TOWN OF GRANBY
BOARD OF FINANCE
MINUTES OF PUBLIC HEARING
April 12, 2004
PRESENT: Michael Guarco, Chairman; Christopher Comer, Al Wilke, Richard O’Brien, Gordon Bischoff, and Francis Brady
Chairman Guarco called the meeting to order at 7:30 p.m.
The Public Hearing, according to Town Charter, is held on the second Monday in April to present the budget proposals for the upcoming fiscal year.
Board of Finance Chairman Guarco indicated the proposed Fiscal Year 2005 budget is a 4.67% increase in spending and calls for a 4.48% increase in the mill rate from 30.60 to 31.97.
Chairman Guarco gave an overview of the budget process which included the Capital Program Priority Advisory Committee planning process and guidelines for operating budgets. The major highlights of the budget are 1) maintain programs, 2) handle enrollment, and 3) expand Elderly Tax Abatement.
On the municipal side, the budget picks up the fall off of grants from the police, social services, and senior center staffing.
The Board of Finance allowed some expansion within the education budget because of offsetting revenues from three sources, Special Education, out-of-town tuition, and pay for play sports programs at the High School.
The Board of Finance reduced the requested budgets presented at the March 29th meeting by $40,000 to enhance the funding for property tax relief for the elderly and totally disabled program. The reduction was $15,000 from the Board of Selectmen budget and $25,000 from the Board of Education budget.
Chairman Guarco summarized the history of Granby’s budget, showing various comparisons for the average annual mill rate during the years of 1970-2004. He also indicated in recent years the Town of Granby was mid-point in a list of six (6) area towns for budget (5.30%) and mill rate (3.26%). In the 2004-2005 budget, Granby appears to be the second lowest increase for spending (4.67%) and generated mill rate (4.4%) among eight (8) towns.
Chairman Guarco’s closing remarks indicated that the key to stability in the increase in taxes and funding for programs remains moderation in growth of the underlying cost of existing operations.
First Selectman Adams presented the Board of Selectmen's budget which is below the Board of Finance guideline. The total municipal budget showed $11,523,833, an increase of 2.5% over 2004. An increase of 4.4% was reported for Board of Selectmen operations. For the Capital Budget, Capital Non-Recurring Expenditure Levy, and Economic Development Funds showed an increase of 8.64% over 2004 budget. Debt Service was $2,882,303, a 2.4% decrease over 2004. The budget breakdown is illustrated as follows:
Operations
Administration $2,312,080
Personal and Property Protection 1,839,024
Libraries, Recreation and Social Services 606,054
Public Works and Environment 2,339,556
TOTAL OPERATIONS $7,096,714
Capital, Capital Non-Recurring Expenditure, and Economic Development Funds
Capital $655,000
CNEF Levy 884,816
Economic Development 5,000
TOTAL Capital Fund $1,544,816
Debt Service $2,882,303
TOTAL MUNICIPAL BUDGET $11,523,833
First Selectman Adams indicated the expenditure reductions were health plan with stop loss ($43,000) and capital ($900). The increasing items identified were payroll, pension, Mid-CT tip fees for solid waste, and grant fall off programs. First Selectman Adams ended his presentation with a list of dos and don’ts for the budget, which indicated that budget guidelines have been met, necessary school expansion projects have been accomplished, and adjustments to the Elderly Property Tax Relief program are anticipated. However, manpower needs are not addressed for the town.
Board of Education Chairman Heminway presented the school budget. He indicated the budget had met the Statement of Commitment by all three boards, we are under the tax ceiling of 5.9%, and the Board of Education met the budget guideline. Some other budget highlights were:
· Adds teachers for enrollment
· Partially restores support staff
· Supports continuous improvement efforts
· Funds mandated programs
· Adds athletics through fees for services
· Expands capacity through new revenues
· Protects and enhances capital investments
Associated with the budget highlights were the driving forces as outlined.
Fifty-five additional students are expected to be enrolled for FY 2004-05 (adds 3 FTE teachers and 3.6 FTE support staff); first grade teaching assistants and library and computer teaching assistants.
· Maintain Operations (utilities ($40,000), communications, and school health services).
· Retirement Costs (14 retirees, including severance, health benefits, and early retirement). Cost: $225,000
· Add and support new athletic clubs and sports through a “pay to play” program.
· Maintain state and federal mandates, such as special education tuition, transportation and evaluation ($195,000), vocational tuition ($31,000), and “No Child Left Behind program”.
· Protect and enhance capital investments technology through progressive maintenance and licensing agreements ($97,000).
· Salaries and Benefits – Existing staff and health costs ($125,000), New employee and health costs ($228,000), and other payroll and benefits ($96,000)
BOE Chairman Heminway summed up several other areas which included revenue, quality and diversity, and capital improvement as follows:
Revenue
Operating $248,715
Capital $55,000
Quality and Diversity $75,000
Quality and Diversity
Magnet school tuition, magnet school transportation, summer school, support for Choice Students, enrichment activities, parent/teach diversity training - $95,600
Capital Improvement
Transportation $147,620
Technology $122,526
FFE $39,500
Building maintenance $95,354
In summary, the Board of Education's Operating budget was $21,090,458, Capital Improvement was $405,000, and Quality and Diversity was $95,600.
The public input overview was split regarding the proposed budget, however these residents gave the impression that the budget, as presented tonight, should go to the Town Meeting for consideration. Other subjects or comments mentioned by the public were benefit costs rising, share-in insurance premiums, satisfying the senior and library needs in the community, tax property relief program, long-range planning, and continuous efforts towards improvements and savings for the town and education departments.
ADJOURNMENT
The Public Hearing was adjourned at 9:05 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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