SPECIAL MEETING MINUTES
Monday, January 23, 2012
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Members Present:
John Patton – Chairman
Jim Poole – Vice Chairman – arrived at 6:37 P.M.
Christina Mailhos, First Selectman
Allen Furphy
Jim Bulick
Tyler Millix.
Melissa Welsh
Peter Latincsics
Donna Latincsics, Business Manager
Ken Schoppmann, Chairman Board of Finance arrived at 6:40 P.M.
Chairman Patton called the meeting to order at 6:32 P.M.
The approval of minutes has been tabled until the next meeting. Chairman Patton noted that the votes will need to be documented with details of who voted and how.
- Discussion of funding and projects for out years
Donna presented the plan as voted on by the Committee; however she is looking for direction funding projections for the out years. The vote was to spend an amount from the Selectmen’s budget which was for four items: road work-(Turnpike Road) $185,000; fuel management system - $14,000, electronic equipment -$14,105 and the CES short term parking lot- $70,000.
Chairman Patton questioned the reasoning behind why these projects would come out of the General Reserve. Donna clarified that the Committee voted last week to increase the level of funding of capital to bring it up to $594,000. Chairman Patton stated that if the projects stay at $595,000 we will need to find $200,000 which will be a ½ mil increase to fund them. Ken Schoppmann said they approved the projects they felt were worth pursuing at the last meeting. This meeting was to discuss finding the funds to support the projects.
Chairman Patton asked the thought process behind putting the level of spending in the general reserve and then taking it back out. Donna said because the level of spending does not really fit into a 930 – if a 930 account is used, it is a one shot deal; the project would need to be done quickly and paid out or the fund would lapse. , the only other option is the general reserve. Chairman Patton suggested creating a capital project fund, titling it the name of the project; like a 503. In years past, we used to create the line items. Keeping the funds in the General Reserve will add an additional level of approval. Ken Schoppmann suggested keeping it in the General Reserve because a lot of these projects are unknown; they are estimates; once the scope of work is created, and
gone out to bid, it is a good idea to go to Town Meeting to make sure the Town knows what we are doing – especially with big projects. Jim Poole added that a lot of funds have been allocated to projects, and the funds have not been closed; there is still a fair amount of money lingering in the accounts and not being used – even after several years. Ken Schoppmann said funds that sit in inactive for over three years should be questioned. First Selectman Mailhos gave an example of a few accounts from Senior Housing; those funds are earmarked for the cottages that are still only in the preliminary stages. Ken Schoppmann added that there is another fund for senior housing sewer project with $170,000 sitting there with no activity. Chairman Patton added that most of the accounts still have money in them simply because the bond hasn’t been released. Lastly, he added if we are going to ramp up spending, we should ramp up the
spending for the outyears also, the idea is to have consistency.
Peter Latincsics asked about the funding for Turnpike Road - was going to be LoCIP? Ken Schoppmann said the first phase is funded by LoCIP, but also applied for a STEAP grant, but we did not get the money we thought we would First Selectman Mailhos said the thought to apply for a STEAP grant to repair the road was only in the past year. Mr. Schoppmann added we can’t rely on the State. We thought we had a good case, because they funded Ashford’s portion of that road. We have other funding things we can play around with to ease the spending. We have more LoCIP coming in March ($60,000). The last meeting minutes have him stating to defer the plan, and that was not what he asked. He clarified that he asked if we think we can spend it next year if we appropriate
the money this year – depending when the project starts. If it starts in the spring, it can be split up in two fiscal years and spread the financing over two budget period instead of one. It is also not a good idea to stop the project just because we did not receive the STEAP grant.
Chairman Patton said we used to spend the LoCIP funds first and suggested doing so for this project. Looking at what we had in 2012-2016, we were planning to spend $170,000. There is a $25,000 deficit in LoCIP. If we approve the whole project, he recommends approving the $140,000 and taking the remainder from the reserve fund. He also said it is nice to bring the plan back to $594,000, but is never going to fly. It comes across as a 70% increase. $400,000 is more realistic.
Ken Schoppmann said he received an article from Donna about a non lapsing education fund with an example of the BOE giving us back around $200,000 each year. Instead of giving back to us we could put it in a fund and let them self fund some of their capital projects – one being the parking lot project for $70,000.
Peter Latincsics added that we don’t know how this year’s budget is going to look yet because the BOF has offered the zero based budgeting. You never know - people can be creative and resourceful. Chairman Patton clarified that zero based budgeting is not zero – it is starting from zero and working your way up prioritizing your needs. First Selectman Mailhos added some line items have gone down but we are also looking at what is needed to run the Town. For example, we are now looking at outsourcing sweeping, instead of getting a new sweeper. There are additional costs, however it will free up our crews to do the work that they have fallen behind on. Jim Poole stated that we need to thoroughly look into the costs versus ownership. First Selectman Mailhos stated
the cost will be around $50,000 and will take approximately 3 weeks. Mr. Poole stated that if we look at the out years, it might not end up as an added expense; but it is hypothetical. We (Lynn) need to but look at an entire study to see if it makes sense.
