further negotiations
Reduction of $611,728.00 in Pension and Benefits - settlement of the Fire Department contract
Increase of $25,000.00 Cost Share Insurance Revenue
Purchase of the Machuga property - Net effect is zero.
Mr. Cornish inquired whether the decrease in the grand list from $1.8 billion to $1.7 billion was a result of the tax appeals.
Ms. Proulx said the decrease included the tax appeals as well as the certificates of correction totaling $1,258,883.00 for the elderly.
Mr. Nader inquired about the additional employees in Public Works and Parks, as well as a new truck.
Mayor Quinn stated that the two employee remained part of the budget, and the truck was moved to Town Aid.
Mr. Dickinson stated that they had been very careful over the past few years to maintain a gross number on expenses in comparison to revenue, and asked if the $87,500.00 reduction in the budget for the plow truck was a net effect.
Ms. Proulx stated that it was not, since town aid revenue was not part of the general fund.
A discussion took place in regard to the Parks employee.
Ms. Proulx stated that there were no provisions in either the Street or the Parks Department for part time employees.
Councilor Jerram said he had an issue with adding employees into the system when there was a loss of employment in the private sector. He felt it was still something that should be discussed further.
Mr. Dickinson requested further explanation in terms of the snow plow truck and man hours needed for each snow storm. He also wanted to know whether the consolidation of the school plowing had been included in this budget, and, if not, could we plan for that to occur?
Mayor Quinn said that was part of ongoing shared services that they are looking at.
Mr. Cornish inquired as to the number of vacant positions included in this budget and the duties of Park & Recreation employees in the winter if there is no overlap between Park & Rec. and Public Works.
Mayor Quinn stated that Park & Recreation falls under Public Works and they are all in the same union, therefore, Park & Recreation employees are used in the Street Department during the winter and other times as needed.
Mr. Cornish pointed out that a Finance Director and two patrol positions had been funded during the current budget but not filled, and asked whether the vacancy savings could be re-programmed.
Although the Police Department occasionally experienced lag time, Mayor Quinn believed the Police Department personnel was where it needed to be.
Ms. Proulx pointed out that vacancy savings are often times used up when a vacancy is left unfilled and the need for overtime arises in order to provide coverage.
Councilor Jerram asked if the proposed budget reflected the retirement of one position in Engineering that wasn’t going to be filled.
Ms. Proulx stated that the savings reflected in the Engineering budget was reduced by the amount of the pension she will receive. The Engineering budget has not been amended for that vacancy, but neither has the pension monies, so it’ll be a wash between the two.
Councilor Jerram inquired how the Comptroller’s department was restructured with the retirement of the Asst. Treasurer.
Ms. Proulx stated that the Chief Clerk in her department was taking on the responsibilities of the former Asst. Treasurer in an attempt to see whether the work can be absorbed within her department. With some cross training, everyone will take on a bit more of the responsibilities.
Councilor McKenna said it was not his understanding that the vacancy in the Engineering Department would end up being a wash when he voted in favor of the matter. He stated that the position was not supposed to be filled, and the net effect over a five year period was supposed to be a reduction of $125,000.00.
Ms. Proulx said she would adjust the budget for that position on the Engineering side and increase the pension side for the cost of the pension.
Councilor Jerram pointed out that a reduction of approximately $647,000.00 had been made since the budget was first proposed in March. He inquired whether that reflected the purchase of the Machuga property.
Ms. Proulx said it did reflect the $273,311.00 cost for the Machuga property. The revenue from the Anthem funds was also reflected into the general fund.
Ms. Proulx explained the reasoning behind the reduction of $611,728 in Pensions and Benefits due to the settlement of the Fire Department’s contract.
Mr. Cornish inquired whether the estimated income included the Board of Education’s ECS contributions and increased revenue estimates collected by the City Clerk on real estate conveyance taxes.
Ms. Proulx said yes.
Having no further comments or questions, Mayor Quinn scheduled a Special Council meeting on Tuesday, June 1 at 7:30 p.m. and a Special Board of Finance meeting for Tuesday, June 8, also at 7:30 p.m.
Mr. Cornish commended Bob Kelly, member of the Board of Education, for his participation in presenting a reasonable budget.
Councilor Jerram commended both the Police and Fire Departments for presenting responsible budgets.
Mayor Quinn invited both boards to attend a groundbreaking ceremony for the renovations and additions to Torringford School scheduled for Friday, June 11th at 9:15 a.m.
He informed the boards that he had recently attended a meeting in regard to the Court House, and stated that occupancy was to take place in January of 2011. Obviously, every attempt will be made to get a much earlier occupancy date.
ADJOURNMENT #3890
On a motion by Councilor Jerram, seconded by Councilor Summers, the board voted unanimously to adjourn at 8:42 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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