BOARD OF FINANCE
MARCH 13, 2001
REGULAR MEETING
1. CALL TO ORDER
Paul Henault, Chairman, called the Regular Meeting of the Board of Finance to order at 6:03 p.m. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Candace Fitzpatrick, Michael Wade, Peter Askham and James Belfiore. Mary Glassman arrived at 6:08 p.m. Also present were Kevin Kane, Finance Director, Joseph Townsley, Superintendent of Schools, David Holden, Business Manager, Mary Margaret Girgenti, BOE Chairman, Anita Mielert, First Selectman, Gerard Toner, Director of Culture, Parks and Recreation, and other interested parties.
2. BOARD OF EDUCATION FY 2000/01 OPERATING BUDGET UPDATE
Chairman Henault noted that during the last quarterly review Dr. Townsley reported that the current BOE operating budget has a deficit. Dr. Townsley distributed information on the budget deficit (Addendum 1). He discussed the proposed action items to address the budget deficit. He stated that the BOE will request an appropriation of $118,094 from the BOS at the next BOS meeting, funds which will be reimbursed in the current year from the State of Connecticut Special Education Excess Cost Grant. Dr. Townsley noted that a deficit balance remains of $211,906 which could increase during the last three months of school. He confirmed that the $118,094 appropriation would come from Section 908(a) of the Charter.
Mr. Askham questioned whether it is likely that any more revenues or reimbursements would be received by the school system this fiscal year. Mr. Holden responded that it is unlikely because the reporting submitted in February does not provide funding until the summer. Dr. Townsley stated that it is possible that state legislation could increase the funding for special education children by providing reimbursement if the cost of educating the child is 2.5 or 3 times as expensive as the cost to educate other students, instead of the current level of 5 times the cost.
Mr. Kane stated that the $118,904 transfer should cover costs and keep the BOE budget whole. Ms. Glassman noted that the budgets cannot have a deficit at the end of the fiscal year and 30 days notice is required for a Special Town Meeting if an appropriation above the 1% is necessary. She questioned how close the Town is to the 1% level. Mr. Kane stated that if $120,000 is appropriated to the BOS budget and $211,000 is appropriated to the BOE budget then more than $200,000 will be available. Chairman Henault questioned the funding for revaluation. Mr. Kane suggested that the funds which are still available, after the appropriations, be put aside for revaluation.
3. BOARD OF EDUCATION 2001/02 BUDGET PRESENTATION (PURSUANT TO SECTION 905 OF THE TOWN CHARTER)
Possible Action
Ms. Girgenti reviewed the transmittal outlining the proposed BOE 2001/2002 budget (Addendum 2). She stated that the driving force behind the budget is increased enrollment and the maintenance of existing programs and services. She stated that the proposed budget increase is 10.98% and addresses a projected enrollment increase of 192 students. Ms. Girgenti noted that the collective bargaining agreements and additional staff comprised 7.03% of the budget increase, 2.28% is attributable to insurance increases, and 1.67% is due to other items. She stated that 80% of the budget is tied to staffing requirements and 15% is expended on special education. She pointed out that no new programs have been added, except for the anticipated mandatory program for medically fragile
preschoolers.
Mr. Askham noted that 3 factors drive the BOE budget: (1) collective bargaining agreements, (2) increased enrollment, and (3) increased insurance costs. He questioned the increases in staffing costs. Mr. Holden stated that the current contract includes a 4.78% settlement in the third year and the budget includes additional staffing. He pointed out that the contract includes provisions for salary increases related to obtaining a masters degree and the costs for higher education courses.
Mr. Askham questioned the increased costs due to enrollment, noting that the overall enrollment will increase by 3.27%. Dr. Townsley stated that 192 new students are projected and costs for Special Choice children and an increased Kindergarten enrollment have been considered in the budget. Mr. Askham questioned the increase in clerical salaries projected. Dr. Townsley stated that 10 paraprofessionals will be added as a result of the autistic program, there will be increased needs in the Kindergarten and First Grade program, an increase in the number of special education children, and 4 medically fragile students.
Mr. Askham addressed the increased insurance costs. He noted that the proposed increase is 21.63%, yet the projected insurance cost increase is 13% and enrollments will increase by 3.27%. Mr. Holden stated that for each additional staff person they need to factor in the level of benefits.
