Video index
1. Call Meeting to Order
700
2. Roll Call
Roll call (10 Present, 0 Absent, 0 Excused)
3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of a majority of the Town Council.]
Don Gonsalves, 40 Bayberry Trail - getting sick and tired of Council member challenging me on my numbers. one of the council members wants to reduce the fund balance, it is 800,000 every year, nothing has changed and is always that numbers. I want 800,000 taken out of the fund balance. The school Department has not given money back to the Town which they should from their surplus. they are spending on unbudgeted items. Pensions, if you want to add money to the pensions and I have asked for pension review for years and we have never had a pension fund review. they are asking for 275,000 more but I would like a public meeting. I would like a public meeting regarding this issue. $350,000 to add to the health - on October 17, 2011 we had a special meeting - we need to have a review on health care. that meeting discussed telephone poles and only had 15 minuts to discuss health. No way would I give 350,000 to the health plan but we have not had a review. it is one of the largest items we have and we only spent 15 minutes on that item. justification for a lot of other things is basically we have low interest costs right now and right now can finance very low - the other side of the coin is these interest rates are hurting the senior citizens. there are a lot of seniors out there that are hurting and there are a lot of people who are on fixed incomes. the original budget should stand and any thing additional should be eliminated.
Larry Torff, 521 Quarrty Brook Drive - interesting budget year. the BOE process - no one could say they were surprised. the town does not follow a strategic plan, no guidelines for the Town Manager, since ph we have heard one council member say we have heard that she decided on the budget before teh ph and never shared wit the public and never even considered thepublic's point of view. if you want to improve pension change to deferred. need to find other money other than tax dollars to do projects such as athletic fields. need a formal legal opinon regarding 6320 or 501C3 is allowed without a referendum. need examples of other towns. property taxes increase further then income then people would not be able to afford to move into town. full day kindergardent the sewer plant and --- is enough for this year. the TM's budget as proposed seems like the best plan this year.
John Mitchell, 41 Eagle Drive, for the past 4 years our economy has struggled with and through the worst recession. we are emerging but have not yet. 6% unemployment is not acceptable. many are underemployed. this is a difficult time for many of our residents. Connecticut is next to last in the nation in growth of personal income next to South Dakota. we have problems. this is a time for healing and prudent and reasonable increases and spending. the public is talking, the buisness community is talking. what is being said is not complimentary. we don't need SW to be disfunctional. our tax burden supports high quality of life. our public safety are incredible. our libary is great. we continue to imporve the roads. we are regarded in this nation ats the 38th best and that is something to be proud of for towns our size. my point is we can hold our head high and we don't want or need unreasonable tax increases. there is great recreational opportunity. we have nothing to be ashamed of. I am here tonight for the senior citizens with little to no return o their savings. social security checks that do not keep up with their needs. some can't keep warm in the winter. Here for the busienss community - do not burden resident by overspending now or ever. I will conclude by saying we should never create an innovative way to avoid the referendum process. Significant projects should be met with public approval.
Gene Botteron, 34 Victor Lane - here to address the budget issues. I feel that the initial management budget shoudl be looked at and reduced where possible. the additional 800,000 should be eliminated. the taxpayers in SW and CT are paying enough taxes right now. Many of ur are not in a position to pay more taxes. It is regrettable that certain members of the Council are trying to circumvent the process of a referendum. Taxpayers shoudl have the opportunity to vote on major initiatives. The town is moivn gin the right direction. there have been road improvements. sewerage treatment plan and firehouse and fire apparatus. urge each of you to vote against any additional items. thanks the coucl for their many hours they give and their services.
Deborah Morrison, - I want to stay in SW and be able to afford to live here. keep in mind there is a mix of people in this community. Would like the council to be fiscally responsible to the majority of the taxpayers. it is a tough economy. in 2006 lost my job - have not had an increase in 12 years. thankful to have a job now. my salary along with others is not increasing.
Scott Higgins, 48 Cornerstone Drive - I do hav ea desire to keep the town deirable. offering services that other would like should be offered. add expenditures to make sure the town stays desirable.
Mark Jarvis, 71 Parkview Drive - i have been a resident of sw for 38 years. I chose to live in SW and work in Groton. I wanted my kids and family to have the education. There are a lot of great improvements that have been made in town. I would like to see continued growth and progress.
Derek DeMartino - I don't like paying taxes. the reality is if you pay higher taxes for status quo then it does not move the town forward. we have had very low tax increases over the past 5-6 years. We can't keep putting things off. need to mkae things better. there are more programs that use the fields. we need a turf field and need to take care of things. if we don't spend we are going to fall behind. you have to spend money in your town.
Mike Sullivan, 24 Jared Court - town council is trying to put more funds on the budget. unintended consequences of trying tpush and reach are not good. you have a project that has not had offiical backing and you are using it to bypass referendum and public. you ar epushing a historic tax increase on the town. what happens when teh town has a true need, it will not be able to get done if the council pases this large budget.
Al Larson, 46 Jacques Lane, Chair pf Park & 'Recreation - someone mentioned earlier about the town's master plan. there is a plan of conservation and development. final coming to council in July. in the prelminary report - lists the top things we are proud of and within schools, popen space, nevers and evergreen, main street, VMP, related to town charater, Wood Libary, Avery park, library. things we are sorry for is lack of sidewalks and lack of paths, vacant buildings, too much development, school buildngs and --------------. Need to imrprove those. there has been a balance of growth and preservation. smart growth would be girls softball field realignment - Nevers Road fields, adding turf field would create safer fields. can be financed over 10 years and would help with the impact to residents. these budget items would allow sw to grow.
795 Cahpel Road - 55 - my kids have been educated in sw. my kids have learned just as much in the classroom as in the field. every child deserves the opportunity to compete other than n the classroom. hope you will consider funding the fields for these kids.
Matt Riley, 12 Heatherwood Drive - listening to the speakers - revaluation did not increase tases it redistributes. not sure how revaluation increases taxes. the fund balance - reducing the fund balance is increases the amount of taxes that need to be paid. the fund balance is essentially the town's savings account. there is an expectation tha tit will be reduced. need to educate the public. the fields - 85% of our peer groups have turf field sin their town. I had suggested that you talk to someone in volved - interest rates are low.
4. Communications
Mayor read the emails into the record Bob Levalley - Richard Roback Hal Reed Tom Murtha Laura Petersen today is tax freedom day
5. Town Manager's Report
Galligan - union negotiations - did put memorandum out to you. there is a typo on there.
McCann - memo - hold off hiring 3 maintainer positions by 1/2 year. TM - I did not want to hire someone before the budget was all set. if you want to pass a resolution that would be find. I have to be careful because I have an obligation to people who are hired. McCann - Council gave a clear direction to move forward with that. This was long before the budget. TM - I have a fiscal responsibility. until the council moves forward with a budget that they are comfortble
Yagaloff - I think your recollection was dead on. there was a budget freeze and some council members wanted to lift the freeze to hire these individuals. There was disagreement that night whether non-emergency psoitions were filled. the police department was told to proceed. the back fill of the maintainer positions was a vote to lift the restriction. the town manager was given discretion of how he would do that. I think you were dead on in terms of holding off knowing there may be layoffs if those positions were filled. the tax increase is high and the last thing we want to do is layoff tawn staff and put them out of jobs. I think you did the right thing.
