Loading...
1990/10/11 MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 1 A Regular Meeting of the Board of Finance was held on Thursday, OCTOBER 11,1990 in the Board of Finance Room. MEMBERS PRESENT: Dr. John P. McIntosh Mrs. Ida M. Ragazzi Mr. Fred Jortner Mrs. Audrey Bertagna Mr. Sam Lomaglio OTHERS PRESENT: Mr. Gary S. Clinton, Finance Director Mr. Gary McPhee Mr. George Hall Mayor Robert J. Peters Mr. James D'Errico Mr. Thomas Galvin Mrs. Mary Piskorski Mr. Henry Russack Mr. Len Prygoda Ms. Erin Martin, Htfd. Courant Mrs. Carol Getteorex Ms. Elise Hutcoe, N.B. Herald The Meeting was called to order at 7:00P.M. Motion by Mrs. Audrey Bertagna, seconded by Dr. John P. McIntosh and Voted to go into Executive Session for the purpose of discussing land acquisition and appraisal. ALL IN FAVOR. The Board went into Executive session at 7:03P.M. The Board came out of Executive Session at 7:20. No action was taken during Executive session. Chairman McIntosh read a letter he had written to Loren Dickinson regarding the vacancy on the Board of Finance. Due to the fact that the Board does not have any names to consider, they agreed to postpone the election to the next meeting. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 2 Motion by Dr. John P. McIntosh, seconded by Mrs. Ida M. Ragazzi and VOTED to postpone the election of a new member of the Board of Finance to take place within the thirty days required. ALL IN FAVOR. BUDGET CHANGE A budget change form was received from Mayor Peters requesting $4000 to determine if certain lands are suitable for use for a mobile home park. Tests are needed to determine their wetlands and amount of useable land within the parcel. There are a few pieces of land in mind, but funds must be available first to answer the questions. The cost of mapping out the lands is approximately $500. Chairman McIntosh asked Mayor Peters whether additional funds will be needed if the project goes through. Mayor Peters replied that if the land can be acquired it will be the Town's on a long term lease and will be funded through a state grant. Mrs. Ragazzi asked if the Town would be liable for anything that occurs on the property. Mayor Peters responded that the project would be under the control of a Mobile Home Commission that would be set up. Mrs. Ragazzi asked whose responsibility does the land come under. Mayor Peters responded that it would be operated by the Town of Berlin. Chairman McIntosh asked if the project would be phased out. Mayor Peters responded that residency would be guaranteed for a 20 year period. Mrs. Bertagna asked that since the Town would be in control, would the Town be responsible for any damage, fire or accident that happens on the property. Mayor Peters responded that the Town would be liable and insurance would be taken out under the Town's umbrella policy. Mr. Jortner asked about the zoning and whether the project would satisfy affordable housing. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 3 Mayor Peters responded that the Town would exempt itself from zoning and yes, it did satisfy affordable housing. He added that this is presently an emergency situation and will be addressed on a small need. Mrs. Ragazzi asked if more homes would be eventually added. Mayor Peters responded no, they will only maintain the original number that the Town starts out with. Mrs. Bertagna asked where the money would come from and also asked Mr. Clinton to explain the difference between fund balance and contingency. Mr. Clinton responded that the fund balance is synonymous with surplus and contingency is a line item in the budget. These funds would be taken from the contingency account. A letter from the residents of the Mobile Home Park was read. The letter requests that the Board of Finance appropriate funds so that Mayor Peters can determine if there is suitable land available for a new mobile home park. Discussion continued and the Board agreed to appropriate $2000 for the land study. Motion by Mr. Sam Lomaglio, seconded by Dr. John P. McIntosh, and VOTED to transfer a sum not to exceed $2000, from account #101-2129-121-299(Contingency) to account #101-2129-121-253(Mobile Home Park Study). Ail IN FAVOR: Dr. John P. McIntosh, Mr. Sam Lomaglio, Mr. Fred Jortner, Mrs. Audrey Bertagna. OPPOSED: Mrs. Ida M. Ragazzi. A Budget Change Form was received from the Board of Education requesting $80,000 be forthcoming from the Willard project appropriation for parking lot construction at Willard School. Chairman McIntosh explained to the Board that the original statement of need was specific in detailing what was part of the project but reconstruction of the parking lot was not included. The parking lot was heavily damaged by the construction trucks. Mr. Clinton informed the Board that he has been in contact with the Town's Bond Counsel and was informed that it is permissable to appropriate the funds needed and the appropriate steps to follow. The request has been properly acted upon and all that is needed at this point is Board of Finance approval to amend the original project. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 4 Chairman McIntosh stated that it is necesary that the parking lot be brought up to specification but hopes that there are no plans to construct one bigger than necessary. A play area at the school has been destroyed and he is not aware of any provision to replace it. The play area should be replaced. Motion by Mr. Fred Jortner, seconded by Mr. Sam Lomaglio and VOTED to approve the Board of Education's request to amend the ori~iinal statement of need for the Willard School project to include reconstruction of the parking lot. ALL IN FAVOR. Mr. Clinton distributed copies of a package he has prepared for the Board's review. Included is information regarding Moody's credit rating system, an analysis of the Town of Berlin's financial operations, largest taxpayers and a press release describing a nieghboring Town's financial plight which had depleted its fund blance and incurred additional interest expense as a result. Mr. Jortner stated that if Berlin's fund balance dropped below 5%, it would not necessarily hurt its rating. . Mr. Clinton agreed that if this occured during one year, it might not possibly hurt, but it is impossible to predict the rating agencies' review and it would hurt if the drop continued over more than a one year period. Berlin has agreed to maintain a stable fund balance. A budget change form was received from the Personnel Director requesting an additional $23,000 for the underground storage tank replacement projects. Mayor Peters informed the Board that 53.4% would be reimbursed from the state Board of Education. Mrs. Ragazzi asked if the $6,000 left in the account was part of tlhe $23,000 or Over and above. Mr. Clinton responded that the $6,000 was part of the $23,000 so the budget request should actually be $17,000. Motion by Mrs. Ida M. Ragazzi, seconded by Mrs. Audrey Bertagna, and VOTED to request that the Executive Board call a Town Meeting to approve the transfer of $17,000 from account #101-1393-930-0944 (Fund Balance) to account #101-3267-121-0133 (Capital and Non Recurring Fund). A~LL IN FAVOR. A budget change form was received from the historic district requesting $150. The cost of a sign for the Historic District is $625. 0nly $475 has been budgeted. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 5 Motion by Mrs. Ida M. Ragazzi, seconded by Dr. John P. McIntosh and VOTED to transfer $150 from account #101-2124-101-111 (Secretary, Commission) to account #101-2124-121-223 (Historic District Sign). All in Favor. A budget change form was received from Mayor Peters requesting that $10,000 be transferred to the Police Overtime account in order to allow the police officers to use whatever means are necessary in hopes of reducing DWI and drug related accidents. Mrs. Bertagna asked Mayor Peters why the request has come from his office and not the police department. Mayor Peters responded that he has requested that the police department take on the task Of reducing DWI and drug related accidents. He explained that presently checkpoints have been established and surrounding Towns are cooperating in this endeavor. Chairman McIntosh asked if the request was not being a little premature since there is $145,000 in the overtime account. If additional funds are needed at a later time then a request could come in. Mayor Peters responded that he sees no problem with that but he certainly would want some assurance that if the account fell short, there would be no problem requesting additional funds. The overtime account takes in a broad range and $10,000 is needed solely for this project. If the funds are not utilized they would not be used for anything else. Mrs. Ragazzi stated that an agreement to use available funds first should be made. She believes that it is a dangerous precedent for a Mayor to ask for funds for a specific department. Mayor Peters responded that he himself has asked that this project be undertaken. The police department expressed concern that they may not have enough funds, therefore he is requesting the funds. Mr. Jortner stated that the Board of Finance should send a clear message to the Police Department to go full steam ahead on the project and the Board of Finance will support them in their endeavor. If a time comes that they will need additional funds the Board will support the request. After discussion the Board agreed not to act on the request at this time. Funds in the overtime account will be used first. If additional funds are needed at a later time, the Board will act favorably on the request. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 6 A budget change form was received from the Personnel Director requesting a transfer of $1,875 to both the engineering and planning department clerical accounts for increases in salary due to a job reclassification study. Chairman McIntosh asked why this was being done in the middle of the year. Mr. D'Errico responded that it was a contract negotiation that has been going on for six months. Chairman McIntosh referred to a previous ruling by the Corporation Counsel that the pay scale can not be changed during the fiscal year. Mayor Peters stated that this is a different circumstance. The Corporation Counsel ruled on promotion of an individual during the fiscal year. The Town can settle contract negotiations with a union after the start of a fiscal year. He added that this occured because these positions were not part of the original job study. After a job study it was found that these positions should be classified one step higher. Chairman McIntosh stated that the ruling indicates that a pay plan can only be established at the start of the fiscal year, so perhaps the Corporation Counsel should review the request. A Motion was made by Mr. Sam Lomaglio, but there being no second a vote was not taken. A letter will be written to the Corporation Counsel for an opinion. Mr. Clinton informed the Board that he has received memos from the Social Services Department asking to establish an agency fund to receive small gifts from outside contributors to defray the costs of youth programs. This process would be similar to the ones established for the Recreation Department, Library and Senior Center. Mr. Clinton recommended that the the proposal be approved and that the same procedures that are in effect for the other agency funds be followed. Motion by Mr. Fred Jortner, seconded by Mr. Sam Lomaglio and VOTED to approve that an agency fund for the Youth Services Department be established and that the same procedures for the other Town agency funds be followed. ALL IN FAVOR. A budget change form was received from the Board of Education requesting $53,619 for restorations to the co-curricular programs . MINUTES BOi~RD OF FINANCE OCTOBER 11, 1990 PAGE 7 Mr. McPhee stated that as a result of a ground swell movement from parents, the Board of Education is coming before the Board of Finance for funds to reinstate co-curricular programs at the High School and McGee School. Mr. Lomaglio asked if the outcry was just for restoration of programs at McGee. Chairman McIntosh responded that parents of both the high school and McGee students attended the meeting. However, his concern is that there is no assurance that any money requested would be used exclusively for sports programs. He referred to the $300,000 that had been previously restored to the Board of Education that was not all used for sports. He asked Mr. McPhee what assurances could be given to the Board of Finance. Mr. McPhee responded that the parents approached the Executive Board and a worksheet was presented. That worksheet has now been fine tuned and the intent is to use the requested funds for sports. As for the $300,000, $244,000 was used for cocurricular activities and the balance went to other items that were sorely needed. Mr. Lomaglio asked what was done with their $129,000 surplus. Mrs. Bertagna stated that when the fiscal year ends, any funds left over should be turned back to the general fund. She too asked what happened to the $129,000 surplus. Mr. McPhee responded that the funds were not held over, they were used to pay for contractual items for retirees in the 1989-90 fiscal year. Mrs. Bertagna stated that $79,000 was paid out for retirees and asked if the retirement was in effect as of June 30, 1990. Mr. McPhee responded yes, because it can not be paid out of the next fiscal year. Mrs. Bertagna stated that if the Board of Education had knowledge that these individuals were retiring during the 1989-90 fiscal year, then money should have been budgeted for these costs. Mrs. Bertagna then asked what the $60,000 for general athletics included. Mr. Hall provided the Board with a breakdown of the $60,000. Discussion followed concerning the cuts made to athletic staff and MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 8 Mr. McPhee responded that it came from a salary account. Enough money had been accrued to fund the McGee soccer program. Mrs. Ragazzi stated that when the budget was prepared, the Board of Education was given a higher percentage increase than any other Town department and an additional $300,000 was given to them at a later time. Mrs. Ragazzi added that the Board of Education should have enough money in their budget to fund sports. In addition, she stated that there should be a moratorium on spending of any surplus money. Mrs. Bertagna asked if there would be any problem with scheduling if sports were replaced. Mr. Hall responded that letters had been written stating that Berlin