MINUTES

WATERTOWN TOWN COUNCIL

SPECIAL MEETING<= /b>

&nb= sp;

JUDSON ELEMENTARY SCHOOL

TUESDAY,= MAY 8, 2007

Immediat= ely following Budget Public Hearing

PRESENT:      &= nbsp;           &nbs= p;          Elaine Adams

&= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;         Antonio Guerrera

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Robert Kane

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Carl Mancini

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Joseph Pawlak, Chairman

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Suzan Plowman

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Raymond Primini

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Paul Rinaldi, Vice Chairman

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Jack Walton

ABSENT:            &= nbsp;           &nbs= p;      None

OTHERS PRESENT:      &= nbsp;     Chuck Frigon, Town Manager

&= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;         Frank Nardelli, Assistant Town Manager/Finance Director

1.&nb= sp;        Call Meeting to Order

&n= bsp;

Mr. Pawlak, Chairman, Called the Special Meeting to Order at 8:22 p.m.

Ms. LaForme, Clerk, executed the Roll Call.

Mr. Pawlak, Chairman, led the Pledge of Allegiance.

2.&nb= sp;        Consider Budgets for Fiscal Year 2007-2008

=             M= OTION:       (Mr. Mancini, sec. Mr. Walton) to add to the Town General Fund Budget $55,000 for street lighting for the Fire District and $73,000 for hydrant rental fees f= or the Fire District to be funded out of the Town Fund Balance.

=             D= iscussion:       Ms. Adams: Unbelievable. Out of the Fund Balance?

=             &nb= sp;            =            Mr. Pawlak: Yes.

=             &nb= sp;            =            Ms. Adams: How much extra money do we have in = this Fund Balance to be able to afford this?

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=             &nb= sp;            =            Mr. Mancini: It's approximately $1,000,000 than= we had 2 years ago.

=             &nb= sp;            =            Ms. Adams: No, that doesn't answer the question. What's in the Fund Balance that we can use? We n= eed to keep some money in there.

=             &nb= sp;            =            Mr. Mancini: We'll have $4,100,000 as of June 3= 0th.

=             &nb= sp;            =            Ms. Adams: And what's the recommended amount t= hat we have in there for bonding, especially if these 3 projects go through, we're going to be looking to do some serious bonding and we'll need a healthy Fun= d Balance to get a good rate.

=             &nb= sp;            =            Mr. Pawlak: Frank, what's our Fund Balance rig= ht now?

=             &nb= sp;            =            Mr. Nardelli: There's about $4,000,000 pretty much (inaudible). If we sell the p= roperty at Evelyn and Davis before the end of the fiscal year we'll increase that, = but right about now we're (inaudible).

=             &nb= sp;            =            Mr. Kane: That's in our budget, that money h= e's talking about?

=             &nb= sp;            =            Mr. Pawlak: Right. The Fund Balance has grown over th= e last 2 years, Frank, is that correct?

=             &nb= sp;            =            Mr. Nardelli: Yes, it grew in 05/06, that's corre= ct, and of course 06/07, we're still in that fiscal year, but hopefully it will grow a little bit, I don't know how much cause the year is not over.

=             &nb= sp;            =            Ms. Adams: What about the Board of Ed, are we = going to consider giving them the little bit they asked for back?

=             &nb= sp;            =            Mr. Pawlak: We didn't get to that yet. We were just talking about taking = care of the hydrants and the lighting for the Fire District.

=             &nb= sp;            =            Ms. Adams: And what about the bridge?

=             &nb= sp;            =            Mr. Pawlak: The what?

=             &nb= sp;            =            Ms. Adams: The Davis Street br= idge. It's .09 of a mill for a 50 year a= nd we won't have to look at it again.

=             &nb= sp;            =            Mr. Kane: Can I ask why we're taking out of = the Fund Balance when this should have been considered during our budget process, we've been in the budget forever.

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=             &nb= sp;            =            Mr. Pawlak: We talked about it, no, we talked = about it during the budget process and at that time the Fire District was a taxing agency, and if they're changing their status and they're getting rid of the zoning office also changes the (inaudible) the formula if you will, so now = that having been done, we've been advised that we have an obligation to cover th= is cost.

=             &nb= sp;            =            Mr. Kane: Understood, however my question is = this should be budgeted rather than withdrawn from the Fund Balance.

