2020-02-11 2020-02-IIBoard ofFinance Meeting
TOWN OF BERLIN
BOARD OF FINANCE
February 11, 2020
"Doc" McIntosh Room
7:00 P.M.
A. CALL TO ORDER
Chairman Lomaglio called the meeting to order at 7:10 p.m.
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
ATTENDANCE:
Members Present: Sal Bordonaro, Tim Grady, Sam Lomaglio, John Richards
Members Absent: Mark Holmes, Gerald Paradis
Staff Present:
Kevin Delaney—Finance Director
D. PUBLIC COMMENTS
None.
E. APPROVAL OF PRIOR MINUTES January 14, 2020 Regular Meeting
Mr. Richards moved to approve the January 14, 2020 minutes.
Seconded by Mr. Bordonaro.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
F. ADDITIONS TO THE MEETING AGENDA
Mr. Richards moved to add a Board of Education update (item H3)to the agenda.
Seconded by Mr. Bordonaro.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
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G. NEW BUSINESS
1. Discuss Police I)epartment FY 2021 Budget.
Police Commission Chairman Paul Eshoo stated that the Police Department aims to keep fully
staffed to protect residents. Through a year,the Department will lose staff inembers to
retirements,resignations, illness and/or workers' compensation claims. He asks that the Police
Department budget not be cut.
Police Chief Klett stated that he prepared the Fiscal Year 2021 budget for assuming a full staff and
is not able to predict things like workers compensation absences, resignations or retirements. Nor
can he predict when a major crime will occur and cautions against preparing a budget assuming
reduced staffing. If the Department is short-staffed, salary funds are redirected to overtime in
order to keep the department staffed at all times to respond to community needs. When the
Department is short-staffed, any salary/benefit savings are returned to the Fund Balance (typically
less than 3% of the total budget). Chief Klett stated that he does not intentionally overbudget, and
in fact would like to add more Police Officers beyond what is in the proposed budget. He noted
that the Town has approved the addition of 200 apartments on Farmington Avenue and 7�
apartments on Episcopal Road. It is also considering the addition of another 200 apartments on
the Berlin Turnpike, all of which will increase demand on Police services.
Chief Klett also stated that the School Resource Officers ("SROs") stationed at McGee Middle
and Berlin High School are not security guards. They are law enforcement officers who are in the
schools to mentor kids, provide role models, teach classes and gain intelligence about activities in
the school. He cautions about eliminating SROs from the schools but�velcomes the addition of
dedicated Security Officers in McGee Middle and BHS to augment the SROs.
Berlin has seen a pattern of training Police staff(at an approximate cost of$50,000 - $60,000 per
officer) and losing those officers to surrounding communities with better pension benefits. A
Pension Committee has been formed and is trying to improve Berlin's pension offering to retain
the officers it hires and trains.
2. Move to appropriate $1,383,666 of Unassigned Fund Balance within the General Fund to the
Pension/Actuarial Funding account`vithin the General Fund to fund the actuarially
determinecl contribution for fiscal year 2020.
Mr. Bordonaro moved to appropriate $1,383,666 of Unassigned Fund Balance within the General
Fund to the Pension/Actuarial Funding account within the General Fund to fiind the actuarially
determined contribution for fiscal year 2020.
Seconded by Mr. Grady.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
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3. Move to appropriate$14,200 from the Personal Property Taxes and Back Tax Interest
accounts in the General Fund to the Contractual Services account in the Assessor's
Department.
Mr. Bordonaro moved to appropriate $14,200 from the Personal Property Taxes and Back Tax
Interest accounts in the General Fund to the Contractual Services account in the Assessor's
Department.
Seconded by Mr. Grady.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
4. Move to appropriate$7,3�9.50 from the Sale of Land, Labor, & Materials Revenue Account
to the Storage Unit and Equipment Account in the Capital Nonrecurring Fund.
Mr. Bordonaro moved to appropriate $7,359.50 from the Sale of Land, Labor, & Materials
Revemie Account to the Storage Unit and Equipment Account in the Capital Nonrecurring Fund.
Seconded by Mr. Grady.
Mr. Delaney reported that Public Grounds sold e�cess equipment from Sage Park and request to
use those proceeds to ptuchase two containers to store excess turf and other materials from the
recent Scalise Field turf renovation. These storage containers will allow the excess material to be
secure and available for any repairs needed during the life of the field.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
5. Financial status update:
• Receipts—
o Tax receipts—collection rate in Jamiary is slightly behind prior year, as January 31,
2020 fell on a Friday and the payment deadline was on Monday, February 3, 2020.
February 2020 collection (as of 2/10/20) was significantly higher than prior year, so
receipts may finish slightly better than last year.
o Legal fees—watching closely.
■ Trying to work through union negotiation without attorneys.
■ Lawsuits pending re Eversource tax assessment appeal and Atkins Street
P&Z issue. �
• Health insurance fiind—Continues to be a challenge. Three people are over (with a fourth
nearing) the $150,000 stop loss threshold, at which point reinsurance takes over funding.
