These minutes are for informational purposes only. For official minutes please contact the Town Clerk's Office.

MARCH 15, 2000

SPECIAL MEETING

1. CALL TO ORDER

Paul Henault, Chairman, called the Special Meeting of the Board of Finance to order at 6:08 p.m. in the Simsbury High School Amphitheater, 34 Farms Village Road, Simsbury. The following members were present: James Belfiore, Peter Askham and Candace Fitzpatrick. Michael Wade arrived at 6:16 p.m. Also present were Kevin Kane, Finance Director, Joseph Townsley, Superintendent of Schools, David Holden, Business Manager, Mary Margaret Girgenti, BOE Chairman, and other interested parties.

2. APPROVE MINUTES

Regular Meeting of March 2, 2000

Ms. Fitzpatrick moved to approve the minutes of the March 2, 2000 Regular Meeting. The motion was seconded by Mr. Askham.

Ms. Fitzpatrick withdrew her motion. Mr. Askham withdrew his second.

Mr. Askham moved to table approval of the minutes of the March 2, 2000 Regular Meeting. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

3. BOE 2000/02 BUDGET PRESENTATION (PURSUANT TO SECTION 905 OF THE TOWN CHARTER)

Possible Action

Ms. Girgenti presented the BOE budget overview (Addendum 1), noting that the budget increase is primarily enrollment driven. She stated that they are planning on 3 modules at the high school and 1 at Tootin' Hills School to address enrollment needs. She stated that the new programs included in the budget are 5 high school AP classes. Mr. Holden stated that the staffing increase includes 15 additional certified staff positions and other staff.

Mr. Holden noted that the projected premium increase in the HMO is 10% and for the indemnity plan and PPO are 14%. Chairman Henault questioned whether they will go out to bid for the health insurance. Mr. Holden stated that the Insurance Committee and the Employee Benefits Advisor feel that given the changes in the marketplace it is not worthwhile to go out to bid. Mr. Askham questioned how the self-insurance fund was budgeted in the prior year. Mr. Holden stated that the budget decrease in health insurance was offset with staff increases of approximately $158,000. He stated that they need to take the premium holiday in this year's budget.

Chairman Henault questioned the status of bus purchases. Mr. Holden stated that they have increased the CNR charge-back by $50,000, but there is no change in their prograrn to purchase 3 buses next year. Mr. Belfiore questioned the effect of the increased fuel costs. Mr. Holden stated that the BOE purchases fuel at a bid price and pays no taxes, but the cost of fuel is a concern. Mr. Askham questioned whether the reserve for un-negotiated salaries is adequate. Mr. Holden stated that the wages for unaffiliated personnel have not been established, the custodial unit is in negotiations and the final rate to operate the buses next year has not been established. He indicated that the reserve for un-negotiated salaries is adequate.

Chairman Henault stated that with the proposed BOE budget, BOS budget, other budgets, capital projects, and an anticipated Grand List Growth of 2.5%, the tax rate would increase 7.1 % if they continue to use $400,000 of surplus. He stated that he doesn't doubt the numbers and needs of the boards, but is uncomfortable going to the voters with a 7. 1% increase which may be denied. Ms. Fitzpatrick stated that she is also concerned with going to voters with a 7.1 % increase and she noted that if the budget is approved it may effect the outcome of future BOE referendums. Mr. Askham stated that he is concerned with the overall tax increase and suggested that they wait until they receive the BOS budget. Mr. Belfiore agreed that a 7.5% tax increase will be hard to sell. Chairman Henault noted that they will have a large capital expenditure in the high school project and $38 million for this project would allow some other capital projects, but would increase debt service to 10%.

Mr. Askham questioned whether the BOE anticipates any change on the revenue side of the budget. Dr. Townsley stated that a reduction of $1.5 million would remove all of the staffing additions. He suggested that they give the public an opportunity to come forward at the Public Hearing and if the budget is denied the BOE can tell parents that the public spoke. He stated that the BOE cannot cut enough from the budget to come close to what the BOF wants for a tax increase. Mr. Askham questioned how the following year looks for enrollment and salary increases. Mr. Holden stated that they anticipate another 166 students in the following year and the contracts include increases similar to the current year. He pointed out that their salaries are on the low end of competing communities. Mr. Askham questioned whether the BOE anticipates personnel turnover next year. Dr. Townsley stated that in 2 years they anticipate 30 retirees. He stated that they are catching up at the Junior High School this year and next year the AP courses will be in place and they don't anticipate as large of a health insurance increase next year. Dr. Townsley stated that if they do not increase the staffing the classes will be over the guidelines. He noted that they have an increasing number of special needs students they must service. He pointed out that they have always been below the state average with budget increases and now they need to do some catching up.

Mr. Askham questioned how the forecast of enrollment increases will impact the operating budget in the future. Dr. Townsley stated that this depends on the high school project because if they don't build a new high school they will need to address the middle school/elementary school situation. Chairman Henault questioned whether the BOE anticipates the same ECS revenue and he questioned the formula for special needs students. Mr. Holden stated that there was a special education/handicapped reimbursement program, but now it is melded with ECS. He explained that currently if any cost exceeds five times the special needs expenditure then they get reimbursed by the state. He noted that there have been discussions to lower this to 3 times the cost, but it hasn't been in any current legislative bills.

The BOF decided to postpone taking action until receipt of the BOS budget.

4. BUDGET TRANSFER REQUEST FROM RESERVES

Legal Fees Regarding Meadowood Project

Chairman Henault stated that this request has not yet been brought forward.

5. DISCUSSION ON UPCOMING PUBLIC HEARING

Chairman Henault discussed the format for the Public Hearing on capital projects. He noted that this year there are a total of 15 capital projects from the BOS and BOE.

6. ADJOURNMENT

Ms. Fitzpatrick moved to adjourn the meeting at 6:55 p.m. The motion was seconded by Mr. Askham and carried unanimously.