Chairman Henault noted that this budget is being labeled a maintenance budget, but includes the addition of 32 full-time positions. Dr. Townsley stated that this is due to the increased cost of programs and the addition of 12.6 teachers due to enrollment. He noted that 6.7 teachers are being added to the elementary program and some of the half-day paraprofessionals are being changed to full-time which requires the addition of benefits. He suggested that it is not realistic to calculate the number of students per teacher to obtain an accurate understanding. Dr. Townsley stated that the Town is far behind in playing catch-up, which resulted in this year’s deficit. He addressed how the additional students will be accommodated at the schools.
Ms. Fitzpatrick questioned the increased cost for in-service training. Dr. Townsley stated that with more new teachers training is necessary in (1) master test instruction and (2) special education. Ms. Fitzpatrick questioned the 24% increase in the data processing budget. Mr. Holden stated that the data processing budget is driven by the maintenance of the $3 million computer network. Ms. Fitzpatrick questioned the 20% increase in the CNR budget. Mr. Holden stated that the $411,000 request is for equipment and building improvements which meet the CNR guidelines. Ms. Fitzpatrick noted that the instructional equipment item has a 50% increase. Dr. Townsley stated that the modules at the high school need to outfitted.
Ms. Glassman stated that she has received correspondence and calls supporting the BOE budget, but the supporters weren’t aware of the corresponding tax increase. She pointed out that the property tax for an average house in Simsbury would increase by $500 if this and the BOS budgets are approved. She noted that this increase would occur prior to funding for a high school renovation. Ms. Glassman questioned what the BOE is hearing regarding the tax increase. Dr. Townsley stated that citizens are unaware of the tax increase, only that Simsbury has a good economical school system.
Chairman Henault questioned whether the BOE reviews the existing programs for possible changes. Ms. Girgenti stated that the administration reviews what programs are appropriate and geared to the marketplace.
Chairman Henault stated that the BOF needs to look at balance, managing in a fiscally responsible manner, and the long term impact on the citizens. He noted that the proposed budgets will generate a 9.93% tax increase. He pointed out that last year the BOE budget included a 6.17% tax increase and only passed by 65 votes at referendum. Chairman Henault noted that the BOE vote on the budget was not unanimous. He suggested that the BOE review the budget, consider the tax implications, and look at ways to control the budget.
Robert Moran, BOE, noted that the tax impact handout lists the appraised home value as the market value, which is misleading. Chairman Henault stated that the description can be changed. He noted that taxpayers can take their current tax bill and multiply by 9.3%. Mr. Moran requested that the Tax Assessor compare the market value and assessed value of homes sold recently so that another column can be added to the worksheet.
Ms. Girgenti stated that Simsbury is 127th in the state in per pupil expenditure. She suggested that the taxability of the citizens be considered because the yearly budget increases are not covering the costs to meet the constraints and needs of the students. Chairman Henault pointed out that Simsbury is 31st in the state for per capita spending on education.
The meeting recessed at 7:24 p.m. and reconvened at 7:32 p.m.
4. SIMSBURY FARMS FUND FY 2000/01 OPERATING BUDGET UPDATE
Mr. Toner reviewed the Culture, Parks and Recreation Department budget. He stated that the fee increases and expense decreases should allow the Simsbury Farms Special Revenue Fund to meet the budget subsidy of $47,934. He noted that the final budget figures will depend on the revenues generated at the golf course.
5. SET DATE FOR CAPITAL PROJECT PUBLIC HEARING
Ms. Glassman questioned whether the cost for the design of the renovated and expanded sewer treatment plant will be reimbursed. Mr. Kane stated that the funds will be reimbursed if the final project is approved. Chairman Henault noted that if $1.5 million is requested then it can be approved at a Special Town Meeting, but if $1.7 million is requested the project needs to go to referendum. He expressed his feeling that the design fees should go to referendum because this is a $26 million project overall. Mr. Kane stated that Earth Tech has confirmed that $1.5 million is an accurate figure, as it is 7% of the $22 million non-inflationary cost of the project.
Mr. Wade questioned whether Avon and Granby will contribute to the $1.5 million design phase. Mr. Kane stated that Avon and Granby would not initially contribute, but there has been a meeting with Avon regarding the project. He stated that on March 20th Avon will review the figures with their engineers and Earth Tech and Earth Tech believes that the minimum Avon would pay is 25.5% of the project cost.