Jim Poole then questioned one of the requests from Willington Hill Fire Department; and believes there is a discrepancy from what he read in the minutes versus what is written on the physical request. Something is not adding up on the requests from what he has read in the minutes. He then read the request submittal and then read the minutes of what Assistant Chief Makuch had said at the meeting. There was no mention of the awning; motorized steps, laptop and alternator on the written request. There is no mention of a generator on the other request. He asked how it relates. Kelly Trueb stated that she thought the awning and laptop were probably miniscule items on the request, and were probably considered “equipment modernization’. Jim Poole stated he would like to see
the evaluation report before we fund the project. We cannot count on these numbers; if the refurbishment comes in at $72,000, who is going to fund the difference? Chairman Patton stated it is not the CIP Committee’s job to approve the funding; and added that he cannot understand how replacing completely functional lights with LED lights will extend the life of the cab.
First Selectman Mailhos asked for clarification about the request that Assistant Chief Makuch stated was on the books for years in with other trucks to be refurbished; approved at referendum a few years before. Kelly Trueb clarified that it was included to in the original request to refurbish both ET249 and the Forestry truck, however the Forestry truck was replaced by a grant, so the refurbishment fell off. Jim Poole corrected for the record, stating that original Forestry truck was sold and that money was used to purchase the new Forestry truck and the remaining funding was a grant.
Ken Schoppmann clarified that last year, not a single Willington Hill Fire Department project was added to the CIP and past requests fell off. Chairman Patton stated when they don’t submit projects, they don’t get added to the list. Ken Schoppmann added that these projects don’t go away, just because they don’t put it on paper. If it is a legitimate project, it should stay on. Peter Latincsics added the project was found desirable because it was giving the truck an additional ten years of life. Jim Poole asked based on whose assessment? Take it to a professional corporation that does the assessment and deliver a written document to the Town so we know what we are dealing with. Mr. Schoppmann agreed and stated that it should be
a requirement before any project is approved by the Board of Finance or before the Board of Selectmen. Until you begin certain projects, you don’t really know the costs. Jim Poole said he agrees with that if you are dealing with soil, because you don’t know what you are going to hit once that shovel goes in the ground. You can put your arms around a truck, take a look at it; and say this is what it needs. We do not do that with any of our hardware. Last year, for example we had a request to refurbish the sweeper, which was expected to last for five years (last year), and this year we see a request for a new sweeper. What happened? Lastly, he added since no documentation was submitted from WHFD, we have no idea what it looks like. Ken Schoppmann asked if we should be asking for documentation for the fire truck request from Willington FD#1? He added that once a number has been approved, the requestors think they can spend the entire
amount. Stu Cobb, from Willington F.D.#1 stated that they go out to bid from at least six vendors, and they do receive documentation and all of them are date sensitive. Mr. Schoppmann added that Assistant Chief Makuch did go out and get a detailed cost. They didn’t just pick a number out of the air.~ First Selectman Mailhos added she doesn’t think that the sign off (approval) will not go through her; it will go directly to the Board of Finance.
In the case with the new truck for Willington F.D.#1, we would go to public hearing like we did with the last truck - it is the Fire Department’s responsibility to go out to bid.~ Mr. Shoppmann said we need to settle the whole process as to what approval levels must be applied. Last year, when Willington Hill came before the Board of Finance, it seemed as if the Fire Departments thought process was they had $475,000 in the budget and that is what they were going to spend - even when the BOF questioned if that was the truck that Willington people really need.~ He added the BOF was not satisfied with that. It was a battle because the mindset was $475,000 was approved.~~ First Selectman Mailhos suggested sending a letter to each of the people included in this plan after it is approved; notifying them that they can
consider the money available for their project, but they must go out to bid to get the best price.
With the mindset of the projects coming from the General Reserve, they will now have more control by the Board of Selectmen, Board of Finance and Town Meeting.~ Chief Millix stated that the Town has never done this process before. Chairman Patton stated when the Town leased the two new trucks in 2002, a public hearing was held and was well received. ~ Peter Latincsics referenced the Town’s bidding process; we go out to bid, receive in the sealed bids; and any funds left over will go back into the general fund; with the Fire Departments being two private entities, it is different.~ Chief Millix corrected him and said it is very clear in the Emergency Services Contract: the Departments must comply with the Towns Ordinance regarding purchases.~ Jim Poole reiterated that many of these people will spend every last
nickel. ~~Chairman Patton stated yes sometimes that happens, but you can’t control everybody’s response to a plan. ~~
Ken Schoppmann stated that the documents are not specific enough for what they are specking out. The bigger level is the level of expertise to decipher right from wrong; and what is in the best interest of the Town.~ He added that at some level you have to trust the people who are in charge and are requesting this stuff.~~ No one on the Board of Finance has broad enough~knowledge of the roads or equipment to determine during the time of their meetings.~~ Chairman Patton told Mr. Schoppmann, part of the reason he as the Chairman of the Board of Finance and the First Selectmen are on this Committee - to give them a better understanding of the process and bring the information back to their Boards. ~
Ken Schoppmann said whatever the level decided on of funding for this year should be carried across each of the years. ~~Whatever the increase is, we must commit to funding it every year; because I don’t know how else you would plan to get things done if there is no funding. That is one appreciation he has for this Committee that he didn’t have before. ~He then stated that we need to be as creative as we can to find funding for these projects. Chairman Patton stated the question goes back to what we are willing to put back into local funds this year. $594,000 is a fantasy. Increasing from $377,000 to $416,000 which is a $40,000 or 11% increase. That is probably what we want to work with. We need to look at what is reasonable, versus what we are going to work with and it is really up to
the First Selectman and Board of Finance Chairman as they will be the ones answering the questions. Ken Schoppmann stated that he is advocating for a little more than that, because $416,000 won’t do a lot, considering all of the things that need to be done.
