Selectmen Drop Nearly $3 Million From Town Budget

By Kendra Bobowick

The work was grim.

Selectmen continued moving through budget items line-by-line January 31, leaving a trail of nearly $3 million in cuts on the floor with paring that began the previous week. Starting with $42.9 million, selectmen ended up slimming down the spending package to about $40 million.

Then, on Monday, February 4, selectmen finalized the process paring another $83,500 and passing a $40,012,036 municipal-side proposal to the Board of Finance for further review.

First in line for reductions January 31 was First Selectman Joseph Borst, who waived increases to his own salary.

“Why?” asked Selectman Paul Mangiafico.

“We’re in a tough economic situation,” Mr Borst answered. “I think the first selectman should set an example.”

Mr Mangiafico expressed some concern about the message Mr Borst’s move might send.

“It’s laudable, but I have a problem with it,” he said. “It shows restraint at the top of the house, but are we trying to send the signal that people should go into the new year without increases [in salary]? Is that what we are saying?”

Mr Borst stressed again his desire to set an example. With an eye on the town’s cash flow, he said, “We’re going to have to take a lot of money out of this budget.” Selectman Herb Rosenthal agreed with Mr Mangiafico, also calling the move was “laudable.”

 “I don’t know if it sends the right signal,” Mr Rosenthal said.

Mr Borst was firm. “That’s what I want to do,” he insisted. Looking toward his fellow selectmen, Mr Borst asked, “Are you going to vote?”

“No,” said Mr Mangiafico. “I don’t agree.” The measure passed, however, with Mr Rosenthal’s acquiescence.

“Well, it’s done,” Mr Borst said. Financial Director Benjamin Spragg’s updated budget reflects the selectman’s salary reduction for 2008/2009, which drops from $98,364 to $96,768.

The discussion set the evening’s tone.

Discussions were brief as selectmen sought places to tighten. In increments of tens of thousands to hundreds of thousands, the budget shrunk throughout the night. Selectmen’s office supplies, for example, dropped from roughly $66,000 to $60,000; a line item for nonrecurring supplies fell from approximately $374,000 to $239,000.

The town’s debt service received a lot of attention, adding as much as $10.9 million. Although adjustments being applied by the finance office could lower the final amount to $10.7 million, the number disturbed Mr Mangiafico.

“Our debt service is going up 15 percent year to year,” he noted. Looking at the numbers he asked, “What would be our increase without the Board of Education?”

After some rough calculations were done, Mr Mangiafico concluded that the town’s portion of the increased debt service was far less before several major school projects, including a high school expansion, were factored in. Considering the debt service again, he said, “That’s a big number, a huge number.”

The 2007/2008 debt service of $9.3 million was “at least one million less than this year’s estimate,” he observed. “Does this keep us under the ten percent cap?”

“Yes,” Mr Spragg answered, referring to a self-imposed cap on debt service or interest on all current bonded indebtedness.

Mr Rosenthal was concerned about the debt service increase, saying, “I think it’s much too expensive.”

Following the 2-1 vote to accept the debt service, Mr Mangiafico questioned why Mr Rosenthal voted No.

“I think it’s too high,” Mr Rosenthal said. “I don’t have a solution to reduce it. [But] $41 million for the school seems like a lot and has an ultimate impact on the debt service and on the budget. It’s a huge increase.”

After further discussion, he said, “I guess my vote is a protest vote…”

By adding the night’s cuts to the previous week’s suggested reductions, the selectmen had dropped about $2.8 million from the original budget number, arriving at $40,095,538. They adjourned without conducting a vote, carrying the business of finalizing the spending package to the following Monday.

When the selectmen reconvened February 4, Mr Mangiafico had calculated several other suggested cuts dropping the proposal a bit more.

 “Last Thursday we had a final budget of $40,095,538; an 8.3 percent increase,” he said. “We hadn’t agreed on it yet. The number is way too high.”

He again raised conversation about the debt service. The jump from $9.3 million to the between $10.7 and $10.9 million proposed for 2008/2009 is “huge” he said.

“I look at these numbers and say we’re mortgaging the future at an unstable rate.” He continued, “I just don’t see that we can move forward with these increases.”

Looking back on the previous meeting that ended with an approximate eight percent increase, he said, “We have to do better. Either the operating budget comes down and or the debt service comes down.”

He reminded selectmen about last year’s budget situation, and the series of referendums before voters accepted the proposal.

“Last year took four referendums to pass [the budget].” He made the board an offer. “If this board agrees, we’re almost concluding that we’ll accept defeat again. We need a budget that will be approved the first time.”

He continued saying selectmen should not pass a proposal to the Board of Finance with much left to remove.

“We should remove it,” Mr Mangiafico stated. “I am prepared tonight to remove another $83,500. What we have now is not acceptable.”

“I agree,” Mr Rosenthal said. He too returned to conversation about the school board’s portion of the debt service. After further questioning the size of the high school expansion project, Mr Rosenthal seemed resigned to accept it.

“I have heard people say they’re over a barrel and it’s too late,” he said. “Perhaps that’s where we are and we are stuck.”

With the $83,500 reduction up for discussion, Mr Rosenthal said, “I’d be happy to consider your suggestions, Paul.”

Mr Mangiafico then detailed a variety of modest cuts to more than a dozen line items. Among them was the Board of Managers’ budget, from $240,000 to $200,000; land use contractual services, from $35,000 to $30,000; and $7,000 for the Parks and Recreation Department’s sign budget fell to $6,000.

Additional cuts were suggested to several nonprofit agencies that receive some underwriting after providing services to town residents. These and other cuts tallied $83,500.

After a motion to drop the selectmen’s budget another $83,500, Mr Rosenthal offered arguments on behalf of the handful of social service agencies that would lose funds.

“I have a problem with the number, but some of those social service agencies really depend on us and we have a number of residents that take advantage of the agencies,” Mr Rosenthal said. “I say we find something else to reduce.”

After determining debt service on a proposed fire truck could be eliminated because the vehicle was not requested in 2008, and another suggestion by Mr Borst to reduce contractual services for Public Building and Maintenance from $245,00 to $200,000, the maneuvering extended to bringing back a new animal shelter in next year’s debt service.

“Remove the fire truck and bring the dog pound back in?” Mr Mangiafico asked.

“The debt service is almost the same number,” Mr Rosenthal replied, adding that additional savings could be applied to reinstate donations to four service organizations that were slated for cuts in the original Mangiafico proposal.

Agreeing to pass the budget on to Board of Finance after applying any final revisions were confirmed by Mr Spragg, the selectmen unanimously agreed on the municipal-side proposal and moved it in the amount of $40,012,036.