RECEIVED DECEMBER 28, 2009 @ 12:05 P.M.
Michele R. Grande, Redding Town Clerk
5 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
December 21, 2009
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Guffey, Mazzucco, Simeonidis (7:45 pm)
Also present: First Selectman Ketcham, Selectman Takacs, Selectman Pemberton, Controller Gniadek, Treasurer O’Donnell, Tax Collector Moisio, members of the Redding Board of Education and Region #9 Board of Education, a representative of the Redding Pilot and 15 members of the public.
The meeting was called to order by Chairman Alvarez at 7:30 pm in the Community Center.
APPROVAL OF MINUTES
Motion: move that the Board of Finance accepts the minutes of November 23, 2009 as corrected. DeSalvo, Mazzucco. Approved. Unanimous
Corrections: under Controller’s Report, item #5, change $60,000 to $50,597.
AGENDA ADDITION
Motion: move to add Election of Officers to the agenda. Mazzucco, DeSalvo. Approved. Unanimous.
ELECTION OF OFFICERS
Motion: move to elect William Alvarez as Chairman and Joseph Dolan as Vice Chairman of the Board of Finance. DeSalvo, Mazzucco. Approved. Unanimous.
JOINT MEETING WITH BOARD OF SELECTMAN AND BOARDS OF EDUCATION
Redding Board of Selectmen present: Ketcham, Pemberton, Takacs
Redding Board of Education present: Gaspar (Ch), Lewson, Goldberg, Barickman, Joyce-Kirk, Miller
Region #9 Board of Education present: Lewis(Ch), Hocker, Karvelis
School Administration: Fossbender, Sullivan
Mrs. Ketcham called the Board of Selectmen meeting to order at 7:45 pm.
Mr. Simeonidis arrived, 7:45 pm
REDDING BOARD OF EDUCATION: Dr. Gaspar began the discussion with a listing of the major budget drivers for the Redding schools.
1. Contractual salary increases, projected at 3 ¾%
2. Health Insurance costs, increases are projected for the 10-11 school year.
3. Special Education costs: Excess Cost Sharing monies are decreasing. The current budget was planned for 100%, but this has been reduced to 70%. This reduction has been accommodated in the current budget. The projection for the 2010-2011 budget is 60%.
4. Transportation/utility costs: The transportation increase for 2010-11 has been renegotiated from 5 ½% to 4 ½%; the electrical costs were recently bid out resulting in a lower rate than the current contact.
5. Professional Development: this was eliminated in the current budget, and some allocation should be included in the next budget.
6. Capital items/facilities management: The board is concerned about the HVAC needs at the Redding Elementary School and the removal of all carpeting at both RES & JRMS. The board’s Facility Committee has been restructured and is reviewing these issues.
7. Enrollment: enrollment for next year is unchanged. Forecasts for the next 10 years show a decline in enrollment based on birth rate and current economic conditions.
A quorum of the Board of Education was now present and Dr. Gaspar called the meeting to order.
Dr. Gaspar noted that the budget proposal at this time, maintaining the current level of services and before the board has discussed the budget, is at an increase of 4%. The Board of Education will examine and make changes in the proposed budget during their budget workshops in January. The board is balancing how best to achieve how to provide what is best for education with what the town is willing and able to fund.
A question/comment period followed.
Mr. Simeonidis commented that he felt the Board of Education reductions to the current budget went too deep, especially given the support for the budget in the referendum vote, and cautioned the board to provide what is needed to educate the children.
Mr. Barickman commented that the board’s Facilities Committee is evaluating some capital items (in addition to those already on the list of the Long Range Financial Planning Committee), to determine if the items belong in the operating budget or in a capital budget.
Regarding professional development, Dr. Fossbender commented that this is comparable to research & development of major corporations. The current budget has eliminated external professional development activities, using only internal activities. While this is fine for one year, he does not recommend doing this for a longer period of time.
Special Education costs: currently this is approximately 17-18% of the budget and that percentage is comparable with other school districts in the DRG.
