1996-02-15(APPROYED)
TOWN COUNCIL MEETING
TOWN OF BERLIN
BUDGET HEARING
FEBRUARY 15, 1996
1. The meeting was called to order at 7:O~ p.m.
2. ROLL CALL:
Those in attendance were:
Fred Oortner
Paul Argazzi
John McIntosh
Bruce Trevethan
Arthur Powers
Thomas Veronesi (7:10)
Ida Ragazzi
Eileen Meskill
Mary Jean Agostini
Also in attendance were:
James D'Errico, Interim Town
Manager
Gary Clinton, Finance Director
Richard Rutkowski
3. AUDIENCE OF CITIZENS
Richard Rutkowski of 154 Ridgewood Lane addressed the Council. He
addressed the budget item entitled "salary in lieu of vacation". He
stated that he felt this policy is not fair to the citizens of this
town nor is it a policy that is prevalent in industry or commerce.
He stated that if you do not use your vacation time you should lose
it and that you should not be able to carry over your vacation time.
He concluded in saying that it is a $10,000 item that can be removed
from the budget.
Mayor Ragazzi thanked Mr. Rutkowski for his comments and turned the budget
deliberation hearing over to the Budget Committee Chairman Fred Jortner.
4. BUDGET DELIBERATIONS - MEETING TURNED OVER TO BUDGET COMMITTEE
CHAIRMAN FRED JORTNER
Chairman Jortner stated that it has been his pleasure to preside over
budget process and felt it was a fair an honest presentation. Chairman
Jortner then turned the meeting over to Interim Town Manager to
present his proposed 1996-97 budget.
5. TOWN MANAGER JAMES D'ERRICO - PRESENTS BUDGET FOR TOWN COUNCIL'S
CONSIDERATION
Interim Town Manager James D'Errico presented his proposed 1996-97
Budget. (See attached)
Discussion.
Councilman Veronesi asked Interim Manager James D'Errico if it were
possible to have $100,0OO more to add to the budget what would he
apply it to.
-1-
James D'Errico responded in saying in would put some money in the
GIS issue, sooner or later we are going to have to take a better
position with our road and bridge program if there ever is a time
we have extra funding, some issues in the public safety are such
as the video imaging equipment which will be vital equipment in
the area of crime prevention. In longer terms, he would encourage
the Council to think about recreational programs that are money
making such as swimming pools and skating rinks for examples.
Finance Director Gary Clinton addressed the Council. He stated that
as of June 30th in the Capital Non-Recurring Fund there was a balance
of $35,046. He stated that the reason it does not equate to Council-
man McIntosh figure is due to the fact that they paid for a fire
truck out of that account, had money coming in from interest and
also had money coming in from the mobile home park. Gary Clinton
stated during the fall we closed out projects totalling $31,785.
Through June 30th we have earned $28,42~ in interest on those funds
excluding the mobile home park and earned an additional $18,000
from the mobile home park giving us a total of $113,0OO available
funds.
Gary Clinton stated that if the Council is looking towards a year end
balance it would be $135,0OO conservatively.
Councilman Trevethan inquired to the balance in the General Insurance
Fund.
Gary Clinton stated that the current balance in that fund is, as of
June 30th, $2,000,000. and it has not been updated since then. He
recommended that we need $1,500,000. on hand for that fund. Next week
the Council will have correspondence on the Corbin Russwin settle-
ment. If you take that settlement out of the General Fund it will
bring the balance down $420,000 which is getting close to the
$1,500,O00 that should be retained in a self-insurance fund.
Councilman Trevethan inquired about the $150,0OO which was put back
in the General Fund from this budget.
Gary Clinton replied that it would bring this fund to $1,730,OOO.
He also stated that there will be a couple of heart and hypertension
figures that would appropriately come out of this fund but he i~
not sure of those figures at this tine.
Councilman Argazzi inquired as to how much has been budgeted for
top management salary increases.
Gary Clinton replied that the steps and cost of living raise has been
put aside.
Mr. D'Errico stated that they should be aware that it also includes
nursing, police, corporation counsel, watchkeeper and two elected
people that the sub-committee will have to address their salaries too.
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Councilman McIntosh addressed the $135,OOO for the fire apparatus.
He asked why the money should be put im that account just to sit
there if they are not buying the truck right now.
Mr. D'Errico addressed this issue. He stated there are two reasons,
(1) he is not sure how much the apparatus will cost and (2) making
a considerable demand on the fire department. He stated that his
recommendation is that sum of $1OO,0OO be put aside for that purchase.
Chairman Jortner addressed the issue. He stated planning ahead for
capital items is a prudent approach. He further stated that if you
deplete your fund balance below certain thresholds it sends a poor
message to our rating services and that could have an impact on
our bonding rating.
Councilman Trevethan inquired as to what the threshold of the fund
balance the rating services would like to see.
Gary Clinton stated a minimum of five (5) percent which he recommends
keeping it at that minimum level. Moodys likes to see between 5%-10%
and Standard & Poors recommends 8%. He stated that 5 percent of the
budget would be $2,200,000.
Councilman Trevethan readdressed the funds for the fire apparatus.
Mr. D'Errico reiterated his recommendations on the funds for the
fire apparatus.
Chairman Jortner thanked James D'Errico, Gary Clinton and
Council members Mary Jean Agostini, John McIntosh, Mayor Ragazzi and
others for getting us to this point and stated that things have worked
ou% very well. Chairman Jortner then turned the meeting over to
Mayor Ragazzi.
Mayor Ragazzi stated that due to the cooperation between the Town
Manager, Finance Director and the Council members the process is
ahead of schedule.
6. ADJOURNMENT
Councilman Powers made a motion to adjourn the meeting, seconded by
Councilman Trevethan. PASSED UNANIMOUSLY.
The meeting was adjourned at 8:00 p.m.
Respectfully submitted,
/~o~nn~- G. Ward
Clerk of_the Co~u]cil
~a M. Ragazzi, May~/ ~