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1996-02-22SPECIAL TOWN COUNCIL MEETING TOWN OF BERLIN BUDGET HEARING FEBRUARY 22, 1996 6,7 1. The meeting was called to order at 6:45 p.m. by Mayor Ragazzi: 2. ROLL CALL: Those in attendance were £ouncilman Fred Jortner £ouncilman Paul Argazzi Councilman John McIntosh Councilman Bruce Trevethan (7:00) Councilman Arthur Powers Councilman Thomas Veronesi (6:55} Douncilman Ida Ragazzi Councilman Mary dean Agostini ABSENT: Douncilman Eileen Meskill Also in attendance were: James D'Errico, I.T.M. Gary Clinton, Finance Director Mayor Ragazzi turned the meeting over to the Budget Dhairman, Fred Jortner. Chairman J.~rtner stated that it is his hope that we can leave here tonight, with an agreement on a budget, at least in principle, and we will adopt a budget on Tuesday, February 27, lg96. Chairman Jortner stated the budget that was received from Mr. D'Errico last week, in his opinion, accurately reflects the needs of the community; it is the result of many hours of give and take, negotiations between the Interim Town Manager and Department Heads and many budget hearings with the council sub-committee and department heads. He thinks this budget adequately provides for the services of this community and, a little in there for some planning for the future, and, in his opinion he would hope there are not a lot of wholesale ohan~es to this budget. Chairman Jortner opened the meeting up to the floor for discussion. Councilman Powers then addressed the Council. During the executive session on Tuesday they made comparisons to the grand list of 1986. Consequently, the residential home owners (]an expect to bear a greater portion of %he tax rate than they have this year. If we try this year to cut the budget so low, so that we can say there is no tax increase, I think we're setting ourselves up next year when we might see a substantial increase in the taxes that the residential property owners will be paying. I think we have to be very careful before we cut more money out of this year's budget, which will result in greater needs in next year's budget, and the burden will not be divided as it is now between residential and commercial, but will be tipped more toward the residential. I ask that all of us be very very careful on what we cut out of the budget and I think as Fred alluded to, we want to also plan for the future and we can't plan for the future by not providing any dollars at all and then hoping next year to come in with all the additional ~noney we need and then have the residential tax payers bear the burden. ,qayor Ragazzi stated that the budget as presented is.3 ~enths of a mill, the cost of living is 2.8, you can say that this almost amounts to a flat budget, because it's only the contractual costs that are going into this budget. Chairman Jortner stated that the actual increase is less than 2.8 percent in actual dollars the increase is less, closer to 1 percent. DISCUSSION: Councilman Argazzi stated that,in his opinion, any tax increase is unacceptable. Gary Clinton, Finance Director, stated at the end of the fiscal year we are going to have around $120,000., left in the capital non-recurring fund, taking into con- sideration interest on the money coming from the capital non-recurring fund. Interim Town Manager, D'Errico stated that he has a major concern of the artificiality of the proposals he has heard this evening. There is an attempt to back into a figure which happens to be zero, which also happens to have no relationship to neither the towns needs nor the board of education's needs as they have been presented to the council by myself and/or the school superintendent. Mr. E'Errico strongly recommended that the council not reduce the Board of Education budget, predicated on the fact that none of us in this room, except Councilman Veronesi, are educators. The cuts we have made in the Board of Education Budget has been predicated on reality, fact and additional increases in funding. They are not artificial. 078 Councilman Agostini stated that she felt they should look at the budget as a whole, and if any additional cuts are necessary they should be made across the board. That's the only fair way to do it, She can't see that out of $44 million dollars, we cannot come up with a reduction of $250,000. At this point, Chairman Jortner summed up by stating that it appears from the comments made, that one group is looking for a zero tax increase and the other group is looking to hold it to the manager's proposed budget. Councilman Trevethan questioned Gary Clinton as to how much money is left in surplus. Mr. Clinton replied, the amount is $2,270.000., of which $65,000., will be expended for an oil tank, if passed at the Town Meeting of 2/27/96; so we will have $2,205,000. A~d~another $400,000. toward next years budget will be deducted from that amount, which leaves a balance of $1,805,000. Chairman Jortner stated that from his perspective, the only area he would be willing to compromise would be the $100,000., from the capital non-recurring fund. I know it is not prudent to do that, but in order to move this process forward and get some kind of consensus I would be willing to concede that; it would shave off a lOth of a mill. Beyond that I'm not in favor of touching the Board of Education or any of the other proposals. -2- Mayor Ragazzi stated that they have cut the budget almost $7,000,000. from the original request by departments. Councilman Trevethan said if we're shooting for a zero base, he is against touching the Board of Education and the white collar position at the Town Garage, because those will have an impact on the town in future years. If you take $120,000., from the capital non-recurring fund and take $75,000., from the General Insurance Fund, that would bring it down to $78,000., and I don't think we should go any further than that. Councilman Trevethan stated that he has been spending a lot of time on this budget and that is the lowest we should go. Councilman Agostini stated that Councilman Trevethan's proposal has a lot of merit, but feels we can still come up with the other $78,000.00. Councilman McIntosh feels that since the Board of Education was not cut, they might come up with the $78,000., from their budget. Mr. D'Errico will speak to the Superintendent of Schools to see if they can find a way for the Board of Education to cut its budget by another $78,000. Councilman Argazzi made a motion to adjourn, which was seconded by Councilman McIntosh. The meeting adjourned at 8:58 p.m. Respectfully submitted, Jeanne G. Ward Clerk of the Council Ida M. Ragazc~_~