would not be participating in some of the schedules. At this point, he would get on the telephone and try to work something out. However, there would be no problem with sports coming up in the spring. Mr. Jortner stated that it is very clear that if sports were not restored at McGee, there would be an impact on those students. He asked how many high school students are effected. Mr. Hall responded that the impact can be seen on the field at practice time due to the cut in the athletic staff. Mr. Jortner asked if that justs shows the effect on quality but not students being left out. Mr. Hall replied that JV golf would not exist. Mr. Jortner asked if there was not some way that the Board of Education could help out from their own budget. Mr. McPhee responded that there was approximately $29,000 of available funds, but because of the fuel situation he does not want to see it given out. Discussion followed on the utility accounts and the fuel situation. Mrs. Bertagna stated that she would like to express a problem that she is having. She can understand how parents feel but there is the fact that the Board of Education had a $129,000 surplus but elected to put that money elsewhere. She has been sitting here and listening to Mr. Hall's account of the situation at the high school and he appears to be destitute, but the Board of Education has not even offered one penny to help this man out. If the Board of Education does not believe that sports are important, then who are the Board of Finance to say that sports are important. The parents believe what the Board of Education MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 9 is telling them, but the Board of Finance can not become the scape goats. The Board of Education receive $1.4 million over last year's budget and an additional $300,000 for sports. The Board of Education has refused to fund the sports programs. The Board of Finance are not the culprits, the parents should ask the Board of Education where the money is going. Mr. Galvin stated that there are wider issues here than just what is on the table. The Board of Education is wrestling with problems of staff reductions, postions vacant due to retirement were not replaced. They do not want to have to lay off staff. Funding this request could solve an awful lot of problems. The hours at the media center can be expanded, an intramural basketball team could be formed for evening play and an additional physical can be given to students. Mr. Lomaglio stated that he agrees with both Mrs. Bertagna and Chairman McIntosh, but there are kids out there who are being used as pawns. The Town does not have a community center. It may be that the Board of Education has screwed up but we have to look out for the kids. It is not the Board of Finance's responsibility to tell the Board of Education how to spend its money. Mrs. Ragazzi disagreed, she stated that it is their responsibility. Mayor Peters stated that he agrees with Mr. Lomaglio, that we are not here to point fingers, and he does not stick his nowe into other people's business, but when parents start coming to him, then it becomes his business. He stated that everyone should be working hand in hand to keep the kids away from booze. He is here to support the kids and does not see a problem if the Board of Education makes a commitment to use the money for sports. They can not put the commitment in a letter because it is illegal, but it is clearly stated in their minutes. If the money is not used for sports then we will ask for it back. Mr. Jortner stated that the Town has come across with a windfall and is certainly not destitute. Mrs. Ragazzi asked if Mayor Peters went to the Board of Education after the parents came to him. The parents should be asking the Board of Education to come up with the money for sports. She added that she is very sympathetic to the needs of the children. She has grandchildren in the school system, but it just gets to the point where enough is enough, the taxpayers will eventually suffer. Mr. Henry Russack addressed the Board. He stated that he has two grandchildren in this educational system. However, they are all missing the boat. He suggests that they forget who is at fault. There is no doubt in hia mind that this is a well planned fiasco that is bouncing MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 10 back at the Board of Education. While everyone is laying blame, the children are suffering. Since he is on a fixed income, he does not want to see any of this windfall spent because we are on the way to a recession, but the children have to be considered. The only money to be spent out of the surplus should be for sports. He also suggested that an investigator should be hired because it appears that something phony went on here. The Board should agree to the request to get sports rolling and then hire a committee to