Legislative Council

LEGISLATIVE COUNCIL SPECIAL MEETING COUNCIL CHAMBERS, 3 PRIMROSE STREET, NEWTOWN, CT WEDNESDAY, DECEMBER 18, 2024 MINUTES PRESENT: Jordana Bloom, Keith Alexander, Ben Ruben, Derek Pisani, Jennifer Nicoletti, John Zachos, Tom Long, Chris Gardner, Laura Miller, Jill Soderholm, Eric Paradis ABSENT: Heather Dean ALSO PRESENT: First Selectman Jeff Capeci, Finance Director Glenys Salas, Director of Planning and Land Use, Fairfield Hills Authority Chair Ross Carley, and six members of the public CALL TO ORDER: K. Alexander called the meeting to order with the Pledge of Allegiance at 7:35pm. VOTER COMMENT: Ross Carley, Fairfield Hill Authority Chair explained that their CIP plan for 2026 they are focusing on renovations and securing the buildings at Fairfield Hills. With no dedicated budget, they rely heavily on grants and external funding. Recently, they were awarded a grant of $610,000 to support these efforts. Initially, $515,000 was proposed for this initiative and that was reduced to $250,000. They are seeking an additional $200,000 to address critical remediation needs. These include the removal of lead paint from walls, floors, windows, and frames, as well as essential interior renovations to make the buildings safe and appealing for potential tenants and investors. Each building currently requires an estimated $1 million for full renovation, and they are actively working to reduce these costs to make the properties more attractive to small businesses. By doing so, they aim to encourage investment that will generate future tax revenue and support the town’s long-term goals. Charles Gardner, 10 Russett Road - The council was notified by email that WestCOG had submitted a POCD letter with comments to the Land use agency. It had not been submitted at the time of the public hearing on November 7. He urged the Council as part of any action tonight or at a later date, to recommend the Land Use Agency and Planning and Zoning to incorporate them in full prior to adoption. For future projects, he suggested forming a special committee, as was done with the Fairfield Hills Master Plan Review Committee in 2018. This approach could include representatives from both elected and appointed town positions to better utilize local expertise. The Planning and Zoning Commission should also recommend conducting a sewer study to evaluate capacity for future planning. The current sewer map does not display areas where sewage planning is required, which contradicts state statutes. If capacity issues are already known, they should be reflected in the documentation. Amy Dent, CH Booth Library Board of Trustees – The Board of Finance had suggested that the libraries request for HVAC system be increased back to the original request, which would have been adequate to meet the broader requirements in the original bid. An email was sent by Elaine Corbo, President of the Library Board of Trustees with remarks how the project has been altered over time. The purchasing department has attempted to decrease the scope of the project of which are significant issues. They are getting a bid from a state approved contractor which limits them to only that one bid. If there’s an issue with that they will need to start all over. MINUTES: J. Bloom moved to approve the minutes of the 12/4/24 meeting. B. Ruben seconded, all in favor. J. Bloom moved to approve the minutes of the 12/4/24 public hearing, B. Ruben seconded, all in favor. J. Bloom moved to approve the minutes of the 12/9/24 BOF Tri-board meeting. J. Zachos seconded, motion approved with one abstain (Ruben). COMMUNICATIONS: See attached. COMMITTEE REPORTS – J.Soderholm reported that the BOE CFF met yesterday. There were three key budget items were discussed. The most significant topic was consolidating some of the five budget line items, which is expected to streamline the process. Additionally, there was a discussion about transferring funds from a positive balance to address a deficit, resulting in a current balance of $84,000. Another major topic was athletic transportation. There is a $33,000 claim against a contractor who failed to provide transportation services as agreed, and efforts to resolve this issue are ongoing. John Barlow provided a facilities