MINUTES
SPECIAL JOINT MEETING CITY COUNCIL & WPC AUTHORITY AND THE BOARD OF FINANCE
MAY 8, 2012
A SPECIAL JOINT MEETING of the City Council & WPC Authority and the Board of Finance was held in the City Hall Auditorium on Tuesday, May 8, 2012
Present were Mayor Ryan Bingham, Corporation Counsel Ernestine Yuille-Weaver, City Councilors Gregg Cogswell, Elinor Carbone, Gerald Zordan, Marie Soliani and Drake Waldron, Board of Finance members Mark Bushka, Thomas Scoville, Laurene Pesce, Brian Paganini and Bill Lamoin, Comptroller Alice Proulx, Police Chief Michael Maniago, Deputy Police Chief Christopher Smedick, Deputy Fire Chief Gary Brunoli, City Clerk Joseph Quartiero, Board of Education members David Oliver, Ellen Hoehne, and Ken Traub. City Councilor Paul Samele was absent.
Mayor Bingham called the meeting to order at 5:00 p.m.
PRESENTATION
Mayor Bingham said he is prepared to present his budget recommendation for the potential cuts and tax increase that may need to occur on May 17th. He noted that City Council does not need to vote on final approval tonight, as there is another opportunity in an upcoming meeting.
He said the Department Heads submitted budgets totaling $50,034,669, representing a 3.32% increase over last year's budget. Mayor Bingham said his goal, as always, was to achieve a zero increase in the mill rate.
From the initial budget submittals to now, Mayor Bingham said he was able to reduce the requests by $348,449. Major cost drivers this year are a gas and fuel increase of $120,000, a health insurance increase of $336,982, contractual wage increases negotiated with the unions of $360,187, IT infrastructure projects increase of $90,000, the hydrant rental increase of $45,671 and the tax collector's additions, deletions and legal settlements increase of $100,000. He said that in his opinion, these are fixed costs representing the increase that was proposed. Mayor Bingham noted that most of the budgets in front of us are mandated through contracts, and mandated through State and Federal statutes.
Mayor Bingham said the City has averaged a spending increase of 1.68% over the past six years which is something to be recognized as a strong fiscal policy. The Board of Education, compared to other boards of education, went up an average of 3.5% over the last six years. Mayor Bingham said this totals to a 2.25% average increase of the City and Board of Education combined. He said we've responded to some of the challenges presented to us, by the tough financial times that we're in, and that some compare this recession to the Great Depression. He said he thinks we've stepped up to the challenge, tried to be fiscally prudent, and have not passed on burdensome costs to our taxpayers.
Mayor Bingham showed the mill rates for the past six years. The one change was the revaluation 2009/2010, he said, and there have been modest increases. The last three years we have been doing a great job holding the line on taxes for our residents.
Mayor Bingham's next slide showed the expected increase in State Revenue which can be juxtaposed next to our spending increases over the last six or seven years as we've had those fixed cost increases and under 2% increases in spending. He said we've had negative gains in City Revenue. The Board of Education has seen modest gains and this year is no different with a $478,000 increase.
Mayor Bingham noted that sales tax revenue sharing is expected to take place for the first time, which is a .10% increase in sales tax that goes directly to municipalities. He said that early projections showed that we might see $467,000 from that in August. He said we've set the goal of putting 75% of that money directly into roads and infrastructure, a dire need for the City. The other 25% will be directed to Economic Development as they work on increasing our opportunities to grow the Grand List through marketing, tax incentives and the like. Mayor Bingham said he wants to keep it out of the General Fund because it could be a very wildly moving number where in some years we might see a large increase in sales tax revenue and in down years it might drop. He said that by keeping it aside
and having a placeholder of 75% for roads and infrastructure and 25% for economic development is probably the most prudent way to disperse the money.
