TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING
MINUTES
MARCH 28, 2011
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, Robert Clark, Frederick Moffa, OD; and Al Wilke
Also present: Board of Selectmen: John E. Adams, First Selectman; B. Scott Kuhnly, 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, Ron Walther, Alan Addley, 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 23, 2011.
ON A MOTION by Mr. Clark, seconded by Mr. Bischoff, the Board voted (6-0-0) to approve the minutes of February 23, 2011 as presented.
2011-2012 BUDGETS FROM THE BOARD OF EDUCATION AND BOARD OF SELECTMEN
A transmittal letter of the Board of Selectmen’s FY 2012 budget was distributed to the Board of Finance in advance. The letter stated that the operations budget was an increase of 2.63% and meets the Board of Finance guideline of not more than 2.64%. Municipal services expenditures are $13,772,498.
First Selectman Adams commented that the budget numbers have been presented and he would like to demonstrate how together the budget and town services gives a good perception of Granby. Traveling with a friend, comments were made about the road conditions from one town to another. It was said that you can always tell when you are travelling in Granby, the roads provide for a smooth ride; seldom you feel a rough or unplowed road. First Selectman Adams elaborated by stating that surrounding towns’ road budgets are generally higher than Granby’s, which compliments our town for its efficiency and effectiveness of work that gets done. Another example that First Selectman Adams read was a thank you note from a Granby resident to the Police and EMT for their response in administering a life-saving
procedure. He noted that the Police Department has had no increase in staff for at least 10 years and they took a sensible approach by purchasing defibrillators for all cruisers. His ending comment was that Granby takes a proactive, effective, and efficient approach in its day-to-day operations.
First Selectman Adams requested that the Board of Finance support the budget and realize the immediate needs and future for Granby.
Board of Education Chairman Cal Heminway presented their budget using a slide presentation.
The Budget Summary slide highlighted their budget as:
Operating Budget Request $26,983,001
Less Federal Education Jobs Fund Grant ($315,407)
Net Operating Budget Request (0%) $26,667,594
Educational Capital Improvement Fund $525,000
Quality and Diversity Fund $366,382
Board of Education Appropriation Request $27,558,976
He highlighted the school’s vision, mission and achievement goal, emphasizing the budget goals as:
1. Support the mission, vision, values, and goals of the district;
2. Be responsive to the economic climate and the guidelines set by the Board of Finance;
3. Maintain levels of personnel, programs, infrastructure, and services that meet the essential needs of the district; and,
4. Utilize redeployment of efficiencies and resources.
Mr. Heminway spoke how the schools have obtained outstanding recognitions from Vanguard Schools for the high school, The Connecticut Association of Schools for the middle school, and the National Schools of Excellence for the intermediate Kelly Lane School. Some other highlights from the slides were:
- Students completing 8th grade algebra in 2007 was 47% and in 2011 it is 82%.
- Granby is receiving a great return on its educational investment.
- Efficiency investments were made for utilities and fuel oil (purchase of efficient fixtures), special education (a comprehensive study), and a grant is being applied for to add photovoltaic arrays to Wells and Kearns Schools.
- Environment comments: multi-year funding challenges started in FY09 with the worst in FY13; mandates and funding pressures for Open Choice and magnet schools; and realizing the global, national, and local economic climate.
- Major Changes FY2012 vs. FY2011 – percentage of total budget increase is 1.2% or $315,407 in the categories of salaries, benefits, special education (tuition and transportation), utilities, regular ed transportation, and other.
- Health and dental benefits showed a decrease in spending in FY2012 versus FY2011.
- School maintains levels of personnel, program, infrastructure, and services that meet the essential needs of the district.
- Quality and Diversity FY12 new expenditures total $29,469
- Two students attending a welding program and one student attending a magnet school.
- Four extracurricular advisory stipends for the following clubs: Destination Imagination, middle and high school robotics, and angel horses, and robotic supplies.
- Increased stipend for the Director of Summer School.
- One section of Chinese Mandarin II to provide for the students who have successfully completed Chinese Mandarin I.
- Small Capital Plan – Transportation $215,922; Building Maintenance $68,903; Furniture and Equipment $11,045, Technology $229,130.