=             &nb= sp;            =            Mr. Pawlak: Well we're taking it from the Fund= Balance because we choose to do that, we're proposing to do that, it's not something that hasn't been done by past Councils to mitigate the tax increase, or minimize it. We have in fact = in the past, not this past year, a year before or 2 years ago, I believe Council decided to take money from the Fund Balance to minimize the tax increase th= at was being presented to the Town. So this is nothing unusual, it's not something that hasn't been done before. We're choosing to go this route to present a zero tax increase and we feel that (inaudible) $120,000 is someth= ing that we could (inaudible) from the General Fund and still go.

=             &nb= sp;            =            Mr. Kane: I think what you're referring to ar= e some insurance costs that were higher than expected, never something that's alwa= ys been budgeted. I don't want t= o say never, but not that I can remember. Couldn't we make a reduction on the expenditure side?

=             &nb= sp;            =            Mr. Pawlak: We could, but we'd have to cut par= ticularly from the Town's side, I believe we cut $804,000 from the Town's side and si= nce they only have a $22,000,000 budget, we felt that that was enough to cut do= wn to be cut. In real terms we'v= e cut $116,000 from the Board of Education's side, on a roughly $33,000,000 (inaudible) budget and I think most of the Council Members would prefer not= to reduce the (inaudible) expenditures, I should say for either the Town or the Board of Education at this point.

=             &nb= sp;            =            Mr. Kane: Surely there must be an area that w= e can find expenditures, to reduce expenditures rather than take it out of the Fu= nd Balance.

=             &nb= sp;            =            Mr. Pawlak: We can only reduce costs, but some= body is gong to have to pay for it (inaudible). Elaine is already complaining about asphalt and paving.

=             &nb= sp;            =            Ms. Adams: Asphalt, paving, chip seal, (inaudi= ble).

=             &nb= sp;            =            Mr. Pawlak: The bridge, there are options, I f= eel that this is the best option, I think it would be relatively painless particularly considering the robust growth in the General Fund in the last = two years and we've stuck with that same conclusion and the tax collection has = been astronomical, that this is a viable option for the Council to consider (ina= udible).

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=             &nb= sp;            =            Mr. Primini: (Inaudible) again?

=             &nb= sp;            =            Mr. Mancini: $55,000 for street lights, and $73= ,000 for hydrant fees.

=             &nb= sp;            =            Mr. Primini: So that means unfunded, (inaudible)= for $600,000 a one time fix, we're adding on another $125,000 so that means next year we're going to be starting the year out $725,000 in the hole. Like I said before, once again it's another budget gimmick.

=             &nb= sp;            =            Mr. Kane: I agree.

=             &nb= sp;            =            Mr. Pawlak: It's a reasonable approach to try = and fund the operations of the Town. (Inaudible) what we're doing here (inaudible) in comparison to what I suggested could happen in 2 years time if the State decides to re-fund the increases that they're giving us this year and next year.= If and when that happens, and I do believe it will happen, then we a= re going to be scrambling even worse to try and make up the difference, which = at that point would be somewhere around $1,500,000, structural costs which we'= re going to have to try and figure a way to bring out, which I believe (inaudi= ble).

=             &nb= sp;            =            Mr. Kane: You bring up a good point. Has any thought been given to the = fact that the State has not passed a budget yet and the budget may change?

=             &nb= sp;            =            Mr. Pawlak: We have wrestled with this, as you= know, since the budget presented the budget last February. And we tried to wait as long as we possibly could just because we didn't know exactly what was going to happen= . We spoke on numerous occasions with Sean Williams, our representative, and the general consensus was that whatever the Democrats proposed once they got a = hold of the budget, we could pretty much bank on that as a given. I don't know if I would put 95% confidence on that or 90% or something lower, I'm not sure. The fact of the matter is that the Democrats, and I have no idea how they're doing it, they've proposed their = own budget which I believe is about $650,000,000 more than the Governor's but t= hey have reduced the aid to education which would impact Watertown to the tune = of about $148,000 so that's what we built into our budget. We're assuming $1,300,000 and chan= ge and we think that's a pretty good number. We're fairly confident that $1,361,000 is what we're banking on from= the State. Since the Democrats co= ntrol the House and the Senate, and I believe they have a veto override at best, = so I'm pretty sure this number should be pretty stable, but as I said before in past public comment, anybody who thinks that this $1,361,000 is a free ride= is delusional because the State doesn't make any money, the State takes our mo= ney and they're going to have to increase (inaudible) somewhere along the line = and we are going to end up paying.

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=             &nb= sp;            =            I think I referenced Frank, a study that Frank and I talked about and he saw = that indicated that the people of Watertown, the taxpayers, will need to spend an additional $2,800,000 to Hartford and get back $1,600,000, so it= 's not a win/win for us either. We're going to get the money (inaudible).

