MINUTES
BOARD OF FINANCE
MAY 24, 2011
A SPECIAL MEETING of the Board of Finance was held in the City Hall Auditorium on Tuesday, May 24, 2011.
Present were Mayor Ryan Bingham, Corporation Counsel Ernestine Yuille Weaver, Board of Finance members Daniel Farley, Thomas Scoville, Laurene Pesce, Brian Paganini, Mark Bushka and Wendy Traub, Superintendent of Schools Christopher Leone, Administrative Assistant to the Mayor Stephen Nocera, City Clerk Joseph Quartiero and Comptroller Alice Proulx.
Mayor Bingham called the meeting to order at 5:50 p.m.
REVIEW AND DISCUSS BUDGETS
Mrs. Traub requested a brief summary of the changes made to the revenue sheet previously distributed, the new bottom line of estimated income, and the total revenue figure including taxes, revenue and transfers.
Mrs. Proulx explained the modification due to an increased insurance cost share for the City Employees, a refund from CIRMA, and a small modification to probate proceeds. She said the total Other Revenues are $36,509,102, the Tax Revenue with a mill rate of 32.5 would be $73,928,015, and the Transfer in from the Internal Service fund of $1,700,000.
Mrs. Traub commented that we do have the safety net of 125% on our health insurance because we are self-insured, but she would not approve a transfer out of that fund unless she was 100% sure that all our insurance needs were taken care of. She noted that our employees do not incur the expenditures that were calculated in the prior years, and said it is a testament to the employees health conditions.
She said questions are always raised about transferring in from designated fund balances, but in this case we always calculate correctly. If we do have overages, she said, it’s because our claims have come in significantly less than what the actuaries have calculated for us. Mayor Bingham said it is one of most underrated benefits of being self-insured, as we’d lose the money if we were paying an insurance company. Mrs. Pesce added that we would owe it in a bad year.
Mrs. Traub said she noticed the Board of Education revenue went up by $250,000, and clarified that additional revenue was because of the agreements.
Mr. Bushka asked for a clarification that the whole budgeted revenue is $112,000,000. Ms. Proulx said it is $113,769,347 from all of the revenue combined.
Mrs. Traub asked about the Tax number, and Ms. Proulx said it is $73,928,015. Ms. Proulx told Mrs. Pesce that $36,509,102 is the correct figure for Other Revenue.
Ms. Proulx explained there is a slight variance between what the budget is and what the taxes collected are because she can’t go out to the three decimal places. There is a difference in the tax rate for elderly homeowners so it can’t come out exactly.
Mr. Farley said the total revenue, using those three figures, comes out to $112,137,117. Ms. Proulx said it is due to the variance for the elderly homeowners’ tax credit. The Board then agreed that the numbers added up.
Mrs. Traub asked what would happen if the concessions did not materialize, if cuts would be entirely on the City Side or if the Board of Education would have to share in that. Mayor Bingham said it would come from the total figure, and he has had preliminary discussions with the Superintendent of Schools, because we would all share that cut.
Mr. Scoville asked to have it noted that the Mayor’s budget accomplishes his stated goal of not using any undesignated fund balance.
ADOPT CITY BUDGET
On a motion by Mr. Bushka, seconded by Mr. Farley, the Board voted unanimously, by roll call vote, to adopt the 2011 - 2012 City Budget of $49,266,916. Mr. Scoville noted this accomplishment by the Mayor, Department Heads and Unions is an example for Cities and Towns throughout Connecticut. All should be commended, he said.
ADOPT BOARD OF EDUCATION CAPITAL BUDGET
Mr. Farley made a motion, seconded by Mrs. Pesce, to adopt the 2011 - 2012 Board of Education Budget of $64,502,431.
Mr. Bushka asked for a clarification that their Capital Budget is $803,873 which is net of a projected carry-over from 2010-2011 budget of $180,260. He asked for confirmation that this will be available. Mr. Leone said it is.
The Board determined that the Capital has to be voted on separately.
Mr. Farley and Mrs. Pesce withdrew their motion.
On a motion by Mr. Bushka, seconded by Mr. Paganini, the Board voted unanimously, by roll call vote, to adopt the 2011-2012 Board of Education Capital Budget of $803,873. Mrs. Traub recognized the Board of Education’s commitment to bring that Capital Plan forward, to keep it level, and to maintain those buildings.
ADOPT BOARD OF EDUCATION OPERATIONAL BUDGET
On a motion by Mrs. Traub, seconded by Mr. Bushka, the Board voted unanimously, by roll call vote, to adopt the 2011-2012 Board of Education Operational Budget of $63,698,558.
Mrs. Traub thanked the Board of Education for their hard work bringing this budget in at nearly a zero percent change, a daunting task.
SET MILL RATE
On a motion by Mr. Farley, seconded by Mr. Scoville, the Board voted unanimously, by roll call vote, to set the 2011-2012 mill rate at 32.5. Mrs. Traub commented that we need to look for the State to help the Cities by bringing in more businesses, and hoped they will start passing legislation that is more business-friendly. Mayor Bingham noted there was no decrease in the Grand List.
Mayor Bingham offered his final appreciation, saying this has been his toughest budget so far. He thanked his budget subcommittee members Mrs. Pesce, Mrs. Traub, Councilor Carbone, Councilor Soliani, Commissioner Potter and Councilor Zordan. He commended elected, appointed and administrative officials and union members, saying it has been a good process with everybody willing to sacrifice and step up to the table. He offered a huge thank you for the support and said it has been a real pleasure working with everybody.
ADJOURNMENT
On a motion by Mrs. Traub, seconded by Mr. Paganini, the Board voted unanimously to adjourn at 6:11 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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