update, highlighting several projects, including the foyer repair at the Middle school and addressing flooding at the Reid school, which required additional repairs. The middle school also has a $50,000 budget item with further HVAC-related projects under consideration. $30,000 is being allocated for an engineering study, and the remaining funds are still under discussion and may go toward air conditioner purchases. Lastly, High school roof repairs are scheduled to begin this week and continue through Christmas, with completion anticipated soon after. The team remains committed to addressing these priorities while ensuring budget alignment and effective use of resources. FIRST SELECTMAN’S REPORT – First Selectman Capeci reported that the past couple of weeks they have been doing a lot of FY26 budget development meetings with department heads and assessing their requests. Preliminary budget numbers are high but he is working with the Finance Director and department heads to reduce them to a more realistic budget and present to the Board of Selectman next month. The target is to get the budget increase below 4%. Community Center HVAC project the estimated cost has risen to $2.5 million up from original $1.7 million allocation. It is likely that this project along with the High school roof and library HVAC will all be on the April referendum with the budget. Fairfield Hills Authority CIP requested a reduction year 1 down from $715,000 to $450,000. The original request was reduced to $250,000 because of the grant received and they are requesting an additional $200,000 for remediation of the duplexes. It's imperative to get these back of the tax FINANCE DIRECTOR’S REPORT – Finance Director G. Salas reviewed a memo regarding the approved medial insurance premium increase (att). NEW BUSINESS Ordinance Code Chapter 208-3 Application Deadline – J. Bloom moved to approve the language regarding Code Chapter 208-3 Application Deadline to: In order to be entitled to the benefits provided herein, an application must be filed with the Tax Collector of the Town of Newtown not earlier than February 1 nor later than May 15 to obtain the benefits provided herein for the next fiscal year. The application for tax relief must be made after such person becomes eligible to apply as set forth above. A taxpayer may make application to the Tax Collector in writing in a manner prescribed by the Tax Collector prior to August 15 (January 30 for 2024 fiscal year applications) for an extension of the application period. The Tax Collector may grant such extension in the case of extenuating circumstances due to illness or incapacitation as evidenced by a certificate signed by a licensed or certified healthcare professional or if the Tax Collector determines there is good cause for doing so. L. Miller seconded. J. Bloom amended the motion to change the date from January 30, 2024 to 2025. B. Ruben seconded the amendment. Amendment unanimously approved. Original motion with amendment unanimously approved. Board of Finance 2026-2030 Capital Improvement Plan – Letter from FFH Authority regarding their request was received (att). There was discussion if the cost of the asbestos abatement should be embedded in the cost to the developer. An email from the Director of the Community Center was distributed (att). They have $1.2 million in the CIP for HVAC. An estimate of $2,381,913 was received. It is big consideration to have 2 HVAC projects going to the voters with a budget that we are hopeful to get to a 4% increase. There was discussion regarding the Library HVAC. The only bid that was received was $4.5 million to have the project done properly. It was suggested in the email that town officials are trying to cut cost on the project by eliminating important work that needs to be done and are coaching the potential bidder to come in with a very low bid. G. Salas clarified that town officials are not trying to cut costs on this project. There’s no pressure being put on the developer. They are simply trying to understand what the options are in terms of this project and all of those options are routed through the Public Building and Site Committee for authorization. Newtown Plan of Conservation and Development – Director of Planning and Land