BOARD OF FINANCE
APRIL 10, 2001
REGULAR MEETING
1. CALL TO ORDER
Paul Henault, Chairman, called the Regular Meeting of the Board of Finance to order at 6:07 p.m. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: James Belfiore, Candace Fitzpatrick, Peter Askham and Michael Wade. Mary Glassman arrived at 6:12 p.m. Also present were Kevin Kane, Finance Director, Joseph Townsley, Superintendent of Schools, David Holden, Business Manager, Mary Margaret Girgenti, BOE Chairman, Anita Mielert, First Selectman, members of the BOE and BOS, and other interested parties.
2. APPROVE MINUTES
03/13/01 Regular Meeting
Mr. Askham moved to approve the minutes of the March 13, 2001 Regular Meeting, as amended. The motion was seconded by Mr. Wade and carried unanimously.
3/20/01 Regular Meeting
Mr. Belfiore moved to approve the minutes of the March 20, 2001 Regular Meeting. The motion was seconded by Mr. Wade and carried unanimously.
3/23/01 Special Meeting
Mr. Wade moved to approve the minutes of the March 23, 2001 Special Meeting. The motion was seconded by Mr. Belfiore and carried unanimously.
3. ACTION ON PROPOSED 2001/02 OPERATING BUDGETS
Debt Retirement
Mr. Wade moved to approve the 2001/02 Debt Retirement Budget. The motion was seconded by Mr. Askham and carried unanimously.
Board of Selectmen
Mr. Wade moved to approve the 2001/02 Board of Selectmen Budget. The motion was seconded by Mr. Belfiore and carried unanimously.
Board of Education
Ms. Fitzpatrick moved to approve the $43,289,588 Board of Education Budget. The motion was seconded by Mr. Askham.
Chairman Henault distributed the legal opinion received from the Town Attorney which states that the BOF has the ability to increase or decrease an operating budget proposal. He noted that the Charter gives citizens the authority to petition for a Special Town Meeting to increase the budget. Chairman Henault noted that in the past the BOF has not arbitrarily increased or decreased a budget, they usually request changes to be made by the BOS and BOE.
Mr. Belfiore noted that the BOE has not requested that they be allowed to reconsider their budget. Ms. Girgenti stated that the BOE has not had a meeting since the Public Hearing was held.
Ms. Glassman stated that the BOF received two budgets from the BOE. She noted that neither budget meets the guideline. Ms. Glassman stated that the majority of those who attended the Public Hearing requested that the BOE budget be increased to reflect a 10.98% increase over the current budget. She stated that she has also received calls requesting an increase to the BOE budget. Ms. Glassman stated that she will not support a 9% BOE budget increase.
Mr. Wade stated that the Town should decide on a 9% or 10.98% BOE budget and the BOF should not get in the way. He pointed out that if the 10.98% budget increase fails at referendum then the BOF will have the answer from the residents. He noted that if a 9% increase fails at referendum the BOF will not know whether the budget should be increased or decreased.
Mr. Askham expressed concern with the tax implication of the budgets. He pointed out that the BOE currently has a budget deficit with a 9.5% budget increase over the previous year. Mr. Askham stated that last year the BOE stated that this was a catch-up budget, but this year should be a regular budget. He stated that he feels there is a compelling reason to go above the guideline and he suggested that the boards compromise at 9%. He expressed concern that if the BOE budget increase is higher than 9% there is a higher risk that the budget will be defeated at referendum.
Chairman Henault noted that there are large capital needs coming forward and if increased funding goes into the operating budgets, there will be less funding for capital projects.
Mr. Belfiore noted that last year the BOE stated that it was a bubble year for the budget, and now it is continuing, and the BOE has stated that it will continue into the future. He pointed out that if the BOE budget continues to increase at 9%, over the next 5 years the increase will near 50%. He suggested that no programs are worth running at that price. Mr. Belfiore pointed out that this increase does not include capital projects and he is concerned with the level of tax increase. He stated that they need to get the budget passed in town. He stated that economic development will only come from someone choosing to locate in Simsbury.
Ms. Fitzpatrick stated that the Town is faced with reduced Grand List growth and increased spending. She expressed concern that older residents will move out of town, due to increased taxes, and families will move in and add more students to the school system. She stated that if the Town doesn’t have the money to spend, they need to spend less. Ms. Fitzpatrick pointed out that neither the BOE or the BOS budget includes everything they want. She stated that hopefully when the BOE reduced their budget they were considering the enrollment driven capital projects. Ms. Fitzpatrick noted that the economy is ominous and it is up to the residents to decide whether the budgets pass or fail. She stated that in looking at the big picture a 9% budget increase for the BOE is the
most she can support.
