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TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING
MINUTES
MARCH 24, 2008
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, B. Scott Kuhnly, Frederick Moffa, OD; and Al Wilke
Also present: Board of Selectmen: John E. Adams, First Selectman; Sally King, Vice-Chairman; Ronald F. Desrosiers, Frank D. Judice, Jr., and Mark Neumann; William F. Smith, Jr., Town Manager; Roger Hernsdorf, Town Treasurer; Barbarajean Scibelli, Administration Finance Officer; Board of Education: Chairman Cal Heminway, Edward Ohannessian, John O'Connor, and Matthew Wutka; Gwen Van Dorp, Superintendent of Schools; and Harry Traver, Business Manager
Chairman Guarco confirmed a quorum and called the special meeting to order at 7:00 p.m.
MINUTES
The Board reviewed the minutes for the meeting of February 11, 2008.
ON A MOTION by Mr. Kuhnly, seconded by Mr. Bischoff, the Board voted (6-0-0) to approve the minutes of February 11, 2008 as presented.
Consideration of MODIFICATION OF THE SCHEDULE TO PROVIDE TAX RELIEF FOR THE ELDERLY AND TOTALLY DISABLED
Chairman Guarco introduced the agenda item for increasing the local eligible amount to the highest and lower tax credits for taxpayer income. The state allows 2.3% tax relief as of January 2007.
Town Manager Smith presented background information in providing tax relief for the elderly and totally disabled. The town has a Local Option Ordinance which automatically amends the schedule annually by a cost of living adjustment as determined by the State Office of Policy and Management. The schedule can be further amended by recommendation from the Board of Finance and vote by the Board of Selectmen as long as the credit is not exceeded by 75%. The last time the schedule was adjusted was in 2004. Presently, the number of individuals involves an average of 100-120 at a total cost of $125,000. The effect of credits is unknown under the new formula, however it is expected it will remain approximately the same in number accounts but may result in about $25,000 to $35,000 more in credit dollars. The Board
of Finance members asked a couple of questions, which Town Manager responded by indicating the credit dollar increase is only a best guess estimate and less than 10% of the benefit is used by of totally disabled individuals.
ON A MOTION by Mr. Kuhnly, seconded by Dr. Moffa, the Board voted unanimously (6-0-0) to recommend further amendment to the Income Eligibility Levels and Benefits for Elderly and Totally Disabled Homeowners per the attached schedule.
2008-2009 Budgets from the Board of Selectmen and the Board of Education
Chairman Guarco indicated the Board had received the town and school budgets.
First Selectman Adams presented the Board of Selectmen's budget. Some highlights mentioned were:
Added $5,000 to Personal and Property Protection to cover expenses associated with growing demands of administering Homeland Security section.
Added $5,000 to Administration under expenses related to cable television. Research was made with surrounding towns to find most towns assist community cable television efforts. Community cable television is very beneficial in getting communication out to the public. A Tri-town Cable TV Government Access Committee has been established with Granby, East Granby and Hartland.
Also in Administration under insurance, benefits and other, it was indicated approximately $100,000 is an increase that the town has no control.
In Personal and Property Protection, there is a modest increase of $9,294. This includes 1.4 purchase of a deliberators, which six are needed and a rising cost in ammunition. The amount of $3,751 is for contract service by Lost Acres Fire Department.
In Libraries, Recreation and Social Services, there is a labor cost increase of $8,865 from grant fall offs. It is anticipated this request will be asked for again in FY 2010.
In Public Works and Environment an increase of $61,151 is requested because of the rising costs from utilities, fuel, and services.
First Selectman Adams noted from the increases requested above that one-half of the budget guideline has been used ($171,158 non-labor cost). He stated that if the budget were cut by $38,000, it would cause a hardship effecting town services.
