MINUTES
SPECIAL JOINT MEETING OF THE
BOARD OF FINANCE AND THE
BOARD OF COUNCILMEN
MAY 19, 2003
A SPECIAL JOINT MEETING of the Board of Finance and the Board of Councilmen was held on Monday, May 19, 2003 in the Council Chambers.
Attending was: Mayor Owen J. Quinn, Jr., Board of Finance members Theodore Miasek, Michael Nejaime, Diane Libby, Roger Dickinson, and Bruce Cornish, Councilmen Thomas C. Jerram, Paul F. Samele, Jr., Marie P. Soliani, David M. Bascetta, Richard E. Dalla Valle, and James D. Reginatto, Corp. Counsel Albert Vasko, Comptroller Alice Proulx, and Public Works Director Gerald Rollett.
Mayor Quinn called the meeting to order at 7:22 p.m., immediately following a regular meeting of the City Council scheduled for 6:30 p.m.
PRESENTATION OF BUDGET #1400
On a motion by Councilor Dalla Valle, seconded by Councilor Samele, the board voted unanimously to present the Mayor’s budget.
Mayor Quinn made a presentation of the city’s budget. He stated that early this year he spoke to department heads about zero growth and cost containment, and encouraged them to be pro-active and innovative in finding ways to obtain additional revenue.
He noted that tipping fees for solid wastes were continuing to increase. Utilities were up by 23.4%, liability and property insurance up by 21%, health insurance up by 14.8% and other services were up as much as 3.1%. The budget continues to rise at approximately 5% each year. Additionally, it is taking a major hit from a cut in state funding, and the trend will most likely continue in the near future. We need to be less reliant on state funding that may or may not be forthcoming in the future. We must, as a city, become more self reliant. We need to find alternatives rather than to pass the continued increases to the taxpayers. All available options will be researched. Tough decisions must be made now to secure a fiscally sound budget.
To reduce costs, staffing, shared services, inventory and maintenance of equipment must be reviewed. Linking the city’s finance department with the Board of Education’s management system will save on software, support fees, and personnel. Cross training will take effect so that employees can assist each other. Benefit plans are being reviewed in search of alternatives. Employee concessions are necessary. Ongoing discussions on the cost share of health insurance and alternative benefit plans have been put forward to each of the collective bargaining units. Early retirement and layoffs have been explored to see what affect it would have on services to the City of Torrington. The cost of removing waste needs to be researched further.
Mayor Quinn explained that CRRA tipping fees increased from $57.00 a ton to $63.75 a ton, and that it would have been far greater had the legislation not stepped in. The majority of the towns surveyed by the DEP do not currently pay tipping fees, 90% do not pay for commercial municipal solid waste and 25% do not pay for residential solid waste. Winsted, New Hartford and Barkhamsted are now charging for solid waste deposits of 50% of tipping fees. In addition to the increase in tipping fees, Torrington is faced with an increase of $140,999.00 in the municipal solid waste budget this year. If we continue with the current waste management policy, the cost to the city will be nearly $3.7 million. Because the city currently pays 100% of all commercial disposal costs, there is no incentive for
businesses to recycle. The commercial recycling rate is 12% as compared to the residential rate of 22%. Unless we change the waste removal system, the costs will continue to increase and may reach $5.2 million by 2010. By shifting the cost of tipping fees for commercial waste from the city to the haulers, the city will realize some $1.4 million savings in a twelve-month period.
Mayor Quinn further explained that the city currently generates $2,950.00 in income by charging a vehicle/roll off a registration fee of $10.00 and $2.00 for containers. He proposed increasing the registration fees to $250.00, which is reasonable and in line with other towns. The fees charged on containers would be dropped since they are difficult to regulate, and it is an administrative nightmare. As a result, the city will generate $20,750.00 in income.
Mayor Quinn reviewed the new revenue in the amount of $150,000.00. $50,000.00 from Engineering fees, $100,000.00 in additional taxes that have been saved. Cost Savings: $1.3 million from the solid waste budget. This additional revenue will decrease the city side of the budget from $43.9 million to $42.1 million. This represents a decrease of $3,241.00 from last year’s budget. Department heads surpassed the Mayor’s directive of a zero increase plus contractual even though there was a contractual increase of $680,738.00. This was achieved through cost containment, responsible budgeting, additional revenues and an amended solid waste policy.
The City Council tentatively approved a city budget of $43.9 million. Mayor Quinn’s recommended budget was $42.57 million. As a result, the increase in the mill rate falls from the City Council’s scenario of 3.61 to the Mayor’s recommended scenario of 2.62. It does not take into consideration further reductions from the Board of Education budget which the Board of Finance may recommend. The Board of Education’s proposed budget has an increase of 6.44% as it stands, which is 3.2% outside of contractual.
Mayor Quinn recommended biannual budgets for the next budget session so they can look at and chart where the budgets are going, continue to research solid waste management policies, appoint a Blue Ribbon Committee of business leaders to outline a strategic plan for assessing the overall management and recommend improvements to the city government in how we do business. We need to plan and anticipate future costs to avoid budget crises.
A Solid Waste Committee will investigate the needs of the community for solid waste services, tire management, drop site recycling facilities, automated residential collection, commercial/industrial tipping fees, contract development for residential curbside collection, and recycling education.
Councilor Jerram expressed his concern in using an untested revenue source by shifting tipping and container fees to haulers. He inquired why this suggestion to create revenue wasn’t brought forward during the normal budget process if it was available.
Mayor Quinn indicated that he was given the task of cutting either expenses or raising revenues. It was his belief that shifting the tipping and container fees to the haulers was more equitable than having the individual taxpayers pay 100% of the commercial rate.
