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ENFIELD TOWN COUNCIL
MINUTES OF A SPECIAL MEETING
APRIL 1, 2002
A Special Meeting of the Enfield Town Council was called to order by Chairman Vayda in the Enfield Room of the Enfield Town Hall, 820 Enfield Street, Enfield, Connecticut on Monday, April 1, 2002 at 6:45 p.m.
ROLL-CALL Present were Councilmen Edgar, Egan, Falk, Fiore, Hall, Kaupin, Mangini, Strom, Tait, Tallarita and Vayda. Also present were Town Manager, Scott A. Shanley; Assistant Town Manager, Daniel Vindigni; Town Clerk, Suzanne F. Olechnicki.
MOTION #5798 by Councilman Tallarita, seconded by Councilman Mangini to go into Executive Session to discuss Personnel Matters, Pending Litigation, and Real Estate Negotiations.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #5798 adopted 11-0-0, and the meeting stood recessed at 6:46 p.m.
EXECUTIVE SESSION
The Executive Session of the Enfield Town Council was called to order by Chairman Vayda at 6:47 p.m.
ROLL-CALL Present were Councilmen Edgar, Egan, Falk, Fiore, Hall, Kaupin, Mangini, Strom, Tait, Tallarita and Vayda. Also present were Town Manager, Scott A. Shanley; Assistant Town Manager, Daniel Vindigni; Town Clerk, Suzanne F. Olechnicki.
Personnel Matters, Pending Litigation, and Real Estate Negotiations were discussed with no action or votes being taken.
Chairman Vayda adjourned the Executive Session at 6:56 p.m. He reconvened the Special Meeting at 6:57 p.m. and stated that during Executive Session they discussed Personnel Matters, Pending Litigation, and Real Estate Negotiations with no action or votes being taken.
The Council continued the Special Meeting in the Council Chambers.
PRESENTATION OF PROPOSED 2002-2003 ANNUAL OPERATING AND CAPITAL BUDGET (OVERVIEW/PROCESS CLARIFICATION/QUESTIONS)
Mr. Shanley stated the total budget that is in the proposed budget for 2002-2003 is $102.2 million dollars. He noted this breaks down to $62,658,797 for the School System and $39,614,979 on the Town side. He pointed out the Towns number includes Debt Service.
Mr. Shanley stated the proposed Managers budget reduces the increase in the school budget from 7.5% to 6%. He noted the Town budget is up 4.2%, and the Debt Service is up 33%, and that is because they added $1 million this year. He explained the increase in Debt Service is equal to approximately 1% of the total budget. He noted because the total budget is $102 million, the new Debt Service is just over a million.
He explained this will be a difficult budget year because there are pressures on the expense side and some very significant pressures on the revenue side this year. He referred to Education Cost Sharing, which is a state grant to the Town of Enfield which brings in over $22 million dollars for education. He noted that has been reduced in the Governors budget by almost $624,000, and that is a net loss in real dollars for this coming year compared to last year. He stated similarly they received $400,000 yearly in revenue sharing over the past few years, however, that has been eliminated in the Governors budget, therefore, that is a net loss in real dollars from the current year to the next year of over $400,000.
Mr. Shanley stated the Town receives a Payment-In-Lieu-Of-Taxes (PILOT) for a number of things, one of them being state housing. He noted the Governors budget proposes the elimination of the housing payment in lieu of taxes, and thats a loss of $177,000. He added the Governors proposal is to eliminate that mid-biennium so that would eliminate that for the current year as well. He stated they are working legislatively to try to make sure that doesnt happen in the current year.
He stated the interest earnings have nothing to do with the Governor, however, he included this in the list only to show in the past they were looking to earn almost $2 million dollars a year in interest earnings on various reserves and money that was in the bank. He noted theyve had to reduce that this year because of a significant reduction in interest rates. He stated they are showing this as a $200,000 loss in revenue for the upcoming year compared to this year.
Mr. Shanley stated they had been receiving debt reimbursement from the State, and that is no longer occurring. He explained the State used to bond to pay the municipality that bonded for things such as school projects. He noted that has now been eliminated and they basically pay their share and the Town pays its own share. He stated they dont get the reimbursement anymore, and it does show as a revenue loss.
He stated the State of Connecticut gets 20% of the gross of the slot machine receipts in the State of Connecticut. He noted part of that 20% is distributed to municipalities on a per capita basis. He stated that Enfields share will be over $1 million dollars. He added they anticipate the new slot machines at Mohegan Sun will generate a lot more revenue.
Mr. Shanley stated on the municipal side, there are really no significant new initiatives, except for emergency medical services, however, there are some significant pressures.
He noted emergency medical services call for about $125,000. He explained this begins the process of having the Town take a more active role in the management and budgeting of emergency medical services for the Town.
