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2018-03-15 Special TOWN OF BERLIN BOARD OF FINANCE BUDGET MEETING SPECIAL MEETING Thursday, March 15, 2018 John "Doc" McIntosh Conference Room 7:00 P.M. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL ATTENDANCE: Members Present: Sal Bordonaro, Kevin Guite, Mark Holmes; Sam Lomaglio; Gerald Paradis; John Richards Members Absent: none Staff Present: Kevin Delaney—Finance Director 4. DISCUSSION ON DEPARTMENT BUDGETS: 1. Discussion and possible vote to send To�vn budget to Annual Budget Hearing Mr. Delaney provided the BOF with an updated 10-year plan plotting proposed capital expenditures for FY19 and forward, proposed mode of funding, along with items to be bonded. Mr. Paradis asked if�vhen the budget is printed, if it will have all of the line-by-line detail for the capital expenditures (including those items cut or moved out to show what�vas eliminated). Mr. Bordonaro reported that he spoke with Mayor Kaczynski about the possibility of defunding the Homemaking Services department. The Mayor thought it a good idea to let the program go another year to see how it does �vith the new leadership, but he was also not necessarily opposed to the potential of defimding. BOF agreed to see what happens this coming year. Chairman Lomaglio had a very positive 2-hour meeting with the BOE where he outlined the BOF's concerns and suggested a budgetary range. BOE indicated it really wants to work with BOF, and is reworking its 1 budget proposal to try and conform/ compromis� with BOF's guidelines. BOE asked for a few days to work on the details, and Chairman Lomaglio indicated that BOF would have to hold off on voting for the BOE budget. Mr. Holmes asked to clarify two prior votes—BOF voted to remove a transfer of General Fund Balance to cover money already spent ($290K), and also voted to include a transfer of General Fund Balance to cover money not yet spent ($1.8M). Mr. Paradis confirmed that was correct. Mr. Delaney explained that the Budget Dashboard he provided includes Board of Finance's $3.368M department request reductions (includes capital, operating, transfers), successful Assessment appeals revenue reduction, General Fund Balance transfers. The current Town budget (which does not show any concessions from BOE) is $90,439,801 representing a 2.08 mil rate/ 6.6% increase; before any adjustments to the BOE budget. Mr. Delaney continued that for a home valued at $250K (��ith a taxable value of$175K), that house would pay $364 more in ta�es with the increased mil rate. He pointed out that the State cuts in our budget represent $22M, so essentially 1 mil of the increase is just making up for the State reductions. Chairman Lomaglio commented that paying more ta�es hurts, but people have to understand that 1 mil is directly related to the State cuts. The ta�pay�ers �vill have to endure a modest increase to make up for last year's very shy capital budget. Mr. Guite added that once the bonding is paid do�vn, the debt payments should be able to be redirected. Chairman Lomaglio feels this budget is responsible, it funds capital, it fiinds the BOE, funding operating expenses. He stated that residents are under a misimpression that the Town, BOE have large reserves and that the tow�n can continue to absorb its expenditures �vith very low tax increases. Mr. Richards thinks the BOE budget increase should be about 3% - this budget will show we're gro�ving out town, gro��ving the BOE and attacking the capital. BOF will meet on Tuesday, 3/20/18 at 7:45. Mr. Lomaglio will share the BOE proposal once he receives, it should be ready for a vote on Tuesday night. 2. Discussion and possible vote to send Board of Education budget to Annual Budget Hearing 3. Discussion and possible vote to send Berlin Water Control budget to Annual Budget Hearing 2 5. ADJOURNMENT Mr. Paradis moved to adjourn at 7:29 p.m., ���hich was seconded by Mr. Holmes. The motion passed unanimously. Submitted by, Dana Borges RECEIVED FOR REC�I�p BERLlN i'OWN C�E�K 2016 MaR 2o AM 9� 4? � � 3 B£Rl.�N,C