- Large Capital Priorities – Athletic Field Facility and Maintenance and Facility Storage. (no cost provided)
Chairman Guarco discussed the budget worksheet entitled REV2 for FY 2012 that included $120,000 decrease from the Local Revenues and Fund Transfers (Use of CNEF). The General Fund Capital expenditure for the Board of Selectmen would be reduced by $149,367 bringing the number to $930,000. The proposed mill rate increase would be 1.0%. First Selectman Adams indicated this type of change in the budget would result in some projects not being done in the Capital Improvement fund this year in road construction or culverts and bridges, and road overlay may be reduced and we may have to pay more because costs are rising.
The Board of Finance was appreciative and thanked the Boards of Selectmen and Education for all their hard work putting together the budgets.
In general, budget comments made were:
1. On the town side, two contracts are up for negotiations in 2012; one is in arbitration right now.
2. The Board of Finance members attending budget workshops stated they were well prepared; questions were asked and answered at the budget workshops.
3. Challenges are raising students’ performances with less money.
4. The special education study is a two-year program, starting this fiscal year, with implementation next year. It was indicated that this study has source guarantees for student performance achievements.
5. We have concerns if we are not spending enough per student, what will be their future.
6. Cannot sustain these town services or school performance levels if budgets do not change and are left at zero increases with no future improvements or projects or program offerings.
7. Regionalism is a method for sharing costs. The town and school do participate in these types of programs, however, it does not guarantee a decrease in cost. Some of the programs are Hartland School District, CREC participation, CRCOG participation, shared building inspections services, Farmington Valley Health District, Central Connecticut Solid Waste Authority, Rails to Trails equipment sharing, and supply purchases shared. There are discussions about regional police dispatching and bus services sharing.
8. The General Fund has fed debt service obligations in the past in order to keep the tax levy down. The town needs to build up the account again. The drop in the use of the General Fund must continue.
9. The town may look at a bonding project for large capital and include some small capital projects. Bond rates are good for towns and the time is right to research more regarding a bonding issue.
10. A consensus of the Board of Finance was to keep the mill rate increase to not more than 1% even though a 1.5% mill rate may be reasonable, as next fiscal year will give another challenge. Hopefully, the economy will be improving and residents will be understanding of a substantial mill rate increase next year.
ON A MOTION by Francis Brady, seconded by Al Wilke, the Board voted (5-0-1) to adopt the proposed budget to be sent to a public hearing scheduled for April 11, 2011 which would reflect a mill rate increase of no more than 1% with specific reference to the numbers outlined in the worksheet which bears the caption “REV2” that amounts to a 1% increase. Dr. Moffa abstained.
STATEMENT OF ACCOUNTS
Administration Finance Officer Barbarajean Scibelli indicated tax collection revenues are at 100% and other property tax revenues are expected to come in as in the past. On the intergovernmental revenue side, a number of revenues are over. They are: Elderly Tax Relief, Boat Grant, State Owned Property, SS Dist Tax Relief. A shortfall from the MFG Machine Equipment fund account is expected. On the local revenue side, a shortfall from Short Term Investments is expected at approximately $70,000. Expenses are on target. The General Maintenance account has $4,900 left in the account. This account handles winter storm activity. The gas, diesel, and heating fuel accounts are being watched as prices keep going up. Transfers or appropriation adjustments may be requested at year-end.
Harry Traver, BOE Business Manager, reported on the February Statement of Accounts. He indicated under Administration for purchased services it shows $181,145 unfavorable. This is because of the purchase of the District & Community Partners study. Mr. Traver commented that there will be no return of money to the town at year-end due to use of excess funds to be used for the District & Community Partners special education study.
ADJOURNMENT
Chairman Guarco announced that a public hearing on the proposed budget is scheduled for April 11, 2011 at 7:00 p.m. in the High School Auditorium. A Special Meeting of the Board of Finance will be held on April 11, 2010 at 8:00 p.m. or immediately following the public hearing on the 2011-12 proposed town budget. The meeting could be continued to the following evening, if needed.
ON A MOTION by Al Wilke, seconded by Frederick Moffa, the Board voted unanimously (6-0-0) to adjourn the meeting at 9:15 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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