2018-05-08 TOWN OF BERLIN
REGULAR BOARD OF FINANCE MEETING
May 8, 2018
John"Doc"McIntosh Room
7:00 P.M.
A. CALL TO ORDER
Chairman Lomaglio called the meeting to order at 7:02 p.m.
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
ATTENDANCE:
Commissioners Present: Sal Bordonaro, Mark Holmes; Sam Lomaglio; Gerald Paradis; John
Richards
Commissioners Absent: Kevin Guite
Staff Present:
Kevin Delaney—Finance Director
Jack Healy—Town Manager
D. PUBLIC COMMENTS
John O'Brien, 12 Vineyard Drive—Discussed the Police Overtime budget item. Mr. O'Brien
is concerned with public safety, and wonders what would happen if 2 or 3 officers called in
sick and there was no overtime budget to fund staff coverage. He hopes the $SOK overtime
pay makes it back into the budget and thanked the BOF. Mr. O'Brien also stated that during
the budget vote period, he noticed the Police Commissioner displayed a 4' x 8' reflective red
sign that read, "Axe the Tax" at his home on Percival Avenue. He doesn't understand how
the Police Commissioner can represent the Police Department but want to cut the taxes that
fund the department. Mr. O'Brien also stated that Percival Avenue is a State road, and any
signs are supposed to be 18' in from the curb. The sign displayed was 2' in and was illegal.
E. APPROVAL OF PRIOR MINUTES: Apri19, 2018 Joint BOF/Council Budget Meeting
April 10, 2018 Regular BOF Meeting
Apri126, 2018 Special Budget Meeting
Mr. Holmes moved to approve the April 9, 2018 Joint BOF /TC Budget Meeting Minutes, the
April 10, 2018 Regular BOF Meeting Minutes and the Apri126, 2018 Special Budget Meeting
Minutes, which was seconded by Mr. Richards. The motion passed unanimously.
1
F. OLD BUSINESS
l. Discuss To�vn Council guidance for FY2019 revised General Fund budgets.
Mr. Paradis had a conversation with Mayor Kaczynski, who didn't give any specific
number"goal." Mr. Paradis got the sense that Mayor Kaczynski thought the BOFs cuts
to the Town budget were pretty deep.
2. Vote on the General Government and Board of Education FY2019 budgets.
General Government Discussion:
Town Manager Healy suggested that the Town reduce the proposed FY18-19 bond by
$532K. The uncertainty surrounding State transportation funding will delay the timing of
bridge repairs, and he is comfortable delaying that bonding for the time being. That
money wouldn't come out of the budget, but the operating budget would realize a$16K
savings in bond issuance and debt service.
Mr. Delaney described the four-step bonding process:
1. Town Manager is authorized to engage bond council;
2. Hold a public hearing;
3. TC votes on the bond request;
4. BOF votes on the bond request.
Mr. Paradis moved to reduce the General Government Expenditures by$195,600 (Bridge
Preservation Work), with the presumption that it will part of the upcoming bond
authorization. Mr. Bordonaro seconded the motion, �vhich passed unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$120,000
(Sidewalk Replacement/TAR) with the presumption that it will be part of the upcoming
road bond authorization. Mr. Bordonaro seconded the motion, which passed
unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$50,000
(Contingency). Mr. Bordonaro seconded the motion, which passed unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$100,000 (VNA
Operating). Mr. Bordonaro seconded the motion, which passed unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$134,306
(Homemaking Department Expenses). Mr. Bordonaro seconded the motion, which
passed unanimously.
BOF members unanimously agreed to leave the Police Department $50,000 Overtime
line item in the budget.
2
Mr. Paradis moved to reduce the General Government Expenditure by$54,000 (Part-time
positions added by BOF that were excluded by Town Manager). Mr. Bordonaro
seconded the motion, which passed by a vote of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by $33,000 (Police
Cruiser). Mr. Bordonaro seconded the motion, which passed by a vote of 3-2. (Mr.
Holmes and Chairman Lomaglio voted against.) Chairman Lomaglio stated that he will
be really upset if the BOF is asked for a replacement vehicle during the year.
Mr. Paradis moved to reduce the General Government Expenditure by$25,000 (Masonry
repairs at Schools). Mr. Bordonaro seconded the motion, which passed by a vote of 4-1.
(Mr. Holmes voted against.)
Chairman Lomaglio personally inspected the auditorium carpeting at McGee Middle
School. The condition is very poor, it has many holes and hasn't been replaced in many
years. He originally proposed to reduce the budget amount, but now wishes to leave the
budget line item at$25K.
