Board of Finance prepares for town budget vote

FALLS VILLAGE — The Board of Finance held a public hearing on the two component parts of the town’s 2010-11 spending plan Tuesday, April 27, at Town Hall.

Finance Board Co-chairman George Elling opened the hearing, saying, “We haven’t made our minds up, we’re looking for public comment.�

First Selectman Pat Mechare went through the municipal spending plan, which calls for an increase of just under 1.697 percent over the 2009-10 budget. The additional $25,737 brings the total of proposed spending for town government to $1,541,985.

Pay raises for town workers

Wages and benefits lines are up for some but not all town emplyees. The Board of Selectmen returned to scheduled pay increases for the Highway Department, which experienced a wage freeze last year. Regular wages for the department rise from $158,000 to $162,968.

The tax collector’s salary line is up about 3.6 percent, from $13,500 to $13,995. This includes a 3-percent increase and certification fees.

The treasurer, bookkeeper and town clerk all get 3-percent raises. (The town clerk’s increase also includes certification fees.) The selectmen get no increase.

Social Services Director Teresa Graney will work some additional hours, for a projected bump of $2,800, from $11,000 to $13,800. Mechare, citing an increased work load for Graney and the latter’s willingness to work from home and be on call at all times, said, “We have a gem there.�

A new line, for post-employment health insurance under section 1016, was opened at the request of the Board of Finance. Mechare said the actual cost has not yet been determined, but it applies only to one individual.

“It’s very stringent,� she said, noting that in order to qualify an employee must have 25 years of continuous service.

On the health insurance front, Mechare (and, later, Board of Education Chairman Andrea Downs) emphasized that negotiations continue between the Region One School District’s broker (KONA) and carriers Anthem and Aetna. Both Mechare and Downs held out the very real possibility of future savings — but not in time to be reflected in the spending plans under discussion.

The selectmen’s spending plan includes a line for a recording secretary for the Inland Wetlands Commission, which has long had a member taking the minutes.

One increase ($2,000, for a total of $5,000) is for the  ambulance reserve fund. Mechare said the current ambulance is 12 years old, and the state recommends replacement every 10 years.

The budget for road maintenance is flat, with no increase. Mechare said that crew chief Tim Downs “left everything as is after consulting the crew.�

Mechare added that the town did finally receive $83,124 in state Town Aid Road money, but both the Litchfield Hills Council of Elected Officials and the Northwestern Connecticut Council of Governments have voiced their disapproval of the state bonding for operating costs.

“We’re OK for now, but beyond the next fiscal year is a big question mark,� Mechare said.

The two councils are made up of first selectmen from area towns.

Asked if there will be a fee for using the town swimming pool, Mechare said there will be a fee for out-of-towners, at either a seasonal or day rate.

Greg Marlowe, who serves on the D.M. Hunt Library board, said that the freeze on grants to nonprofits actually constitutes a cut. Finance Board Co-chairman Louis Timolat pointed out that after a user survey a few years ago, the annual grant to the library was increased substantially. He suggested compiling similar data for library use when making future requests.

Lee H. Kellogg

The Board of Education spending plan, dated April 27, calls for a total of $1,788,719, an increase of $58,242, or 3.4 percent.

Salaries (including certified and noncertified staff) are up 3.6 percent, or $38,800 for a total of $1,122,878.

And health insurance is up 8.3 percent — $19,592, for a total of $256,260 — but this figure could go down as negotiations continue.

The last page of the Board of Education budget gives the town’s expected cost of its share of the Region One budget at $1,024,273 (up 3.8 percent from this year) and the town’s total education expenditure for 2010-11 at $2,811,892, an increase of 3.5 percent.

Downs said this is the last year of a four-year contract with teachers. “We’re looking forward to renegotiating.�

She said the board was able to economize in part because of the small size of the school. “We found savings in things like athletics, because we didn’t have enough boys for soccer or basketball teams.�

Lee H. Kellogg School Principal Maria Bulson said the school has 96 students, and expects 86 in the 2010-11 school year. The school employs 18 full- and part-time teachers, for a total of 12 FTE (full-time equivalents).

Other austerity measures: The school is not buying any new computers, and not offering transportation to summer school  in Cornwall.

Selectman Peter Lawson asked what the cost per pupil is. Upon receiving the answer — about $19,000, based on 86 students — he said, “We’re going to have to make some cuts at some point.�

And Selectman Chuck Lewis observed that 10 years ago the school had 10 FTE for 120 students.

“I’m concerned,� he said. “Eventually this will result in a significant mill rate increase. The town will be in fiscal trouble — if it isn’t already.�

Downs pointed out that the school has larger numbers in kindergarten to grade four than in the five-to-eight middle school grades. In the past, teachers had certifications that covered grades kindergarten through eight. Now, state regulations require much more specific certifications.

“You can’t have teachers jump around,� she said. “We’re trying to be flexible, but the challenge we have is to have these specific certifications for middle school teachers.�

Board of Education Co-chairman Ross Grannan said the school “is a major attraction for young families coming to town. Cuts have all kinds of effects, beyond dollars.�

Mill rate could rise

The discussion then became general. A resident said that the total increase between the two spending plans is about $121,000 and asked if the finance board had determined a mill rate.

The mill rate determines property taxes in Connecticut towns. A mill represents $1 in tax for every $1,000 of assessed property value. A 15-mill tax rate would translate into a tax bill of $1,500 for the owner of a home assessed at $100,000.

Timolat replied that the town is looking at a shortfall in projected revenues of about $240,000 and said he anticipated a combination of using the town’s general fund to pick up some of the slack and an increase in the mill rate.

Finance board member Chuck Lemmen asked for a sense of the meeting — use the general fund, raise taxes, a combination of both, and if so how much emphasis on which strategy?

Marlowe advised using some surplus now, adding he expected the economy to improve in the next two years.

Mechare urged caution in tapping into the general fund. “You just never know what’s going to come up.�

The Board of Finance meets Monday, May 10, and will set a date for the annual budget town meeting then.

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