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Board of Finance Minutes - Regular Meeting - 03/09/04
BOARD OF FINANCE
MARCH 9, 2004
REGULAR MEETING
The Regular Meeting of the Board of Finance was called to order at 6:08 P.M. in the Amphitheater at the Simsbury High School. The following members were present: Mr. Henault, Chairman, Candace Fitzpatrick, Michael Wade, Peter Askham, Kevin North, and Nicholas Mason. Mr. Henault said the purpose of this meeting is to review the Board of Education operating budget, with respect to Section 905 of the Town Charter. Ms. Fitzpatrick made motion, Mr. Askham seconded to move the approval of minutes to the end of the meeting. All were in favor.
Also present were David Holden, Business Manager; Dr. Joseph Townsley, Superintendent; and Charlie Moret, the Deputy Chairman for the Board of Education.
Mr. Henault said at the conclusion of this meeting there will be a Special Meeting for the Capital Public Hearing at 7:30 P.M. There will also be a meeting on Monday evening.
1. BOARD OF EDUCATION BUDGET
Mr. Moret gave a little perspective from last year. He said insurance and pension costs have impacted the Board of Education budget. This cost has risen from 10% to 16% currently. Instruction has decreased as an overall percentage of the budget from 69% to 64%. Mr. Moret said enrollment has started to level off a little bit.
Mr. Moret said last year the drivers that impacted the budget of about 6.7% were with collective bargaining, insurance and pension, and general cost increases. Last year the budget cap was 4.25%. They had to reduce course offerings last year. Special education was also impacted last year along with staffing positions. The most notable impact of last year was class sizes, where 35 classes exceeded Board of Education guidelines. As a result from that impact, that level rose to a level of 115 classes. They are trying to bring the class guidelines back in to compliance.
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This year they invited principals from around the district to meet with them to give them impact of last year. They all said the class sizes were creating a much bigger load. Mr. Moret said after all these meeting they were at a 6.9% increase. They looked at further deductions and are now asking for 5.35%, which they know exceeds the Board of Finance cap of 4.5% cap.
Mr. Moret said critical in the Middle School is the addition of a couple of teachers to try to get closer to the guidelines. The Board also looked at activity fees so they could try to raise some revenue. They did a research around the state, and the towns that tried this were not very successful in getting what they thought they’d be getting. The Board is proposing a budget increase of 5.35% at this time.
Mr. Henault thanked the Board for their presentation. Mr. Henault said the Board of Finance has the same driving factors this year; loss of investment income, lower interest rates, conveyance tax loss, etc. When budgeting, they were assuming ½% increase in grand list growth, but this is said to be a flat growth.
Ms. Fitzpatrick had a question on Special Education cost grants, which are not reflected as a revenue. Mr. Holden said there is a comparison between ‘03-04 and ‘04-‘05. In ‘03-‘04 they budgeted Special Education of $898,000 with $155,000 is excess cost grant revenues coming back to the Town general fund. The net cost would have been roughly $744,000. The actual projecting for ‘03-‘04 is that operating budget would be roughly $1.2 million, there will be general grant refunds in the amount of approximately $422,000 with a net cost to the Town of roughly $801,000. For ‘04-‘05 they budgeted expenditures in the operating budget of $932,000, with the excess cost grant revenues coming back to the Board of Education, which would go into
the State and Federal grant account out-of- which $400,000 in Special Ed expenditures would be expensed. The total expenditures would be roughly $1.3 million. Next years figure is based upon 70% of what we are entitled to.
There were questions on one side showing expenditures less excess revenue grants and the other side adding them. Mr. Holden said that is correct as in past years the bore the full expenditures within the operating budget and the revenues have gone into the Town general fund. The net cost to the Town is the bottom line number. However, next year they will experience total expenditures of roughly $1.3 million of which $400,000 will be expensed within the restricted grant fund. Mr. Mason said the net numbers are on page 49.
Mr. Askham said the Board of Selectmen’s budget was under the cap and the Board of Education chose not to met their cap. He feels this will be a challenge to be worked on to balance this years budget and tax increases that everyone can accept.
Mr. Askham had questions on the increase in operational plant and insurance and pension. Mr. Holden noted that they need two additional custodians due to the new addition at the High School. There will also be increases in utility costs and supplies in maintenance. Insurance and pension is the function of the pension increase of 17% with medical insurance up 15% in PPO
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and HMO at 8.5%. Mr. Holden said he had done a projection prior to the addition of the costs.
Mr. Askham asked about employee co-pays. Mr. Holden said the Board of Ed already had a higher co-payment than the Board of Selectmen have.
Mr. Askham also asked about the increase of number of teachers. Mr. Holden said there is an increase of 3.4 professional staff net 1.0 non-certified. Mr. Townsley said three years ago there were 382 teachers, then 391 teachers, last year 382 teachers and next year they are looking for 386 teachers. Mr. Townsley said total enrollment three years ago was 4,978 and 4,996 right now, not counting preschool or out-placed students.
Mr. North asked if it would be possible to delay the class size adjustment for one year. Dr. Townsley said absolutely not, because he would not recommend cutting staffing positions. He will not put 28 kids in a 6th grade classroom, or 26 kids in a kindergarten classroom. He would come back with additional cuts, but not cuts in staffing.
Mr. Henault said it is the Board of Finances responsibility to deal with the tax increases. How do you tell taxpayers they will have a 6% tax increase? Mr. Moret said they are trying to manage the best they can. This budget will be discussed again on Monday night as no action will be taken tonight. Mr. Henault said purchasing buses will be discussed on Monday as well.
2. APPROVAL OF MINUTES
Mr. North made motion to approved the minutes of February 24, 2004. Ms. Fitzpatrick seconded the motion. All were in favor with Mr. Henault abstaining.
3. OTHER BUSINESS
Mr. Askham asked for an update on the High School and Police Department projects. Mr. North said he and Mr. Mason attend the Public Building Committee meetings. The Police Department project shows the construction drawings are complete and ready to go to bid on March 17th. There will be a pre-bid meeting on April 1st, with all bids back on April 15th. This project is on budget and is extremely well managed.
Mr. North said the High School project is generally staying within budget. Modifications to the roof have been changed to simple modifications of the stair towers for $60,000, for both design and security benefits. HVAC and site lighting need to be resolved. It appears that this project is on schedule and budget.
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Mr. Holden said there is a $978,000 contingency available at this time. There was some change order fees discussion, but there is no resolution at this time.
Mr. Mason said Eno had two new issues. There was a need for a ceiling engineering study for air conditioning. The second issue is on safety. The Fire Marshall needs to be comfortable with the plan.
ADJOURNMENT
Mr. North made motion, Mr. Mason seconded to adjourn at 7:24 P.M. All were in favor.
Respectfully submitted,
Kathy Radocchio, Clerk Paul Henault, Chairman
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