=             &nb= sp;            =            Ms. Adams: It comes down to where we're puttin= g a dollar amount to the voters. If some= thing happens and we don't get that money, and the budgets are approved, we're go= ing to find out like the next day after our budget I think (inaudible) is that = the mill rate when then translate to the spending that the Town has voted to, s= o if we don't get the additional $1,300,000 that's going to translate based onto= the mill. I mean this is all abou= t what is the spending proposal, that's what people vote on, so that remains to be seen.

=             &nb= sp;            =            Mr. Kane: I tend to agree with Ray Primini i= s that what we're doing is touting a zero mill increase of budget, but what we're doing in fact is relying on some iffy factors, (a) sale of town owned prope= rty and (b) taking money out of the General Fund for a budgetary item. I just don't agree with it philosophically.

=             &nb= sp;            =            Ms. Adams: What was the motion again, to add t= hose two items to the (inaudible)?

=             &nb= sp;            =            Mr. Pawlak: (Inaudible.) All in favor?<= /span>

=             In Favor      &n= bsp;    Mr. Guerrera, Mr. Mancini, Mr. Pawlak, Ms. Plowman, Mr. Rinaldi, Mr. Walton

=             O= pposed:         = Ms. Adams, Mr. Kane, Mr. Primini

=             A= bstained:        None

=             M= OTION CARRIED (6-3-0)

      &= nbsp;     MOTION:       (Mr. = Mancini, sec. Mr. Walton) to approve the following budgets, to be sent to Referendum= :

      &= nbsp;           &nbs= p;            &= nbsp;    Town General Fund     &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;           $21,8= 29,383

      &= nbsp;           &nbs= p;            &= nbsp;    School General Fund     &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;         $33,769,261<= /o:p>

      &= nbsp;           &nbs= p;            &= nbsp;    General Fund Total     &nb= sp;            =             &nb= sp;            =             $= 55,598,644

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      &= nbsp;           &nbs= p;            &= nbsp;    Town Road A= id        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp; $     131,341

      &= nbsp;           &nbs= p;            &= nbsp;    Water Operations     &nb= sp;            =             &nb= sp;            =             &nb= sp; $ 1,311,293

      &= nbsp;           &nbs= p;            &= nbsp;    Water Capital      =             &nb= sp;            =             &nb= sp;            =        $     157,750

      &= nbsp;           &nbs= p;            &= nbsp;    Water Extension     &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;   $       59,062

      &= nbsp;           &nbs= p;            &= nbsp;    Sewer Operations     &nb= sp;            =             &nb= sp;            =             &nb= sp; $ 1,869,461

      &= nbsp;           &nbs= p;            &= nbsp;    Sewer Capital      =             &nb= sp;            =             &nb= sp;            =        $     138,500

      &= nbsp;           &nbs= p;            &= nbsp;    Sewer Extension     &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;   $       30,000

      &= nbsp;           &nbs= p;            &= nbsp;    Water and Sewer Debt     = ;            &n= bsp;            = ;            &n= bsp;      $     136,400

      &= nbsp;           &nbs= p;            &= nbsp;    Crestbrook Golf Operations    &nbs= p;            &= nbsp;           &nbs= p;           $     684,096

      &= nbsp;           &nbs= p;            &= nbsp;    Crestbrook Improvement Trust    &n= bsp;            = ;            &n= bsp;       $       84,0= 00

      &= nbsp;           &nbs= p;            &= nbsp;    Local Capital Improvement    =             &nb= sp;            =             &nb= sp; $     156,283

      &= nbsp;     Discussion:       Mr. Kane: The Motion that just pa= ssed, where does it fit in on the Agenda?

            =             &nb= sp;           Mr. Pawlak: Right at the top.

      &= nbsp;           &nbs= p;            &= nbsp;    Mr. Kane: Call meeting to ord= er?

      &= nbsp;           &nbs= p;            &= nbsp;    Mr. Pawlak: No, (inaudible).<= o:p>

=             &nb= sp;            =            Mr. Mancini: It was a motion to add to . . . .<= /p>

=             &nb= sp;            =            Ms. Adams: Consider budgets for fiscal year.

=             &nb= sp;            =            Mr. Kane: That's what we're on now, #2, we never added that to the Agenda.

=             &nb= sp;            =            Ms. Adams: You can't add to the Agenda at a Sp= ecial Meeting. You're right, it was probably one of those illegal motions.

=             &nb= sp;            =            Mr. Pawlak: (Inaudible.)

=             &nb= sp;            =            Mr. Nardelli: It's under considering budgets and I would think under considering budgets for fiscal year 07/08, that's part of considering the budget.