He referred to the Connecticut Resource Recovery Authority (CRRA) and the Enron deal that went bad. He noted this is a loss of $220 million dollars. He explained CRRA is where Enfield takes its trash, and the Town has a long-term contract with CRRA. He pointed out the proposal was that the fees would go up in an amount that would equal $350,000 for the Town of Enfield. He noted in the budget he reduced that to $175,000 increase because of the work that theyve been doing with the Governors Office and with the Legislature to reduce the impact of those fees for next year.
Mr. Shanley stated liability insurance is up by about 40%, and it doesnt matter whether its public or private sector. He noted Workers Compensation insurance is up over 20% and health insurance is up 15%. He stated Debt Service is up 33%.
Mr. Shanley stated the impact of the revaluation was that the total value of all the real property in Town is valued 9% higher than currently. He explained one percentage point of that is really based on sheer economic growth. He noted if next year they were to get all of the same revenue from all of the other sources as they are this year, and if there were no increases, the mil rate would be 30.28. He stated the tax that people pay on their home is based on that tax rate times the value of the house. He noted everyones homes appreciated at a different rate depending upon the type of home, age of home, and the neighborhood the home is located in. He stated its therefore impossible to say the revaluation will have a certain percentage impact on the homeowners taxes since its different from home to home. He went on to note the mil rate is currently 32.6, and that would be the reflection of the increase in value.
Mr. Shanley stated if State revenues are declining and local expenses are increasing, there is no other option for local government but the property tax. He noted in order to attend to the $1.7 million dollar revenue loss and the $6,140,000 expense increase, they need to raise $7,942,000 new local dollars, and that will require an 11.75% increase in the tax rate.
Councilman Fiore questioned in order to generate $60 million dollars in taxes, would the mil rate be 30.28, and Mr. Shanley responded yes if all else remained the same. He noted on the State education side, the ECS grant, the projected revenue for the Town of Enfield for this year, before the Governors cuts, was already down almost $200,000. He went on to state theres very little in the way of new initiatives or anything thats generating an expense that is not a function of a level of service that currently exists. He pointed out he
reduced the capital budget because he feels this was an extraordinarily difficult year. He noted there were a number of projects that were pushed off, i.e., the $400,000 for the slope issue at JFK; the planetarium upgrade at Fermi High School as well as a number of other capital projects.
Councilman Kaupin questioned what has been programmed in this budget regarding CRRA what they had originally passed as a number, or the re-projected lower number. Mr. Shanley stated he programmed in what he expected the result to be. He explained he programmed in half of what the original increase would have been.
Councilman Egan questioned whether the Town Manager has been getting any bulletins from CCM regarding the change. She noted last week the Finance Committee re-tuned the budget and redistributed monies. Mr. Shanley stated he is in a position whereby he has to use the Governors budget. He noted the Town will have to make an educated guess as to what additional revenue the Town may get. He pointed out their estimates have been fairly close over the last four or five years.
There was a brief discussion about the budget schedule.
Councilman Fiore requested the Council be supplied with the end of the third quarter budgetary closing as far as expenditures and balances. He stated his hope Arthur Pongratz, Director of School Facilities, will be extended an invitation to the joint meeting with the Board of Education. He noted Mr. Pongratz can provide the Council with a detailed listing and status of his capital improvement projects.
Councilman Falk requested the Town Council be supplied a copy of the year-end report.
Councilman Hall requested the Council be supplied an update on projected retirements for teachers.
Chairman Vayda thanked the Town Manager and his staff for all their work in preparing the budget this year.
RESOLUTION #5798 by Councilman Kaupin, seconded by Councilman Tallarita.
RESOLVED, that the Town Council of the Town of Enfield values the opinions and comments of its constituents; and
WHEREAS, in accordance with Chapter VI, Section 4, of the Enfield Town Charter, any elector or taxpayer may have an opportunity to be heard regarding appropriations for the ensuing fiscal years and for the purpose of being heard on issues of vital community importance and concern; and
WHEREAS, the Town Council shall conduct a public hearing at the John F. Kennedy Middle School on Raffia Road, Tuesday, April 30, 2002, at 7:00 p.m.; and
RESOLVED, that the order of business of the 2002-2003 budget hearing be arranged as follows:
1. Presentation of the Town Managers Budget.
2. The Chairman of the Board of Education highlights Education Budget.
3. Comments from members of the public for the first time.
BE IT FURTHER RESOLVED, that each speaker be requested to register with the Town Clerk his name and address and that no speaker be allowed to speak more than five minutes each successive time the speakers name is called. Additionally, any speaker who has not registered with the Town Clerk will be allowed to speak only after those who have registered no longer wish to speak.
Upon a ROLL-CALL vote being taken, the Chair declared RESOLUTION #5798 adopted 11-0-0.
ADJOURNMENT
MOTION #5799 by Councilman Tait, seconded by Councilman Tallarita to adjourn.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #5799 adopted 11-0-0, and the meeting stood adjourned at 7:29 p.m.
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