Mr. Paradis moved to reduce the General Government Expenditure by$10,000
(Electrical repairs at Schools). Mr. Bordonaro seconded the motion, which passed by a
vote of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by $10,000
(Plumbing repairs at Schools). Mr. Bordonaro seconded the motion, which passed by a
vote of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by $5,000 (Drinking
fountains at Schools). Mr. Bordonaro seconded the motion, which passed by a vote of 4-
1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$20,000 (Sports
equipment cages @ BHS). Mr. Bordonaro seconded the motion, which passed by a �-ote
of 3-2. (Mr. Holmes and Chauman Lomaglio voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$10,000
(Electrical safety load repairs at BHS). Mr. Bordonaro seconded the motion. Town
Manager Healy stated that PBC will likely not fund the items, as there are pending claims
and a list of other�vork that remains. BOF discussed the fact that Mayor Kaczynski
wanted this item moved out of the budget initially, along with the sports cages to be
funded by the renovation bond. The motion passed by a vote of 3-2. (Mr. Holmes and
Chairman Lomaglio voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$8,000 (Police
Computers). Mr. Bordonaro seconded the motion,which passed by a vote of 4-1. (Mr.
Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$18,000 (All Other
Pool Cars). Mr. Bardonaro seconded the motion, which passed unanimously.
3
Mr. Paradis moved to reduce the General Government Expenditures by$25,000
(Masonry Repairs at Town buildings). Mr. Bordonaro seconded the motion, which
passed by a vote of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditures by$45,000
(Revaluation Transfer FY19). Mr. Bordonaro seconded the motion, which passed
unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$35,000 (Phase II
HVAC Work at Senior Center). Mr. Bordonaro seconded the motion, which passed
unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$17,500 (Service
Vans). Mr. Bordonaro seconded the motion, which passed unanimously.
Mr. Paradis moved to reduce the General Government Expenditures by$45,000 (Physical
Services Roof Repairs). Mr. Bordonaro seconded the motion, which passed by a vote of
4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$7,000 (Tables &
Chairs Community Center). Mr. Bordonaro seconded the motion, which passed by a vote
of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$8,300 (New
Elliptical Community Center). Mr. Bordonaro seconded the motion, which passed by a
vote of 4-1. (Mr. Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$15,000 (Kitchen
Cabinet Replacement Senior Center). Mr. Bordonaro seconded the motion. Mr. Delaney
stated that Facilities requested the replacement, as it has been making repairs to the
particleboard cabinets for years, and they are beyond repair right now. The motion
passed unanimously.
Mr. Paradis moved to reduce the General Government Expenditure by$15,000 (Town
Technology). Mr. Bordonaro seconded the motion, which passed by a vote of 4-1. (Mr.
Holmes voted against.)
Mr. Paradis moved to reduce the General Government Expenditure by$16,500 (Debt
service - Bond reduction interest expense). Mr. Bordonaro seconded the motion, which
passed unanimously.
Mr. Paradis moved to increase the General Government Income assumption by$75,000,
which was seconded by Mr. Bordonaro. Mr. Delaney explained that interest rates are
rising and he is comfortable increasing the interest assumption. The motion passed
unanimously.
Mr. Paradis moved to reduce the General Government Income by$32,720
(Homemaking). Mr. Bordonaro seconded the motion, which passed unanimously.
4
The expense reductions and income modifications would result in a 32.77 mill rate, or an
increase of 1.16 mill. (Reduced expenditures by$977K, and increased revenue by
$42K.)
BOE Discussion:
Chairman Lomaglio spoke with Corporation Counsel, and per the Ethics Policy(Section
18-19), Mr. Richards should recuse himself from discussing or voting on BOE items, as
he is an active BOF Member seeking employment at the BOE.
Mr. Paradis thinks that the BOF did a good job on the original budget, and BOE is an
important part of what the Town offers. He feels BOF should not turn its back on BOE,
but the public vote called for a reduction. Mr. Paradis moved to reduce the BOE budget
by$50,000. The motion was not seconded.
Mr. Bordonaro stated the voters overwhelmingly asked for a reduction. Mr. Bordonaro
moved to reduce the BOE budget by$200,000. The motion was not seconded.
Chairman Lomaglio stated that per Corporation Counsel, in the event of a stalemate BOF
members must vote to send the original BOE budget($43,881,000) to TC.