Beaulieu - This is the second time that the Council has given direction and it did not happen. It was made clear that night that we needed to have those maintainers asap. It is great politics to use this as a threat but I would think if we were in a position where we are overstaffed we would go where we are overstaffed. Galligan - I have been down that road before. I do not want to hire someone and then have to lay them off. People do not have a confidence to move forward and I don't have confidence to move forward. when the council is done with their process I will move forward when I am comfortable. I have to sit back and do the right thing.
Anwar - thank you for your efforts. Is Chief Reed comfortable with 1/2 year salary - do not want to impcate police department. TM - they will not be on until October so that is why cut that back Anwar - 70,000 to 40,000 what kind of impact? TM - in Storm Alfred trimmed back a lot of trees - we only had three trees that were down with trees. Anwar - 3.5M think going to be up to 7 M TM - it is a pro rate and feel it will be up there. Anwar - capital lease - purchase? TM - all of the generators and the GIS - fiber optic took out - Anwar - computers - leased? TM - yes under the IT budget there is some funds and could do some 3 year leases. it is something tht would be a savings every year. Anwar - leasing th ecomputers is a good idea. in 3-5 years they are obsolete and that is a good way to move forward. support leasing computers. I like the numbers I am seeing. TM - the idea from last year was to come up with a plan to reduce.
Delnicki - the comment to the maintainer - I remember you saying you were holding off on maintainers - so that did not come as a surprise to me and you said you were going to hang off on hiring. TM - lot of numbers do not come until after the audit report. we need additional positions. but dod not want ot be in a position to hire and then lay people off. Mccann - memo you address collection rate from 98.75 to 98.9% - what makes you think that will increase? TM - we have ranged from 98.6 to 99 so did a calculation for that. McCann - did calculations to tax increase that is represented by 34.66 - if you take an average deduction of 12% the calculated increase is not 5.2% it is actualy Galligna - use old assessment - McCann assessment would be higher due to the 12% Galligan - tht is why it is difficult to figure McCann - you have to focus on the reduction which is 12% - compare tht same property you get a difference in that property. if you are comfortable with using collection rate I don't have a problem with that. I believe that the numbers that you have here are based on the budget that you originally presented. TM - the only thing did take into consideration are the items that you proposed. McCann - the additional items were not 800,000 reducing to 400,000 - that is not increase in spending. 125,000 of sugggested additions were to help the fiscal state of the town.
Yagaloff - the change in the collection rate does not change the grand list - TM - collection rate will increase your Yagaloff - the collection rate on the taxes have exceeded 99% TM - usually do not see until December - we have always met the 98.75% - Bonnie does a great job going after taxes Yagalof f- fund balance reducting is reduction in revenue means that ther eneeds to be another source of revenue to help with that shortfall? TM - if you look at the origial sheet - there was 400,000 increase in reduction - net incease to be raised by taxes, down below the pension increase, pd, ball field, vmp lot - if you add those come to Yagaloff - 800,000 would need to be raised by taxes TM - no 400,000 Yagaloff - increase in Galligan - Yagaloff - calculating the increase - like the way Matt did it - was apples to apples - 4.86% increase. the number of 12% or 10% those are not exact numbers. the average on the revaluation is not 12%. all indiivudla home sand buisnesses can be compared in the change of the taxes and revaluation. TM - agree reval is redistribution of taxes. did everything equally and tried to move forward with calculations. 5.20% tax increase. went from 6.08 to 5.20 - could you get to 4.8 - you could do it - there is no other way to get to 4.8% without cutting leaf collections, etc. Yagaloff - originally at the last meeting hit 4% - you told me what would happen but only wiling to look at page 2. hope we stay focused on page 2. page 1 is ot manageable for the town. Delnicki - looking at the old grand list is the only clear method to know what it will be. At least that gives a clear picture of what the various ipacts are. Beauleu - prepare 10 years of tax collections rates. TM - yes Beaulie - to change that number is something that I struggle with. Prague - when we calculate that number it is base don previous years of collections? in the last two years of had collection rate of over 103% TM - if I gave aging of accounts probably at 105% - Prague - we sell the tax liens and they are willing to go out and go to collections.
6. Unfinished Special Business
7. New Special Business
A. Resolution Adopting the Budget for the Special Revenue Recreation Fund for Fiscal Year 2013/2014
Beaulieu, Snyder, McCann - does this include capitla recration funding? TM - no unanimous.
B. Resolution Adopting the General Government Budget for Fiscal Year 2013/2014
Mayor, Yagaloff Delnicki - I watched how the budget was going forward and got emails, letters, etc of concern and took an unprecedented action and called the minority leader and asked if there was any common ground and is there a chance for by-partisan compromise. we came up with some of these ideas and vetted them through the Town Manager. we did not want to hurt the town. Revenues are spot on by Councill McCann - wanted to come in with lower numbers. the goals was to mitigate the impact for the taxpayers. If you take a look at the proposals here - we need a plan over 4 yeas to stop using fund balance. TM - using the number for a long time. Delnicki - if we are taking a look at 7% - phase that in leases - we need to develop a plan on what should and should not be leased. seems like 1M lease has become a standard so that would be asimple majority vote. 1 to 1 1/2 M super majority. Leasing such things as generators (Police Station, Firehouse #1, Community Center, HS), GIS, computers, savings in Engineering, trucks, tree maintenance, pw trucks, Police Officer Page 2 talks about deferring some items - 8:37 take 5 minutes recess Mayor reconvened at 8:51 p.m. only thing it includes 1/2 officer so everyone is clear on that. McCann - we have a starting point - we have a number on the table. we need to keep focused where we want to be is a more fiscally sound town and a better town then today. we can't keep status quo - if we don't improve we will deteriorate. looked at home values of my own home. value on street behind mine is 100,000 less. The street behind meis in Vernon. Venon has a school system that ranks in the bottom 30 of the State. I do't want to pick on Vernon but it has some challenges. we want SW to continue to be fine community and even better in the future. we put on the table some items for discussions for amentitties to the town. we have changes to bring forward tonight. it is not additional 800,000. The proposal tonight is to take 800,000 out of fund balance to put into the budget. we want ot only use 400,000. the second thing is to fund our pension. we need to increase that over the next four years. Additional police office, not just 1/2 of a police officer. like to see improvements to some athletic facilities. the total expenditures - reduce the luse of general fund by 400,000 anmd add to the expenditures that shoudl be funded through our taxes. so the expenditures will remian the same 34,744,580 - will require use of fund balance. explain whre numbers fall if we reduced our reliance to fund balance. amend this one or next one? TM - amend the revenues - McCann - so we can leave the expenditures alone right now. TM - yes - would be amount raised by taxes - revenues. McCann - will wait. Snyder- clarification on this - directly related to information provided to us tonight. capital projects? Delnicki - only thing we are deferring is the fiber optics TM - all generators leased, GIS, - fiber optics no Snyder - we had things listed - 287,000 in capital projects budget - there was leasing what could be to not exceed 287,000 - have you decreased that amount? TM - the leases would be 122,037 because they are taking out the fiber and IT Snyder - where are the pick up trucks TM - they were not in capital, they wre in public works. lease dump trucks, Snyder - Understorage tank removal, boiler replacement, - not in there little league no fire headquare pavement - no fiber optic - no GIS -yes generators - yes IT - yes Snyder - items taken out Galligan - I took out fiber - IT taken our Snyder - total - 122,037 leased item - 3% - ten years Galligan - yes - those are buy out leases Snyder - so where is the rest of the funding for the capuital projects? Galligan - out of there. Snyder - we are slashing it? Galligan - 2.2M caital program - original lease 263,000 per month. Snyder - they affected capital leases. it is really ashamed. it was very important to address capital projects. we were looking at new process to move forward to repair infrastructure. unfortunately in one swoop it is gone. I apolize to everyone. very disappointed. Delnicki - we have 4M for roads. 