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PUBLIC HEARING & SPECIAL FINANCE/CLAIMS

COMMITTEE MEETING MINUTES

THURSDAY, JANUARY 22, 2004

ATTENDEES: Bruce Kimmel, Chairman; Ken Baker, Council Member; Matt T. Miklave, Council Member; Calvin Hilliard, Council Member; Douglas Hempstead, Council Member; Doug Sutton, Council Member; Michael Coffi, Council Member (7:05 p.m.)

OTHER: Salvatore J. Corda, Superintendent of Schools; Stuart Opdahl, BOE; Jody Bishop-Pullan, Chairwoman of the BOE; Tom Hamilton, Finance Director, City of Norwalk, Frederic Gilden, Comptroller

PUBLIC HEARING

The Chairman called the meeting to order at 7:00 p.m.

Mr. Kimmel explained the particular method of adopting the Operating Budget for the City of Norwalk. He said the Common Council would adopt a cap on City spending. He stated that immediately following the Public Hearing there would be a Special Meeting of the Finance Committee. Mr. Kimmel stated that Item Number 7, Discussion on the Fiscal Year 2004-2005 Operating Budget listed on the agenda would be presented first.

Mr. Hamilton, Finance Director for the City of Norwalk walked through the FY 2004-05

Operating Budget. He stated that the first page of the packet is a high level summary by department of all expenditures that have been requested and passed through to the Board of Estimate and Taxation and the Common Council. The upper two-thirds of the page shows actual expenditures from two fiscal years ago, actual expenditures from last fiscal year, the approved budget this year, the requested budget now before the Boards of the City for next year and the variance and the percent increase and decrease. There is also a summary of non-tax revenues that would be available to support that budget. Included is a tax summation of the tax levy that would be required to meet that budget, the assumed Grand List and the average Mill Rate that would apply. The total budget that has been transmitted is just over $238,000,000, which represents an increase of approximately $25,008,000 or 12.2%. Also included in the packet is a graphical representation of revenues and expenditures, an aggregated summary of expenditures, Mr. Hamilton’s transmittal letter on the budget, which provides a fairly comprehensive summary of the policy decisions and many of the assumptions behind the budget as well as information about major changes in the budget. Beyond the transmittal letter is a summary sheet regarding allocation of tax dollars in terms of the approximate average single-family residential property tax bill for next year under this budget in the 4^th District and how much of that property tax bill would be attributable to each of the service areas. Finally, there is a summary sheet of Mill Rates by district.

Mr. Hamilton said the budget that is presented is a pass through budget. He said there had not been any cuts made to the amounts that were requested by departments. There is an expenditure increase of 12.2%, which is a significant increase. He stated that it is unlikely that it will be sustained at that level as they go through the process and that the budget that has been passed through is the starting point of the budget process this year.

It is by no means the ending point. Mr. Hamilton stated that Norwalk has the earliest municipal budget submission date of any municipality in the entire State. He said this makes the development of a budget a particularly problematic exercise. He stated that there could be some potentially significant revenue shortfalls next year in terms of State aid and real estate Conveyance Tax. He said there is significant uncertainty on the expense side of the budget that the Finance Department is actively working on to try to develop acceptable alternatives to bring the number down in two key areas: 1) Pension Contributions, 2) Debt Service.

Dr. Corda gave a brief overview of what was trying to be accomplished as the budget was being put together. He said that he has tried to reinforce that the purpose of the budget is really the financial plan that the Board of Education intends to use in order to meet their objectives. He stated that the process followed in the development of the budget is: 1) to review what their objectives are as far as the needs of the district, 2) analyze staffing needs based on enrollment, paying attention to contractual requirements, 3) review maintenance needs, 4) examine program requests presented by various departments. Ultimately, decisions are made based on what the BOE believes is reasonable given what it is that has to be done. Dr. Corda then shared with the Committee the budget objectives for 2004-2005 budget, which includes meeting State requirements. The Board of Education adopted an instructional plan, which calls for the revision of all curricular areas over a 5-year period. Dr. Corda said that this would significantly improve the academic performance of all Norwalk students. In addition to this, the Mayor has adopted and made public his commitment to the implementation of the technology plan to make sure that our schools have appropriate technology and the budget contains provisions for implementing that.

