Finance Officials Stymied By Lack Of Closure On CIP

By John Voket

Pushing a normally liberal timeline to its limit, the Board of Finance has requested a joint meeting with the Legislative Council and Board of Selectmen March 5 so its members can appropriately act on the town’s Capital Improvement Plan (CIP), which was expected to be endorsed by the council during regular deliberations that evening.

Finance officials were unable to complete their due diligence on both the budget and capital spending proposals during their most recent meeting February 21. According to chairman John Kortze, the new administration headed by First Selectman Joseph Borst appears to be taking more time than expected to transition and orient to the budget and capital planning processes.

The normal course of deliberations and action on capital spending coming through the council has also been delayed as its representatives await answers to questions posed about the school district’s capital plans, particularly the proposed scope of the high school expansion.

Even during this latest meeting, the first selectman was unable to answer specific questions about particulars in the police budget and public works requests although Mr Borst told Mr Kortze that he met with all department heads prior to his board’s deliberations to qualify priorities and better understand the scope of individual town department needs.

During his regular presentation to the finance board, Mr Borst read from a one-page summary he previously submitted, detailing a bottom line budget proposal equaling $40,027,988, a $2.9 million reduction from what department heads and his board submitted. Documentation provided to the finance board did not reflect the specific details and methodology related to the $2.9 million in cuts made to the original proposal.

So after several members requested clarity on those cuts, Mr Kortze requested itemized details in writing from the first selectman before the final budget deliberations concluded.

Finance Director Benjamin Spragg distributed a public budget worksheet, which was published in The Newtown Bee, noting that if approved as submitted, the total proposed budget of $106,959,032 would represent a mill rate of 23.7. He also recommended and told the finance board they could authorize moving as much as $257,000 from the capital reserve fund to the revenue line.

Moving to new business, Mr Kortze explained that since the council was unable to vote on the CIP, the finance board was at some disadvantage because it prevented members from having all the details required to finalize their budget duties. The final capital spending projection for 2008 is critical, the finance chair said, because without it his board cannot accurately calculate debt service in the current proposal.

Mr Kortze then recommended if any substantial changes were made increasing next year’s CIP, the selectmen come prepared with alternatives to cut to ensure the town keeps its borrowing under a self-imposed ten percent debt cap policy. He also suggested that if the aforementioned joint meeting is held, the selectmen could formally explain CIP adjustments and justifications to the council, which would presumably then act on and approve the capital borrowing.

Then, the finance board can concurrently and publicly provide discussion and input, presumably wrapping its responsibilities in the overall process at the same meeting.

Once discussion of that process was completed, finance board members settled for questioning Mr Spragg and Mr Borst about numerous aspects of the budget that were available. Questions were posed about a projected drop in motor vehicle tax revenue due to the revaluation, as well as an anticipated drop in Parks & Recreation Department revenues that was attributed to the closing of a major recreation facility at Dickinson Park.

Finance member Joseph Kearney requested information about the fees and operating costs at the town transfer station, which would receive a reply when Public Works Director Fred Hurley appeared at a subsequent meeting. Board member Martin Gersten sought details on the costs of town services being provided in-kind to the school district, with answers promised by Mr Spragg.

Mr Gersten then asked about whether or not a combined senior and recreation center was expected to be reinserted into the current budget. While Mr Borst said he did not believe consensus on such a facility was likely in the current budget cycle, Commission on Aging alternate LeReine Frampton, who was present, said she felt the seniors and Parks & Rec officials were close to reaching an agreement on a shared facility. (See separate story.)

Booth Library Board of Trustees Chairman Judge William Lavery was available to answer questions, and was provided an opportunity to advocate on behalf of increased funding proposed to hire a reference technology representative, which he said was the library’s top priority.

In examining the overall budget, Mr Kortze referenced debt service for school capital projects that appears on the selectmen’s side of the budget proposal. He clarified that after school-related debt service, the municipal side increase stands at 4.25 percent.

Mr Kortze then asked Mr Borst to speak as though he was asked to justify that increase to taxpayers for the record. The first selectman replied that fixed costs, especially fuel and utilities, have driven up the bottom line, adding that results of collective bargaining among town labor unions have taken their toll as contract costs were increased for salaries and benefits.

Finance board member Michael Portnoy observed that the current teachers’ contract stipulates an average contribution of 15–16 percent from teachers on their health plans while the town side employees contribute substantially less. Mr Borst said this would be a major point of negotiation in the coming weeks as the highway and police unions sit for contract talks.