GOSHEN BOARD OF FINANCE
PUBLIC HEARING
WEDNESDAY, MAY 13, 2009
The Public Hearing was called to order at 7:30 P.M. by Board of Finance Chairman Allan D. Walker
Said Hearing was attended by Board of Finance Members, Allan D. Walker, John D. Garvey, Donald Pardon, Ned Bixler and Wilrose Duquette. Selectmen Robert Valentine and Thomas Breakell were also present along with seven other Town Residents and Reporter Harry Moore from the Torrington Register.
Two documents were provided for review, the General Fund Budget for Fiscal Year Ending June 30, 2010 and the General Fund Budget Departmental Budget Detail for Fiscal Year ending 6/30/2010.
First to be addressed by Board of Finance Chairman Allan Walker were the projected Revenue for 2009/2010. As a result of the current slump in property sales and building the Town Clerk and Departmental Revenue for Building Official Fees are down. Noted and explained was the $1,500.00 increase in Recreational Fees which is based on an accounting procedure for monies that come in through the Recreation fees. Projected State Grants remain uncertain but based on estimates, are down approximately $43,000.00. Conservative action was taken in projecting State Grant Revenues based on two things, the lower number of the Governors budget or the proposed Legislative budget. It appears that the Town Aid Road Grant will be taking the biggest hit in State Grant Revenue. Also taking a big hit under other
revenue is investment income. In 2008, Interest income on investments was 4.5% VS the current .7%. Total Projected Revenue for 2009/2010 is down by $176,200.00 from the 2008/2009 Fiscal Budget.
Under Expenditures, Chairman Allan Walker noted the voluntary action was taken by all Town Employees and Town Officials not to take any pay raises for the coming year. Their decision saved the Town approximately $33,000.00. Savings were also noted in salaries due to cuts being taken in man hours in the Fiscal Office, Library, Public Works and Town Clerk Departments. The $17,906.00
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increase in Employee Benefits expense is due to the increase in the Town Unemployment Compensation payments. The renewal rate for Employee Health benefits under the current carrier was coming in at 18% increase. Much work was done by Rhonda Gelormino in the Fiscal Office to get the increase down to 5% by using a different carrier and actually changing the policies. It was noted that consideration had been given relative to Employee contribution but based on the fact that no raises were being taken by the employees it was felt that this was not the year to go to co-pay coverage.
The Fire Co., Library and Recreation Departments all worked hard to make budgets cuts. Waste Removal is up $7,515.00. Much work was done under the bid process, noting several bids came in much higher. The bottom line for proposed operating budget expenditures is down by .69%, with Capital expenditures being down by .31%. Explained were the capital expenditures for 09/10. Note and explained was $200,000.00 Fire Co. request for Fire Engine #7 replacement and the $8,000.00 for Hurst Tool Jaws. Also noted was the Public Works Road projects, the cuts taken and the appropriation of funds for major road projects.
Noted was the current Town General Fund Balance of 1.8 million. The January 09, Budget Freeze is expected to save the town approximately $150,000.00 and along with the approximately $150,000.00 Good tax Collections for 08/09 together will give the Town approximately $300,000.00 in year end surplus which would be added to the 1.8 million fund balance . Noted was the much deliberated issue by the Board of Finance of keeping the current 14.4 mil rate. As a means of keeping the current mil rate for 09/10 the Board of Finance is considering taking $648,874.00 from the Fund Balance to offset the difference between the Revenue and Expenditures of the proposed 09/10 Town Budget. This would still maintain a healthy fund balance.
Questions from the floor:
Explained was the line item for Liberty Shield under Civil Preparedness. Said $5,130.00 includes money needed for Emergency Notification Communication system which allows the Town to be able to contact all Towns’ people in the event of a town emergency
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Elections Budget Line Item for Election Workers Wages – Explained was the shift of dollars in the line item for Election Workers wages based on the change from salary to an hourly wage. Under the old elections work system the workers were paid an hourly wage and a salary for general office work. Noted was the change over and expense for the new voting system, the continued changes being made by the State OPM and the education being required to keep up with the changes.
Explained briefly were the employee benefits for health insurance and waste removal contract. Noted was the receipt in 2008 of approximately $53,000.00 from the lawsuit against CRRA by area towns.
Outside services expense for lawn mowing is based on the bid process. The low bid was accepted all bids came in higher this year than for 08/09.
Unrelated budget question. Why are Goshen Public Works plates on the Road sweepers being used in area towns? Robert Valentine explained the Public Works Equipment Co-Operative which covers the 20 town region under the North West Litchfield Hills Counsel of Governments received a $700,000 grant from the state of CT. which was used for the purchase of two sweepers and one vac truck. Also explained was the funding for the vehicles, the use of, the maintenance and housing of the vehicles.
Under the Recreation Budget the $4,500.00 line item for Programming was explained. Said account is known as the activities account which is now being booked through the Town financial records as a pass through account booking income coming in and going out for that account.
Selectman Thomas Breakell commented on the great work that was done in getting the 2009/2010 budget down to where it is. Finance Board Chairman Allan Walker also commended everyone for the good co-operative joint effort by all parties concerned in the preparation of the 2009/2010. He was impressed by the good spirit in which it was all done. The Region 6 Board of Education was also commended for the work in presenting a no increase budget for 09/10. The $115,000.00 increase in the education budget for the Town is based on the increase in the number of Goshen students. Finance Board Member Ned Bixler echoed the sentiments’ of Thomas Breakell and Allan Walker relative to the good job done by everyone.
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There were no further questions on the proposed 2009/2010 budget which will be presented to the Town Meeting on Wednesday, May 27th. at 8:00 P.M. The Hearing adjourned at 8:07 P.M.
Respectfully Submitted,
GOSHEN BOARD OF FINANCE
Joan M. Lang, Board Clerk
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