MINUTES
SPECIAL MEETING
CITY COUNCIL & WPC AUTHORITY
MAY 14, 2007
A SPECIAL MEETING of the City Council & WPC Authority was held on Monday, May 14, 2007 in the Council Chambers to discuss budgets.
Those in attendance included Mayor Ryan J. Bingham, City Councilors James F. McKenna, Thomas C. Jerram, Rick E. Dalla Valle, Andrew J. Slaiby, Marie P. Soliani, and Drake L. Waldron, Corp. Counsel Ernestine Yuille Weaver, and Comptroller Alice Proulx.
Mayor Bingham called the meeting to order at 6:00 p.m.
REVIEW, DISCUSS, VOTE ON BUDGETS #030
Councilor Jerram made a motion to open discussions for the Council’s final approval of the city budgets. Councilor Slaiby seconded the motion. Unanimous.
Mayor Bingham noted that he didn’t have any recommended changes at this time.
ASSESSOR’S #050
Councilor Jerram asked if there was a duplication effort in the Assessor’s Office under Contract Services when an inspection is done after a permit is pulled and another inspection is done for the revaluation. He noted that it probably was best to leave the funds intact since the Assessor was adamant that the funds were required.
Mayor Bingham noted that the bottom line of the city budget was $50,571,578.00, which is a 3.55% increase. After holding long discussions with local area officials, he decided to be as modest as possible by using the figures from the Appropriations Committee, which were the lower of the two likely candidates.
Councilor Jerram asked Mayor Bingham if he had a target mill rate that would be the result of the city and the Board of Education budgets as proposed.
Mayor Bingham said he was proposing a zero mill rate increase. The mill rate would remain at 33.96. The city’s expenditures are close to a 5% increase.
Ms. Proulx said the information the Council had before them included a transfer from the internal service fund (the health insurance fund), and certain one-time projects within the budget being funded by the fund balance, which included the Police Department overtime, and the city hall roof.
Councilor Jerram asked Mayor Bingham if he had given any thought to what would occur if the allocations from Hartford were less than anticipated. It was his belief the city would end up with a significant hit from any shortfall.
Mayor Bingham indicated that the numbers he was using were the most modest being presented. Most communities around Torrington are using the same numbers. More likely than not, we’re going to get over and above what we’re budgeting in terms of revenue from the state.
Being a member of the Municipal Renovations Committee, Councilor Jerram stated that the city hall roof would most likely be included in the scope of a project that would go out to referendum.
Mayor Bingham indicated that the way it’s budgeted, the city hall roof will still get done even if it doesn’t get to the point of referendum.
Councilor McKenna said he was looking at a $5 million increase in expenditures over last year’s budget, and a $3.4 million increase in revenue. With those equations, he asked how a zero mill increase could occur.
Ms. Proulx indicated that there would be a $400,000.00 increase in the transfer in from the Internal Service Fund. Last year it was $800,000.00; this year’s it’s $1.2 million because our claims weren’t as high as what we budgeted for. We also have $621,000.00 for one-time projects from which part of the fund balance will be allocated toward the funding of these projects, and the increase in taxes from the grand list was approximately $600,000.00.
When Councilor Soliani reiterated Councilor Jerram’s question as to what would occur if the city wasn’t allocated the funds we expect as revenue from the state, Ms. Proulx stated that any shortfall would have to come from the fund balance.
Councilor Jerram pointed out that the proposed budget was $110 million, last year was $105 million, and prior to that we were below $100 million. He expressed his concern that our budget will be over $150 million if we continue at this rate.
Mayor Bingham said that was precisely the reason his goal was to get to a zero percent mill increase.
Councilor Dalla Valle added that we’ll pick up more and more on the grand list as years move forward to offset the mill rate even further. There are many construction projects in the works that will increase the grand list. It would be great to reduce the burden on Torrington’s homeowners.
Mayor Bingham said the Building Official’s report over the last year, which will be next year’s grand list growth, has far surpassed previous years.
Councilor Slaiby asked how the $3.4 million increase in revenue was calculated.
Ms. Proulx indicated that the revenues are the Appropriation Committee numbers for the state revenues and the other revenue accounts are a bit more aggressive then they’ve been in the past, based on historical data. In the past, our revenues have far exceeded our estimates, and we’ve always been conservative.
Councilor Soliani asked if they were depleting the city’s fund balance in order to keep the mill rate flat.
Ms. Proulx said we increased our fund balance by $1.6 million last year because of revenues that were not anticipated, so we’re only using a portion of what we gained, and not depleting the fund balance. We’re trying to remain level from year to year rather than having huge gains in the fund balance. When Mayor Bingham and Ms. Proulx reviewed the fund balance, they thought it might be a good time to use a portion of it for one-time projects. It will not be used to fund the typical operating expenses.
Councilor Jerram asked if the city was operating on a surplus, based on the information they were provided on May 14th.
Ms. Proulx said it was. It’s at about $1.5 million again this year and it’s because of revenues that were beyond expectations. In some cases, it’s due to expenses being below than expected. Examples were in the debt interest and in snow plowing. Ms. Proulx noted that department heads worked hard to remain within the parameters that were established for them.
MOTION TO APPROVE CITY BUDGET #450
Councilor Jerram made a motion to approve the city budget as presented in its entirety. Councilor McKenna seconded the motion.
A five minute recess took place at 6:18 p.m.
Councilor Soliani asked the Board of Finance if they were comfortable with this budget in terms of how it was set up and with the numbers they were receiving.
Councilor Jerram thought any question directed to the Board of Finance should be withheld until their joint meeting immediately following this meeting.
Councilor Dalla Valle didn’t think it was unfair to ask the Board of Finance how they felt prior to Councilor Solianis’ decision on how to vote.
Councilor Jerram said their role as Councilmen is to prepare what they believe is the best budget possible in order to deliver the services and at that point they meet with the Board of Finance so they can present any concerns they may have. The Council has spent a lot of time reviewing the numbers over the past ten weeks and had plenty of opportunity to question anything within the budget. They have to be confident with the budget they formulated.
Councilor Soliani said she hoped to get some feedback from the Board of Finance, who are the experts with numbers.
Councilor Slaiby said this is the first time they’ve had the Board of Finance with them to answer any questions the Council may have.
Councilor Dalla Valle commended the department heads for keeping this budget at bare bones. He was certain the service to taxpayers will be as good as usual.
Councilor Jerram commended the Mayor’s Office for doing a fine job as well.
VOTE ON CITY BUDGET#550
The Council voted unanimously to approve the city budget as presented in its entirety.
ADJOURNMENT #555
On a motion by Councilor Jerram, seconded by Councilor Slaiby, the Council voted unanimously to adjourn at 6:23 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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