Board of Finance

Approve by the Board of Finance July 16, 2024 Vote: Unanimous MINUTES Vol. 7 Page 427 BOARD OF FINANCE SPECIAL MEETING CITY HALL AUDITORIUM/ZOOM JUNE 4, 2024 A SPECIAL MEETING of the Board of Finance was held on Tuesday, June 4, 2024. Present at the City Hall Auditorium were Mayor Carbone and Board of Finance Members Deborah Iannacito, Laurene Pesce, Wendy Traub, Christopher Anderson, and James Wright. Board of Finance Member Christopher Beyus participated via Zoom. Also present at City Hall were City Comptroller John Monks, Manager of Budgets Erika Johnson, Torrington Public Schools (TPS) Assistant Superintendent Susan Ferguson, Fire Chief Eric Borden, Police Chief William Baldwin, and Treasurer Dan Farley. Mayor Carbone called the meeting to order at 5:02 p.m. beginning with the Pledge of Allegiance. PRESENTATION & DISCUSSION REGARDING FY 2024-2025 BUDGETS Mayor Carbone provided a review of the proposed FY 24-25 budgets. She gave an overview of what was looked at to provide different budget figures. She explained the updated ECS/Alliance District funding figures and presented the FY 24-25 City and Board of Education (BOE) budget recommendations. Mayor Carbone gave the Board a list of non-recurring revenue sources available to offset the impact on the taxpayers. Mayor Carbone detailed for the Board what to consider in this budget adoption, including: • CITY  Adopt a budget with an appropriation that at the very least covers the increase in debt service ($2,264,671.00). • BOE  Consider the impact of net budgeting for insurance funds – • BOE withholding FY24 funds (equal to premium cost shares = $1.8 million) o Met with and working with BOE to establish a governance document – a show of good faith, we will not transfer funds from the Internal Service Fund (ISF).  Consider the impact of BOE use of CGS 10-262k ($478,666.00).  Consider the impact of the increase of $3,198,263 in Alliance funding. • With this increase, there is now $9,459,777 of expenses that will be rolled into the operating budget as the district graduates (exited) from Alliance District Status.  Consider the impact of a 3-year trend showing annual surpluses of $1.6+ million in Line 5500 – “Other Purchases Services” (most of the surpluses have been reallocated to other accounts and used to purchase capital items which skews the MBR). • ARPA  Review ARPA unexpended Community Impact Grants for potential reallocation of capital projects. Mayor Carbone had recommendations for the BOE and City Budgets to accomplish a 0-mill rate, .5-mill rate, and 1-mill increase. Zero Mill increase: ● Reduce BOE Operating Request ($3,897,315) ● Reduce BOE Capital Request ($1,552,960) ● Reduce City Budget Request ($1,110,658) .5 Mill increase: • Reduce BOE Operating Request ($3,055,482) • Reduce BOE Capital Request ($1,552,960) • Reduce City Budget Request ($1,014,176) 1 Mill increase: • Reduce BOE Operating Request ($2,121,135) • Reduce BOE Capital Request ($1,552,960) • Reduce City Budget Request ($1,003,403) Mr. Anderson asked where the fund balance would end this fiscal year, Mayor Carbone told him that there was about $15,000,000 in the account, and that was due to an increase in interest from bond sales. Mrs. Traub asked if the ECS funds have the same restrictions as the Alliance funds, Mayor MINUTES Vol. 7 Page 428 BOARD OF FINANCE SPECIAL MEETING CITY HALL AUDITORIUM/ZOOM JUNE 4, 2024 Carbone said they need a proposed spending plan to the Board that would get approved. Mr. Wright thanked the Mayor, the budget subcommittee, and the department heads for a responsible budget. He said he would like to entertain a zero-mill increase. Mrs. Traub stated that being an Alliance district this fiscal year the BOE will add $10 million in new programs. If they had graduated from the Alliance district and were getting just ECS funds, the BOE could use those funds however they wanted. She would like the BOE