Lew Andrews, Long Ridge Road: comments regarding the number of homes in Redding that have lost value, and asked if the Board of Education has asked the various unions for voluntary reductions in the contracts. Dr. Gaspar responded that the topic of contract reduction has been informally discussed but it is a difficult task to accomplish.
James Miller, Middle Brook Pond Road: question regarding the impact of the increase in tuition for the magnet school in Danbury. Dr. Gaspar responded that the increase of $285, or total increase of $4,800, is modest.
Mike D’Agostino, Glen Hill Road: suggested the Board of Finance give the Board of Education a “goal” for an acceptable budget increase, based on their beliefs of what the community is willing to pay. Mr. Simeonidis commented that a budge increase goal was not given last year by the Board of Finance, only one member suggested a number. Mr. Alvarez commented that the Board of Finance needs to hear from the taxpayers regarding what is acceptable. He encouraged members of the public to attend the various workshops to learn how the budgets are composed, what is included and excluded, and then voice opinions.
Bob Sterling, Mountainview Drive: asked if the Board of Education was reviewing the recently submitted report from NABR. Dr. Gaspar and other board members responded that they were reviewing the information and encouraged members of NABR and other citizens to attend the BOE budget workshops.
BOARD OF SELECTMAN: Mrs. Ketcham stated that the Board has a commitment to provide services as efficiently and effectively as possible. She noted that the Board of Selectman’s budget has had under-expended budgets in the past two years. In fiscal 2007-08, the actual expenditures rose 1.3% and in 08-09, actual expenditures increased by 0.3%. Mrs. Ketcham reported that revenues for the town are generally expected to be flat in the coming year. The Real Estate Conveyance tax is up 10% for this fiscal year with the increase in real estate transactions. The Levine Property is being marketed and there is significant interest in the property. When the property is sold, the property will return to the tax rolls.
Controller Gniadek reported on the expense side of the Town’s budget.
1. Capital versus Operating budget: work is being done to determine which expenses qualify as capital expenses.
2. Contractual salary increases for Highway and Police are approximately 3%.
3. Medical insurance: Mr. Gniadek will negotiate the contract with Anthem.
4. Cost savings: Mr. Gniadek reported cost savings steps are being taken when possible, i.e. changing payroll services, office supply purchases, etc.
5. Telephone/internet service: a consultant is doing an analysis of the current system and looking at cost savings ideas.
6. Many services are going through a bid process and there have been substantial savings.
7. Regionalization of services: ideas for regionalization are being explored.
8. Energy efficiency/greening of the town includes more efficient water heaters, LED lights, and the 4-day work week has resulted in energy savings.
BOF members asked Mrs. Ketcham for an update on activities in Georgetown. Mrs. Ketcham reported the funding for the traffic lights on Route 107 is moving forward, as is the Streetscape Plan for Main Street. The GLDC project is currently being recapitalized and she expects the project to move forward.
Questions/comments from the public followed.
Bob Sterling: suggested the Town eliminate the use of bottled water which is costing $13,000/year. Mrs. Ketcham responded that the water in the Town Office Building, Annex building and Police Department is not potable so bottled water must be used in those facilities.
Steve Martin, Mountainview Road: questions regarding the Levine property sale. Mrs. Ketcham responded that there is substantial interest in the property. The price has been reduced once, and believes the property is fairly priced. Mr. Martin asked if there were other anticipated land purchases. Mrs. Ketcham responded that the Town Plan of Conservation and Development identified properties that should be considered for purchase should they come on the market. Mr. Martin questioned whether the roadway work should be classed as a capital expenditure and bonded rather than as an operating budget item. Mrs. Ketcham responded that the operating budget covers routine road repair and is usually budgeted at $200,000/year. The road reconstruction or total rebuilding of roads and
drainage work is more costly and the finished roadway is expected to last 20 years, therefore it has been treated as a capital expense.