- Review of preliminary draft CIP report:
Donna presented a draft list. Chairman Patton stated one of the things we should do to mask the decrease is to take on more leases to purchase things. First Selectman Mailhos said our lease payments total almost as much as we can spend according to the plan. Ken Schoppmann added that most of that is the Library. Chairman Patton said it is our percentage of debt payment versus our overall expenditures if we can increase the cash payments to local funds we can start putting into the Reserve. Ken Schoppmann added that amount of the ability of the emergency services fund is an extra source of revenue. First Selectman Mailhos stated the growth of the grand list is also an impact; as it is flat.
Peter Latincsics said it would be helpful to target local funds. Chairman Patton suggested keeping the target at $416,000. Even if we keep the same projects that we have in there and fund them differently; use LoCIP funds for Turnpike Road. Discussion was held on how to fund the projects; and where to take the money from.
Melissa Welsh asked if the $416,000 is going to be enough to do the work we agreed we have to do? – we have a massive list of road projects that need to be done and there is only one on the list. Chairman Patton said we are just trying to be realistic. First Selectman Mailhos agreed $416,000 makes a good case, but it is going to result in a tax increase. She doesn’t agree with that, but if there was ever going to be a year that we would try to move forward, this year should be it. Mr. Schopmmann said he doesn’t know what the mil rate is going to be yet, because he hasn’t seen the entire budget. Our mil rate has remained flat the last several years; and only inches up less than one tenth of a mil most years. Jim Poole asked First Selectman Mailhos if we have seen an impact of
decreased income (referencing the Auditor’s report; population has increased but income has decreased). First Selectman Mailhos said no, actually we haven’t - we are at a 99% collection rate – we don’t see any decline. That is what is telling her that people are passing the budget. Melissa Welsh said this is the time to move forward with the expenditures, because the State is not in any better shape.
Ken Schoppmann gave a summary of the revenue growth, the Grand List; Region 19; K-8 Board of Education and the Selectmen’s budget. Looking at everything, it gives us the ability to increase $60,000; leaving us $30,000, now totaling $436,000. He added once you have it in, you won’t have to increase next year - it won’t be as big of a pill to swallow.
Chairman Patton said we can put something together with a $436,000 budget which is a 2.5% increase. He will work with Donna to put the figures together for the next meeting and will bring a laptop and a projector for the Committee to work out the numbers.
Jim Poole added the thing that still worries him is a 2.5% increase will not move us very far on the road projects. Lynn has a list that could choke a horse. We have so many issues that need to be addressed sooner than later – and they aren’t even on this list because past administrations thought process was to defer and defer. We need to figure out how to fund them in the out years and the only way he can see that is through taxation. We should figure out a way for Christina to have a plan in the next two years to show our taxpayers the accomplishments that have been made. Chariman Patton added these are expenses the Town has – we have to pay for them and the only way to pay them is through taxation. If we don’t want to spend money on these things then we should
just close the roads down.
Chairman Patton motioned to target a local funds contribution to $436,000 a 2.5% increase over the next four years.
Ken Schoppmann seconded the motion.
First Selectman Mailhos stated the Emergency Services Fund is not sustainable at the current collection rate if it continues on the same path. This will become a problem for purchases of trucks etc. in the out years. That was one of the reasons why she voted no to the refurbishment of the WHFD truck – thinking that it should have been pushed out. Donna Latincsics added it is important to note that the fund has a deficit balance and is tracking per deficit. It really needs to be projected out. When she added in the two trucks and the ambulance; we couldn’t sustain it. Our payments are getting higher and higher. Stu Cobb added that part of that fund offsets payroll as well. Chief Millix stated that this fund has done a lot of good over the years. Just because it is showing a
deficit does not mean that it is the end of the world. Ken Schoppmann added it is going to balance out; and the biggest factor is the healthcare payments, which are the unknowns. Right now it is not an immediate risk.
Vote: All in favor – motion carries
Next meeting will be held at the Willington Public Library – Community Room at 6:30 P.M.
The meeting was adjourned at 8:27 P.M.
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Respectfully Submitted,
~Robin Campbell
Administrative Assistant -Board of Selectmen~
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