Selectmen approve proposed budget

WINSTED — The Board of Selectmen approved Town Manager Dale Martin’s proposed budget of $33,694,367 for fiscal year 2013-2014 at a public hearing held on Thursday, April 4, at Pearson Middle School.The vote was 6-1, with Republican Selectman Ken Fracasso the lone dissenting vote.If the proposed budget is approved by voters, the tax rate will be set at 31.21 mills.Last October, at a budget referendum, residents approved the fiscal year 2012-2013 town budget, the fourth one proposed by the board, for $30,932,241.The town’s mill rate remained unchanged from the previous year, with the tax rate set at 25.43 mills.Martin’s proposed budget is approximately $2,762,126 more than the approved fiscal year 2012-2013 budget and if approved, the town would need to increase its tax rate by approximately 5.78 mills.Town Manager Martin made his budget presentation along with Finance Director Robin Manuele.Both town officials reviewed the reasoning behind the proposed budget and the town’s current financial status for the final months of fiscal 2012-2013.Manuele said by the time this fiscal year ends, the town will have a $3.2 million shortfall in its budget.Martin specified three reasons for the shortfall, including various unauthorized budget transfers to support the Water and Sewer Department’s budget, accounting irregularities and unrealistic revenue estimates. At a public hearing in late March, the Water and Sewer Commission voted to increase water usage fees by 20 percent and sewer usage fees by 33 percent.According to Commission Chairman Richard Nalette, the fee increases are due to to substantial financial problems faced by both water and sewer departments uncovered in February by Town Auditor Chris King from King and Associates.At a previous selectmen’s meeting, King said every year since 1999 the town has advanced $300,000 to $400,000 from its municipal general fund to help make up for various shortfalls in the department’s budget.He said the funds need to be repaid to the town and by the end of this fiscal year the amount owed to the town’s general fund by the department will be $3.2 million.Martin said one mill from the proposed budget will be used specifically to address previous financial shortfalls, including shortfalls in the Water and Sewer Department budgets.“The additional mill, which is approximately $686,000, will be solely dedicated to addressing the financial shortcomings we have had,” Martin said. “In some of the preliminary information I have received about the fiscal year 2010-11 audit, there is a list of monies which have been shifted around in various town accounts. The amount that has been shifted around in various accounts is $4.6 million. This mill will be used in order to address situations like this which developed in the past several years.”As for accounting irregularities, Martin said the town recently replaced what he called “very dated” accounting hardware and software.“We are making a lot of changes,” Martin said. “These changes should have been made several years ago, if not at least a decade ago. We are far behind in modernizing our accounting systems.”Martin said the town previously budgeted a collection rate of 98.6 percent for its 2011 net grand list income.For the 2012 net grand list collection rate, Martin said the town will be using a historically accurate rate of 97 percent.During the selectmen’s comments portion of the hearing, Republican Selectman Ken Fracasso spoke out against the proposed budget.“I think it is borderline criminal that we are $3.2 million in the hole and we are not really addressing that issue,” Selectman Fracasso said. “I don’t know whether the budget will pass or not. If it does, I think we are heading for much worse days than we have right now. The deficit represents bills which are past due and continue to be past due. If this budget is going to go forth then we might as well subtract $3.2 million from it.”Mayor Maryann Welcome asked Fracasso if he wanted to make a motion to alter the proposed budget.“It’s a moot point,” Fracasso told Mayor Welcome. “We should leave it up to the taxpayers.”From the audience, Community Lawyer Charlene LaVoie asked Selectman Fracasso what he would do to change the budget.“We need to reduce the spending that we have right now,” he said. “We cannot continue to do business as usual here. We have $3 million in benefits budgeted for town employees which all needs to be reduced and restructured. There are plenty of areas that could be looked at and reduced. We have got to find some ways to save money.”Mayor Welcome asked Selectman Fracasso if he wanted to reduce specific line items in the budget.“It’s not my job,” Selectman Fracasso said. “I’m not the town manager.”Toward the end of the hearing, Welcome recommended the addition of a line item of $7,500 for the town’s Cradle to Classroom program.The funds were requested at the hearing by program Coordinator Kristin Stoeke, who said the funds would be used to help prepare the final draft of the program’s community plan.Stoeke said the plan will address health, safety and education issues for children up to 8 years old in the community.She added the Graustein Memorial Fund would match the town’s funding which would give the program a total of $15,000 in order to complete the plan.“To me, this is a good investment,” Welcome said.Taking up Welcome’s recommendation, Selectman Michael Renzullo made the motion to include additional funding for the program, which was seconded by Selectman George Closson.The motion passed 5-2 with Selectmen Fracasso and Albanesius voting against.Selectman Albanesius then made a motion to add a line item of $300,000 in order to fund a pension for school district employees and another line item of $250,000 in order to help fund repairs to boilers in all three of the school district’s buildings.The motion was subsequently defeated because it was not seconded by any of the selectmen.As per town charter, the next step in the budget process is the annual town meeting which is scheduled for Monday, May 6.At the meeting, a referendum for townspeople to vote on the budget will be scheduled.

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