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MAY 28, 2006 BUDGET PUBLIC HEARING #2

President Paul Roderiques called the meeting to order at 6:06pm. Councilwoman Barbara Barrow was absent. Councilwoman Shirley Mello was absent at the start of the meeting but arrived shortly thereafter at 6:10pm.

The room was quite empty as approximately 30 residents were in attendance, with Town employees, Council members, and School Committee members numbering about the same.

The meeting began with Councilwoman M. Theresa Santos stating that “Councilman Silveira had alluded to the May 21 resolution.” Councilman Edward Silveira Jr. objected to Councilwoman Santos’s reference and moved the question (Open Public Hearing on the budget) and President Roderiques “denied” the request. Councilwoman Santos then referenced the $150,000 the Town had given to the Robert Potter League and introduced two members from that institution. For the next ten minutes, the Potter League representatives described the construction of the new facility, stating that it is currently 1% over budget with 50% completed. They stated that they were “here tonight to make you (the Council) feel good about the contribution you have made.” Councilwoman Santos inquired how much it would cost the Town to provide the animal services without the Potter League and received an answer of $300,000. Councilman Robert Sylvia inquired as to how much the State has contributed to the construction project and received an answer of $2500. Councilman Silveira stated that his previous comments (May 21 resolution?) were “relative to the Fund Balance, not about the Potter League.”

After this discussion, the Public Hearing was opened, whereupon six residents spoke and asked questions about the General Fund. After these speakers addressed the General Fund Budget, this portion of the meeting was closed and the Council received the General Fund Budget on its first reading and took a five minute recess. The Public Hearing on the Parks & Recreation was then opened and no resident addressed that budget. Next was the Sewer Budget and no resident addressed this budget. Finally, the Refuse and Recycling Budget was addressed and four residents addressed this budget. With its work completed, the Council recessed at 8:07pm in order to hold an Executive Session.

DETAILED ACCOUNT

Town/School Budget Hearing

Ronald Santa began by chastising the Council for the discussion on the Potter League stating that it should not have occurred at the Budget Hearing but instead should have been an item on the regular Town Council meeting of June 2, 2008. Mr. Santa then thanked Town Administrator Shawn Brown for providing data and graphs on the Undesignated Unreserved Fund Balance to help explain questions raised at the first Budget Hearing. Mr. Santa then asked various questions about this data and concluded with his previous plea to reduce the tax rate by stopping the perpetual increase in this fund. Councilman Silveira stated that he “completely agrees with Mr. Santa.” President Roderiques then asked Administrator Brown if there was a projected surplus in the proposed budget that would increase the Fund Balance. Administrator Brown responded, “I don’t think so.”

Ann Coogan, President of Educational Collaborative, asked the Council to support the proposed School budget and named a number of school programs that her collaborative funds because the School Department does not have the money

Elizabeth Bozyan inquired as to the proposed budget increase and its impact upon the tax rate. Administrator Brown explained that the $61.91M budget is projected as a 6.01% increase requiring a 4.13% increase in taxes. Without any changes made by the Council the residential tax rate would increase from $11.01 to $11.49 and the commercial tax rate would increase from $14.65 to $15.29. Mrs. Bozyan then stated that “4.13% is a big increase in this day and age when gasoline is over $4 a gallon” and reminded Councilman Sylvia that he said he would never vote for a budget with a larger than 3% tax rate increase. Councilman Sylvia then responded that he has not voted for this proposed budget.

At this point a twenty minute discussion occurred among the School Committee and Town Council concerning the state mandate for a new budgeting process to begin by January 1, 2009. The new budgeting process will standardize all school budgets allowing for a “comparison between apples and apples.” The Town budgeting process would also be significantly improved if the same system were to be used by the Town; however, to automate this budget process, new computer software must be obtained at a cost of approximately $300,000. Councilman Silveira concluded this discussion with a criticism about the time that had been spent among the elected officials talking on this subject; whereas the residents where not being heard at this Public Hearing. The time now was 7:13pm.

Henry (last name not discerned), Green End Avenue, launched a tirade against Town expenses because “I can’t afford it anymore.” He asked when the Town is going to layoff some employees. How about cutting employee salaries? He suggested that any striking union employees should be fired and replaced with non-union employees and concluded with “every time I turn around, the Town has new vehicles.”

Shirley Lally inquired about the Town using wind turbines at the schools and received the reply that there is a wind turbine committee investigating this possibility. Mrs. Lally then complained about Town employees benefits and stated that “public salaries are now competitive with the private sector and Town employees should pay a greater share for their benefits.”

Arthur Benner explained that he has been retired for ten years and the only increase in revenue that he receives is a 3% increase on his Social Security. Mr. Benner suggested that “we should dip into the Undesignated Reserve Fund to keep the tax increase low.”

Eric Bozyan inquired as to the Town’s policy on auditing its budgets. School Superintendent Rosemary Kraeger explained that a $20,000 line item in the budget is used for that purpose and Administrator Brown explained that the Town is required to do an annual audit of its budgets.

Park & Recreation Budget Hearing

No one spoke at this public hearing.

Sewer Budget Hearing

No one spoke at this public hearing.

Refuse & Recycling Budget

Ronald Santa again thanked Administrator Brown for providing the answer, in the form of a graph, to his question regarding the impact of making the Pay-As-You-Throw (PAYT) program mandatory. Mr. Santa questioned the graph deviating from a straight line but understood it to be a conservative forecast as Administrator Brown has always been conservative. However, based upon a straight line, the data indicates that the PAYT, if it were to be mandated, would still have a deficit at the end of a year, albeit it would only be approximately $100,000 rather than the forecasted $500,000 deficit. Mr. Santa continued to prod the Council into making the program mandatory.

Eric Bozyan stated that forcing people to put out totes “would be like herding cats.” Mr. Bozyan proposed a $50 fee for every Middletown household but this fee would be exempted for any household using the PAYT program. Later, Mr. Santa supported Mr. Bozyan’s proposal but indicated that the fee must be $250 to eliminate the deficit.

Payson Fugitt stated that the PAYT program is the most expensive and flawed process that could exist. Mr. Fugitt then proposed that the program be paid from the tax base as a fee for every residence.

Arthur Benner reminded the Council that, three years from now, the Town will be receiving rebates from the State for its recycling program. These rebates should be calculated in any deficit projections being made.

DISCLAIMER: The preceding account is a synopsis of the comments made by the residents. Every effort was made to identify each speaker and their comments accurately; however, the Middletown Newsletter apologizes for any errors that may have been made. Anyone desiring to correct any information contained within this newsletter is encouraged to contact us.

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