=             &nb= sp;            =            Mr. Kane: So it should be here now, we shoul= dn't have added it already. It sho= uld be done now, on #2, the one we're on now.&nbs= p; This is where the motion was made to approve the following budgets t= o be sent to referendum, this is where changes should be made, not prior to.

=             &nb= sp;            =            Mr. Pawlak: It's a procedural question.

=             &nb= sp;            =            Ms. Adams: You're right (inaudible).

=             &nb= sp;            =            Mr. Kane: It's Robert's Rules of Order, that= 's the way we govern.

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=             &nb= sp;            =            Mr. Pawlak: Okay, so the procedural question h= ere is what do we do at this point?

=             &nb= sp;            =            Ms. LaForme: They already changed these figures, right?

=             &nb= sp;            =            Mr. Nardelli: Yes.

=             &nb= sp;            =            Mr. Kane: They're supposed to be doing that n= ow.

=             &nb= sp;            =            Ms. LaForme: Well I know we've changed figures = in the past.

=             &nb= sp;            =            Ms. Adams: Right, now, not before. I think actually probably what we'= ve done is probably like a subcommittee (inaudible) it was done (inaudible) fu= ll Council which was wrong, I don’t know how = to get out of it.

=             &nb= sp;            =            Mr. Pawlak: Well maybe how to get out of it is= to consider the General Fund, right now we're in Item #2, the motion (inaudibl= e), read in those numbers as we have them now.

=             &nb= sp;            =            Mr. Kane: Carl, did you read in the new numbe= rs?

=             &nb= sp;            =            Mr. Mancini: Yes, I did.

=             &nb= sp;            =            Mr. Kane: Well then the first motion was moot= .

=             &nb= sp;            =            Ms. Adams: Yes, it didn't exist.

=             &nb= sp;            =            Ms. LaForme: So the second motion is good, yea.=

=             &nb= sp;            =            Mr. Nardelli: Right.

=             &nb= sp;            =            Mr. Kane: If he read in the correct numbers.=

=             &nb= sp;            =            Mr. Nardelli: He did.

=             &nb= sp;            =            Ms. Adams: With the Board of Ed, was the numbe= r that was read, was that what you had presented tonight?

=             &nb= sp;            =            Mr. Pawlak: Yes.

=             &nb= sp;            =            Mr. Griffin: Can you repeat that question, Elain= e?

=             &nb= sp;            =            Ms. Adams: My question is, is the number that = was read here, School General Fund $33,769,261, is that what you asked for after the, we cut what, for the insurances?

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=             &nb= sp;            =            Mr. Griffin: We cut $70,000 for insurance.

=             &nb= sp;            =            Ms. Adams: Right, which is, that's understanda= ble but (inaudible).

=             &nb= sp;            =            Mr. Griffin: We had a (inaudible) additional cu= t.

=             &nb= sp;            =            Ms. Dzioba: Offset by $70,000 (inaudible).

=             &nb= sp;            =            Ms. Adams: So you're short how much, $88,000, = is that the number?

=             &nb= sp;            =            Mr. Griffin: $186,000.

=             &nb= sp;            =            Mr. Pawlak: No, $116,000.

=             &nb= sp;            =            Mr. Mancini: I think the whole question was that Elaine asked was the number that I read the number that was presented tonig= ht and I think Dr. Erardi said yes.

=             &nb= sp;            =            Ms. Adams: Cause I remember seeing point (inau= dible) mill. I have a feeling the $1= 16,000 was part of what you presented . . . .

=             &nb= sp;            =            Mr. Mancini: Yes, it was.

=             &nb= sp;            =            Mr. Griffin: Exactly.

=             &nb= sp;            =            Ms. Adams: So the Board is taking a cut of $70= ,000 for the insurance, which that's understandable, but another $116,000 cut yo= u're taking tonight versus what they gave?

=             &nb= sp;            =            Mr. Mancini: No.

=             &nb= sp;            =            Mr. Griffin: Yes.

=             &nb= sp;            =            Mr. Mancini: No, not what was presented by Dr. = Erardi tonight. Why don't you ask Dr= . Erardi.

=             &nb= sp;            =            Ms. Dzioba: (Inaudible.)

=             &nb= sp;            =            Mr. Mancini: Elaine asked if the number was the number that was presented tonight, and Dr. Erardi (inaudible) numbers tonig= ht that's why (inaudible).

=             &nb= sp;            =            Mr. Griffin: After the cut.

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=             &nb= sp;            =            Mr. Mancini: After the cut of $116,000, that wa= s the number that Dr. Erardi presented, which Dr. Erardi and 5 members of the Boa= rd of Education agreed to at the Budget Committee, the Budget Hearing.

