Loading...
2009-03-16bud Budget Meeting – 3/16/2009 TOWN OF BERLIN BUDGET COMMITTEE MEETING Monday, March 16, 2009 BOE Meeting Room – 6:00 p.m. Minutes A.CALL TO ORDER Chairman Robert Dacey called the Budget Meeting to order 6:05 p.m. B.PLEDGE OF ALLEGIANCE C.ROLL CALL Those in attendance were: Councilor Joan Carey (6:07 p.m.) Chairman Robert Dacey Councilor Rachel Rochette Mayor Adam Salina Councilor William Watson, III Absent: Councilor Stephen Morelli Also present: Town Manager Denise McNair Asst. Town Manager Tammi Saddler Finance Director Delois Johnson Budget Analyst Len Zielinski D.DISCUSSION ON DEPARTMENT BUDGETS 1.Police #32 Present for budget presentation: Police Chief Paul Fitzgerald Joseph Annuziata, Police Commission Chairman Police Chief Fitzgerald stated that his initial budget request included an additional Police Officer. He stated that the 24 hour position that they have been trying to fill entails more than three hires. He was hoping to fill one position each year but understands that this is not the time to request additional personnel. 1-205 Maintenance and 1-205-2 Computer Support: Police Chief Fitzgerald explained that the increases in both of these accounts are due to the new technology project. The funds will be used for laptops for the Police Station and maintaining that system. 1/9 Budget Meeting – 3/16/2009 He stated that he has been working with his staff and Fleet Manager James Simons to come up with a strategy on capital purchases. Vehicles are needed every year due to the mileage that is put on the patrol cars. They had projected next year to buy pistols and radios but that was previous to the decline in the economy. They will still be requesting the SUV but they will be withdrawing their request for the unmarked vehicle and the remaining funds would be reallocated to purchase the pistols and radios. The vehicle that the SUV will be replacing is the current D.A.R.E. vehicle that has over 100,000 miles on it. Chairman Dacey stated that the Police Chief discovered that if they purchase st the radios by March 31 they would have a cost savings of $14,000. The st Town did release the freeze that they instituted until April 1 on purchasing certain items because of the cost savings to the Town. The vehicle account will go down to $190,000 and the radios and pistols will go down to $0 in the proposed budget. Police Chief Fitzgerald stated that he will need a transfer of $100,000 from the salary account to the overtime account for the remainder of this fiscal year. Chairman Dacey thanked the Police Chief for his budget presentation. (Recess: 6:25 p.m. to 6:28 p.m.) 2.Community Services #55 Present for budget presentation: Antoinette Pajor, Community Services Director 1-110-1 Instructors: Requested $9,000 – Reduced to $8,500 – Adding a second exercise class due to the two year waiting list. The cost would be $2,250. Antoinette Pajor stated that they tried to work out a system where people would prepay for their classes but they have gotten back negative feedback from the participants. 1-207 Organizational Fees: Slight increase in this account. 1-252 Contractual Services: Reduced this account to $0 – moving it to Grants and Donations 1-280-1 Welfare: Requested $2,000 – pays for eviction costs. 2/9 Budget Meeting – 3/16/2009 Antoinette Pajor stated that she has an Agency Fund that she used to pay the $3,000 for the eviction in January, but this is not what the fund is intended to be used for, it is more for rent and utilities. Chairman Dacey suggested working with the Town Manager to establish some kind of procedure to recoup some of those funds. Town Manager McNair stated that the State is reviewing taking away the unfunded mandate that Towns are responsible for taking possession of the belongings of the people that have been evicted. 1-404 Bus: Antoinette Pajor stated that the $14,000 is budgeted but if the money is not received from the state the bus will not be purchased. Commission for Persons with Disabilities #26 Present for budget presentation: Antoinette Pajor, Comm. Service Director Antoinette Pajor stated that this budget is basically level with last year’s budget. 3.Board of Education #60 Present for budget presentation: Gary Brochu, President of BOE Superintendent Dr. Michael Cicchetti Roman Czuchta, Bus. Mgr. BOE Michelle Hartel, BOE member Irene Matulis, BOE member Gary Brochu, President of the Board of Education highlighted the Board of Education as follows: ? Acct. #61 – level with last year’s budget ? Operational Budget – 3.34% increase ? No new staff ? Administrative – 3.68% increase ? Certified personnel – 4.55% increase ? Non-certified personnel – 1.79% increase ? Benefits - .358% increase ? Contractual Services - $70,137 decrease (lowest amount budgeted since the 2005/2006 budget) ? Utilities – 1.6% increase ? Transportation – Increase of $152,437 – adding another bus run ? Tuition – 8.9% increase (Magnet School costs and