Town Manager Smith highlighted other sections of the budget. The budget process started with the Plus One Budget to identify existing service needs, such as contracts and other known items. The operating budget showed 4.46% increase without the benefit of small changes or minor items adjustments that would be $5,000 or less. The total Plus One Budget was close to 6.6%, including new staff. From here, the operating budget was reviewed following budget guideline instructions from the Board of Finance. A transmittal letter to the Board of Finance speaks to the issue of the Selectmen’s recommended budget of 4.46% increase to operations and responds to the 4% guideline budget, which would reduce activity by $38,000 in services. Town Manager Smith indicated revenues from the state are expected to
shift. It is unknown when this information will be finalized. Also the town is faced with revaluation for October 1st 2007. This revaluation results in a new grand list increase over the old one and it reduces the mill rate by approximately 20%. These adjustments to our property taxes will be reflected in a new mill rate set by the Board of Finance.
Chairman Guarco asked for the percentage that individuals pay for health benefit premium share. Town Manager Smith responded that it is 12% - 15% for 2008-09. Mr. Bischoff made a comment in reference to part time/over time/temporary salary is reported in the budget. It was suggested to identify this further in order to distinguish what amounts are for part-time, overtime or temporary personnel. First Selectman Adams and Town Manager Smith provided some information on this subject. Public Works and Police is usually for overtime work, Library would be for part-time work, and Recreation is temporary work for summer positions.
Mr. Wilke asked about details for the reduction to a 4% budget. Town Manager Smith indicated that the reduction of $38,000 from the budget was only detailed to the department it would come from. He thought the Library possibly would have to reduce hours of operation or purchases of books. Department Heads will have to be consulted before actual service reductions would be identified.
Board of Education Chairman Cal Heminway presented their budget. Chairman Heminway showed a power point presentation, highlighting some goals achieved through the BOE FY ‘09 budget to be: 1. maintain a positive environment and support for continuous improvement of student learning. 2. support the development and implementation of international education programs. 3. promote extended educational opportunities, enrichment and support for student learning. 4. support district infrastructure and operational needs.
He indicated the forecast for student growth will be flat this year and this helps avoid deeper reductions in the budget. However, the school is experiencing inflation for books and instructional supplies at a 9% increase, paper has increased at 30% over a two year period, and rising costs in fuel, electricity and health benefits are also contributing to increase the budget.
He touched on how a great return on investment is being demonstrated by CMT math results – first in the state for 6th and 7th grade, increases in high school student achievement (SAT, CAPT, and AP) even though the NECP state ranking shows Granby falling behind other districts in per pupil spending and class room sizes.
Chairman Heminway commented primary school parents may not be happy with the allocation of the budget, but the school can adequately support the primary grades.
Under the administrative budget, 2.2 (FTE) full-time teachers have been eliminated and new programs and positions are possible only through the re-allocation of funds within operating budgets. Mr. Heminway identified the Board of Education operating appropriation request at $26,250,004, Capital Equipment/Improvement Fund request at $545,000, and the Education Quality and Diversity Fund request at $297,360.
Chairman Heminway and Superintendent Gwen Van Dorp answered questions by Mr. Brady and Mr. Bischoff respectively. They were:
1. Under Quality and Diversity, how much is being spent for International Education Program Development (IEPD) and Mandarin Chinese Language Course (MCLC)?
a. IEPD - $9,000 and MCLC - $13,600.
2. Further explanation for the 2.2 (FTE) teachers eliminated and how new programs and positions are possible only through re-allocation of funds within operating budgets.
a. 1.0 (FTE) computer teacher position in middle school was eliminated. Some classes taught by this teacher will be assigned to existing media center and guidance personnel .4 (FTE) and other classes will be taught by a new part-time teacher .4 (FTE). This teacher also taught one class at the high school so, a business teacher position will be increased by .2 (FTE) to cover this class. An existing mathematics teacher position will also be increased by .2 (FTE) to provide support for students in a more demanding math curriculum. In order to meet support for mathematics, 2.0 (FTE) teaching assistant positions will be reassigned to Kelly Lane and Wells Road Intermediate Schools. Lastly, from the Quality and Diversity Fund, resources have been targeted to continue a
skilled-based summer school program, provide short-term tutoring to students in need, and provide academic and social support for students from Granby and Hartford. An elementary and secondary Choice Program Intervention Specialist will also provide support to choice students. Substitute teachers salaries increased $10 a day to make Granby more competitive with other districts.