=             &nb= sp;            =            Mr. Griffin: Not (inaudible).

=             &nb= sp;            =            Mr. Mancini: Pardon me?

=             &nb= sp;            =            Mr. Griffin: That wasn't Elaine's question.

=             &nb= sp;            =            Mr. Mancini: Elaine's question was, was that the number that was presented tonight?

=             &nb= sp;            =            Many people talking at once (inaudible).

=             &nb= sp;            =            Mr. Pawlak: We have too many people talking. Elaine, please restate your questi= on.

=             &nb= sp;            =            Ms. Adams: What I wanted to know is that when = the presentation I saw tonight, what was asked for was the increase in spending, after you t= ake out the $1,500,000, comes to a .2% (inaudible) mill increase. Does that include the $116,000 or = had you already cut that out of the presentation?

=             &nb= sp;            =            Mr. Griffin: That was cut out of the presentati= on.

=             &nb= sp;            =            Ms. Adams: That was cut out of the presentation because based on the budget. = My second question, what did the Board vote for? Did the Board of Ed vote to accept $116,000 cut and made corrections to your budget?

=             &nb= sp;            =            Mr. Griffin: I don't think we voted on that bud= get.

=             &nb= sp;            =            Ms. Adams: Okay, you voted on the budget for t= he Council . . . .

=             &nb= sp;            =            Mr. Griffin: We just presented through the Fina= nce Subcommittee.

=             &nb= sp;            =            Ms. Adams: They said they cut, how much did th= y cut?

=             &nb= sp;            =            Mr. Griffin: They were going to cut (inaudible) $116,000.

=             &nb= sp;            =            Ms. Adams: So that's what, in addition to the = $70,000 for the insurances and that was the cut, that wa= s the only cut.

=             &nb= sp;            =            Mr. Griffin: And respectfully (inaudible) take = away $50,000 (inaudible) and $22,000 for a mower, that's (inaudible) and $32,000= for another dump truck (inaudible).

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=             &nb= sp;            =            Ms. Adams: Yea, but we annihilated Public Work= s too.

=             &nb= sp;            =            Mr. Griffin: (Inaudible.)

=             &nb= sp;            =            Mr. Pawlak: The amount of money that we cut fr= om the Board of Education as a percentage of your total budget was significantly l= ess than the amount of money we cut from the Town's side. You just suggested that we could c= ut the skid steer and a couple of dump trucks and make that up to the Board of Edu= cation. We already cut significantly more = than the Board of Education.

=             &nb= sp;            =            Mr. Griffin: You just added $55,000 for lights a= nd $73,000 for hydrants. So if y= ou're in a giving mood, I think you should, we owe it to our students to have that money restored.

=             &nb= sp;            =            Mr. Killeen: Point of order. We may have a problem from a proce= dural standpoint. The problem is th= at there may have been an agreement in principal by the Board that this (inaud= ible) be made there was never a formal vote to approve the cut as recommended at = the night of that budget meeting. What that means tonight, I'm not really certain, but as (inaudible) Board we have essentially (inaudible) the original budget to the Council.

=             = ;            &n= bsp;          Mr. Pawlak: I believe, if I'm= not mistaken, the final fiscal authority goes through the Town Council and if we decide to reduce the (inaudible) budget with the Council budget by "x&= quot; amount of dollars, that's what you have to live with it. It doesn't (inaudible) vote of the= Board of Education. It requires a majority vote of the Town Council and that's it.

=             = ;            &n= bsp;          Mr. Griffin: I would (inaudib= le) with you on that.

=             = ;            &n= bsp;          Mr. Pawlak: Well you can disa= gree but that's . . . . is that correct?

=             = ;            &n= bsp;          Mr. Unknown: That’s' co= rrect.

=             = ;            &n= bsp;          Mr. Pawlak: We're the fiscal authority.

=             = ;            &n= bsp;          Mr. Mancini: I have to say something, this is really bothering me because we had a newspaper here toni= ght and the newspaper was here at the Budget Meeting. We proposed $302,000 worth of cuts= , of which $70,000 was not needed because of a reduction in insurance costs. We came back to you guys with a cu= t of $232,000. You guys are the on= es that came back to us with a counter proposal. You came back to us and asked if w= e would accept $116,000 worth of cuts, and we said we would accept it if you would accept it that night, and it started with Dr. Erardi, and he said he would accept $116,000 of cuts that night and you would recommend that proposal be proposed tonight and accepted. Todd, you accepted it, Mary you accepted it, and Rich accepted it, and Kevin, you agreed also, along with Tom Lambert.