5.79 for schools - 11M in capital projects when you add the two capital projects together. computers were placed in another account? TM - in the operating we have 167,000 - decided if we took 1/2 of that and leased the computers for 3 years could save. if the times did get better we could increase that lease. Delnicki - 11M Bazzano - propose a couple of amendments to the budget - softball field - have heard from many people what a danger that field is. realign field and fence that field. cost more then I suggest - $100,000 added to the budget to realign and repair the softball field, McCann seconded Yagaloff - did not expect that the items would be broken down. the budget that has been presented is a prudent budget. represents the continuing effort b this council to work cooperatively. bypartisan budget. the budget that has been put forth was intended to be a nonpartisan and nonpolitical budget. this budget does not cut any programs. it cuts the new added projects. it adds emergency generators. pension numbers is based on the ARC. Towns pension depends on the market. hiring a full police officer but by the time they are on salary it will be half the year. have sewer plant comin gon line. we are using fund balance to buffer the sewer plant because that will save the taxpayers money. survey done and items were on the bottom as well as the referendum which was not passed. the plan of conservatio an ddevelopement puts economic development on top. will not support this amendment - can be done thorugh other means. Beaulieu - if we are trying ot have clear budget process or are we trying to pull numbers. we owe the public the explanation of these numbers. at the moment we are talking about the softball field - 100,000 to realign a safety issue. if a player or someone driivng by gets hurt is worth 100,000. needs to get done. in support of adding 100,000 to realign softball field. the pension plan - yes there is an ARC which is based on a discount rate which we are using 8% right now but this is coming down in many communities. in order to bring down we need to bring tht down. it is part of a 4 year plan. the real number we want to get to is 7% which is a total of 500,000. instead of doing it in one year which would be too much - the boar dof ed side does not include teachers. capital projects - we talk about trying to look forward to the future but we are taking from the single largest item that is going to build on our future. we have had to go to referendu for items that are capital projects because we di not have funds. we need to address this issue. we are trying to get where we need to be. we have talked for the last year on how we need to get things done. support the amendment McCann - also in support of softball realignment - it has been on a plan for a number of years and it has not gotten done and needs to be done. we should do it and will support it. Delnicki - balance in the capital projects. 90,000 Galligna - for the skate park Delnicki - and that was not chosen as a priority ove rthe skate park. Havens - I will not be able to support these items. they are items would support in better days. Recreation has never been discouraged. have supported recreation for 20-30 years. we will support when can afford it. poor timing - Delnicki - I too am concerned about this proposal - when the skat epark came around no one said have to do this field first. 5-4 amendment failed Bazzano - 40,000 and wanted to make sure that works. Reed - anything beyond is good but if truly want to fund 60,000 would be good - 10 months of salary - Bazzano - amend to add additional 20,000; second by McCann additiolnal 20,000 for police officer 6-3 passed Bazzano - amend fields to 50,000 to move towards fields, Snyder 11 acres on Nevers Road Yagaloff - the budget I saw was not 150,000 or 300,000 it was 3M with interest rate. lease for 10 years - the proposal in the budget was 3M - though it was going to be small project. it escalated into a large project. I support a small scale project going in and over time that project growing. there is going to be parking and trails. what would the project consist of. we need to have a policy as far as leases are concerned. no supportive of doing - can lease turf field - this project needs to move forward but on an appropriate small scale. this is not the way to do it - can find the money in contingency to do study. the mayor has a right to set policy and determine the best way to go. this project should go thorugh contingency - has not been established - no public inpuit. publicly I am supporting it but this should not be part of the budget. will it be used as a rubber stamp. will not support. McCann - if I support something I have the guts to approve it, think we all should. I am disappointed that we are at 50,000 to try to get preliminary items done. this has been on the table for 10 ears. there have been changes to it. it ihas been refined. I thought we were at a point where we can get it off of the ground. I will support the 50,000 - I would bring an amendment to that amendment to bring it up to 100,000. people are looking for more than a drop in the bucket. very diappointed. will support the 50,000 Delnicki - taking that as a fiiendly amendment Bazzano - no Anwar - I am not going to support this. this is something that has gone thorugh referendum - would support this to go to referendum. Bazzano - I do believe you spoke about supporting - 50,000 is not towards a lease payment. it is not goin gtowards 3M project. don't know number - this is showing a vote of leadership - a lot of families are saying we need fields. there isa demand fo rmore fields. 50,000 will allow us to try to get the ball rolling on doing something with those fields. allows us to spend a little bit of money. there maybe a situation that we cna't put turf because of drainage. 50,000 is good starting nuber to try to get things done. out of respect to the community wil lowerit to 50,000. field committee willb e meeeting soon and bring foward to the council. that gives us a start. Yagaloff - we don't need to have study done. needs to go to P & Z. feel this is an attempt to pull the project off of the table - attempt to make vote on this project tonight on this project. is project ready to go? Galligan - no - someone has outlined items - gravel lot - 3 fields - concessions. I do not know about test boring son this. or was done by contribution? John Caldwell - we did three separate pits - volunteer did. the plans that we have are from another facilitiy from another site. really do not have anythng solid. Yagaloff - is the next step to send out to bid and find out costs? John Caldwell - need complte plans, Galligan - design build or design and then put out to bid Yagaloff - I thought that would require sounds like the process has not been decided. all these things need to get done before the council would take next steps. would be waste of money - not sure waht 50,000 would do Galligan - this would allow you to hire an engineer - bid document - number would cost. would give solid numbers. I don't think ther eis enough to go out to bid on this project. Yagaloff - engineer costs? Galligan - Yagaloff - town has capacity Galligan - need somoene with hydrallics. we don't do on regular basis Yagaloff - sounds like project is goin to be hard or easy and tonight is not the night to decide how to proceed. I think we can find money in the contingency to do this going forward. not going to vote tonight on a random number. McCann - contingency is for unforesen circumstances. if we are going to fund somehting shoudl put into the budget. Bazzano - we have had a lot of volunteers. we need to move forward to next steps. we can't bring forward until we know the property costs. so there are different items that need to be done. not sure that the volunteers are able to do the full plan to bring forwad to council to vote. 50,000 will start the process. if we don't need it we do't need it. would this go into contingecy? TM - no capital projects. Delnicki - I think contingency would be the place to take it from. what concerns me is the uproar to this proposal. we need ot ge taht policy on leasing drafted. would support going to contingency but to add extra money to budget does not make sense. 