Dr. Corda, stated that there is a recommendation in the budget for the addition of two instructional specialist, one in math and one in science. There are also recommendations for professional development to make sure that teachers are familiar with the curriculum, know how to teach the curriculum and to make sure the methodologies used in classes are gear specifically towards the objective that the performance of every child is at appropriate levels. In addition, there are recommendations through the capital fund for textbook acquisition. Dr. Corda said the BOE is asking for more than a million dollars for textbooks because the textbooks in our schools are often 15, 20, 24 years old. He said this could not continue if the BOE is serious about meeting the performance requirements that it expects of all its students. Dr. Corda then presented various charts regarding maintenance technology using an overhead projector. He stated that objective number 4 is designed to provide those programs that are necessary to increase the achievement level of all students especially in light of No Child Left Behind. The Board approved the increase of 12 staff members designed to provide academic support for the students at the high schools in order to make sure that students who need extra support are able to get it.

Dr. Corda said the steps that the BOE is beginning to take to close the achievement gap, the curriculum revision process, which elevates our standards, the acquisition of current materials and textbooks and appropriate academic support for students is what is going to make the difference. He said there has been a small provision made for expanding course options for secondary students. There has been a course added in forensics and the BOE is looking at adding a course, which would be an interdisciplinary course in mathematics and science in order to pay attention to the needs of the brightest students. He said the BOE has an obligation in accordance with their accreditation process to make sure that they have appropriate course offerings for all students.

Dr. Corda stated that enrollment at Brien McMahon High School next year would be about 1400 and Norwalk High School would have about 1800 students next year. He said that is a significant increase in the population of both of these schools over the last 5 years. He stated that when you have to staff a high school, which has an increase in enrollment, it requires more staffing than if you are funding an elementary school that has an increase in enrollment because the curriculum is different and more classes are added. Dr. Corda said certain amounts are allocated to each principal for their own discretion how they are going to spend those dollars, $100 per student at the elementary level, $120 at the middle school and $160 at the high school. He said that would finally bring Norwalk to where the average is for schools that are similar to ours. Right now, Norwalk is at the bottom. Dr. Corda stated that the proposed budget for the BOE for next year is $132,254,122, an increase of 10.8%. He said the BOE is in the process of reviewing every single budget line to see where reductions can be made in the proposal. He said the BOE is looking at their Energy Management Program to see if there are ways to cut down on energy costs. They are also looking at ways in which they use their grants. He said grant money cannot be used to supplant existing services. Dr. Corda stated that the BOE is also examining health insurance options.

Mr. Kimmel invited the public to address the Committee instructing speakers to state their name and address for the record before speaking and to try to keep comments to 2 to 3 minutes.

Mr. Root, 42 Aiken Street stated that he was born and raised at this addressed and hoped to retire there. An issue he has with the budget is the fact public service is not a profit- making concept.

He said it seems that the City of Norwalk has taken on the idea that to have good public servants

it must match or surpass private industry. He asked that the Council keep in mind that every dollar that is wasted away comes out of the taxpayer’s pockets.

Mr. Federici, 20 Kate Lane, read a prepared letter from the Chairman of the Republican Town Committee regarding the budget process and urging the Common Council to step up to the plate and establish a real path on City spending and taxing.

Mr. Lombardi, 2 Williams Street said that if the Council uses the figures from this present years budget they would be making a mistake. Using the $238 million is also a mistake. He said he feels the Council should give the Board of Estimate and Taxation a feeling of where the Council is going. He urged the Council not to pass through the budget because he feels it would be telling the Board of Estimate that they really don’t care.