Ms. Glassman noted that the disparity in budgets is $700,000 and two years ago the Town lost the potential for $2 million in revenue with the denial of the Blue Ridge development. She stated that the Town needs to discuss how to increase revenues. Ms. Glassman pointed out that the letter from the Town Attorney states that the BOF can increase or decrease the budget based on public testimony. She noted that the residents who came to the Public Hearing spoke in favor of increasing the BOE budget.
Ms. Fitzpatrick stated that the testimony from the Public Hearing needs to be incorporated into the big picture to reach a decision.
Chairman Henault stated that the BOF did not cut the BOE budget. He expressed grave concern with where the mill rate and educational system are headed. He noted that the BOF is not involved in economic development decisions.
The vote was 4 to 2, with Ms. Glassman and Mr. Wade voting nay. The motion carried.
Non-Public Schools
Mr. Wade moved to approve the Non-Public Schools budget. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
Capital & Nonrecurring
Mr. Wade moved to approve the Capital & Nonrecurring budget. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
Sewer Use Fund
Mr. Wade moved to approve the Sewer Use Fund. The motion was seconded by Mr. Belfiore and carried unanimously.
Residential Rental Properties Fund
Mr. Wade moved to approve the Residential Rental Properties Fund. The motion was seconded by Mr. Belfiore and carried unanimously.
Landfill Fund
Ms. Fitzpatrick moved to approve the Landfill Fund. The motion was seconded by Mr. Wade and carried unanimously.
Dog Fund
Ms. Fitzpatrick moved to approve the Dog Fund. The motion was seconded by Mr. Wade and carried unanimously.
Simsbury Farms/Special Programs Fund
Ms. Fitzpatrick moved to approve the Simsbury Farms/Special Revenue Fund. The motion was seconded by Mr. Askham and carried unanimously.
4. BUDGET TRANSFER REQUEST FROM RESERVES
Chairman Henault noted receipt of Ms. Girgenti’s memo requesting a budget transfer from RESERVES.
Richard Hogan, Chairman of the BOE Finance Subcommittee, stated that the BOS unanimously voted to forward this budget transfer request to the BOF. He stated that the BOF is seeking an appropriation of $109,680 pursuant to Section 908(a) of the Charter, and $220,320 pursuant to Section 908 (c) of the Charter.
Mr. Wade questioned how much funding remains under Section 908(c) of the Charter. Mr. Kane stated that this request will deplete the funds available. He noted that the memo sent by the BOE included an incorrect figure of $109,608 which is what was forwarded by the BOS.
Mr. Askham questioned whether this deficit figure is accurate. Mr. Hogan stated that the BOE feels confident that this deficit figure is accurate, noting that $150,000 of cuts were made to the budget as well as a spending freeze. Mr. Askham questioned whether there are procedures in place so that this deficit situation does not occur again. Mr. Hogan pointed out that over the last 20 years the BOE has ended the year with a surplus. He stated that there are procedures in place, but a number of items caused this year’s deficit.
Mr. Askham noted that the criteria for bond rating include not operating in a deficit and having procedures in place. Dr. Townsley stated that $120,000 in expenditures was frozen last July 1st. He stated that the BOE cannot control the out-placement of students. Dr. Townsley noted that the Connecticut General Assembly is considering a bill to allow for the reimbursement of special education children based on 3 times the cost, as opposed to the current reimbursement level which is reached at 5 times the cost. He noted that the oil prices had a significant impact on the BOE budget. Ms. Glassman requested the bill number being considered by the Connecticut General Assembly.
Ms. Fitzpatrick moved to appropriate $109,608 pursuant to Town Charter Section 908(a) and $220,320 pursuant to Section 908(c) to the Board of Education’s operating budget. The motion was seconded by Mr. Wade and carried unanimously.
5. OTHER BUSINESS
Ms. Fitzpatrick suggested that residents send letters to their State legislators regarding increased funding for Simsbury.
Chairman Henault stated that he received a letter from Mark Orenstein requesting that the I.T.A.C. action item be eliminated from the list.
Chairman Henault discussed the impact that the Public Hearing had on the BOF. He stated that letters were received both for and against increasing the BOE’s budget. Chairman Henault stated that some BOF members felt that the BOE’s budget should be reduced further, but based on the sentiment expressed at the Public Hearing the BOF kept the 9% budget. He noted that the budgets and mill rate create a difficult balancing act which BOF members take very seriously
6. ADJOURNMENT
Mr. Wade moved to adjourn the meeting at 6:47 p.m. The motion was seconded by Ms. Glassman and carried unanimously.
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Paul W. Henault, Chairman Kathryn D. Wilde, Clerk
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