state mandates) 3/9 Budget Meeting – 3/16/2009 Roman Czuchta stated that they have only budgeted the obligations that they have this year. If the half day at the Magnet School is imposed it can be a cost in excess of $40,000 and if the Hartford tuition has to be paid it would be another $38,000; these costs have not been budgeted. ? Supplies – decrease of $76,391 (Level with 1999/2000 budget) ? Equipment –decrease of $10,702 (Requesting the lowest amount since the 2003/2004 budget) ? All other Expenditures – decrease of $427 – Sending one person out for professional training and coming back and training 30 school staff. Chairman Dacey stated that the Board of Education is doing a good job but we are facing trying to hold the mill rate to a zero increase. He stated that he feels the teachers and administrators are fairly paid but we could be headed for a depression. The Budget Committee is trying to get to a zero increase but there is no way they can without impacting the Board of Education budget. He suggested that the Board of Education go back and review their budget to see where they could make further cuts and see what their employees are willing to give up. The Board of Education is going to have to provide the best education but with lesser funds. Gary Brochu stated that they are looking at the status of the stimulus funds, which are mostly dedicated to Special Education. In terms of other concessions, they cannot do that until they know what the number is that they have to work with. This is not a one year problem it is a multi year problem and they have to be very careful on the decisions they make on the budget. He feels that they can have greater leverage dealing with the negotiations on the teachers contracts as opposed to a wage concessions. Mayor Salina stated that there have been Mid-State Collaborative meetings with other towns and discussions have been held on the possible long term budget crisis. He realizes that the Town does has the ability to make larger reductions that will not have a detrimental affect on the citizens and understands that the Board of Education resources and tools are their teachers. We do not want to make cuts that will take ten years to make up from. It is going to come down to the administrators and department heads working with the union members. Gary Brochu expressed his concern about getting concessions from unions for this budget and how difficult it would be to go back to the unions for concessions on the next budget. The reductions to the budget must be made in a strategic way and they are willing to work with the Town. He feels that there will be less teachers in Connecticut next year. They have held back on filling vacancies except the for crucial positions that had to be filled. Contracts have to be reviewed to see exactly what the savings would be from a forced reduction. 4/9 Budget Meeting – 3/16/2009 Councilor Rochette expressed the importance of a good education system but during these economic times tough decisions are going to have to be made across the State. Councilor Carey stated that we should expect nothing from the stimulus funds at this time and we should operate the budget as though we are not getting those funds from the state. Superintendent Cicchetti stated that they receive Entitlement Grants through the State from the Federal Government and a lot of it is used for Special Education but they are very specific on how those funds are used. Councilor Carey stated that the Board of Education has to go back and see what they can do for a less money. She is hoping that the Board of Education will give the same level of cooperation with their cuts as the Town has made to their budget. Gary Brochu stated that they have reallocated over $1 million dollars in their budget over the past years to do better with less. Chairman Dacey thanked Gary Brochu, Superintendent of Schools Dr. Michael Cicchetti, and the BOE members present, for their budget presentation. School Expenses #61 Present for budget presentation: John Pajor, Superintendent of Building Maintenance 1-219 Parts: Requested $135,200 – Increase of $5,200 over last year’s budget due to the increase costs for parts. 1-252 Contractual Services: Requested $217,260 1-270 Contractual Services: Requested $355,700 – Reduced to $281,000 Remaining projects in this account are as follows: ? Floor Tile - $180,000 – floor is bubbling up from moisture ? Ceiling – McGee - $38,000 – needs to be addressed but not a safety issue ? Fuel Tank – Hubbard School - $6,800 – gauge is broken, not worth repairing ? Security Upgrades – All schools - $24,000 – additional security cameras and door swipes needed Chairman Dacey suggested taking the $24,000 out of this account and use the money that is in the Homeland Security and COPS grants. 