Federal Mandates, Bonding Leaves Challenge In Reducing Budget

Earlier this year the Board of Finance challenged each department to present a budget proposal that was not only realistic, but maintained operations with a 2 percent increase or less. Now the board will be challenged themselves with hard costs for committed projects and mandates leading to a 6.25 percent increase in general spending.

On Tuesday night, the board will begin to dissect Southington Town Manager Garrison C. Brumback’s proposal, but members said they are pleased with what he presented and will need to be creative in looking for cost savings this budget cycle.

“It was a little shocking to see a 3.66 percent increase in the proposed mill rate, but it’s certainly not because of any person or department,” said Chairman John Leary. “There are a lot of projects hitting us at once now and there are a lot of mandates at the state and federal level we are going to have to work around.”

Entering Tuesday’s budget workshop, the board will be asked to deal with a budget that includes just a 3.21 percent increase in operating costs, but increases of 35.66 percent in general government debt services and an additional 10.41 percent in debt services for local schools.

Brumback said in a detailed letter to the board that items including a $1.06 million increase in costs association the Clean Water Fund Loan, a loan used to build a denitrification plant as a result of a federal mandate, and a $521,000 increase in the bond payments increased the budget significantly. A $355,000 increase the in Municipal Employee Retirement System contribution also impacted the budget, the letter said.

Brumback could not be reached for further comment Monday evening.

But for Leary and board member John Moise, it was the impact of state changes and federal mandates that left them frustrated.

Both said the affects of denitrification and further requirements including a federal mandate that will require the town to replace all street signs with reflective ones written only in capital letters are having negative impacts on local taxes.

Under the sign requirements, the town will have to replace all street signs with reflective ones that are written in all capital letters. The cost is estimated to be $750,000, including a $125,000 cost that was included in this year’s budget.

“It’s an unfunded mandate, and it’s something that just isn’t necessary – especially in this tough economy,” Moise said. “With GPS systems and the existing signs, there is no need for this and it’s an unnecessary cost.”

Another added cost in the 2011-12 fiscal budget is the creation of a new department, entitled the information technology department, to improve technological functions throughout the community. With the town so far behind in technology, however, this was an initiative that included a $240,000 increase but was supported by both Moise and Leary.

The proposal would take Assistant Finance Director Richard E. Lopatosky and move him to Technology Director, while replacing him within the finance department. To save salary costs, the department would eliminate an accountant position.

Brumback’s creative proposal wasn’t without a start of cuts either, however. The fire department requested three additional firefighters and a promotion but Brumback cut the new staff request before submitting his proposal. Moise praised this effort and said there may also be costs to cut in other places within the fire budget now that those positions have been eliminated.

Despite all the outside costs, there are no cuts to existing staffing in the proposal and both Leary and Moise said they hope to keep it that way.

Moving forward, Leary said the board will be challenged to do three things; eliminate any waste, make prudent investments and where necessary, find funding to handle problems until they are fixed. Moise said that involves getting the mill rate as low as possible to prevent increases in taxes.

“We have a tough job ahead of us, but we said before that we need to strive to get the mill rate as close to a zero increase as possible,” Moise said. “I for one believe it can be done and as a Board of Finance member, I will work with the town departments to make that a reality.”