Use Rob Sibley answered questions regarding the POCD. Questions to previously submitted questions are attached. Currently, zoning does not regulate short-term rentals, such as Airbnb, due to state statute. Rentals under 30 days are defined as short-term rentals, but regulation falls under ordinances or charters, not zoning. It is timely to include short-term rental recommendations in the POCD, with any changes to come through proper channels outside zoning. Similarly, accessory apartment regulations were discussed, with suggestions to amend them to align with updated housing policies and state requirements. Concerns were raised regarding contradictions in housing preferences in the POCD, specifically the balance between affordable housing goals and the emphasis on single-family homes. Questions emerged about data sources and clarity in reflecting residents' input, with calls for a clearer index and references to the data used in drafting the plan. Regarding affordable housing, there was confusion about statements on alternative approaches to 830G housing. R. Sibley explained that Newtown has regulations that align with some 830G principles, such as incentivizing housing for those at 80% median income, while maintaining local zoning control. The POCD seeks to balance diverse housing needs without fully adopting 830G provisions. However, concerns remain that such language could appear as avoiding compliance rather than meeting the statute's intent. It was also noted that WestCOG stated there is no true alternative to 830G, raising further questions about how Newtown's approach aligns with state policies. On transportation, comments highlighted costs and tax challenges in supporting expanded transit systems. WestCOG’s influence in securing state-endorsed grants, such as improvements around Exit 11, was noted as critical to transportation planning. The POCD process was presented as a guide for the town’s policies and programs over the next decade, emphasizing transparency and inclusiveness. Public input has been gathered through surveys, workshops, and hearings, but concerns persist about inconsistencies and the timeline for adopting a final draft. The plan remains a living document subject to updates and addendums to reflect changing needs. P&Z plans to hold a public hearing on January 23rd for further discussion and feedback. E. Paradis moved to endorse the POCD with the recommendation that P&Z follows through on the recommendations from the WestCOG letter as they see fit. C. Gardner seconded, motion passes 10 Yes to 1 No (Long). Voter Comment – Alex Villamil a Library Trustee – a lot has been said about the need to provide the library with the proper budget and he would like the council to consider that request. Announcements – None Having no further business, the meeting was adjourned at 9:40pm. Respectfully submitted, Arlene Miles, Clerk Attachment: Communications, Medical Insurance Premium Increase, FFH Authority letter, email from Community Center, POCD Q&A  NEWTOWN MUNICIPAL CENTER 3 PRIMROSE STREET NEWTOWN, CONNECTICUT GLENYS R. SALAS 06470 FINANCE DIRECTOR TEL. (203) 270-4226 www.newtown-ct.gov OFFICE OF THE FINANCE DIRECTOR TO: Board of Finance & Legislative Council FROM: Glenys Salas, Finance Director DATE: 12/17/2024 SUBJECT: Approved Medical Insurance Premium Increase This memo is to present adjustments to the premiums for employee health plans for the upcoming Fiscal Year 2026 as approved by the Board of Selectmen at their 12/16/24 meeting. In light of various financial factors, including increased insurance costs and a projected budget deficit, the Board approved the following increases:  HDHP/HSA Plan: An 18% increase in premiums.  Copay Plan: A 22% increase in premiums. Rationale for the Increase: 1. Increase in Stop Loss Premium: The primary driver behind these premium adjustments is the significant rise in the stop-loss insurance premium. This insurance protects the health plan from catastrophic claims, and the increase in its cost requires us to adjust premiums accordingly to ensure the plan’s financial stability. 