5/9 Budget Meeting – 3/16/2009 ? Wall Removal – Hubbard School - $6,200 – wall near flagpole, safety issue ? Fire Alarm Replacement – Griswold - $6,800 ? Exhaust Fans – All schools - $6,000 – ongoing replacement Items removed: ? HVAC Replacement – McGee - $25,000 ? P/A Upgrade – Griswold - $6,800 ? Chalkboards – All Schools - $5,500 ? Replace Stage rigging – BHS - $37,400 1-277 Excess Special Education Grant: Chairman Dacey stated that the revenues are equivalent to the expenses. The Town must expend the funds first before they are reimbursed from the State. 1-132 Unemployment Compensation: Requested $23,805 – Finance Director Delois Johnson stated that they have exceeded this account in the current budget by $20,000. The committee will revisit this item. Chairman Dacey thanked John Pajor for his budget presentation. 4. Water Control Commission Present for budget presentation: Art Simonian, Public Works Director Chairman Dacey stated that the Town has no control over the Water Control budget. This budget is established by the Public Works Director and the Water Control Commission and it will go to a public hearing to be voted on. Water Fund #43 Revenues: 1-170 Use of FB: Public Works Director Art Simonian stated that they reduced this budget by 11%. $188,757 is going back into retained earnings. 1-190 Transfers: Budgeted $0 1-271 Taxes: Budgeted $0 1-272 Sale-Water: Budgeted $1,184,000 – 41% rate increase went into effect in October of 2008, a 60% rate increase in 2007. 1-275 Assessment: 6/9 Budget Meeting – 3/16/2009 Assessments are down – Last year $14,000, budgeting $10,000 for this budget Water Fund Expenses: 1-181 – Purchase Water/Sewer Main: Requested $903,000 – Purchase water from New Britain – Trying to utilized more of our own wells. 1-183 Pumping Expense: More favorable rate with CL&P 1-184 – Transmission & Distribution: Overall this account is a reduction of $18,000 from last year’s budget Maintenance of water mains – reduced from $5,000 to $500 Maintenance Service – increased to $10,000 1-188 Capital Expenditures: Last year budgeted $296,612 – this year budgeting $81,668 – Putting off doing the water main loop on Savage Hill Rd. Water Main repair – Requested $50,000- water pipes are quite old and need replacing. Chairman Dacey suggested transferring some of the funds from the Water and Sewer account to do some of the capital items. Art Simonian stated that they made a reduction of approximately $200,000 in the purchase of water this year and it will help out with keeping the rates flat for this year and next year. Finance Director Johnson stated that their fixed assets are not an expense to their budget the depreciation on the fixed assets is. Fund 44 Sewer Revenues: 1-170 Use of Fund Balance: $84,827 – Utilizing to balance the budget. 1-272 Sales of Sanitary Sewer: $982,000 – 20% increase in sewer charges $378,000 – Public Authority – sewer disposal costs – Need to look at repairing our sewer system. Chairman Dacey stated that Berlin has twelve pump stations and it has driven up our costs up. 7/9 Budget Meeting – 3/16/2009 Art Simonian stated that our rate increase from Mattabassett was 6.1% and the overall budget for Mattabassett went up 1%. 5. Town/BOE Principal & Interest #63-66, Transfers #67 Present for budget presentation: Delois Johnson, Finance Director Finance Director Johnson stated that in September of 2009 when the Towns BANS (Bond Anticipation Notes) mature we will be going to the market for permanent financing. This will create an additional interest payment between $262,000 and $269,000 depending upon the amortization period for that bond issue. She stated that any items that the Council has already authorized would not be included the guesstimate for the interest or permanent financing. The CIL, the McGee and the Griswold School projects have not been factored in. Dept. #63 – Principal Payment – Town Finance Director Johnson stated that if you look at Department #63 there is no change yet. Dept. #64 – Principal Payment - Schools Finance Director Johnson stated that in 2009 we will be paying off the existing debt for McGee and Hubbard School. Debt Service is dropping $575,000. Dept. #65 – Interest Payments - Town of Berlin The Issue for 2009 is the existing BANS that are outstanding. This is offset in the Revenue account. Dept. #66 – Interest Payments – School Dept. #67 – Transfers – Town Finance Director Johnson stated that after speaking with the Town Assessor she feels we could cut $45,000 transfer from this budget for the transfer to evaluation. It was the consensus of the committee to discuss the Revenues at the next budget meeting. E.MINUTES The committee will vote on at a future meeting. F.ADJOURNMENT Mayor Salina moved to adjourn the meeting at 8:45 p.m. Seconded by Councilor Carey. 8/9 Budget Meeting – 3/16/2009 Those voting in favor were: Councilor Carey, Councilor Rochette, Mayor Salina, Councilor Watson, III Chairman Dacey Vote being 5-0. (MOTION CARRIED) Submitted, Kathryn J. Wall ______________________________ Clerk of the Meeting Robert Dacey, Chairman 9/9