MINUTES
SPECIAL JOINT MEETING
CITY COUNCIL & WPC AUTHORITY AND BOARD OF FINANCE
MAY 12, 2014
A SPECIAL JOINT MEETING was held by the City Council & WPC Authority and the Board of Finance in the Auditorium on Monday, May 12, 2014.
Those in attendance included Mayor Elinor Carbone, City Councilors Drake Waldron, Gregg Cogswell, Anne Ruwet, Christopher Anderson, and Paul Cavagnero and members of the Board of Finance Bill Lamoin, Laurene Pesce, Mark Bushka, Tom Scoville, Frank Rubino and Joshua Ferreria. City Councilor Paul Samele was absent. City Treasurer Arthur Mattiello, Chief Michael Maniago, and Chief Gary Brunoli were also present.
Mayor Carbone called the meeting to order at 6:12 p.m.
CITY TREASURER UPDATE
Mr. Mattiello reported that for many years the City’s long-term bond rating was “AA2”, but we were downgraded in June of 2010 to “AA2 Negative Outlook” citing the continued use of the undesignated fund balance for operating expenses. He said in June 2012 we were downgraded again to “AA3” with the negative outlook removed. Mr. Mattiello said that although the industry was recalibrated at that time, they cited our narrowing financial position following consecutive fund balance withdrawals for operating expenses. This rating does have an impact when you go out to borrow funds, he said. Mr. Mattiello added that we have done quite well in reducing our total debt, increasing our fund balance, and moving in the right direction. He said that our current total debt is 30 million
with a fund balance at 4.447% or $5,300,000.
Mr. Mattiello noted that we have two projects that will generate new debt. The WPCA project will cost 51.3 million dollars. After an 11.3 million dollar grant, and a 2% interest rate from the State loan, the City will pay about 1.34 million dollars per year but not until 2019.
The other project will be East School for about 41 million dollars, which will cost the City about 13 million dollars after a grant is received. Mr. Mattiello explained that this is where the interest rate will be impacted by our bond rating by anywhere from .015 to .020. He said there’s not much to be done about it at this point, but we are in relatively good shape for the 20 years of payments at a two or three percent interest rate.
REVIEW CITY BUDGETS FY14/15
Police
On a motion by Councilor Anderson, seconded by Councilor Cavagnero, the Council voted unanimously to accept the Mayor’s recommendation to move $28,500 previously allocated for an additional police officer to the software line item to cover a software purchase that will support the new eTicketing and state mandated motor vehicle accident form, and to tentatively approve the Police budget of $8,316,309. Mr. Lamoin voiced his support of this move.
Health
On a motion by Councilor Anderson, seconded by Councilor Cavagnero, the Council voted unanimously to accept the Mayor’s recommended cuts of $8,379 and tentatively approve a Health budget of $2,890,745.
Public Works
On a motion by Councilor Cogswell, seconded by Councilor Anderson, the Council voted unanimously to tentatively approve the Public Works budget of $139,757.
Boards & Agencies
On a motion by Councilor Ruwet, seconded by Councilor Cogswell, the Council voted unanimously to accept the Mayor’s recommended cuts of $15,193 and tentatively approve the Boards and Agencies budget of $321,952.
City Real Estate
On a motion by Councilor Ruwet, seconded by Councilor Anderson, the Council voted unanimously to accept the Mayor’s recommended cuts of $9,756 and tentatively approve the City Real Estate budget of $145,755. Mayor Carbone explained that Southeast School and its small capital reserve fund of $37,900 will be turned over to the Board of Education on July 1, 2014.
Engineering
On a motion by Councilor Anderson, seconded by Councilor Cogswell, the Council voted unanimously to accept the Mayor’s recommended cuts of $25,542 and tentatively approve the Engineering budget of $546,874. Mayor Carbone said these cuts reflect the delay in hiring an Engineering Trainee.
Parks
On a motion by Councilor Anderson, seconded by Councilor Cogswell, the Council voted unanimously to accept the Mayor’s recommended cuts of $24,000 to the capital reserve, funded at $1,000 per year, and to tentatively approve the Parks budget of $1,096,986.
Recreation
On a motion by Councilor Cogswell, seconded by Councilor Anderson, the Council voted unanimously to accept the Mayor’s recommended cuts of $55,963 and to tentatively approve the Recreation budget of $328,361. Mayor Carbone explained the Parks staff are now dispatched through the Street Dept. leaving no need for two managers in Parks and Recreation. She said no reduction in services is anticipated.
Pension & Benefits
On a motion by Councilor Anderson, seconded by Councilor Cogswell, the Council voted unanimously to accept the Mayor’s recommended addition of $6,459 and to tentatively approve the Pension and Benefits budget of $12,438,160.