2. Projected Fund Deficit: At the close of Fiscal Year 2025, we are projecting a deficit of $3.7 million in the health plan’s fund balance. This deficit is due to a combination of higher-than-expected claims, rising healthcare costs, and insufficient funding in previous years. The proposed premium increases are essential to begin rebuilding the fund balance and ensuring the long-term viability of the plan. The Board of Education will experience an overall increase that is higher than 18% because the amount budgeted for employer contributions in FY2025 did not account for the cost of HSA contributions in addition to employer cost share of premiums. This has been fixed in the amount that Finance has sent to the Board of Education to budget for their employer obligations in FY2026. We fully recognize that these increases will have an impact on both the town's budget and our employees. However, these steps are necessary to maintain a sustainable and financially healthy health plan and are in alignment with the Town’s previously adopted Strategic Plan for the Medical Self-Insurance Fund. The following pages contain supplemental information regarding the rationale for the Increase. Medical Cost Increases - Increase in Stop Loss Premium Cost increases over Fiscal Year 2025 are primarily driven by at 34% increase in stop loss premium due to $5.6 million in stop loss claims during the prior reporting period, which was significantly less than what the Town paid in stop loss insurance for the same period. Projected Fund Deficit – How Did We Get Here? The Medical Self Insurance Fund has been running operating deficits since 2019. Unfortunately, because premiums were not increased all along to meet medical insurance costs, the fund balance has been fully expended at a time with medical insurance costs are increasing rapidly. Historical Analysis of Medical Self-Insurance Fund FY2025 Projected FY2024 Draft FY2023 FY2022 FY2021 FY2020 FY2019 FY2018 OPERATING REVENUES Intergovernmental $ - $ - $ - $ 325,000 $ - $ - $ - $ - Charges for services 18,613,728 16,888,073 15,645,944 15,125,363 14,726,066 14,075,314 13,345,178 14,637,911 Total operating expenses 18,613,728 16,888,073 15,645,944 15,450,363 14,726,066 14,075,314 13,345,178 14,637,911 OPERATING EXPENSES Premiums and claims* 17,803,553 17,215,790 15,848,918 14,904,702 14,007,121 12,915,548 12,690,957 12,007,513 Administrative and other 3,453,328 2,397,329 2,114,983 1,463,803 1,479,315 1,400,842 1,273,336 1,222,618 Total operating expenses 21,256,881 19,613,119 17,963,901 16,368,505 15,486,436 14,316,390 13,964,293 13,230,131 Operating loss (2,643,153) (2,725,046) $ (2,317,957) (918,142) (760,370) (241,076) (619,115) 1,407,780 NON‐OPERATING INCOME (EXPENSE) Interest income - 144,935 62,997 (40,191) 35,663 119,416 201,463 27,006 Loss before transfers (2,643,153) (2,580,111) (2,254,960) (958,333) (724,707) (121,660) (417,652) 1,434,786 TRANSFERS IN: 130,000 62,762 259,490 Change in net position (2,513,153) (2,517,349) (1,995,470) (958,333) (724,707) (121,660) (417,652) 1,434,786 Net position ‐ beginning (1,154,378) 1,362,971 3,358,441 4,316,774 5,041,481 5,163,141 5,580,793 4,146,007 Net position ‐ ending $ (3,667,531) $ (1,154,378) $ 1,362,971 $ 3,358,441 $ 4,316,774 $ 5,041,481 $ 5,163,141 $ 5,580,793 What was presented during the FY2025 Budget Process versus what is currently projected? The FY2025 Budget as presented in January 2024 included a number of errors and optimistic assumptions that did not come to pass. Numbers below in red represent errors in the budget. TOWN OF NEWTOWN TOWN OF NEWTOWN MEDICAL SELF INSURANCE FUND ANALYSIS @ JAN 31, 2024 MEDICAL SELF INSURANCE FUND ANALYSIS @ DEC 9, 2024 FISCAL YEAR 2024 - 2025 FORECAST FISCAL YEAR 2024 - 2025 FORCAST updated ESTIMATED FUND BALANCE @ JULY 1, 2024 520,000 AUDITED FUND BALANCE @ JULY 1, 2024 (1,154,378) ESTIMATED REVENUES ESTIMATED REVENUES EMPLOYER CONTRIBUTIONS: EMPLOYER CONTRIBUTIONS: MUNICIPAL 3,841,200 MUNICIPAL 3,746,489 EDUCATION 10,362,000 14,203,200 EDUCATION 10,267,994 14,014,483 BUDGET CONTRIBUTION FROM FUND BAL 1,000,000 BUDGET CONTRIBUTION FROM FUND BAL 130,000 EMPLOYEE CONTRIBUTIONS: EMPLOYEE CONTRIBUTIONS: MUNICIPAL 683,700 MUNICIPAL 784,483 EDUCATION 2,787,800 3,471,500 EDUCATION 2,944,265 3,728,747 RETIREE/COBRA/AGENCY CONTRIBUTIONS: RETIREE/COBRA/AGENCY CONTRIBUTIONS: MUNICIPAL 457,800 AGENCY 481,291 EDUCATION 267,050 724,850 EMPLOYEE 389,207 