Chairman Lomaglio stated that he was very upset— only 17% of citizens voted, and he
feels that the votes were a result of signs in the community. Chairman Lomaglio stated
that the Republican Town Committee Leader is leading people down the�vrong road by
calling for layoffs of Town and BOE staff and disparaging the BOE Superintendent.
Chairman Lomaglio continued to say that the Republican Town Committee Chair is
harming Berlin by knocking the Town and its education system. Chairman Lomaglio
encouraged TC members to leave the BOE budget in tact and not make reductions.
Mr. Bordonaro responded that from his perspective, no one person is able to sway the
entire voting public. He stated that the voters called for reductions of both the Town and
BOE budgets. BOF responded by taking $1 M out of the Town budget, and if the Town is
forced to absorb the reduction, so should the BOE. Chairman Lomaglio countered that if
the Town needs money in a crisis situation, it can always bond or take out of General
Fund balance. BOE doesn't have that option.
Mr. Holmes stated that the BOF's job is not clearly defined in the Town Charter. In his
opinion, it is to craft a responsible budget, and not to pander to voters. He feels that
cutting the budgets is not investing in our town.
Mr. Richards stated that regardless of the demographics of the last referendum vote, the
Town needs more than 1/6 of its residents informed and voting.
Holmes—move to recommend 43881 to TC ... second—sam. Sal against. Richards
abstained.
5
a. Move to recommend the Board of Education budget of$43,881,000 to the Town
Council per Section 7-6(e) of the Town Charter.
Mr. Holmes moved to recommend the Board of Education budget of$43,881,000
to the Town Council per Section 7-6(c) of the Town Charter, which�vas seconded
by Mr. Lomaglio. The motion passed by a vote of 3-1-1. (Mr. Bordonaro voted
against. Mr. Richards abstained.)
b. Move to recommend the General Government budget of$44,644,542 to the Town
Council per Section 7-6(e) of the Town Charter.
Mr. Paradis moved to recommend the General Government budget of
$44,644,542 to the Town Council per Section 7-6(c) of the Town Charter, which
was seconded by Mr. Bordonaro. The motion passed unanimously.
G. NEW BUSINESS
1. Review Financial Status report- Finance
• Received 3`d installment ofECS. (1� installment: 25%; 2°d installment: 25%;
3rd installment: 50%.) Expect to recei��e $786K Municipal Project grant end
of May.
• Revenue: almost 97% of budget. ($786K coming in will help.)
• Tax receipts: 99.2% of budget. 98.2%to levy—strong trend of collection
• Expenditures: 97% of budget. Storm-related overtime is about $7K over
budget. (Last year, was $15K over.)
• General Insurance Fund: There are a couple of heart/hypertension claims.
One claim is with an attorney(was originally denied); the other is an
emerging claim. They could represent about $200K exposure.
• Town o�vns a few properties that are contaminated— any remediation goes
thru the insurance fund.
• Pension fund— 1 inactive/vested participant filed retirement paperwork. It is
expected the individual will choose a lump-sum payout. There are still 3-5
potential ne�v retirements. If 3 people retire, $1.6M in the budget will cover
most (possibly all) of payout expense. If more than 3 retire, a General Fund
transfer will be needed to fund payouts.
• Library elevatar is operational. Waiting on last 2 in��oices. Received 90% of
grant funding from the State. The remaining 10% is being held until the
6
project work and billing is complete. Library is waiting on the last two
invoices.
• Police radios—will likely end up a little over budget—will request transfers
from other completed projects.
• Will present transfer requests at next meeting.
2. Discuss lease approval process
Mr. Richards asked about the Timberlin golf cart lease that was discussed and approved
at a recent TC meeting. He was concerned about TC authorizing the Town Manager to
sign a lease to be funded by a budget that isn't yet passed. Mr. Richards was concerned
that the cart lease was another instance of "credit card philosophy" and that the Town
was now bound by the lease.
Mr. Delaney explained that�vhen leases are entered into by municipalities, there is an
appropriation clause that allows a certain notice period(30-60 days)where the
municipality can terminate the lease and return any relevant equipment.
Mr. Delaney also informed the BOF that the new lease is slightly lower than the current
budget, and the lease is for 75 carts at $57K/year with a balloon payment at the end.
The new lessor�vould pay the balloon payment of the cunent lease and assume the old
vehicles.
H. ADJOURNMENT
Mr. Holmes moved to adjourn the meeting at 8:09 p.m., which was seconded by Mr. Paradis.
The motion passed unanimously.
Submitted by,
Dana Borges
R�ERLl�TDWN CIE�K�
2oi�MaY �s �n it= �2
�' �.
� BERlIM,Et,