In tough financial times we have to find money in other locations, Mayor Bingham said while showing income from grants. He said we've applied for much more and have close to a million in outstanding requests. Some of the grants in process are a $750,000 Main St. Realignment Grant, a 1.4 million dollar Surface and Repavement Preservation for Kennedy Dr., an additional $200,000 for Brownfield Assessment, and the recent $160,000 City Canvasses Grant. Mayor Bingham said that Main St. Marketplace Subcommittee has done well getting some grants and sponsorships to do their wonderful Main St. Marketplace without Torrington taxpayer dollars. In the next few months we hope to announce much more dollars in terms of grants, he said, but we've seen no new information on the grants that we've just recently applied for.
Mayor Bingham said that combining what we know about revenue with what the Board of Education has requested, the mill rate would be approximately 34.05%, or an increase of 1.55 mills. He said that's a little over a 4% increase in taxes to residents.
Mayor Bingham said his recommendation is to make some cuts. He said a cut of approx 3.6 million in order to get a no-mill-increase would not be reasonable. That would equate to massive layoffs for teachers and program cuts that would include reductions in force and layoffs in all City Departments including Public Safety, Street Department, and Parks & Recreation. A significant cut in services would probably cripple a lot of what we expect from municipal government, he said.
Mayor Bingham said the City Council and the Board of Finance have to make those tough decisions, and find a balance between an appropriate level of taxation and appropriate level of service.
Mayor Bingham said his recommendation is a reduction of $600,000 proportionately cut between the Board of Education and the City, which equates to a cut to the Board of Education of $342,000 and a cut to municipal services of $258,000. This would mean a 1.29 mill increase or a 3.8% tax increase. He said these cuts can be done without crippling department budgets and staffing levels, but it won't come without certain sacrifices.
This is an average tax increase, Mayor Bingham said, having looked at other municipalities. He noted that Bristol has seen a 6% tax increase, and Wethersfield has proposed a 4.3% increase. Our colleagues across the State have to increase taxes to maintain a level of service that is expected, he said, and we have to do what is responsible by making some solid cuts and increasing taxes.
Mayor Bingham presented the mill rates for the past few years showing that they have not gone up in a number of years. He said we have done well for our taxpayers by holding the line.
Mayor Bingham asked the Council to pass the budget with the cut built in, forward it to the Board of Finance, and then take six weeks between May 17th and June 30th allow the Mayor to determine where the cuts would come from. He said this has been the process the last few years and thought it worked out very well because it narrows the focus to specific numbers, not just generally trying to make cuts. Mayor Bingham suggested if the Council likes that way of doing it, they can pass the budget with just a general cut.
Councilor Zordan asked what the increase in City spending has been over the last 10 or 15 years. Mayor Bingham listed them, saying 2001 to 2002 had a cut of 1.5%, the next year had a 5.1% increase, then a .6% increase, then a 4.6% increase, then a 6% increase, a 6.7% increase, a 3.1% increase, a 4.1% increase, a 2.8% increase, a.4% reduction, a 2.5% increase, and a 2% reduction. He said this was a 2.6% average over the last ten years. Councilor Zordan asked what the Mayor is proposing now. Ms. Proulx said it is a 2.41% increase, or a 1.89% increase with the additional cut.
Councilor Carbone, said that while she is loathe to do it, she would like to see what $258,000 in cuts would mean to the City before giving a blanket approval to the cuts. She said this cut is a large enough matter for the Council to really have to scrutinize it, knowing that it will probably mean a sacrifice in services. She said she thinks due diligence is required here.
Mayor Bingham said he has provided a draft in the past but it created some controversy. Councilor Carbone agreed that it does become an emotional issue, but when we're looking to pass on a tax increase, that's equally emotional. She said this is a painful exercise but it is the Council's job.
Councilor Soliani asked how the $258,000 cut would be distributed within the City Departments. Mayor Bingham said he wants to be as fair as possible to a point, but there are some departments like pension and benefits that are obligations. He said it would be a mix between a blanket cut to the departments who can make those reductions by percentage and some recommended reductions in staff that he has been preparing.
