Simsbury, CT - Board of Finance

The Regular Meeting of the Board of Finance was called to order at 6:00 P.M. in the auditorium at Simsbury High School. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason, Kevin North and Michael Wade. Also present were Superintendent of Schools Joseph Townsley, Board of Education Business Manager David Holden, Board of Education Deputy Chairman Richard Hogan and other interested parties.

Mr. Hogan noted that the process this year was very different than previous years’ in that there was a Budget and Finance Sub-Committee made up of two Republicans and two Democrats who met with the administration over a four-week period. The Superintendent presented them with a budget increase of 8.94%, and they spent a number of evenings paring that down to 7.5%. This budget provides the teachers and additional support staff for the expected increase in students, salary increases for the collective bargaining agreements, and it pays for additional insurance costs. These represent 90 – 95% of the increase. The sub-committee spent a lot of time looking at Special Education costs. The State pays a very small portion of this cost. This is a huge driving force to the budget.

Mr. North referred to the provision at the high school that English teachers teach only four classes per semester as distinct from their counterparts. He wondered how many fewer English teachers would be needed if they taught the same number of classes as other teachers. Dr. Townsley replied that this is common practice in high schools whereby English teachers “teach” four sections. But there is a fifth section where they work with students on writing and research. Mr. North also noted that, looking at the strategic school profile, the average class size in Simsbury has dropped over the past five years. We are also one student smaller per class than our ERG and two students per class smaller than the state average. Dr. Townsley stated that class size is a BOE decision each year.

Mr. Askham questioned why the contract settlement is higher now than it was in 1998 when the economy was stronger. Mr. Hogan noted that the BOE’s lawyer felt very strongly, because of the State binding arbitration process, that they risked a much higher settlement if they didn’t agree to the one they got. Mr. Henault asked what contracts were left to be settled, what the $200,000 reserve for unnegotiated salaries was for. Mr. Holden answered that it was the paraprofessional clerical collective bargaining group, unaffiliated personnel and daily rate for transporting pupils.

Mr. Askham asked how the BOE deals with teacher retirements in the budget. Mr. Hogan stated that they plugged in a $58,000 replacement value including salary and fringe benefits. He added that they save an average of $20,000 per teacher when they have a retirement. Mr. Holden noted that individuals who will be retiring declare three years in advance. There are 12 in total that they are expecting to retire.

Mr. Askham asked what the Insurance Committee spoke about with the Budget and Finance Sub-Committee. Mr. Hogan responded in detail, and Mr. Holden commented that the Insurance Committee makes sure that rates are competitive. He added that wellness programs have been introduced using BOE nursing personnel, the gym and other athletic facilities to help provide wellness opportunities and to promote wellness within the employee population in order to hold costs down. These programs which the BOE generate and run are offered not only to BOE employees but to Town employees as well.

Mr. Henault questioned the school bus purchasing program in CNR. Mr. Hogan stated that one of the Superintendent’s budget cuts is to not purchase the three buses this year, but to delay it one year. The following year six buses would not be purchased, but three would be held off one year again.

Mr. Wade asked about the Governor’s budget for revenue receipts. Mr. Hogan answered that he talked to our delegation in Hartford, and they feel strongly that it is very unlikely that the educational aid will be cut this year.

Mr. Askham questioned that the revenue from regular education tuition fees is going down. Mr. Holden answered that the BOE reached a consensus a number of years ago not to bring in additional tuition paying students.

Ms. Fitzpatrick commented on several line items. She wondered why data processing more than doubled from last year to this year. Mr. Holden explained that last year’s number was low due to budget pressures. Ms. Fitzpatrick also noted that pupil transportation insurance, property

insurance and liability insurance are going up 100%. Mr. Holden stated that at the present time there was no other legitimate competition to Kemper Insurance on the municipal marketplace. Mr. Henault stated that he will give Mr. Holden names of three companies who would be interested in the business. Ms. Fitzpatrick further questioned whether the $600,000 from Reserves would or would not be necessary for the self-insurance fund. Mr. Holden answered that it is a function of the actual claims experience between now and the end of the year. Ms. Fitzpatrick restated her question: Based on the historical averages, will the new premiums offset the deficit that is there? Mr. Holden answered in the affirmative.

Mr. Askham noted that we buy school buses and contract out for transportation. He wondered if there is a more efficient way to handle this. Mr. Hogan stated that we save a considerable amount of money handling it this way. He added that the level of service is phenomenal.

In closing, Mr. Henault stated that the role of the Board of Finance is to look at the financial capacity of the community, what the budgets entail and make adjustments. He noted that this year we’re losing revenue on investments, we have an extremely low Grand List growth, and that we’re looking at a shortfall whereby any increase in dollars above our current budgets will result in a tax increase.