This should lead to more stability.
• Pension Fund—position after the with 1,383,666 appropriation(item G2 above) will
improve.
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2020-02-11 Board of Finance Meeting
• Projects:
o Jail cells—waiting on final bill. Facilities will install a more powerful fan to
address one ventilation issue. $20K of contingency remains—Police would like to
repurpose that funding and build a soft interview room in the existing records area.
o Town Hall doors and storefronts—planning to add power-assist doors and card
access system to all Town Hall doors, including Police Department and Boaxd of
Education.
o Burnham Street Bridge—top railing remains incomplete.
o High Road—work done, at end of process.
• 1% Fund:
o Blast classroom at McGee—Reno work is done, awaiting appliances.
o McGee Gym Painting—will go out to bid. The designated $37,000 may not be
enough to cover the cost, but the Board of Education does have money in its capital
non-recurring fund carried over from prior years.
o Security Guard—weapons and uniforms have been purchased. Would like to
purchase secure radio system for security guards that does not interfere with Police
communications.
• Risks & Opportunities:
o Opportunities:
■ Interest earnings strong—ahead of budget. Don't have exact number
■ Position vacancies—police retirements, Town Planner resigned.
■ Higher than budgeted tax receipts—
■ Contingency funds—
o Risks:
■ VNA
■ Legal Fees—continue to be high-tiying to handle labor matters�vithout incurring
legal fees to help offset Atkins Street litigation fees.
■ Timberlin kitchen—health inspector requires purchase of freezer and additional
preparation space. The Town will likely be able to absorb the associated costs
without requesting additional fiinding, and the risk has come down.
■ Refuse disposal—s�ving from a revenue source to a significant expense is a global
issue.
■ Health insurance.
The new Grand List sho�vs an 1.86% increase from last year, which represents about $1,478,000
of additional tax revenue (using the current mill rate).
H. OLD BUSINESS.
1. FY 2021 capital budget upclate.
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2020-02-IIBoarcl ofFinance Meeting
Finance Director Delaney provided an updated proposed capital plan to Town Council on
Febniary 4, 2020. The original capital plan included HVAC work at Willard, but that work will be
combined with HVAC work at the other elementary schools and referred to Public Building
Commission for completion at a future date. The capital plan proposes bonding $4,350,000 to
perform work on bridges and roads. Purchase of the pumper truck for the Fire Department may be
deferred depending on the ability to put the purchase out to bid (no need to borrow for something
that may not be purchased right away). The proposed capital plan continues Berlin's goal of
borrowing less money than it retires and reduces the impact to taxpayers.
2. Discuss Berlin Housing Authority request of the Town Council for$2 million Letter of
Intent.
Berlin Housing Authority Chairman Joe Bajorski requested that Town Council sign a Letter of
Intent to provide $2,000,000 of funding to�vard the construction of senior housing. Corporation
Counsel reviewed and modified the document so the Town is not required to borrow or provide
the fiindin�. Chairman Bajorski stated that his intention is to use the Letter of Intent as leverage to
kickstart the process and obtain financing from other sources.
3. Ne�v item: Board of Education review
Mr. Richards attended the Board of Education meeting on February 10, 2020 where it reviewed its
proposed budget. Superintendent Benigni originally requested an increase of 6.47% (or
$2,900,000) and the Board of Education asked the Superintendent to reduce the budget by
$500,000. The revised proposed Board of Education budget requests an increase of 5.36% (or
$2,400,000). Board of Education received a 3.2% increase last year.
In order to have a productive budget meeting on March 4, 2020, Board of Finance members may
submit requests and questions to Mr. Richards to supply to Board of Education. Initial questions/
requests include:
• Request for cunent year projections;
• With student enrollment continuing to decline, why does BOE continue to add positions?
Some of Superintendent Benigni's language describing a"shift" from the Town budget to the
Board of Education capital submission appeared misleading. The verbiage implies a simple
fiinding shift from General Government Department 61 line to the Board of Education capital
budget; however the requested amount was not included in the General Government budget.
Historically, fiinding for Board of Education capital expenditures was requested in the General
Government Department 61 line but was not approved or provided.
Finance Director Delaney provided the recent recommendations of the auditors (two for General
Government, four for Board of Education) which are being reviewed and addressed.
Chairman Lomaglio reminded all parties of the Special Joint Meeting between Board of Finance
and Town Council at 6:00 p.m. on February 18, 2020 at Berlin-Peck Library. Per the Town
Charter, Town Council may share its priorities for the upcoming budget at this meeting.
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2020-02-11 Boarc�of Finance Meeting
I. ADJOURNMENT
Mr. Richards moved to adjourn at 8:36 p.m.
Seconded by Mr. Bordonaro.
Those voting in favor: Mr. Bordonaro, Mr. Grady, Mr. Lomaglio, Mr. Richards
Vote being 4-0. (MOTION CARRIED)
Submitted by,
Dana Borges
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