Councilor Soliani agreed that she would like to see a draft of where these kinds of cuts could come from with the least amount of impact.
Councilor Cogswell asked if the additional cuts would come back to Council for approval after they approve the blanket figure to be cut. Mayor Bingham said he will do whatever Council wants; he's just trying to set a goal to keep the process focused. He said it worked out well the last two times they did this because it gives him some leverage to go back to employees and department heads.
Councilor Carbone asked if the $600,000 in cuts equates to about $25.00 when you have a 100,000 home.
Ms. Proulx said that is correct.
Mayor Bingham agreed that the decision is tough but the mill rate is already high. He said he's trying to reasonably limit the pain. He said $600,000 to our budget seems like a lot more than $25.00 to an individual but on the reverse end, we need to stay competitive with other municipalities.
Councilor Zordan reminded the Council that there are currently 74 properties whose owners cannot pay their taxes, and will likely end up being sold in a tax sale. He said it's important for the Council to remember that and not have an increase to the point where there's going to be more people that can't pay their taxes.
Mr. Lamoin said, in his judgment, the cuts should be even deeper for both the Board of Education and the City. He said the bottom line is not the $25.00; the bottom line is struggling to pay taxes today. He suggested the Council think of senior citizens who have not had a Social Security increase in a couple of years, and are living off of CDs that are paying virtually nothing now. Mayor Bingham said there is a Senior Tax Freeze for income eligible seniors who will not see a tax increase at all. Mr. Lamoin said that threshold is pretty low in comparison.
Mayor Bingham said there are people on every side of the fence. That's why he thought this number is best at finding an appropriate level of cuts and taxation that we can live with. We're not going to be happy making the cuts, he said, and it's not going to be easy, but it's also not going to be easy raising taxes.
Mr. Lamoin said we would be more responsible to plan for the worst and then be prepared to deal with it if it gets better. He pointed out that we're not going to get a lot of money from the State, or the Federal Government. On the Board of Education side, he said, their zero increase wasn't zero because they were using stimulus money as a way to 'have a zero increase'. We need to be careful, he said.
Mayor Bingham said this budget presentation is early, but he thought he'd put all the cards on the table because we have all the necessary information now.
Mr. Scoville said he thinks the original goal of a 3% tax increase is something that needs to be considered. He said 3% or less would bring the increase to under a mill and might be more responsible.
Mayor Bingham said a tax increase of 3% is a .975 mill rate increase. Ms. Proulx said a 2.98% would be at 33.47 mills, a .97% increase. She said you'd have to find $726,849 in cuts. Mrs. Pesce asked if that is in addition to the $600,000 in cuts and Ms. Proulx said yes, it is.
Mayor Bingham said the split would be an additional $414,303 cut to the Board of Education and $312,545 cut to the City. Including the $600,000, the total cut to City would be $570,000 and the Board of Education's cut would be $757,000.
Ms. Proulx said this would create a mill rate of 33.47, a 2.98% tax increase, and a .97 mill increase.
Mrs. Pesce said she agrees that it would be irresponsible to approve a number when we don't know what that number really means. She asked what is not going to get offered to the citizens of Torrington and the students of Torrington.
Mayor Bingham said he is willing to show the Council and Board of Finance what the cuts would look like, but he said he has a strong feeling that City Council won't want to act on it, and make the cuts that need to be made.
Councilor Carbone said they need to see what the cuts look like, and she understands they may not want to act on it, but the fact of the matter is they have to.
Councilor Cogswell said the Council needs to know what the implications are and owes it to the taxpayers to at least look at all options and understand what those options are.
Councilor Soliani said the Council should wait for more feedback from the people to hear where they would like to see the cuts, and how much they want to see. She asked how many cuts can we afford to have the City Taxpayers pay for, and live with.
Mr. Scoville commended the Mayor for bringing this forward in such an organized, transparent way, allowing this discussion to happen and allowing the Board of Finance and City Council to hear from people too. He said it's not usually done this way and this is the most upfront that he has ever seen the budget process. That's important this year, he said.
