Apr 10, 2008
2008-09 vs. 2007-08: Budget is a 3.23% decrease
|
by Susan Wolf
pilot@thereddingpilot.com
The selectmen are now proposing a town budget for 2008-09 that is a 3.23% reduction from the current approved budget.
First Selectman Natalie Ketcham presented the new proposal to the finance board on Monday evening. The proposed town budget is $12,155,669, a decrease of $406,292 from the board’s current budget.
The selectmen will retain the $160,000 for the capital non-recurring reserve account, but Ms. Ketcham said the town counsel advised that money could remain in the general fund until such time it is needed for the capital non-recurring reserve account. This would give the town money it could use, should the need arise, before it goes to the capital reserve account. Once moved, the money could be used only to reduce borrowings for capital and non-recurring expenses.
Besides the budget for town operating expenses and the capital reserve account, the town budget includes about $2 million for debt service and a contribution to the Mark Twain Library of about $360,000.
The selectmen had been asked by the finance board to reduce their budget given fiscal constraints this year caused by a revenue shortfall in the current budget. The finance board has been working with the town and Redding school board to find savings to offset the revenue shortfall caused by a delay in the start of the Gilbert & Bennett redevelopment project because of the state’s permitting process.
The finance board has decided to count no revenue from the project in its 2008-09 budget, and it is faced with a fund balance that is down to about $400,000 because $1.1 million of the total balance was designated to offset taxes in the current fiscal year. For the first time in many years, the fund balance money has to be used for this purpose.
In making its budget reduction, the selectmen took out all of the capital items in the budget and instead recommended them as part of a capital plan that will be sent to a town meeting on April 21 at the Redding Community Center at 7:30. (See other story.) The Board of Selectmen also eliminated the request to make a part-time records clerk for the police department full-time and eliminated the part-time zoning employee request. It reduced the hours of a part-time building department employee as well. It also decided not to fill an open police officer position until January 2009.
Redding school board
The Redding school board has not been asked by the finance board to reduce its budget proposal of $19,791,642, a 5.77% increase over the current budget. Only a capital item was removed, and the estimated $28,000 for a middle school class conversion is now included in a capital plan proposal headed to the Town Meeting on April 21.
On Monday, Christina Kearney, a finance board member, asked the school board what it would consider removing from its budget.
Dr. Allen Fossbender, Easton, Redding and Region 9 school districts’ superintendent, said the board’s proposed early literacy intervention program would be at risk, as well as software that would allow teachers to track a student’s progress through each grade level.
David Lewson, school board chairman, said his board developed its budget through an arduous and transparent process. “We felt strongly that we made difficult cuts along the way for a responsible, lean budget,” he said.
Any cuts would have “a direct impact on essential services,” he said.
More discussion
During its discussion, the finance board talked about whether it would restore $100,000 to the school budget for its medical reserve account. The school board had agreed to reducing this account in its current budget to help the finance board address a revenue shortfall.
Some finance board members said they would like to see the account restored to at least the level recommended by the school board’s insurance consultant.
“I understand from school board members that they expect the funds to be restored, or they would be doing what we did and burn the fund balance to nothing,” said Nick Simeonidis, a finance board member.
“We have to restore our fund balance, and it shouldn’t be at their expense,” said Joe Dolan, another finance board member, later in the discussion.
The finance board determined that at this point, if the revised town budget now proposed by the selectmen, along with the proposed school budget, which is without the capital item, and the town’s share of the Region 9 budget were , the overall town budget would have a 2.74% increase in expenditures.
Region 9 oversees the operation of Joel Barlow High School for Redding and Easton. Each town’s share is determined by its number of students in the school. The two towns’ finance boards have no control over this budget, which must be approved by a majority of the taxpayers in the two towns.
The finance board decided it wanted an updated spreadsheet on the budget proposals before adopting its budget for 2008-09. The deadline for getting the wording for the budget ballot to the town clerk is April 24.
Fund balance
The board is looking at “zero reserves at the end of this fiscal year,” said Bill Alvarez, board chairman.
In the past, said Mr. Dolan, the town has tried to have 5% to 10% of its annual budget in the fund balance. If the fund balance is at zero at the start of the next fiscal year, and if $2 million is 5%, then how much should the board look to restore? he asked.
Mr. Alvarez said the town had a half-million dollars to start this fiscal year, “and look where we are now.” He added a half-million may not be enough and $1 million may be too much. “The right number is in between.”
Member Albert Viscio said the board needs to know how the undesignated fund balance was adjusted during the current year. He said the board needs to determine how much it needs in reserve for changes that could occur.
The finance board will continue its discussion of the proposed 2008-09 budget at its next meeting, this Friday, April 11, at 6:30 at town hall.
© Copyright 2008 by Hersam Acorn Newspapers
|