look at the Board of Education's expenditures. Chairman McIntosh stated that he agrees 100%, but it is not the money, it is the principal. Mrs. Bertagna stated that the Board is not here to point fingers but believes the money is in the Board of Education's budget. They had $129,000 extra. Mr. Prygoda addressed the Board. He provided his background as a former member of the Board of Education. He stated that blame is a negative and the Town would be buying big trouble if the kids can not become involved with sports. He requests that a compromise be made and as a parent does not care where the money comes from. Mrs. Ragazzi stated that it appears that sports are not important to the Board of Education. Mr. Lomaglio stated that they have been discussing this for too long and that it should be passed for the kids and can be discussed later. Mrs. Ragazzi stated that it is only October. The Board of Education should fund sports out of its budget and if they run out to come back for a request for additional funds. Mrs. Bertagna asked if they could compromise. It would be the reasonable thing to do. Mr. McPhee stated that he has taken insults for an hour. There is no money in the well. Mr. Lomaglio asked if it was possible to take the money out of the oil account and if the Board of Education falls short, they can come back for funds. Mr. McPhee responded no, there is no way they could believe that they would not be denied. Mrs. Carol Getteorex stated that discussion has already taken place. The point here is that the money should be appropriated and no blame should be laid. She urged the Board to vote on it. MINUTES BOAi~D OF FINANCE OCTOBER 11,1990 PAGE 11 Chairman McIntosh stated there is enough money in the Board of Education's budget to fund their sports programs. Mrs. Mary Piskorski addressed the Board. She stated that the money should be given to the Board of Education. If they say they do not have it, then it should come from the $2.4 million surplus. She is a taxpayer in this Town and the money came from her taxes. She added that she probably elected the Board and wants them to represent her and give them the money. Motion by Mr. Sam Lomaglio, seconded by Mr. Fred Jortner and VOTED to appropriate $53,619 to the Board of Education to be used for sports at Berlin High School and McGee. /%LL IN FAVOR: Mr. Sam Lomaglio, Mr. Fred Jortner. OPPOSED: Dr. John P. McIntosh, Mrs Audrey Bertagna, Mrs. Ida M. Ragazzi. The audience left the meeting. Chairman McIntosh requested that it be noted that Mr. McPhee was the only Board of Education member present at tonight's meeting. CORRESPONDENCE The final appropriation-expenditure report for the 1989-90 fiscal year was distributed. Mr. Clinton informed the Board that the Water Control Commission has rejected the bond payment schedule presented to them by the Town. A meeting will be scheduled to discuss this issue. Chairman McIntosh informed the Board that he is in receipt of a letter from Mrs. Blanche Delaney requesting additional help for the library. Chairman McIntosh read a request from Mayor Peters to hold an audience of citizens before each meeting. Mrs. Ragazzi reminded the Board that Board and Commission meetings are not public hearings. Chairman McIntosh stated that the Board of Finance has never had a problem in recognizing citizens at its meetings. Mrs. Bertagna expressed her concern regarding the relationship between the Board of Finance and the Board of Education. Mr. Jortner stated that communication is important. MINUTES BOARD OF FINANCE OCTOBER 11,1990 PAGE 12 The Board discussed the earlier events regarding the Board of Education and possible ways of improving the relationship. Mr. Clinton suggested that a pre budget hearing with the Board of Education might be helpful. The Boards could agree that certain criterias be used on various line items and an amount agreed to for any new programs. Chairman McIntosh said that he had already done that and briefly described the categories. Mr. Clinton referred to categories that Chairman McIntosh compiled and said that they might be used for criteria. Chairman McIntosh stated that a percentage increase should be made to their existing budget. Mr. Clinton informed the Board that the Nursing Department will be submitting a budget change approaching $100,000, but the request will be fully reimburseable. Mr. Clinton also informed the Board that the Town has been hit on its Blue Cross/Blue Shield policy with a one person $155,000 claim. This was not anticipated. The Board discussed the current vacancy and set the date of October 23, 1990 at 7:00P.M. to elect a new member. MINUTES Motion by Mr. Sam Lomaglio, seconded by Dr. John P. McIntosh and VOTED to approve the MINUTES of the September 13, 1990 meeting as submitted. ALL IN FAVOR. The Meeting adjourned at 10:00P.M. Respectfully ~ub~tted, · Barbara H. Ba~ Secretary