TOWN OF GRANBY
BOARD OF FINANCE
MINUTES
FEBRUARY 11, 2008
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Al Wilke, Francis Brady, B. Scott Kuhnly, and Frederick Moffa, OD
Also present: William F. Smith, Jr., Town Manager; Gwen Van Dorp, Superintendent of Schools; J. Cal Heminway, BOE Chairman; and Harry Traver, BOE Business Manager
Chairman Guarco stated there was a quorum and called the meeting to order at 7:30 p.m.
MINUTES
The Board reviewed the minutes for the meeting of January 14, 2008 before taking action.
On a MOTION by Mr. Bischoff, seconded by Mr. Brady, to approve minutes of January 14, 2008, the Board voted (5-0-1) to approve the minutes. Mr. Kuhnly abstained.
Chairman Guarco recognized Larry Smith, of 53 Harmony Hill Road in Granby for comment. Mr. Smith asked, “What percentage is furnished by property tax (vehicle and real estate) for the budget?” And he noticed that Simsbury’s prints their full budget in the newspaper – Is Granby going to do this?
Town Manager Smith explained that printing the budget in the newspaper is a very expensive endeavor. The Drummer prints some of it and it is provided on our website. The percentage of the property tax used in the budget is approximately 75%. This information is provided in the budget book and filed with the Town Clerk.
STATEMENTS OF ACCOUNTS
Town Manager Smith reviewed the January Budget Operations Report. In comparison to last fiscal year, tax collections are slightly below. However, a large deposit was received February 1, 2008, which will be reported next month and it is anticipated it would make the account on target. He indicated there are no major concerns to report on the revenue and expenditure side.
Chairman Guarco asked whether or not the auto supplement account will meet the budget figure. Town Manager Smith indicated it will be slightly lower than the anticipated budget, approximately $20,000. However, other accounts should make up for this short fall. The Miscellaneous and Short Term Investments accounts also show an excess.
Town Manager Smith commented that the accounts for diesel, gas, fuel oil, and electricity are being watched because of the ongoing high fuel costs. He expects the budget to meet public works overtime for snow removal; however, it is being monitored and will be reported as things occur.
The December and January Statement of Accounts from the Board of Education were distributed. Harry Traver, BOE Business Manager, reported on the January Statement of
Accounts and commented the December report was similar to January’s report. Highlights were:
Reg. Tuition from Other Towns is forecasted to be less than last year due to a lower headcount.
SPED Tuition from Other Towns shows unfavorable forecast by ($35,000).
School Secretaries Salaries, Central Office Salaries, and Custodial and Maintenance Salaries show an unfavorable forecast ($38,000). This is due to maternity, illness, and early retirement occurring.
Mr. Brady asked the Board of Education to elaborate more on the football program and potential associated expenses. He expressed serious reservations to having this program funded by the town, especially given the tax pressures many residents experience. Mr. Heminway indicated that the football program would be offered next fiscal year through the school. The school must endorse the program in order to be recognized by Connecticut Interscholastic Athletic Conference and play with other schools. In summary, this means the football supporters met the criteria the school requested, long-term space is being sought, if not already obtained, and during the interim other space is being provided, the resources for this program will be provided essentially by the football supporters and will continue to do so; otherwise the program
cannot be offered. The first year participation will be a Junior Football Varsity team and then work towards a Varsity Football team. The Pay-to-Play fee covers the overhead expenses for sports programs, including football.
Chairman Guarco thanked Town Manager Smith for the revaluation information given to them earlier.
DISCUSSION OF FINAL BUDGET GUIDELINES FOR 2008-09
Chairman Guarco stated that there was some discretion by the Board regarding the flexibility in the small capital fund, which would make a flexible 4% range instead of a firm 4% budget guideline. It was noted that the senior elderly tax exemption was being reviewed for additional relief to the elderly.
Gwen Van Dorp, Superintendent of Schools, reviewed highlights of the school’s proposed budget for 2009. She indicated if she kept the budget guideline at approximately 4.7% all school services would be kept. However, if the budget guideline was 4.3%, some services would be cut (3 teachers, 2 ½ support, and contract services). This guideline would leave the budget very risky and the parents may not like this education level being offered through the budget. She inquired about the possibility of whether money left from Kelly Lane School project could be used for other items.
Mr. Bischoff made an observation towards handling the budget. He felt that counting on Hartland Out of Town Tuition should not be a routine venture, as it did not pay off this fiscal year. Also the rental fees revenue from the church is not part of the school’s budget that might be considered additional revenue for right now. The church has plans to construct their own building; and once built, they will not need to rent the school building. Consequently, these revenues should not be counted in the budget.
Town Manager Smith commented his overview of the budget guideline was similar to the school. The submissions by the Departments came in above 8% so several cuts were made. A budget guideline of 4.79% can keep services in place and will sustain present levels. Lastly, Mr. Smith indicated if the budget guideline was 4%, there will be serious diminishing of service levels (most likely in library and social services).
Chairman Guarco asked the Board for a discussion to confirm or modify the budget guideline of 4% for the school and town.
Chairman Guarco’s comment was he preferred to keep the 4% budget guideline. The Board of Finance, if necessary, will review the flexibility in the small capital account. There was discussion about retaining the $900,000 to the small capital account for FY 2009 budget allowing $200,000 to be distributed elsewhere. Mr. Brady agreed and made the following comments: He recognizes Connecticut is in a recession era now. A mill rate increase of 1% will hurt some town folks. Town and school services will be affected with a 4% budget increase. Other Board members concurred with Chairman Guarco and Mr. Brady’s comments.
On a MOTION by Mr. Wilke, seconded by Mr. Brady, the Board voted unanimous (6-0-0) to confirm support for a 4% guideline to the Board of Selectmen and the Board of Education operating budgets for FY 2008-09.
ASSIGNING BOF MEMBERS TO ATTEND BUDGET WORKSHOPS
The Board of Finance members held discussions assigning members to attend the budget workshops for:
Board of Education
· B. Scott Kuhnly, and Fred Moffa, OD
Board of Selectmen
· Michael Guarco and Francis Brady
Gordon Bischoff and Al Wilke will be alternates if one of the members cannot attend a workshop.
MISCELLANEOUS
Gordon Bischoff asked about Other Post Employment Benefits (OPEB) funding. Town Manager Smith indicated that an actuarial report will be received shortly that will provide liability amounts. Recommendations for funding OPEB obligations will be made by the end of this fiscal year. This report will be made available to the Boards.
CONFIRM DATE OF NEXT MEETING
The next regular meeting of March 10th may be cancelled. Budget presentations by the Board of Education and Board of Selectmen are scheduled for March 24, 2007 at 7:00 p.m. in the Senior Center Youth Services Community Room. A Public Hearing on the budget is scheduled for April 14, 2008 at 7:00 p.m. in the High School Auditorium and a Special Board of Finance meeting will immediately following the public hearing.
The Annual Budget Town Meeting is scheduled for April 28, 2008 at 7:00 p.m. in the High School Auditorium. If the budget does not pass, the Town Meeting will be recessed to the following Monday for a referendum.
The Board members and attendees discussed future needs by the town and the pressures it will build on future budgets. [For example, accommodate full day kindergarten and police building upgrade since it does not comply with recent court decisions.] Town Manager Smith commented that a strategic planning process should be considered to assist in discovering and planning for future needs.
ADJOURNMENT
On a MOTION by Mr. Wilke, seconded by Mr. Brady, the Board voted unanimously (6-0-0) to adjourn the meeting at 9:05 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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