5-4 passed. Bazzano - amazing we just spent a long conversation on 50,000. Beaulieu - amendment bring back 125,000 contriution to the pension plan - SEcond by McCann Beaulieu - this is something that needs to be done. if we don't do thing smore fiscally responsible today we will be paying much higher rate later. this idea of adding money to pension plan is right along the same idea of not using the fund balance. glad to hear over the next four years we are going to start wiening ourselves off. the idea of contributing to pension if important. there are adjustments being made. in this town there is a defined contribution plan - we have a lot of employees that are part of this plan and still need to get funding status to a better place. Yagaloff - I get calls from people that say please speak for us. I do not think members of the council have been listening to the conversations that the grand list is not growing. tax increase over 6% - everything you are adding is increasing the tax rate. we have a pension actuary and he said this is waht you should fund your penision at. we don't need to add money in that actuary does not say needs to be in. the priority on this budget is to maintain and keep taxes down as low as possible. will vote against. Prague - guns or butter - have to decide. businesses did top 10 - the average of the top ten went down 20% or more. lets get facts on the table not political posiitons. will not support but I think we have olther things that we have to support. we have sewer plant payment due this year. think heard sewer committee is not going to raise sewers this year. Anwar - page 22 of budget book - study being done by assessor. car values have come down - Delnicki - your budget reflected what hte actuary said was appropriate? Galligan - hired actuary to look over that fund, he has been using 8% - Delnicki - has he eery steered us wrong Galligna - not a question of steering us wrong. the rates are being discussed about going down. we have a group that is good. the market is bad - there are concerns about are we using right rate. suggested to go down t rate that the pension committe would like Delnicki - we have actuary that we pay to look at this fund and will not support McCann - the actuary is waitng fo rus eto tell him what the committe is comfortable with of the discound rate. the actuary does not set policy. other communities have set 7.75 and 7.5. this is about fiscal responsibility. this is future vision of the town. fujnding something like this should be done now not later. the longer you wait the future behind you fall. we can make adjustments as we go along. important fo rimpact of borrowing for the town. Prague - in 2008 - markets are high right now may be a bad time. can wait anothe ryear. Beauliue - the actuary are lowering discount rates. that is what they are ding - we have been through a hard market. you can not continue to fool yourself that 8% discount rate is good. hopeing to fund that so penison committe can go back and look at this. this is fiscally responsible. the economy is turning and rates will go up. McCann - one member of the pension committee member we have not heard from tonight. Councillor Havens, would like to hear from him Havens - the deicsion was made up to us. this evening was not ready to weigh into this but will at the pension meeting. the actuary is paid positon and placed our - McCan - we have not told him the discount rate. Havens - That is your deicison, I would be glad to sit down for one year. odd that you are concerned about that dollar amount. if it was not for the media 1/2 the community would not know what we are talking about. these last four years have been very difficult for business and have to look out for that. 5-4 failed Beaulieu - not lookng to scare the public. wanted the public to know what we are doing to try to be fiscally responsible. I believe taht some do not understand this subject fully. we can't lower discount rate until next year. Delnicki - tonight we are trying to keep large number from getting too large. Snyder - Amendment add 98,960 to capital projects to cover additional items except fiber optics - SEconded by McCann Yagaloff - this year is unusual - approach being taken this year is to lease - this would be for 10 years. lease payment for lease of capital projects for 10 years? Snyder - yes Yagaloff -98,000 of interest payments - TM - 989,000 - 850 or Yagaloff - vote for 980,000 because leasing 220,000 not 287,000.less the fiber optics Snyder minus th efiber optics Yagaloff - this is a brand new approach - instead of paying as you go you borrow as you go. what are we going to do in another 10 years - . that is out of control spending. we are doing 10 years at once. the proposal is generators, GIS and that will be the towns capital projects this year. the referendum just approved projects to the schools, roads, pump stations. address nothign is done in this town. need to keep taxes low and send message to buisnesses. this 980,000 is well above what we need. we have generators and GIS - leases for the vehicle sin the pw budget. we do nto support unnecessar tax increases. McCann - causing the substantial incease is BOE budget, increase in health care costs, sewer payment - those are the things that are mkaing the taxes high. this part is a three step plan and we all agreed - did the referendum and we have the fundign to take cae of immediate needs. this is the second part of the plan. 5-4 passed Yagaloff - good thing started with new budget. bad news budget is going up. 103,018 savings - Galligan - you have time. start lease in January you could have savings. Yagalof f- how much is the incease 168,960 Yagaloff - why don't we save 103,000 what would be the harm Amendment 103,018 savings because you are goin to take time on bidding an dordering - leasing. Galligna - explained how to push out payments. even if you reduced by 1/2 or 60,000. Yagaloff - AMENDMENT 103,018 based upon cost savings that the TM could get through bidding and leasing processes, Anwar seconded McCann - this is one item - want to make sure understand. are you talking about starting all of the lease payments later or just he GIS Galligna - I am givoing you a lease payment - some payment sin October, Janauyr McCann effect the towns acquisitins Galligna - no McCann - delay Galligan - in McCann - on tha tbasis could support Bazzano - adding that nunmber or subtracting Yagaloff - reduction in the amoun tto be raised by taxes - 65,942 above teh original proposal. unanimously Snyder - new budget number? Galligan - 34,810,522 new budget number Yagaloff - thanked the Mayor for meeting across party lines. McCann - hope it is a 9-0 vote. this is a budget that has parts coming from all across the whole council. Also want to clarify - there was not budget proposal on the table. we came forward with ideas. unanimous
C. Resolution Setting the Tax Rate for Fiscal Year 2013/2014
Bazzano, Anwar Anwar - Difference because using different 800,000 versus the 400,000. looking to maintain because the original budget was built. Yagaloff - Yagaloff motion to extend past 11.00; Prague, unanaimous Yagaloff - if our plan was to save the taxpayer - will support. the council can ask for public. Prague - for 5 years we have 800,000 and 1.1M taken away from fund balance. it is time we ealized that this has an effect to sticking it to the taxpayers by making up the 800,000. we are two maintainers down. if we had not done 800,000 last year we would behiring some people now. time we took away money from fund balance. if you wait to spend your money in Febraury you are a fool. should start with 200,000. anwar - Friendly amendment 34.85 Bazzano - will not accept that. Amendment Anwar - 34.85 , and 800,000 - Second by Yagaloff McCann- what is the approixamte balanc ein fund blaance Galligan - 3.4 million then you have your encumbrances and other items McCann - why don't we use all of our fund balance. should be putting funds back into the fund balance. will not support Galligan - Yagloff - fund balance change from 800,000 to 400,000. Galligna - 17,856,833 - 400,000 and add 340,000 85,137,.629 divide by Beaulieu - favor of reduicng from 800 to 400. McCann - point of order Gonsalves, 40 Bayberry Trail - public issue - public was not informed - 800 to 400 - Bazzano - we are on the discussion of 400,000. Anwar - based on what Matt just said it is 34.83 and 800,000 McCann - this is our budget and the fact that we are talking about fund balance should not be a surprise. Oppose the increase Yagaloff - this is simply sticking it to the taxpayer except for some principal decision. this fund balance belongs to the taxpayer. we have a sewer increase of 1.2M and funds should be used to fund against that. this is sticking it to the taxpayer. will not support. Prague - so you changed your mind in four years Yagaloff - when everythign was going great and the grand list was growing that was the time toput money into fund balance. now we are getting whacked - now is the time you should be spenidng the funds not duirng good times. the money is there to mitigation against huge tax increases. today is not the time to increase taxes. Prague - better to pay now then pay later. good prudent financial management. Anwar - repate what I said - for the past 4 1/2 hours we have been discussing - they pulled a fast one. disappointed. Galligan - the calculation if coming from a taxable grand list - Delnicki - will not be able to support
D. Resolution Appointing a Rate Maker for Fiscal Year 2013/2014 and the Tabling of Same
Yagaloff, Bazzano, unanimous
8. Executive Session
Adjournment Yagaloff, McCann, 11:27 p.m. unanimous
May 13, 2013 Town Council Special Budget Work Session
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1. Call Meeting to Order
700
2. Roll Call
Roll call (10 Present, 0 Absent, 0 Excused)
3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of a majority of the Town Council.]