Mr. Akoni, 180 North Taylor stated that he has lived in Norwalk for the last 10 years. He said what he has seen over the last couple of years is higher taxes and higher spending. He said the school budget seems unaccountable and that where he comes from flat budgets equal flat budgets regardless of what is going on in the country or in the State. He said there would have to be more accountability in the schools before he would feel comfortable paying more for those schools.

Mr. Scheme said that he has lived in Norwalk since 1963. He said he is astonished that not only in Norwalk, but all over the country teachers want more money, more money. He said he does not see them doing the job and that there are Norwalk students who will probably leave at the end of their senior year without being able to read and write. Mr. Scheme said he is also disturbed that 8 to 10 people hired by Mayor Knopp within the year got a raise. Taxpayers need a total evaluation of what people are being paid in the City.

Mr. Wilson, 137 Washington Street said he has no compassion for the teachers because to him its greed. He said they are not willing to give back. He said the teachers are paid 40 percent more than he is paid, they get COLA, step increases and there are no evaluations for the job. He said he is asking for oversight of the line items in the budget.

Mr. Nightingale of Rowayton said he is pleased to see so many people in attendance tonight. He stated that the BET needed to be more accessable to the public and strongly urged reform in getting the public involved in the budget process. He stated that there is no place for the public to come to for a Q & A session about the budget to get answers and learn about it. He stated that most people do not know the difference between an operating and a capital budget and that the public needed to be more informed. Mr. Nightingale said the most important thing to living in Norwalk is the annual property tax bill. He said the increase in his bill this year is outrageous. He stated that in the capital budget the interest expense is going to more than double over the next decade due to all

the big projects approved in the last couple of years. Mr. Nightingale stated that the 5%

salary increase for the Police Department is way in excess of inflation. He said it was 1.8% last year. Mr. Nightingale, citing the huge line item for technology spending, stated that there had been talk about a municipal area network being installed in Norwalk and that it does not make sense to him. He said the City does not need a multimillion- dollar municipal area network.

Ms. Lorichella, 249 Chestnut Hill Road suggested a Charter change idea meeting. At the top of the list is to change the schedule because it is not viable. She stated that there is too much spending in all departments. She said she feels the time has come for the Council members to have staff support and that it should come out of the Mayor’s office.

Ms. Lorichella stated that there is a need to look at sustainable energy designs. She stated that too much money is being spent by the City of Norwalk on energy. She suggested that Recreation & Parks do a natural resource inventory of all public open spaces and parks. She stated that the New Complaint Bureau needed to reduce the people handling complaints. She said the Planning & Zoning Department needed to be totally reorganized. Ms. Lorichella stated that the DPW spends more than $100,000 a year in their recycling budget transporting waste across the state for someone else to realize a profit in making organic soils. She said the City needed to look at other recycling programs in order to find out if the City can make money from it. She said there needs to be a review of the use of pesticides in our schools and parks. She stated that with better pesticide management costs could be reduced by at least $50,000 to $100,000 this budget cycle.

Ms.Lyons, 58 Spring Hill Street stated that there was a hot line for the Complaint Bureau. However, the problem is that calls have to be answered by the department heads. The person answering the calls needs to be knowledgeable in all areas.

Mr. Lombardi came forward again to address this year’s increase of the Capital Budget debt. He stated that 30% of it is directly attributed to the Board of Education. He said that he would urge the Council not to do it. He said the BOE was given money each year to buy books. He said it is another way for the BOE to pass the debt on to the taxpayers or another budget so that it does not appear in their budget.

Mr. Kimmel made a clarification that any capital expenditure could not be changed without going through a complex process. The Chairman asked if there were any other speakers.

There being no response, the public hearing was closed at 8:34 p.m. and the Council took a

5-minutes recess.