The consensus of the Board of Finance observers for the budget workshops was that the budgets were meticulously worked on.
Chairman Guarco thanked both boards for presenting their budgets. He distributed a budget worksheet FY09-Rev.1 (attached) for discussion about the budget. The worksheet described the operating budget increases for Board of Selectmen at 4.46% and Board of Education at 4.48%, increase Fund Balance transfers to support the operating budgets, shows the Grand List growth at .97% and mill rate increase at 1.0%. Chairman Guarco indicated the Capital Equipment/Improvement expenditure for the Board of Selectmen and Board of Education is reduced by $15,000 each. He then asked the Board of Finance to comment. All of the Board expressed appreciation for the hard work engaged by the town and school in the budget process, commented the budget does provide for sustaining service levels, accepted the reduction of the Capital
Equipment/Improvement expenditure, and most agreed with the worksheet figures. Also expressed was that new ways have to be found to keep operating budgets more in line with minimal increases suggested. Chairman Guarco commented the debt service increase keeps the budget very tight and long-term planning is important given the economic shifts taking place.
ON A MOTION by Gordon Bischoff, seconded by Scott Kuhnly, the Board voted 5-1-0 to forward for public comment, the following budgets to the public hearing scheduled for April 14, 2008 at 7:00 p.m. in the High School Auditorium. It was further noted that adjustments to the Capital Equipment/Improvement Fund would be reduced by $30,000, the new figure being $1,324,525. Revenues for the Capital Equipment/Improvement Fund would be $944,000 from the General Fund, $135,000 Town-Aid Road, $85,000 LoCIP, $85,000 Communication Fund and $75,525 of Capital Improvement Fund Balance. Mr. Brady voted no.
REVENUES |
Property Tax Levy |
$29,693,033 |
Other Property Tax |
570,000 |
Intergovernmental Revenues |
7,140,318 |
Local Revenues and Fund Transfers Local Departmental and Fund Revenues |
812,215 |
Fund Balance Transfers |
1,858,000 |
Total |
$40,073,566 |
|
EXPENDITURES |
MUNICIPAL SERVICES |
|
General Government Department |
$8,678,836 |
Board of Selectmen and Board of Education Capital Equipment/ Improvement Allotment |
944,000 |
Economic Dev. Funds |
12,500 |
Debt Service |
4,188,226 |
|
EDUCATION SERVICES |
|
Education Department |
26,250,004 |
|
|
Total |
$40,073,566 |
|
|
OTHER FUNDS |
REVENUES |
EXPENDITURES |
Dog Fund |
$17,600 |
$17,600 |
Recreation Events Funds |
$363,000 |
$363,000 |
Sewer Utility Fund |
$141,450 |
$141,450 |
Education Quality & Diversity Fund |
$297,360 |
$297,360 |
Capital Equipment/Improvement Fund |
$1,324,525 |
$1,324,525 |
ADJOURNMENT
Chairman Guarco announced that a Public Hearing on the proposed budget is scheduled for April 14, 2008 at 7:00 p.m. in the High School Auditorium. A Special Meeting of the Board of Finance will be held on April 14, 2008 at 8:30 p.m. or immediately following the Public Hearing on the 2008-09 proposed town budget. If necessary, the Board of Finance meeting may be held on April 15th.
ON A MOTION by Mr. Wilke, seconded by Dr. Moffa, the Board voted unanimously (6-0-0) to adjourn the meeting at 8:50 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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