Don Gonsalves, 40 Bayberry Trail - getting sick and tired of Council member challenging me on my numbers. one of the council members wants to reduce the fund balance, it is 800,000 every year, nothing has changed and is always that numbers. I want 800,000 taken out of the fund balance. The school Department has not given money back to the Town which they should from their surplus. they are spending on unbudgeted items. Pensions, if you want to add money to the pensions and I have asked for pension review for years and we have never had a pension fund review. they are asking for 275,000 more but I would like a public meeting. I would like a public meeting regarding this issue. $350,000 to add to the health - on October 17, 2011 we had a special meeting - we need to have a review on health care. that meeting discussed telephone poles and only had 15 minuts to discuss health. No way would I give 350,000 to the health plan but we have not had a review. it is one of the largest items we have and we only spent 15 minutes on that item. justification for a lot of other things is basically we have low interest costs right now and right now can finance very low - the other side of the coin is these interest rates are hurting the senior citizens. there are a lot of seniors out there that are hurting and there are a lot of people who are on fixed incomes. the original budget should stand and any thing additional should be eliminated.
Larry Torff, 521 Quarrty Brook Drive - interesting budget year. the BOE process - no one could say they were surprised. the town does not follow a strategic plan, no guidelines for the Town Manager, since ph we have heard one council member say we have heard that she decided on the budget before teh ph and never shared wit the public and never even considered thepublic's point of view. if you want to improve pension change to deferred. need to find other money other than tax dollars to do projects such as athletic fields. need a formal legal opinon regarding 6320 or 501C3 is allowed without a referendum. need examples of other towns. property taxes increase further then income then people would not be able to afford to move into town. full day kindergardent the sewer plant and --- is enough for this year. the TM's budget as proposed seems like the best plan this year.
John Mitchell, 41 Eagle Drive, for the past 4 years our economy has struggled with and through the worst recession. we are emerging but have not yet. 6% unemployment is not acceptable. many are underemployed. this is a difficult time for many of our residents. Connecticut is next to last in the nation in growth of personal income next to South Dakota. we have problems. this is a time for healing and prudent and reasonable increases and spending. the public is talking, the buisness community is talking. what is being said is not complimentary. we don't need SW to be disfunctional. our tax burden supports high quality of life. our public safety are incredible. our libary is great. we continue to imporve the roads. we are regarded in this nation ats the 38th best and that is something to be proud of for towns our size. my point is we can hold our head high and we don't want or need unreasonable tax increases. there is great recreational opportunity. we have nothing to be ashamed of. I am here tonight for the senior citizens with little to no return o their savings. social security checks that do not keep up with their needs. some can't keep warm in the winter. Here for the busienss community - do not burden resident by overspending now or ever. I will conclude by saying we should never create an innovative way to avoid the referendum process. Significant projects should be met with public approval.
Gene Botteron, 34 Victor Lane - here to address the budget issues. I feel that the initial management budget shoudl be looked at and reduced where possible. the additional 800,000 should be eliminated. the taxpayers in SW and CT are paying enough taxes right now. Many of ur are not in a position to pay more taxes. It is regrettable that certain members of the Council are trying to circumvent the process of a referendum. Taxpayers shoudl have the opportunity to vote on major initiatives. The town is moivn gin the right direction. there have been road improvements. sewerage treatment plan and firehouse and fire apparatus. urge each of you to vote against any additional items. thanks the coucl for their many hours they give and their services.
Deborah Morrison, - I want to stay in SW and be able to afford to live here. keep in mind there is a mix of people in this community. Would like the council to be fiscally responsible to the majority of the taxpayers. it is a tough economy. in 2006 lost my job - have not had an increase in 12 years. thankful to have a job now. my salary along with others is not increasing.
Scott Higgins, 48 Cornerstone Drive - I do hav ea desire to keep the town deirable. offering services that other would like should be offered. add expenditures to make sure the town stays desirable.
Mark Jarvis, 71 Parkview Drive - i have been a resident of sw for 38 years. I chose to live in SW and work in Groton. I wanted my kids and family to have the education. There are a lot of great improvements that have been made in town. I would like to see continued growth and progress.
Derek DeMartino - I don't like paying taxes. the reality is if you pay higher taxes for status quo then it does not move the town forward. we have had very low tax increases over the past 5-6 years. We can't keep putting things off. need to mkae things better. there are more programs that use the fields. we need a turf field and need to take care of things. if we don't spend we are going to fall behind. you have to spend money in your town.
Mike Sullivan, 24 Jared Court - town council is trying to put more funds on the budget. unintended consequences of trying tpush and reach are not good. you have a project that has not had offiical backing and you are using it to bypass referendum and public. you ar epushing a historic tax increase on the town. what happens when teh town has a true need, it will not be able to get done if the council pases this large budget.
Al Larson, 46 Jacques Lane, Chair pf Park & 'Recreation - someone mentioned earlier about the town's master plan. there is a plan of conservation and development. final coming to council in July. in the prelminary report - lists the top things we are proud of and within schools, popen space, nevers and evergreen, main street, VMP, related to town charater, Wood Libary, Avery park, library. things we are sorry for is lack of sidewalks and lack of paths, vacant buildings, too much development, school buildngs and --------------. Need to imrprove those. there has been a balance of growth and preservation. smart growth would be girls softball field realignment - Nevers Road fields, adding turf field would create safer fields. can be financed over 10 years and would help with the impact to residents. these budget items would allow sw to grow.
795 Cahpel Road - 55 - my kids have been educated in sw. my kids have learned just as much in the classroom as in the field. every child deserves the opportunity to compete other than n the classroom. hope you will consider funding the fields for these kids.
Matt Riley, 12 Heatherwood Drive - listening to the speakers - revaluation did not increase tases it redistributes. not sure how revaluation increases taxes. the fund balance - reducing the fund balance is increases the amount of taxes that need to be paid. the fund balance is essentially the town's savings account. there is an expectation tha tit will be reduced. need to educate the public. the fields - 85% of our peer groups have turf field sin their town. I had suggested that you talk to someone in volved - interest rates are low.
4. Communications
Mayor read the emails into the record Bob Levalley - Richard Roback Hal Reed Tom Murtha Laura Petersen today is tax freedom day
5. Town Manager's Report
Galligan - union negotiations - did put memorandum out to you. there is a typo on there.
McCann - memo - hold off hiring 3 maintainer positions by 1/2 year. TM - I did not want to hire someone before the budget was all set. if you want to pass a resolution that would be find. I have to be careful because I have an obligation to people who are hired. McCann - Council gave a clear direction to move forward with that. This was long before the budget. TM - I have a fiscal responsibility. until the council moves forward with a budget that they are comfortble
Yagaloff - I think your recollection was dead on. there was a budget freeze and some council members wanted to lift the freeze to hire these individuals. There was disagreement that night whether non-emergency psoitions were filled. the police department was told to proceed. the back fill of the maintainer positions was a vote to lift the restriction. the town manager was given discretion of how he would do that. I think you were dead on in terms of holding off knowing there may be layoffs if those positions were filled. the tax increase is high and the last thing we want to do is layoff tawn staff and put them out of jobs. I think you did the right thing.