Mayor Bingham said we've had some major cuts over the years as the majority of his tenure in office has been in a downturn in the economy. He said he is only here to implement the decisions that are made between both Boards. He will create a list of $258,000 in cuts, which will give the Council an idea of what $570,000 might look like. Then they will receive the Board of Education's workup and meet again next Monday, he said.
Mayor Bingham said the Council will be sure to hear from residents, and he will forward them his emails so they will all be on the same page. He asked if this sounds like a reasonable path and Councilor Zordan said yes. Mayor Bingham added that there is enough time to make responsible decisions and not be hasty.
Councilor Carbone clarified that the Mayor will bring back $258,000 in cuts for the Council Meeting on Monday and show them what the cuts look like. He agreed that he will do that, and do his best to not personalize it in any way. He said it is a difficult proposition, but he will.
ADJOURNMENT
On a motion by Councilor Carbone, seconded by Councilor Cogswell, and unanimously approved, the meeting was adjourned at 5:49 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
MINUTES -- PUBLIC HEARING
CITY COUNCIL & WPC AUTHORITY AND THE BOARD OF FINANCE
MAY 8, 2012
A PUBLIC HEARING was held by the City Council & WPC Authority and the Board of Finance in the City Hall Auditorium on Tuesday, May 8, 2012 regarding the proposed Budget (except the School Budget) for the City of
Torrington for the fiscal period of July 1, 2012 to June 30, 2013.
Present were Mayor Ryan Bingham, Corporation Counsel Ernestine Yuille-Weaver, City Councilors Gregg Cogswell, Elinor Carbone, Gerald Zordan, Marie Soliani and Drake Waldron, Board of Finance members Mark Bushka, Thomas Scoville, Laurene Pesce, Brian Paganini and Bill Lamoin, Comptroller Alice Proulx, Police Chief Michael Maniago, Deputy Police Chief Christopher Smedick, Deputy Fire Chief Gary Brunoli, City Clerk Joseph Quartiero, Board of Education members David Oliver, Ellen Hoehne, and Ken Traub. City Councilor Paul Samele was absent.
Mayor Bingham called the public hearing to order at 5:50 p.m.
City Clerk Joseph Quartiero read the legal notice.
Police Chief Michael Maniago requested the Council not cut the police force by 2 ½ positions. He noted that as the economy declines, the demand for police service goes up. He said the unique service they provide is not just law enforcement, but rather a quality of life issue. As demands go up, they only have a finite number of officers working at any given time, he said, and a number of calls require two officers to respond, for safety reasons. This depletes their force rather quickly. A reduction of 2 ½ officer positions has a rippling effect throughout the Police Department. He said it's difficult to ask this when the City is in such dire straits. He said he applauds the Council and Board for what they are trying to do, but is asking them to reconsider reducing police staff. He said we
don't want to see police response times get any higher, and wants to make sure we continue to provide that quality of service that the public expects from them. He said he understands the position they are in but as economy gets worse, unfortunately the police workload goes up.
Mrs. Pesce asked what the Chief means when he says he's down nine officers. Chief Maniago said that, aside from two recent retirements, he has two on administrative leave, four in the police academy, two on long-term worker's comp without knowledge of when they will return, and three on light duty.
Board of Education Chairman Ken Traub echoed the Chief's sentiments and recommended the Council look at the Vehicle Replacement Fund. He pointed out that the City is looking to lay people off which affects incomes, tax, and spending abilities and yet is going to put more money into hardware that perhaps can be kept a little longer. The $588,000 that the City is going to add to the Vehicle Replacement Fund will save an awful lot of positions, he said. He asked the City Council and Board of Finance to look there before cutting more positions.
Mayor Bingham closed the public hearing at 5:57 p.m.
ADJOURNMENT
On a motion by Councilor Carbone, seconded by Councilor Zordan, and unanimously approved, the meeting was adjourned at 5:57p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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