870,498 INTEREST EARNED ON INVESTMENTS INTEREST EARNED ON INVESTMENTS TOTAL REVENUES 19,399,550 TOTAL REVENUES 18,743,728 ESTIMATED EXPENSES ESTIMATED EXPENSES CLAIMS/NAF: CLAIMS/NAF: MUNICIPAL MUNICIPAL 17,430,000 16,953,553 EDUCATION EDUCATION ADMINISTRATIVE FEES: ADMINISTRATIVE FEES: MUNICIPAL MUNICIPAL 2,100,000 3,398,328 EDUCATION EDUCATION BOE HSA CONTRIBUTIONS 850,000 CONSULTANT FEES 55,000 CONSULTANT FEES 55,000 TOTAL EXPENSES 19,585,000 TOTAL EXPENSES 21,256,881 ESTIMATED FUND BALANCE @ JUNE 30, 2025 334,550 ESTIMATED FUND BALANCE @ JUNE 30, 2025 (3,667,531) 25% OF TOTAL CLAIMS = 4,357,500 25% OF TOTAL CLAIMS = 4,238,388  POCD dra 2024-11 LC Ques ons 1. Page 18 "Income" The data presented is median income for Married Couple Families. Sadly, there are many single parent households, primarily due to divorce. Is there any data on single parent households and what % or # of the town they make up? Or is there a reason that was not looked at? Typically these local POCD reports omit income information data. It is not listed in the State or regional plan. Newtown P&Z decided to leave this in as a data point. 2. Page 32, paragraph 1 references 6 Commerce Road but the text is already out of date. The reference should be updated to reflect that the town has made a request to our state representatives to exploring having the economic development requirement removed from the property. Or better, should the reference to the property just be removed from the section? The point of the statement is not what is currently occurring but that there was a debate on conservation vs. development. The statement is valid. 3. Page 33, Vision Goals & Objectives - Can you expand upon 3.2.2 and 3.2.6 3.2.2 – Other Towns have expanded their OSCS regulations to allow for even smaller lot sizes to increase the amount of preserved open space. 3.2.6 – CT Supreme Court has ruled that STR are unable to be regulated by municipal zoning regulations. Therefore our regulation need to reflect that limitation. 4. Page 42 can you expand upon the reference to exploring creation of a regional housing authority. I have heard of this but did not know if there was a material update. WestCOG Regional Affordable Housing Toolbox points to many housing options for municipalities. Authorities are created municipal entities which are endowed by State statute powers over these areas of housing. 5. Page 43, Transportation and Mobility. Is this section needed under housing? I don't see a reference that ties back under the sections' goals or objectives. If yes, what is meant by expanding and upgrading our transportation system. Can you expand on this. The state and regional plans typically ask for this topic to be lifted up in the Housing section of a local POCD. 6. Page 58, first paragraph - I am not sure if the reference to CT phasing out gas cars by 2035 is still accurate. Should this reference be removed? This reference was removed recently in the POCD drat due to the change in 2024. 7. Page 128. Who owns Action Agenda? The goals and objectives identify responsible parties and, in most cases, there are several. Is anyone tasked with facilitating or tracking these efforts? Or is the hope that various agencies will spur themselves on to work together. P&Z is the reviewer of these action items, as required to state statute. Any listed partner is simply a guide to who can also be involved in a recommend action. 8. Economic Development Section on Labor Force. I realize all the data is from 2020 or prior, however the pandemic which hit in 2020 had a massive impact on the labor force particularly around remote work and I don't see a single reference to remote work or telework. This dynamic change has impacted housing (driving people to our community) transportation (fewer commuters, I still notice it on route 25 each morning) commercial real estate (vacancies high and fewer new commercial buildings) and retail as many businesses struggle to compete against online sales. I think this concept should be referenced somewhere. The POCD acknowledges that data studies in a point in time and impacts from during the interim of official data points have limitations to their full use in the POCD. However, there inclusion is required through this process.