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.
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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
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the radios by March 31 they would have a cost savings of $14,000. The
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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.
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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:
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Acct. #61 – level with last year’s budget
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Operational Budget – 3.34% increase
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No new staff
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Administrative – 3.68% increase
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Certified personnel – 4.55% increase
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Non-certified personnel – 1.79% increase
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Benefits - .358% increase
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Contractual Services - $70,137 decrease (lowest amount budgeted
since the 2005/2006 budget)
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Utilities – 1.6% increase
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Transportation – Increase of $152,437 – adding another bus run
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Tuition – 8.9% increase (Magnet School costs and state mandates)
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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.
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Supplies – decrease of $76,391 (Level with 1999/2000 budget)
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Equipment –decrease of $10,702 (Requesting the lowest amount since
the 2003/2004 budget)
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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.
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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:
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Floor Tile - $180,000 – floor is bubbling up from moisture
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Ceiling – McGee - $38,000 – needs to be addressed but not a safety issue
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Fuel Tank – Hubbard School - $6,800 – gauge is broken, not worth
repairing
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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.
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Budget Meeting – 3/16/2009
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Wall Removal – Hubbard School - $6,200 – wall near flagpole, safety
issue
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Fire Alarm Replacement – Griswold - $6,800
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Exhaust Fans – All schools - $6,000 – ongoing replacement
Items removed:
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HVAC Replacement – McGee - $25,000
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P/A Upgrade – Griswold - $6,800
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Chalkboards – All Schools - $5,500
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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:
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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.
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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.
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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
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