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TOWN OF GRANBY
BOARD OF FINANCE
MINUTES OF PUBLIC HEARING
APRIL 14, 2008
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, B. Scott Kuhnly, Frederick Moffa, OD; and Al Wilke
Also present: John E. Adams, First Selectman; William F. Smith, Jr., Town Manager; J. Cal Heminway, Board of Education Chairman; and Gwen Van Dorp, Superintendent of Schools
Chairman Guarco confirmed a quorum and called the public hearing to order at 7:00 p.m. He acknowledged other members of his Board.
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 gave an overview of the anticipated revenues and expenditures for Municipal, Education, and Debt Service for fiscal year 2008-2009. The total for the town budget is $40,073,566. The revenues are made up of 6.7% local revenue and fund transfers, 17.8% intergovernmental revenues, 74.1% property tax levy, and 1% other property tax. The expenditures are made up of 65.5% education and 34.5 municipal services. He indicated the proposed town and school budgets, along with small capital represent a 4.04% increase and a Debt Service increase at .87%. The overall budget increase is 4.91% for a proposed mill rate of 29.35. The FY09 property tax levy is $29,693,033. In order to come to this figure, the proposed mill rate change increase is 1% after revaluation and .97% from grand
list growth. Chairman Guarco also stated that in a revaluation year, while the average real estate tax bill may go up by 1%, the vast majority will see changes higher and lower than that number, the sum of all the changes aggregating towards that 1% percent. Chairman Guarco commented the continued goal of the Board of Finance is to hold the budget line items tight.
First Selectman Adams presented the Selectmen’s Budget and commented many people have worked hard in preparing this year’s budget. He thanked the Board of Selectmen, Town Manager Smith, Ms. Scibelli, Administration Finance Officer, and Department Heads. The budget was developed in cooperation with the Board of Finance and Board of Education because they are in constant communication with each other.
He stated some of Granby’s accomplishments for this past year were a STEAP Grant for Holcomb Farm in the amount of $400,000, a Federal COPS Grant for school security in the amount of $200,000, secured emergency vehicle pre-emption grant for some signal lights, completed revaluation, expanded local share of tax relief for elderly and disabled citizens, and replaced two senior level employees (Town Clerk and Building Official). He noted other matters that were in process for completion as Rails-to-Trails link, Bank Street lighting and sidewalks, energy plan of 20% less energy use by 2010 through the Conservation Commission, and the Silver Street Bridge replacement. He indicated the 2008-09 budget request is $40,073,566, of which $13,823,562 is the municipal service budget including new debt service increases amounting to
$335,225. The municipal expenditures are General Government Departmental - $8,678,836, Capital Budget - $944,000, Economic Development Funds - $12,500, and Debt Service - $4,188,226. This proposed municipal budget increases by 5.8% from last year. There are no increases in full time personnel. There has been a pick-up in grant fall off amounting to $8,865 in Social Senior Services. The General Fund contribution to the Capital Budget increased by $44,000. The Economic Development Funds increased by $2,500 in order to support website activity, Geographic Information System (GIS) activity, and continued support to the Metro Hartford Growth Council. The major increase in Debt Service reflects our new obligations to pay school building construction previously approved by the town.
First Selectman Adams then explained the slide “How To Fund the Budget Request”. The budget is funded from property taxes with about 75% of the total amount - $29,693,033, intergovernmental revenues (state grants) from the State of Connecticut amount to approximately $7,140,318 (17.8%) of the total budget, local revenues from fees for services, permits, rents, and interest from short term investments amount to approximately $812,215 (2%), and lastly fund transfers in the amount of $1,858,000 (4.7% - use of General Fund Balance). He highlighted major increases as: salaries - $151,889, fringe benefits - $81,107 (fringe benefits include FICA and Medicare, pension and the health plan, which employee contributions and plan design changes continue to reduce this amount), energy costs - $36,500 (this includes
electricity, fuel oil, and diesel), and Solid Waste Collection - $14,116.
First Selectman Adams discussed the slide “What This Budget Does” for Granby. He indicated the budget maintains current level of services, manages the town’s new debt requirements (+$335,225), maintains a 5%+ General Fund balance, and balances the needs of the community with the ability to pay for those needs.
He stated some of the future demands for Granby as Salmon Brook Pond House replacement, a town and school wash-bay and storage facility, a master plan for town and school future fields and recreation related needs, public library expansion study, and capital needs at Holcomb Farm.
In summary, First Selectman Adams mentioned the budget uses increased state revenues to supplement municipal needs, long-range planning equals stability, municipal services is 4.46% increase, debt service requirement is 8.7% increase, and all of which result in balancing the needs of Granby while maintaining an adequate General Fund balance.
Board of Education Chairman Cal Heminway presented their budget. He indicated the forecast for student growth will be flat this year and this helps avoid deeper reductions in the budget. 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, and increases in high school student achievement (SAT, CAPT, and AP) albeit the NECP state ranking shows Granby falling behind other districts in per pupil spending and class room sizes.
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. This is in response to the change in enrollment. First grade will have seven rather than eight sections. The kindergarten reading teacher position will be replaced with a grant funded tutor.
Chairman Heminway highlighted goals to be achieved through the BOE FY ‘09 budget to be:
1. Maintain a positive environment and support for continuous improvement of student learning.
Middle School Media Center/Technology
High School Business and Math Positions
Instructional Support at Kelly Lane and Wells Road
District Support Programs
2. Support the development and implementation of international education programs.
Middle School World Language
Mandarin Language Course
Planning/Pilot of International Education Programs
3. Promote extended educational opportunities, enrichment, and support for student learning.
Magnet School Participation
Co-Curricular Programs
Enrichment Programs
4. Support district infrastructure and operational needs.
Inflation, health benefits, fuel, technology, mandates, and new textbooks
He then spoke about the small capital plan as being:
Transportation
Existing Equipment Leases $208,305
Building Maintenance $41,403
Furniture & Equipment $66,688
Technology
Existing Equipment Leases $187,204
New Commitments $26,400
Total $530,000
Chairman Heminway identified the Board of Education operating appropriation request at $26,250,004, Capital Equipment/Improvement Fund request at $530,000, and the Education Quality and Diversity Fund request at $297,360.
PUBLIC INPUT 2008
There were several comments made at the public hearing by residents pertaining to the context of the town’s capital improvement fund for Ahrens Park, school’s re-allocation of existing resources and elimination of teachers, seniors capability to pay taxes with fixed incomes, vehicle fleet, binding arbitration rules for various contracts, administrators’ contract and replacement of the Superintendent of Schools, health plan costs, and debt service. The Board Chairman responded to the above comments.
ADJOURNMENT
After all public input was heard, Chairman Guarco adjourned the public hearing at 9:05 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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