James Miller: suggested the list of capital items submitted by the Long Range Financial Committee to the Board of Selectmen be made public. Mr. Miller also noted that three police vehicles were eliminated during the budget preparation process last year, but he understands that these have been purchased at no cost to the town. Mrs. Ketcham responded the when the police vehicles are used for private duty work, i.e. rented out for traffic control, the cost includes a fee for the vehicle. Those fees go to a repair account for repair or replacement of police vehicles.
Peter Bonfanti, Umpawaug Road: questioned the savings from the 4-day work week and suggested the town revert to a 5-day work week. Mrs. Ketcham responded that the savings in fuel was 36% in usage as a result of the 4-day work week. She noted that the town offices are open the same number of hours, but in a 4-day extended day week. When the Board of Selectmen made the decision to continue the 4-day week, the feedback from the users was considered and 84% of those surveyed liked the early & later hours.
Kim Yonkers, Goodridge Road: asked the status of GLDC with regard to real estate taxes and payments to the Water Pollution Control Commission. Tax Collector, Patricia Moisio, responded that GLDC is delinquent in real estate taxes, $291,691, and interest of $39,065 to date. The interest will continue to accrue until the taxes are paid. The Tax Collector has placed tax liens on all of the properties. The taxing district, GSTD (Georgetown Special Taxing District) recently sold Tax Anticipation Notes and paid $80,000 of the past due invoices to the Water Pollution Control Commission.
Leon Karvelis, Umpawaug Road: question regarding the tax lien on the GLDC properties. Mrs. Moisio responded that the Redding lien on the properties is first and before any other liens.
REGION #9 BOARD OF EDUCATION: Mark Lewis, Chairman, provided the following information:
1. Most of the budget drivers are the same as for the Redding Board of Education.
2. Long term debt service: this is amount is less than the current year.
3. Enrollment shift: the shift in enrollment of 0.85 more toward Easton is planned for next year. Redding’s share of the budget will decrease by 1.6%, while Easton’s share will increase by 1.8%, assuming a flat budget.
Mr. Simeonidis commented that the Financial Oversight Committee may serve an important function, but the title of the committee could better reflect their goal, suggesting a title of Financial Advisory Committee. Mr. DeSalvo and Mrs. Pemberton were in agreement that the committee serves an important function and that the title was not important.
The Redding Board of Education adjourned at 9:27 pm
The Board of Selectmen recessed their meeting and reconvened their meeting in another room at 9:27 pm.
TAX COLLECTOR’S REPORT
Tax Collector Moisio reported a collection rate of 55% of budget to date. She anticipates additional payments before the end of the calendar year.
REPORT FROM CONTROLLER
Mr. Gniadek introduced Matt Spoerndle, investment advisor, to review the recently issued Moody’s report that shifted the Town of Redding’s rating from AA1 to AA2. He provided additional information with regard to Moody’s relationship with other rating agencies.
Mr. Gniadek reviewed the items on his written report.
1. Revenues: the Governor announced a 3% reduction in formula grants which translates into a $26,000 reduction in revenue for Redding.
2. Expenditures: three payphones in town have been eliminated for a savings of $3,600; Special Event insurance for events at the Community Center will now be paid by the individual scheduling the event for a savings of $1,050; new payroll service has provided one month of service free for a savings of $1,500.
3. Audit Report: an extension has been filed; the auditors expect the audit to be completed in January.
4. Grant Application, Station Road Bridge: this grant was approved for LOCIP funding by the State. WMC has begun the engineering work for the project.
5. Grant Application, Federal Energy Grant under ARRA funding: this grant for $50,597 is pending.
6. Telephone/internet system: AT &T and Leblanc Communications are reviewing the current systems and alternate cost savings ideas.
LONG RANGE FINANCIAL PLANNING COMMITTEE
Mrs. O’Donnell reported the Committee has forwarded revisions to the plan to the Board of Selectmen.
Mrs. Ketcham added that the Selectmen will focus the document at their January meeting and forward recommendations to the Board of Finance.
ADJOURNMENT
Motion: move to adjourn. Simeonidis, DeSalvo. Approved. Unanimous.
The meeting was adjourned at 10:10 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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