MINUTES
BOARD OF FINANCE
MAY 9, 2013
A SPECIAL MEETING of the Board of Finance was held in the City Hall Auditorium on Thursday, May 9, 2013.
Present were Mayor Ryan Bingham, Corporation Counsel Ray Rigat, Board of Finance members Mark Bushka, Thomas Scoville, Laurene Pesce, Brian Paganini, Frank Rubino and Bill Lamoin, along with Comptroller Alice Proulx and Board of Education members Karl Brady, James Thibault, Ellen Hoehne, Ken Traub, and Fiona Cappabianca, Superintendent of Schools Cheryl Kloczko, Assistant Superintendent Susan Domanico, Director of Facilities David Bascetta and Business Services Administrator Danielle Batchelder.
Mayor Bingham called the meeting to order at 6:06 p.m.
BUDGET DISCUSSION
Mayor Bingham asked if there were any outstanding questions on the budget.
Mrs. Pesce asked if there will be any surplus from 2012/2013 and Ms. Proulx replied that none was anticipated due to revenue shortfalls from the State. Mrs. Pesce asked for an explanation of the pension flat funding. Mayor Bingham said $874,570 needs to be paid into the plan, the actual funding would be about 1.2 million dollars, but without smoothing it would be about 2 million dollars. He said his plan is to go as far as possible to avoid impacting the plan.
Mr. Paganini asked if surplus monies could be diverted back into the plan. Mayor Bingham replied that this is for next fiscal year and he will find a plan for $346,000. He added that if any monies can be found beyond that, they will be committed to the pension in addition to the 1.2 million already being committed. He said if the State were to flat fund municipalities, there would be a surplus that the Board of Finance would decide what to do with.
Mr. Lamoin asked what would happen if the State offered less than anticipated, and Mayor Bingham replied that we would be back to the drawing board, and will have to talk about supplemental tax bills and further reductions.
Mr. Scoville asked what the best case scenario would be from the State budget. Mayor Bingham said flat funding is the best we can hope for.
Mrs. Pesce questioned the benefits seen from switching to an HSA plan. Mayor Bingham said the consultant could outline that at the end of next fiscal year. He said two positive benefits are knowing the true cost of health care, and the implementation of healthy initiatives.
Mr. Lamoin asked to see the ratio of revenue to expenses so he can be more actively engaged throughout the year, and Mrs. Pesce asked for this on a monthly basis. Ms. Proulx said she will provide this.
Mrs. Pesce said she is frustrated that Torrington is not recognized by the State as a city like Bridgeport or Hartford. She said we face the same challenges and are not recognized for the services we provide to the Northwest Corner without compensation. Mayor Bingham said this is the sixth budget without a meaningful increase in State aid.
Mr. Rubino expressed his concern about cuts to the Volunteer Fire Departments who have been the backbone of our outskirts and keep the numbers down in our Fire Department. He said this is a measly amount of money that they need to survive. He stated that flat funding of pension should be a one-time issue and not become a habit and wondered about the Board of Education's comfort level on where they're going to find $484,000 in cuts. He said he would like our legislators to meet with the Board of Finance to explain their reasons why we're flat funded by the State. Mayor Bingham said one or two of our delegates are on the Appropriations Committee and they voted against the budget that came out of committee.
Mr. Scoville pointed out that the increase in mandates is hurting us as well and asked when the Board would be updated on the flat funding and budget shortfall. Mayor Bingham said he plans to bring a plan to City Council and the Board of Finance by July 1st.
INCREASE FUNDING TO VOLUNTEER FIRE DEPARTMENTS
On a motion by Mr. Lamoin, seconded by Mr. Bushka, the Board voted unanimously to add $12,000 to the Volunteer Fire Departments line items and increase Mayor Bingham's planned cuts to $358,943.
BUDGET DISCUSSION Continued
Mr. Lamoin said the Department Heads have done a good job and he would like to encourage City Council to avoid putting a stigma on the use of contingency funds. He said this stigma causes Department Heads to create their own contingency funds in their budgets and the City would be better served if there was less in each Department. Mr. Scoville agreed.