Beaulieu - This is the second time that the Council has given direction and it did not happen. It was made clear that night that we needed to have those maintainers asap. It is great politics to use this as a threat but I would think if we were in a position where we are overstaffed we would go where we are overstaffed. Galligan - I have been down that road before. I do not want to hire someone and then have to lay them off. People do not have a confidence to move forward and I don't have confidence to move forward. when the council is done with their process I will move forward when I am comfortable. I have to sit back and do the right thing.
Anwar - thank you for your efforts. Is Chief Reed comfortable with 1/2 year salary - do not want to impcate police department. TM - they will not be on until October so that is why cut that back Anwar - 70,000 to 40,000 what kind of impact? TM - in Storm Alfred trimmed back a lot of trees - we only had three trees that were down with trees. Anwar - 3.5M think going to be up to 7 M TM - it is a pro rate and feel it will be up there. Anwar - capital lease - purchase? TM - all of the generators and the GIS - fiber optic took out - Anwar - computers - leased? TM - yes under the IT budget there is some funds and could do some 3 year leases. it is something tht would be a savings every year. Anwar - leasing th ecomputers is a good idea. in 3-5 years they are obsolete and that is a good way to move forward. support leasing computers. I like the numbers I am seeing. TM - the idea from last year was to come up with a plan to reduce.
Delnicki - the comment to the maintainer - I remember you saying you were holding off on maintainers - so that did not come as a surprise to me and you said you were going to hang off on hiring. TM - lot of numbers do not come until after the audit report. we need additional positions. but dod not want ot be in a position to hire and then lay people off. Mccann - memo you address collection rate from 98.75 to 98.9% - what makes you think that will increase? TM - we have ranged from 98.6 to 99 so did a calculation for that. McCann - did calculations to tax increase that is represented by 34.66 - if you take an average deduction of 12% the calculated increase is not 5.2% it is actualy Galligna - use old assessment - McCann assessment would be higher due to the 12% Galligan - tht is why it is difficult to figure McCann - you have to focus on the reduction which is 12% - compare tht same property you get a difference in that property. if you are comfortable with using collection rate I don't have a problem with that. I believe that the numbers that you have here are based on the budget that you originally presented. TM - the only thing did take into consideration are the items that you proposed. McCann - the additional items were not 800,000 reducing to 400,000 - that is not increase in spending. 125,000 of sugggested additions were to help the fiscal state of the town.
Yagaloff - the change in the collection rate does not change the grand list - TM - collection rate will increase your Yagaloff - the collection rate on the taxes have exceeded 99% TM - usually do not see until December - we have always met the 98.75% - Bonnie does a great job going after taxes Yagalof f- fund balance reducting is reduction in revenue means that ther eneeds to be another source of revenue to help with that shortfall? TM - if you look at the origial sheet - there was 400,000 increase in reduction - net incease to be raised by taxes, down below the pension increase, pd, ball field, vmp lot - if you add those come to Yagaloff - 800,000 would need to be raised by taxes TM - no 400,000 Yagaloff - increase in Galligan - Yagaloff - calculating the increase - like the way Matt did it - was apples to apples - 4.86% increase. the number of 12% or 10% those are not exact numbers. the average on the revaluation is not 12%. all indiivudla home sand buisnesses can be compared in the change of the taxes and revaluation. TM - agree reval is redistribution of taxes. did everything equally and tried to move forward with calculations. 5.20% tax increase. went from 6.08 to 5.20 - could you get to 4.8 - you could do it - there is no other way to get to 4.8% without cutting leaf collections, etc. Yagaloff - originally at the last meeting hit 4% - you told me what would happen but only wiling to look at page 2. hope we stay focused on page 2. page 1 is ot manageable for the town. Delnicki - looking at the old grand list is the only clear method to know what it will be. At least that gives a clear picture of what the various ipacts are. Beauleu - prepare 10 years of tax collections rates. TM - yes Beaulie - to change that number is something that I struggle with. Prague - when we calculate that number it is base don previous years of collections? in the last two years of had collection rate of over 103% TM - if I gave aging of accounts probably at 105% - Prague - we sell the tax liens and they are willing to go out and go to collections.
6. Unfinished Special Business
7. New Special Business
A. Resolution Adopting the Budget for the Special Revenue Recreation Fund for Fiscal Year 2013/2014
Beaulieu, Snyder, McCann - does this include capitla recration funding? TM - no unanimous.
B. Resolution Adopting the General Government Budget for Fiscal Year 2013/2014
Mayor, Yagaloff Delnicki - I watched how the budget was going forward and got emails, letters, etc of concern and took an unprecedented action and called the minority leader and asked if there was any common ground and is there a chance for by-partisan compromise. we came up with some of these ideas and vetted them through the Town Manager. we did not want to hurt the town. Revenues are spot on by Councill McCann - wanted to come in with lower numbers. the goals was to mitigate the impact for the taxpayers. If you take a look at the proposals here - we need a plan over 4 yeas to stop using fund balance. TM - using the number for a long time. Delnicki - if we are taking a look at 7% - phase that in leases - we need to develop a plan on what should and should not be leased. seems like 1M lease has become a standard so that would be asimple majority vote. 1 to 1 1/2 M super majority. Leasing such things as generators (Police Station, Firehouse #1, Community Center, HS), GIS, computers, savings in Engineering, trucks, tree maintenance, pw trucks, Police Officer Page 2 talks about deferring some items - 8:37 take 5 minutes recess Mayor reconvened at 8:51 p.m. only thing it includes 1/2 officer so everyone is clear on that. McCann - we have a starting point - we have a number on the table. we need to keep focused where we want to be is a more fiscally sound town and a better town then today. we can't keep status quo - if we don't improve we will deteriorate. looked at home values of my own home. value on street behind mine is 100,000 less. The street behind meis in Vernon. Venon has a school system that ranks in the bottom 30 of the State. I do't want to pick on Vernon but it has some challenges. we want SW to continue to be fine community and even better in the future. we put on the table some items for discussions for amentitties to the town. we have changes to bring forward tonight. it is not additional 800,000. The proposal tonight is to take 800,000 out of fund balance to put into the budget. we want ot only use 400,000. the second thing is to fund our pension. we need to increase that over the next four years. Additional police office, not just 1/2 of a police officer. like to see improvements to some athletic facilities. the total expenditures - reduce the luse of general fund by 400,000 anmd add to the expenditures that shoudl be funded through our taxes. so the expenditures will remian the same 34,744,580 - will require use of fund balance. explain whre numbers fall if we reduced our reliance to fund balance. amend this one or next one? TM - amend the revenues - McCann - so we can leave the expenditures alone right now. TM - yes - would be amount raised by taxes - revenues. McCann - will wait. Snyder- clarification on this - directly related to information provided to us tonight. capital projects? Delnicki - only thing we are deferring is the fiber optics TM - all generators leased, GIS, - fiber optics no Snyder - we had things listed - 287,000 in capital projects budget - there was leasing what could be to not exceed 287,000 - have you decreased that amount? TM - the leases would be 122,037 because they are taking out the fiber and IT Snyder - where are the pick up trucks TM - they were not in capital, they wre in public works. lease dump trucks, Snyder - Understorage tank removal, boiler replacement, - not in there little league no fire headquare pavement - no fiber optic - no GIS -yes generators - yes IT - yes Snyder - items taken out Galligan - I took out fiber - IT taken our Snyder - total - 122,037 leased item - 3% - ten years Galligan - yes - those are buy out leases Snyder - so where is the rest of the funding for the capuital projects? Galligan - out of there. Snyder - we are slashing it? Galligan - 2.2M caital program - original lease 263,000 per month. Snyder - they affected capital leases. it is really ashamed. it was very important to address capital projects. we were looking at new process to move forward to repair infrastructure. unfortunately in one swoop it is gone. I apolize to everyone. very disappointed. Delnicki - we have 4M for roads. 