The Board of Selectman/Board of Finance budget workshop was called to order at 7:10 p.m. on April 6, 2006. In attendance were Tom Marsh, First Selectman, Jennifer Wislocki, Michael Smith, Dave Cohan, Richard Morrow, Virginia Carmony, Chris Johnson, Rick Schriber, Fire Commissioner, James Grzybowski, Deputy Chief, Elizabeth Netch, Treasurer, Pam Christman, Chair BOE and Craig Brennan resident.

Tom Marsh reported that the budgets, both revenue and expense side, have been presented and the process now begins to finalize the budget. The public hearing is scheduled for April 25, 2006.

A motion was duly made and seconded to move the date of the public hearing to April 25, 2006. The motion passed.

James Grzybowski presented a long term parking plan for the elementary school. James reported that the parking projected is scheduled in phases. The first phase has been submitted to the town for a vote. This is the faculty parking in the back of the school. The remaining phases include the reconfiguration of the driveway for the bus turn around as well as widening the driveway. The next phase is the parking lot near the field.

A member reported that the capital budget shows approximately $40,000 has already been put aside for phase 1. This member questioned to costs of phase 2 and 3 and would like clarification of the total costs.

It was reported that these figures were included in the BOE’s capital budget. This information was not, however, available at the meeting this evening.

A history of the parking lot problems, including a child being hit, was discussed.

The BOF member felt that having the parking only on one side of the street has improved safety immediately. This member questioned the necessity of an additional parking area, considering the costs involved.

Pam Christman explained the need for parking during special events at the school and during baseball season. James Grzybowski expressed the safety issues when people are parking inappropriately.

A member discussed the 1.66 million dollar increase over last year’s budget, in park due to a revenue shortfall of 1.3 million dollars. The total increase to the budget is proposed at 1.7 million dollars. This member was concerned with the increase in mill rate and taxes.

A BOF member expressed concern over the additional expenses (landscaping, snow plowing etc.) and on-going costs once the new parking lot is completed.

Tom Marsh reported that this project had been discussed at a previous capital budget discussion meeting. Tom Marsh expressed concern discussing this topic with the lack of documentation at the meeting. He intended the topic tonight to be a clarification on the process. Tom feels the BOE has deemed the project appropriate and has approved it. They are now asking for the funding.

A BOF member reported that she feels that the additional parking on Brooks Lane is completely unnecessary.

Tom Marsh reported that his perspective, as First Selectman, is to put forward a budget with no tax increase. According to input from last year, the town feels that the tax rate is too high and they are not prepared to see it grow. Tom planned on two very tight years and working on economic development. Tom reported that no matter what is done, the grand list will grow 2% with economic development, maybe 4%. If we approve budgets greater than that, the town understands that a tax increase is needed to provide the services expected. Tom reported that if the budget is at a zero tax increase, and then apply the appropriate costs for things to be removed, and present it to the public and solicit their feedback. We will then build from that feedback. BOF members agreed with Tom’s approach to get feedback from the public.

A member reported that the revenue from sale of the building allowed for the small budget increase last year. She reported that because it was taken from capital, both the elementary school and town operations got the benefit of the “wish list”. She reported that since the money is not there this year, the pain should be carried as evenly as possible between town operations, the school and capital.

Tom Marsh reported that we are looking at reasonable budgets. We do however have a revenue shortfall. He reported that at the last budget meeting, Steve Spires reported that the bond situation for next year is in the ballpark of $400,000 in new bond expense. This year there is about $380,000 going down and next year they are adding $400,000 plus the $800,000 increase put it at 1.2 million. If our participation rate goes up, the figure is higher. Tom does not want to see a low voting participation rate when the budget goes to vote.

The attendees of the meeting discussed in detail the Proposed Budget Sheet dated 4/3/06 and the Proposed Budget Adjustments.

The various Constable hours, budget and salaries were discussed in detail.

Tom Marsh reported that there is more police incidents in Chester than one would think.

The attendees also discussed the Retirement Board’s Pension Fund. Sixty five hundred dollars was removed from revenue to offset expenditure budget per Auditor’s request.

Tom Marsh reported on several reductions including Open Space (-$50,000), Library Automation (-$4,000), Public Works Highway Equipment (-$30,000), Bridge Improvements (-$100,000), Park and Rec North Quarter Park (-$5,000), Buildings and Grounds Town Hall Computers (-$27,500), Fire (-$125,000), and School (-$15,000).

Tom reported that he received an updated from Connecticut Conference and Municipalities regarding revenue projections. The Appropriations Committee has made some changes to the Governor’s plan and is adding approx. $55,000 to our expected revenue. However, it has not been approved and is not reflected it anywhere.

Tom reported that with the above reductions, we are still not close enough to our goal yet.

Tom reported on removing all funding for the fire house expansion and the new fire truck. The rationale is that the BOS voted to ask the Board of Fire Commissioners to officially look into the prospect of regionalizing. They will provide a status report on such a program.

The BOS felt that putting money toward equipment and buildings might not be cost effective if we do eventually regionalize. The BOS does realize that regionalization would take many years to implement.

The road/sidewalk repair costs at the school ($100,000) were discussed.

The Grant money from the Wig Hill Bridge Project and the bridge project was discussed in detail.

Tom reported that the approximate bottom line is a $750,000 shortfall. He also reported that in the past several years we’ve taken about $300,000 from the fund balance. However, he is working of a projection of year end figures and this has not been done in the past. When taking the $300,000 this then brings us down to $455,000.

The projection rate for tax revenue is at 97%. The numbers showed that we collect over 100% of our taxes. This means we collect more than we budget. This gives the potential of adding additional dollars to revenue.

Tom reported that the road work bids and budget are currently coming in.

Tom reported that there are few town employees scheduled to work 40 hours per week. Tom does not feel he has enough experience at town hall to make an accurate assessment of staffing needs at town hall. He also reported on the possibility of regionalization of the elementary school. If it remains part of the town of Chester, he wants to take a close look at the accounting system at the school.

Tom reported that union contracts are up next year and no major changes will be made in the last year of the contract.

Tom reported that we are getting hit with an18% increase in the benefit package.
There was also a 100% increase in the dental plan this year due to a billing error.

There was discussion regarding the possibility of putting off the truck replacement and Main Street project and use the money budgeted for these items to offset the deficit (lend from one fund to another).

Tom reiterated the importance of not reducing services in the town. He wants the town to have a clear understanding of how the mill rate is determined. We cannot count on having a fund balance at the end of this next fiscal year.

Tom Marsh expressed concern with the R4 school budget.

The meeting attendees discussed the affect of grants on the budget.

The BOS/BOF discussed in detail accounting procedures throughout projects on-going in the town.

Tom Marsh suggested deferring Martin Heft’s comments to a later meeting in which Martin is able to attend.

Tom Marsh reported on the process for bringing the budget down to zero and bringing it back up. He asked for a consensus on this procedure.

Accounting procedures, revisions of the budget and Martin Heft’s comments will be on the agenda for the next scheduled budget workshop between the BOS/BOF. Also, the school budget can be discussed in greater detail at that time.

An attendee reported that she was not comfortable with the 97 to 98 collection rate on the taxes. She is also uncomfortable with the removal of fire house expansion and fire truck replacement funds. While she understands the concept of regionalization, she does not feel it impacts the needs of the town to service itself. She feels regionalization is more of a paperwork issue but the actual trucks and personnel would still be from the town.

On a motion made and duly seconded, the meeting was adjourned at 9:25 p.m.

Respectfully Submitted,
Suzanne Helchowski