Mrs. Pesce agreed with Councilor Carbone's remarks in the previous meeting that she is not comfortable approving a budget without knowing where the cuts will come from.
Mr. Rubino recommended the Board of Education reconsider the assistant principal and guidance councilor positions and look into delaying the capital improvement programs by one year. Mr. Bushka asked the Board of Education representatives in the audience to discuss where $400,000 in cuts could be found. Mr. Traub said the anticipated reductions include a $350,000 reduction in staffing, impacting all levels across the district, a $75,000 reduction in music to be offered less often, and a $75,000 reconfiguration of the TAG program.
ADOPT CITY BUDGET
On a motion by Mr. Scoville, seconded by Mr. Rubino, the Board voted unanimously, by roll call vote, to adopt the 2013 - 2014 City Budget of $49,221,100.
ADOPT BOARD OF EDUCATION CAPITAL BUDGET
On a motion by Mr. Bushka, seconded by Mr. Paganini, the Board considered the adoption of the 2013 – 2014 Board of Education Capital Budget of $1,465,406.
Mr. Lamoin asked for clarification of the solar project and if the intention was to include solar energy in that Capital Budget figure. Mayor Bingham stated that it is part of their overall roof project.
Mr. Traub explained the solar project is an additional one, which will yield 40% of the energy that building uses, to give us a long-term savings. Of the $300,000 in the budget, only $90,000 is our burden, he said, and the rest is reimbursable. Mr. Traub said we have a 78% reimbursement rate right now.
Mr. Scoville asked the Board of Education if they foresee any possibilities that there would be cuts in the capital budget if we were to combine the two budgets. Mr. Traub said that right now the $488,000 in expected cuts do not affect the Capital Budget. If we go all the way down to the worst case scenario I was given this morning, there would be a reduction in the project, he said.
Mr. Lamoin added that, in his judgment, the Operational and Capital budgets shouldn't be combined for Board of Finance approval. He said that last year Capital funds were spent hurriedly whereas capital expenditures should be very thoughtful and done in advance.
A roll call vote was taken and the Board voted unanimously to adopt the 2013 – 2014 Board of Education Capital Budget of $1,465,406.
ADOPT BOARD OF EDUCATION OPERATIONAL BUDGET
On a motion by Mr. Bushka, seconded by Mr. Scoville, the Board of Finance considered the adoption of the 2013 - 2014 Board of Education Operational Budget of $67,763,369.
Mr. Lamoin said he is disappointed in the Board of Education's budget management, and he doesn't see a cohesive commitment to drive down costs. He said he does see a cohesive commitment to improve education but we need leadership that does both. Mr. Lamoin cautioned that we have to start planning for the worst.
Mayor Bingham stated that in order to be better prepared for the Board of Education budget next year, he will reinstitute the liaison program and hold regular meetings to maintain constant financial communication between himself, the Board of Education and the Board of Finance.
Mr. Lamoin stated that the change has to come from within the Board of Education or next year he will not support these kinds of increases.
Mr. Rubino added that the Board of Education's commitment to submit a three year budget is something the Board of Finance has to read into, read diligently and ask questions now, such as why the increase is going to happen.
Mr. Lamoin said that this budget is just incremental increases across the board, and it created more questions than it answers.
A roll call vote was taken and the Board voted unanimously to adopt the 2013 – 2014 Board of Education Operational Budget of $67,763,369.
SET MILL RATE
On a motion by Mrs. Pesce, seconded by Mr. Paganini, the Board voted unanimously, by roll call vote, to set the 2012-2013 mill rate at 34.46.
ADJOURNMENT
On a motion by Mr. Paganini, seconded by Mr. Rubino, and unanimously approved, the meeting was adjourned at 6:42 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC CITY CLERK |
Respectfully Submitted, Carol L. Anderson, CCTC Asst. City Clerk |
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