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The Chairman called the Regular meeting of the Finance Committee to order at 8:40 p.m.. He stated that he would like to take the items on the agenda out of sequence and discuss Item 7,Fiscal Year 2004-2005 Operating Budget first. He said that he would break it down into two parts: 1) an opportunity for the Council members to question members of the Finance Department and the Board of Education present tonight, and 2) make proposals regarding the adoption of the capital and expenditures for next year, discuss this and try to come to some kind of agreement in order to be able to make a recommendation to the full Council next Tuesday.

Chairman Kimmel commented that in a year where it is projected that the overall enrollment will decline by 38 there is almost 2 million dollars in requests for roughly 30 new positions. He said the general public wanted to know why, if the school system is loosing students, there is a 2 million dollar increase.

In response, Dr. Corda stated that the Assistant Principal that the BOE is recommending is actually a Housemaster at Brien McMahon High School, which will have an enrollment next year of approximately 1,400 students. It is the only Assistant Principal level the BOE is recommending. Two Instructional Specialist positions were cut last year, one in Social Studies and one in Language Arts and a Director of Elementary Education was added. Dr. Corda said that the BOE believes that additional support is needed in these and other administrative areas. Dr. Corda commented that there are standards set by the State of Connecticut that need to be met by the City of Norwalk. Without meeting those standards, sanctions could be imposed. He stated that in order to meet the needs of every student many things needed to be done, i.e., curriculum has to be appropriated, professional development must take place, textbooks and materials need to be supplied as well as academic support for the students. Dr. Corda stated that the bulge in students is moving into the secondary level.

In reference to the two additional technicians the BOE is asking for, Mr. Baker asked Dr. Corda what it is exactly that a Technology Technician does. Dr. Corda explained that when the hardware comes into the district the technician sets up the computers, ensures that the operating systems are functioning properly and that the software is loaded onto the system. The technician is generally responsible for maintenance as well.

Dr. Corda stated that there is a teacher evaluation system in place.

Mr. Hilliard commended Dr. Corda for the implications of No Child Left Behind. He stated that health insurance costs continually rising and asked if the BOE had looked at the benefits they are currently receiving to find a less expensive alternative. Dr. Corda said contracts have been negotiated and they were able to accelerate employee contribution rates by one year. Present contribution rate is 5%, it goes to 6% and the last year of the contract it will go up an additional 1%. The BOE was able to increase employee contribution rates towards co-pays and towards the purchase of drugs. Dr. Corda stated that health insurance providers are specified in the contracts. He said that teacher’s health insurance would be provided by Cigna and all other groups would be provided by Anthem. Mr. Hilliard asked if the contract could be changed. Dr. Corda stated that the length of the agreement is one year. The current agreement expires in 2005. Dr. Corda said the BOE needed to look at greater contributions towards costs of health insurance as well as looking at alternatives to health plans already in place.

Mr. Baker said most people object to putting books in the Capital Budget since it is not a capital expense and there was some discussion regarding this issue. Mr. Miklave asked how much money the BOE saved the City of Norwalk by funding the textbook purchase with bonds as opposed to leasing. Mr. Hamilton said the savings would be approximately $43,000. There was further discussion regarding the amount of money being spent on textbooks, supplies and materials. Mr. Opdahl explained the State’s coding system.

Mr. Miklave commented that it is a horrendous process the Council has to go through because the Council has no idea what the budget is going to be. Mr. Miklave congratulated Dr. Corda and the BOE staff for their presentation to bring every child up to their best potential. He said that the Council would partner with the BOE and support them to the best of their ability.

1. FISCAL YEAR 2004-2005 OPERATING BUDGET – PUBLIC HEARING

** MR. KIMMEL MADE A MOTION TO RECOMMEND APPROVAL OF FISCAL YEAR 2004-2005 OPERATING BUDGET IN THE AMOUNT OF $195,496,283 WITH THE UNDERSTANDING THAT THE COMMON COUNCIL WOULD CONTINUE DISCUSSIONS WITH REGARDS TO ANALYZING THE CAP.