5.79 for schools - 11M in capital projects when you add the two capital projects together. computers were placed in another account? TM - in the operating we have 167,000 - decided if we took 1/2 of that and leased the computers for 3 years could save. if the times did get better we could increase that lease. Delnicki - 11M Bazzano - propose a couple of amendments to the budget - softball field - have heard from many people what a danger that field is. realign field and fence that field. cost more then I suggest - $100,000 added to the budget to realign and repair the softball field, McCann seconded Yagaloff - did not expect that the items would be broken down. the budget that has been presented is a prudent budget. represents the continuing effort b this council to work cooperatively. bypartisan budget. the budget that has been put forth was intended to be a nonpartisan and nonpolitical budget. this budget does not cut any programs. it cuts the new added projects. it adds emergency generators. pension numbers is based on the ARC. Towns pension depends on the market. hiring a full police officer but by the time they are on salary it will be half the year. have sewer plant comin gon line. we are using fund balance to buffer the sewer plant because that will save the taxpayers money. survey done and items were on the bottom as well as the referendum which was not passed. the plan of conservatio an ddevelopement puts economic development on top. will not support this amendment - can be done thorugh other means. Beaulieu - if we are trying ot have clear budget process or are we trying to pull numbers. we owe the public the explanation of these numbers. at the moment we are talking about the softball field - 100,000 to realign a safety issue. if a player or someone driivng by gets hurt is worth 100,000. needs to get done. in support of adding 100,000 to realign softball field. the pension plan - yes there is an ARC which is based on a discount rate which we are using 8% right now but this is coming down in many communities. in order to bring down we need to bring tht down. it is part of a 4 year plan. the real number we want to get to is 7% which is a total of 500,000. instead of doing it in one year which would be too much - the boar dof ed side does not include teachers. capital projects - we talk about trying to look forward to the future but we are taking from the single largest item that is going to build on our future. we have had to go to referendu for items that are capital projects because we di not have funds. we need to address this issue. we are trying to get where we need to be. we have talked for the last year on how we need to get things done. support the amendment McCann - also in support of softball realignment - it has been on a plan for a number of years and it has not gotten done and needs to be done. we should do it and will support it. Delnicki - balance in the capital projects. 90,000 Galligna - for the skate park Delnicki - and that was not chosen as a priority ove rthe skate park. Havens - I will not be able to support these items. they are items would support in better days. Recreation has never been discouraged. have supported recreation for 20-30 years. we will support when can afford it. poor timing - Delnicki - I too am concerned about this proposal - when the skat epark came around no one said have to do this field first. 5-4 amendment failed Bazzano - 40,000 and wanted to make sure that works. Reed - anything beyond is good but if truly want to fund 60,000 would be good - 10 months of salary - Bazzano - amend to add additional 20,000; second by McCann additiolnal 20,000 for police officer 6-3 passed Bazzano - amend fields to 50,000 to move towards fields, Snyder 11 acres on Nevers Road Yagaloff - the budget I saw was not 150,000 or 300,000 it was 3M with interest rate. lease for 10 years - the proposal in the budget was 3M - though it was going to be small project. it escalated into a large project. I support a small scale project going in and over time that project growing. there is going to be parking and trails. what would the project consist of. we need to have a policy as far as leases are concerned. no supportive of doing - can lease turf field - this project needs to move forward but on an appropriate small scale. this is not the way to do it - can find the money in contingency to do study. the mayor has a right to set policy and determine the best way to go. this project should go thorugh contingency - has not been established - no public inpuit. publicly I am supporting it but this should not be part of the budget. will it be used as a rubber stamp. will not support. McCann - if I support something I have the guts to approve it, think we all should. I am disappointed that we are at 50,000 to try to get preliminary items done. this has been on the table for 10 ears. there have been changes to it. it ihas been refined. I thought we were at a point where we can get it off of the ground. I will support the 50,000 - I would bring an amendment to that amendment to bring it up to 100,000. people are looking for more than a drop in the bucket. very diappointed. will support the 50,000 Delnicki - taking that as a fiiendly amendment Bazzano - no Anwar - I am not going to support this. this is something that has gone thorugh referendum - would support this to go to referendum. Bazzano - I do believe you spoke about supporting - 50,000 is not towards a lease payment. it is not goin gtowards 3M project. don't know number - this is showing a vote of leadership - a lot of families are saying we need fields. there isa demand fo rmore fields. 50,000 will allow us to try to get the ball rolling on doing something with those fields. allows us to spend a little bit of money. there maybe a situation that we cna't put turf because of drainage. 50,000 is good starting nuber to try to get things done. out of respect to the community wil lowerit to 50,000. field committee willb e meeeting soon and bring foward to the council. that gives us a start. Yagaloff - we don't need to have study done. needs to go to P & Z. feel this is an attempt to pull the project off of the table - attempt to make vote on this project tonight on this project. is project ready to go? Galligan - no - someone has outlined items - gravel lot - 3 fields - concessions. I do not know about test boring son this. or was done by contribution? John Caldwell - we did three separate pits - volunteer did. the plans that we have are from another facilitiy from another site. really do not have anythng solid. Yagaloff - is the next step to send out to bid and find out costs? John Caldwell - need complte plans, Galligan - design build or design and then put out to bid Yagaloff - I thought that would require sounds like the process has not been decided. all these things need to get done before the council would take next steps. would be waste of money - not sure waht 50,000 would do Galligan - this would allow you to hire an engineer - bid document - number would cost. would give solid numbers. I don't think ther eis enough to go out to bid on this project. Yagaloff - engineer costs? Galligan - Yagaloff - town has capacity Galligan - need somoene with hydrallics. we don't do on regular basis Yagaloff - sounds like project is goin to be hard or easy and tonight is not the night to decide how to proceed. I think we can find money in the contingency to do this going forward. not going to vote tonight on a random number. McCann - contingency is for unforesen circumstances. if we are going to fund somehting shoudl put into the budget. Bazzano - we have had a lot of volunteers. we need to move forward to next steps. we can't bring forward until we know the property costs. so there are different items that need to be done. not sure that the volunteers are able to do the full plan to bring forwad to council to vote. 50,000 will start the process. if we don't need it we do't need it. would this go into contingecy? TM - no capital projects. Delnicki - I think contingency would be the place to take it from. what concerns me is the uproar to this proposal. we need ot ge taht policy on leasing drafted. would support going to contingency but to add extra money to budget does not make sense. 