Chairman Henault questioned why the entire project should not be forwarded to referendum. Ms. Glassman noted that the full project needs to be factored into the Town’s debt policy. Mr. Kane stated that he spoke with Moody’s and Moody’s recommends that the entire project be budgeted within the Sewer Use Fund and not the debt service budget. He noted that his financial model provides for the project being paid solely through the sewer fund. He stated that it will be several months before a contract is signed with Avon regarding the project.
Chairman Henault expressed concern that there is no signed amendment to the contract with Avon and the proposed legislation has not gone into effect. Ms. Mielert pointed out that a mandate is in place which becomes effective in 2004. Mr. Kane stated that the cost of penalties is not an issue, the issue is when the plant will open. He noted that Granby is using Avon’s flow and Avon will be needing that flow shortly.
Mr. Belfiore questioned the cost for nitrogen removal at the plant. Mr. Kane stated that $19 million is the cost to meet the regulatory changes, without expanding the plant. Mr. Belfiore requested information, not from consultants who have a vested interest, on how much of the $26 million has to be expended. Chairman Henault questioned why the situation at the plant hasn’t been addressed sooner. Ms. Mielert stated that due to the low sewer use fees there has not been enough funds to renovate the plant. She requested that members of the BOF tour the plant.
Ms. Glassman suggested that the BOF needs to receive answers to their questions before they hold a Public Hearing on the project. Ms. Fitzpatrick noted that there are a limited amount of funds and suggested that the Town needs a plan to address all of their large capital projects. She questioned whether those who attend the Special Town Meeting will understand that the $1.5 million expenditure will result in a $26 million liability for the Town. She suggested that if a Public Hearing is held on this project then concise financial impact and user fee figures need to be included in the presentation. Ms. Glassman suggested that the Town wait for a commitment from Avon so that they know the cost to Simsbury for the project.
Ms. Fitzpatrick moved to defer the Capital Project Public Hearing on the $1.5 million sewer treatment plant expansion design until answers are received to the following questions: (1) the amount of funding Simsbury is liable for of the entire project, (2) the amount of funding which is the responsibility of the towns of Avon and Granby, and (3) the status of legislation on nitrogen removal. The motion was seconded by Ms. Glassman.
Mr. Wade suggested that the project, as proposed, be contingent upon Avon’s involvement. Ms. Fitzpatrick noted that the renovation could occur without Avon due to the capacity issues. She noted that the DEP monitors the arrangements between towns so that no town has an unfair advantage. Ms. Mielert stated that Simsbury is $130,000 apart in their negotiations with Avon and the $130,000 would benefit Simsbury. Mr. Kane stated that Avon will pay 25.5%-26% of the project cost. He confirmed that Earth Tech would be the contractor providing the design of the project.
Ms. Fitzpatrick amended her motion to defer the Capital Project Public Hearing on the $1.5 million sewer treatment plant expansion design until answers are received to the following questions: (1) the amount of funding Simsbury is liable for of the entire project, (2) the amount of funding which is the responsibility of the towns of Avon and Granby, and (3) the status of legislation on nitrogen removal, and receipt of a draft contract from the contractor for a fixed design amount. Ms. Glassman amended her second. The vote was unanimous. The motion carried.
Chairman Henault requested that the First Selectman provide him with the answer to the aforementioned questions so that this item can be added to a future BOF agenda.
6. BUDGET TRANSFER REQUEST FROM RESERVES
Public Safety - COPS MORE Grant for Computer Hardware and Software for Use in Patrol Vehicles
Chairman Henault noted receipt of Chief Ingvertsen’s memo (Addendum 3). Mr. Kane stated that the $58,157 appropriation will be added to the Police Department budget and the $43,625 reimbursement will be received a short time later. He noted that the $58,157 appropriation would come from section 908(a) of the Charter and the Town cost is $14,532. He confirmed that there will be no future impact from this grant on the 2001/2002 budget.
Ms. Fitzpatrick moved to approve a supplemental appropriation in the amount of $58,157 pursuant to section 908(a) of the Town Charter in order to fund the COPS MORE Grant for computer hardware and software use in patrol vehicles. The motion was seconded by Mr. Belfiore and carried unanimously.
7. OTHER BUSINESS
Chairman Henault reported that a tax abatement plan for Volunteer Fire Department and Volunteer Ambulance Association volunteers was sent to the First Selectman. Ms. Mielert stated that the plan was sent to the Town Attorney for review.
8. ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 8:35 p.m. The motion was seconded by Mr. Belfiore and carried unanimously.
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Paul W. Henault, Chairman Kathryn D. Wilde, Clerk
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