to work within the system to utilize those funds for what they need. Mrs. Traub said that 67% of families qualify for free or reduced lunches in Torrington Schools, she said to think of how a tax increase will affect those families, and those families or seniors on fixed incomes. She went on to say that the revaluation should be helpful next year. Mrs. Pesce said that giving raises to every City and BOE employee plus utilities and benefits going up, how would this be done with a zero Mill increase? Mrs. Pesce doesn’t support a zero-mill increase, maybe 1 Mill or .5 Mill. Mr. Anderson agrees with Mrs. Pesce that this is not the year to level fund the BOE and that the revaluation of properties, and next year's budget will look very different. He doesn’t support a 1 Mill increase but would support a .5 Mill increase. Mr. Beyus said he could see a .5 Mill increase, and the City should consider the amount taken from the fund balance. He said this is the debt that the taxpayers agreed to when voting for a new school. Mrs. Traub reiterated that the City should hold the line, and not increase the budget. Mr. Beyus said that things are going to cost more year after year. Mrs. Iannacito said this is a tough decision for the Board, and they should listen to the taxpayers. However, next year will be another interesting year with the revaluation, but it is not the right time to raise the mill rate. ROLL CALL VOTE: ADOPTION OF 2024 – 2025 BOARD OF EDUCATION OPERATING BUDGET Mrs. Pesce made a motion for adopting the 2024-2025 Board of Education Operating Budget for $80,498,878, there was not a second, therefore the motion failed. Mr. Anderson made a motion for adopting the 2024-2025 Board of Education Operating Budget for $79,632,601.49, there was not a second, therefore the motion failed. On a motion by Mr. Wright, seconded by Mrs. Traub, the Board voted 3/2 by roll call vote with Mrs. Pesce and Mr. Anderson opposed to adopting the 2024-2025 Board of Education Operating Budget for $78,722,698. ROLL CALL VOTE: ADOPTION OF 2024 – 2025 BOARD OF EDUCATION CAPITAL BUDGET On a motion by Mr. Anderson, seconded by Mr. Wright, the Board voted 4/1 by roll call vote, with Mrs. Pesce opposed to adopting the 2024-2025 Board of Education Capital Budget for $0.00. Mr. Anderson said it is too soon to know where the BOE would end, and whether any surplus would be transferred into their Capital Fund. Mrs. Traub stated they have had surpluses for the past three years. Mayor Carbone added that the BOE usually has a few hundred thousand surpluses to be transferred into their Capital Budget. ROLL CALL VOTE: ADOPTION OF 2024-2025 CITY BUDGET On a motion by Mrs. Traub, seconded by Mrs. Iannacito, the Board voted 4/2 by roll call vote, with Mr. Anderson and Mrs. Pesce opposed to adopting the 2024-2025 City Budget for $70,296,611. ROLL CALL VOTE: MILL RATE (REAL ESTATE & PERSONAL PROPERTY) On a motion by Mr. Anderson, seconded by Mrs. Traub, the Board voted 4/1 by roll call vote, with Mrs. Pesce opposed to setting the mill rate for 2024-2025 at 47.97 mills. Mayor Carbone suggested rounding the mill rate up or down so the Tax Collector and Assessor do not have to deal with the 47.9636 mill rate. ROLL CALL VOTE: MILL RATE (MOTOR VEHICLES) On a motion by Mr. Anderson, seconded by Mr. Wright, the Board voted unanimously by roll call vote, to set the motor vehicle mill rate for 2024-2025 at 32.46 mills. TAX WARRANT On a motion by Mr. Anderson, seconded by Mrs. Iannacito, the Board voted unanimously to authorize the Mayor to execute the Tax Warrants for the Real Estate & Personal Property, and Motor Vehicle Tax Warrant. MINUTES Vol. 7 Page 429 BOARD OF FINANCE SPECIAL MEETING CITY HALL AUDITORIUM/ZOOM JUNE 4, 2024 ADJOURNMENT On a motion by Mr. Anderson, seconded by Mrs. Traub, the Board voted unanimously to adjourn at 6:12 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK CAROL L. ANDERSON, CITY CLERK