Sanitary Sewer & Streetlight
On a motion by Councilor Ruwet, seconded by Councilor Cogswell, the Council voted unanimously to accept the Mayor’s recommended increase of $15,000 and to tentatively approve the Sanitary Sewer & Streetlights budget of $468,348.
FINAL BUDGET APPROVAL BY COUNCIL
Ms. Proulx said these cuts equate to a net budget decrease of $124,997. Mayor Carbone said the bottom-line City-side budget is currently $52,388,123 or a 6.43% increase.
A Point of Order was called from the audience, asking for the public to have an opportunity to speak. Mayor Carbone explained that as a Special Meeting the agenda cannot be altered.
Councilor Ruwet expressed regret at the budget increase while noting that the Mayor has worked hard to keep this budget down.
Councilor Cavagnero objected to the budget process, saying that as Elected Officials, the City Council should have the authority to approve the Board of Education budget. He said it is unacceptable that 60% of the budget does not receive any feedback from the elected body and recommended the City Council approve a motion to initiate Charter changes to allow the City Council to approve the Board of Education budget the way they approve every other budget.
Mayor Carbone reminded Councilor Cavagnero that the Board of Education is really a State agency, an elective board, dictated by State Statute. City Council has no authority over those budgets, statutorily, she said and it isn’t a process that our Charter dictates, or a process that we have adopted here. We would have to go through legislative change, she said.
Councilor Cogswell noted that the only option would be to absolve the powers of the Board of Finance, but he was not suggesting this. Mayor Carbone added that only the Charter Revision Commission, not City Council, could dictate what questions would be advanced onto a ballot.
Mr. Rubino noted that, while not elected, the Board of Finance members also care about where our taxes are going. Mayor Carbone offered to invite the Board of Education to a joint meeting to discuss roles and responsibilities.
Councilor Cavagnero said that City Council is not serving their public with this kind of budget and added that he is interested in bringing a charter or magnet school to Torrington. Mayor Carbone replied that this can be discussed in the future.
Councilor Cogswell disagreed with the notion of rejecting the budget based on dissatisfaction with the budget approval process. He said the budget should be evaluated based on the best interest of our taxpayers and services that need to be provided to our whole city. He said he realizes the pension increase was required, and pointed out that the City has done a good job keeping their increases very small. He said he has no interest in cutting Public Safety any further, and he is not supportive of further reductions at this time.
Mr. Lamoin reminded the Council of his recommendation that they reject the Fire Department’s proposed staffing increase to solve their overtime issue. Mayor Carbone said that if the staffing was increased by three instead of seven, the economic impact would be about $9,100 in savings, and the long-term impact would be about 7 million dollars. Chief Brunoli said he was asked to present a budget with a zero percent increase, and his was a 2.28% reduction that provided better service to the citizens and our firefighters. Mayor Carbone reminded Council that they tentatively approved the seven firefighter increase on April 14th. No one from the Council moved to change that approval.
Mrs. Pesce said the key drivers are personnel and benefits, which are not being reduced. She said when the elected officials do not take on that responsibility, it becomes the responsibility of the appointed officials. Councilor Cogswell said he had not heard that the Board of Finance wants to cut personnel and benefits.
Mayor Carbone noted that there have been significant cuts to staffing over the last eight years and said it would be difficult to find additional personnel to cut. She noted that it is a painful process to look at restructuring a department, risking the loss of a critical piece of a successful model.
Mrs. Pesce clarified that the problem isn’t too many employees but rather the long-term obligations, contract language and benefits afforded to individuals. The benefits are not in keeping with what the general population of the City receives, she said.
Mr. Lamoin said he sees no wasted resources on the City side of the budget. He said he is concerned about increases to the unfunded health care balance. He said he would prefer to see three firefighters added to reduce overtime, instead of seven, and suggested the eastside fire coverage be addressed as a separate issue.
Councilor Ruwet supported infrastructure improvements, saying they will increase the grand list.
She said she will not support this budget because the priorities are skewed.
Councilor Cavagnero said he will not support the budget because he objects to the process, and of being unable to review the whole picture of what we are doing with our money. Bad process leads to bad government, he said, and the results speak for themselves.
Mr. Rubino asked what the total increase is and was told $3,167,023. He said the Board of Finance typically asks both City Council and the Board of Education “do you understand that this increase equates to the possibility of a 1.3% mill rate increase?” Mr. Scoville noted that revenue changes have not been considered.
On a motion by Councilor Waldron seconded by Councilor Cogswell, the Council voted 3/2 to give their final approval of the City Budget for the fiscal year July 1, 2014 through June 30, 2015 in the amount of $52,388,123 and advance it to the Board of Finance for adoption. Councilors Cavagnero and Ruwet voted in opposition.
ADJOURNMENT
On a motion by Councilor Waldron, seconded by Councilor Ruwet, the meeting was unanimously adjourned at 7:28 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
Respectfully Submitted,
Carol L. Anderson CCTC
Asst. City Clerk
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