5-4 passed. Bazzano - amazing we just spent a long conversation on 50,000. Beaulieu - amendment bring back 125,000 contriution to the pension plan - SEcond by McCann Beaulieu - this is something that needs to be done. if we don't do thing smore fiscally responsible today we will be paying much higher rate later. this idea of adding money to pension plan is right along the same idea of not using the fund balance. glad to hear over the next four years we are going to start wiening ourselves off. the idea of contributing to pension if important. there are adjustments being made. in this town there is a defined contribution plan - we have a lot of employees that are part of this plan and still need to get funding status to a better place. Yagaloff - I get calls from people that say please speak for us. I do not think members of the council have been listening to the conversations that the grand list is not growing. tax increase over 6% - everything you are adding is increasing the tax rate. we have a pension actuary and he said this is waht you should fund your penision at. we don't need to add money in that actuary does not say needs to be in. the priority on this budget is to maintain and keep taxes down as low as possible. will vote against. Prague - guns or butter - have to decide. businesses did top 10 - the average of the top ten went down 20% or more. lets get facts on the table not political posiitons. will not support but I think we have olther things that we have to support. we have sewer plant payment due this year. think heard sewer committee is not going to raise sewers this year. Anwar - page 22 of budget book - study being done by assessor. car values have come down - Delnicki - your budget reflected what hte actuary said was appropriate? Galligan - hired actuary to look over that fund, he has been using 8% - Delnicki - has he eery steered us wrong Galligna - not a question of steering us wrong. the rates are being discussed about going down. we have a group that is good. the market is bad - there are concerns about are we using right rate. suggested to go down t rate that the pension committe would like Delnicki - we have actuary that we pay to look at this fund and will not support McCann - the actuary is waitng fo rus eto tell him what the committe is comfortable with of the discound rate. the actuary does not set policy. other communities have set 7.75 and 7.5. this is about fiscal responsibility. this is future vision of the town. fujnding something like this should be done now not later. the longer you wait the future behind you fall. we can make adjustments as we go along. important fo rimpact of borrowing for the town. Prague - in 2008 - markets are high right now may be a bad time. can wait anothe ryear. Beauliue - the actuary are lowering discount rates. that is what they are ding - we have been through a hard market. you can not continue to fool yourself that 8% discount rate is good. hopeing to fund that so penison committe can go back and look at this. this is fiscally responsible. the economy is turning and rates will go up. McCann - one member of the pension committee member we have not heard from tonight. Councillor Havens, would like to hear from him Havens - the deicsion was made up to us. this evening was not ready to weigh into this but will at the pension meeting. the actuary is paid positon and placed our - McCan - we have not told him the discount rate. Havens - That is your deicison, I would be glad to sit down for one year. odd that you are concerned about that dollar amount. if it was not for the media 1/2 the community would not know what we are talking about. these last four years have been very difficult for business and have to look out for that. 5-4 failed Beaulieu - not lookng to scare the public. wanted the public to know what we are doing to try to be fiscally responsible. I believe taht some do not understand this subject fully. we can't lower discount rate until next year. Delnicki - tonight we are trying to keep large number from getting too large. Snyder - Amendment add 98,960 to capital projects to cover additional items except fiber optics - SEconded by McCann Yagaloff - this year is unusual - approach being taken this year is to lease - this would be for 10 years. lease payment for lease of capital projects for 10 years? Snyder - yes Yagaloff -98,000 of interest payments - TM - 989,000 - 850 or Yagaloff - vote for 980,000 because leasing 220,000 not 287,000.less the fiber optics Snyder minus th efiber optics Yagaloff - this is a brand new approach - instead of paying as you go you borrow as you go. what are we going to do in another 10 years - . that is out of control spending. we are doing 10 years at once. the proposal is generators, GIS and that will be the towns capital projects this year. the referendum just approved projects to the schools, roads, pump stations. address nothign is done in this town. need to keep taxes low and send message to buisnesses. this 980,000 is well above what we need. we have generators and GIS - leases for the vehicle sin the pw budget. we do nto support unnecessar tax increases. McCann - causing the substantial incease is BOE budget, increase in health care costs, sewer payment - those are the things that are mkaing the taxes high. this part is a three step plan and we all agreed - did the referendum and we have the fundign to take cae of immediate needs. this is the second part of the plan. 5-4 passed Yagaloff - good thing started with new budget. bad news budget is going up. 103,018 savings - Galligan - you have time. start lease in January you could have savings. Yagalof f- how much is the incease 168,960 Yagaloff - why don't we save 103,000 what would be the harm Amendment 103,018 savings because you are goin to take time on bidding an dordering - leasing. Galligna - explained how to push out payments. even if you reduced by 1/2 or 60,000. Yagaloff - AMENDMENT 103,018 based upon cost savings that the TM could get through bidding and leasing processes, Anwar seconded McCann - this is one item - want to make sure understand. are you talking about starting all of the lease payments later or just he GIS Galligna - I am givoing you a lease payment - some payment sin October, Janauyr McCann effect the towns acquisitins Galligna - no McCann - delay Galligan - in McCann - on tha tbasis could support Bazzano - adding that nunmber or subtracting Yagaloff - reduction in the amoun tto be raised by taxes - 65,942 above teh original proposal. unanimously Snyder - new budget number? Galligan - 34,810,522 new budget number Yagaloff - thanked the Mayor for meeting across party lines. McCann - hope it is a 9-0 vote. this is a budget that has parts coming from all across the whole council. Also want to clarify - there was not budget proposal on the table. we came forward with ideas. unanimous
C. Resolution Setting the Tax Rate for Fiscal Year 2013/2014
Bazzano, Anwar Anwar - Difference because using different 800,000 versus the 400,000. looking to maintain because the original budget was built. Yagaloff - Yagaloff motion to extend past 11.00; Prague, unanaimous Yagaloff - if our plan was to save the taxpayer - will support. the council can ask for public. Prague - for 5 years we have 800,000 and 1.1M taken away from fund balance. it is time we ealized that this has an effect to sticking it to the taxpayers by making up the 800,000. we are two maintainers down. if we had not done 800,000 last year we would behiring some people now. time we took away money from fund balance. if you wait to spend your money in Febraury you are a fool. should start with 200,000. anwar - Friendly amendment 34.85 Bazzano - will not accept that. Amendment Anwar - 34.85 , and 800,000 - Second by Yagaloff McCann- what is the approixamte balanc ein fund blaance Galligan - 3.4 million then you have your encumbrances and other items McCann - why don't we use all of our fund balance. should be putting funds back into the fund balance. will not support Galligan - Yagloff - fund balance change from 800,000 to 400,000. Galligna - 17,856,833 - 400,000 and add 340,000 85,137,.629 divide by Beaulieu - favor of reduicng from 800 to 400. McCann - point of order Gonsalves, 40 Bayberry Trail - public issue - public was not informed - 800 to 400 - Bazzano - we are on the discussion of 400,000. Anwar - based on what Matt just said it is 34.83 and 800,000 McCann - this is our budget and the fact that we are talking about fund balance should not be a surprise. Oppose the increase Yagaloff - this is simply sticking it to the taxpayer except for some principal decision. this fund balance belongs to the taxpayer. we have a sewer increase of 1.2M and funds should be used to fund against that. this is sticking it to the taxpayer. will not support. Prague - so you changed your mind in four years Yagaloff - when everythign was going great and the grand list was growing that was the time toput money into fund balance. now we are getting whacked - now is the time you should be spenidng the funds not duirng good times. the money is there to mitigation against huge tax increases. today is not the time to increase taxes. Prague - better to pay now then pay later. good prudent financial management. Anwar - repate what I said - for the past 4 1/2 hours we have been discussing - they pulled a fast one. disappointed. Galligan - the calculation if coming from a taxable grand list - Delnicki - will not be able to support
D. Resolution Appointing a Rate Maker for Fiscal Year 2013/2014 and the Tabling of Same
Yagaloff, Bazzano, unanimous
8. Executive Session
Adjournment Yagaloff, McCann, 11:27 p.m. unanimous
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