Councilor Jerram inquired whether Mayor Quinn was suggesting that the additional 3,000 tons of solid waste had found its way to Torrington from outer city limits.
Mayor Quinn stated that it was a distinct possibility. Torrington had experienced a dramatic increase since other towns had increased their commercial fees.
Councilor Jerram inquired whether the numbers were based on increased tonnage or merely a more appropriate amount based on prior years.
Mr. Rollett explained that his department tracked two separate waste streams. Because they contract with a waste hauler to pick up curb side residential waste, they have very good numbers of exactly what is picked up from the residential waste stream. The commercial waste stream is picked up by twenty different haulers who dispose their waste at the transfer station and the city is billed by CRRA. The city is able to track those two separate numbers very carefully. Historically, the tonnage for the commercial/industrial waste increases at a very low, stable rate of one or 2% a year. There was a 3,000 ton increase this year.
In answer to Councilor Jerram’s concern over testing a new income source, Mr. Rollett didn’t feel it needed to be tested because we have a group of generators on the commercial end and it wouldn’t matter if we were off by 1,000 tons if we went to a zero funding by the City of Torrington. Everyone saves if more recycling is done and the tonnage is reduced.
Mr. Rollett did state, however, that the registration of vehicles was untested and the proposed income could be less than anticipated.
The proposed waste disposal policy was discussed at length.
Mrs. Libby indicated that residential waste disposal should be researched as well.
Councilor Jerram inquired whether the Mayor, the Council, and the Board of Finance could do more creative thinking to come up with a mill rate of 37.
Mayor Quinn indicated that any number was doable, but there was a price to pay in services that would be directly affected. He had exhausted all of his innovative thought processes including layoffs and other more drastic means, and what he ended up with was a budget that was as lean as possible.
Councilor Jerram inquired whether any of the funds in the un-designated fund balance could be used to offset the mill rate.
Mrs. Libby pointed out that at least $2 million of the $4.5 million in the un-designated fund balance should be disregarded because the city will have to correct the unfunded liability of teacher’s salaries at some point in the future.
Councilor Jerram inquired whether the Board of Finance had any concerns over the perpetual funding of the vehicle replacement account. Was it time to get a better handle on the account as a means to reduce the budget?
Mrs. Libby indicated that the original vehicle replacement account was based on historical data. Certainly, it was her belief that the account should be looked at on an annual basis to make certain there are thought processes behind the funding.
Mayor Quinn indicated that the city had remained true to the vehicle replacement account since its inception five years ago. The city was in the process of obtaining an actuarial to evaluate the numbers. What was needed five years ago isn’t necessarily what is needed today.
Mrs. Libby pointed out that a Finance Director could do the type of work being requested from an actuarial. This is a good example of a savings the City of Torrington would incur by having a Finance Director on staff.
It was pointed out that the Anthem funds were in a separate interest-bearing account. Mayor Quinn’s personal recommendation was to invest the Anthem funds in the pension fund, but he hadn’t yet analyzed it or discussed it with either board.
PARKING AUTHORITY AND COE GODFREY FUND #1020
On a motion by Councilor Dalla Valle, seconded by Councilor Jerram, the Council voted unanimously to accept the Parking Authority budget and the Coe Godfrey Fund.
FINAL APPROVAL OF CITY BUDGET #1080
On a motion by Councilor Dalla Valle, seconded by Councilor Jerram, a discussion took place in regard to the final approval of the city’s budget by the City Council.
Councilor Dalla Valle was not in favor of the proposed cuts to the public safety budgets.
Ms. Proulx stated that an overall cut of $16,000.00 in the Police Department was recommended and Chief Janelle was given the flexibility to determine where to make the cuts.
Councilor Dalla Valle said his initial request was for a zero increase budget across the board, “including” contractual. He pointed out that the public safety, as a whole, had come in with a zero increase including contractual. He inquired why these two budgets were targeted for further cuts when other departments had not even met the Mayor’s directive of zero, “plus” contractual.
Mayor Quinn indicated that the Fire Department’s budget did not include their salary increases.
Ms. Proulx stated that the Fire Department had an operational increase of $12,439.00 plus contractual and that $3,500.00 was added because the computer software was not part of their budget last year, so they were looking at a reduction of $8,939.00.
Councilor Reginatto said he wasn’t comfortable voting on this budget without further review.
Councilor Jerram pointed out that Mayor Quinn had volunteered to come back to the City Council with a zero increase. He inquired whether those changes were incorporated in the budget they had before them.
Mayor Quinn said “Yes.”
Ms. Proulx indicated that department heads would be given the flexibility of choosing their own cuts in order to get to zero.
Councilor Dalla Valle pointed out that, even with the Mayor’s directive of zero increase plus contractual, the mill rate would still be increased by 2.62.
Mayor Quinn reminded the boards that the 2.62 mill increase wasn’t taking into consideration any adjustments that may be made to the Board of Education budget that currently had a 6.44% increase.
MOTION TO APPROVE CITY BUDGET #1530
Councilor Jerram made a motion to give final approval to the city budget as presented by Mayor Quinn. Councilor Samele seconded the motion.
Councilor Soliani explained that the Council had tentatively approved budgets totaling $43,906,363, and the motion on the floor was to approve the Mayor’s proposed budget of $42,576,952.
The Council voted 4-2 to give final approval to the city budget as presented by Mayor Quinn.
Councilors Dalla Valle and Reginatto opposed the motion.
ADJOURNMENT #1660
On a motion by Councilor Jerram, seconded by Councilor Bascetta, the boards voted unanimously to adjourn at 9:00 p.m.
ATTEST: JOSEPH L. QUARTIERO, CCTC, CMC
CITY CLERK
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