Posted by Bob on September 25, 2009 under Daily Blogs | 
Our office has been asked whether the Borough has extra funds in reserve to cover the educational budget shortfall. Some have stated that the Borough maintains a significant fund well in excess of the amount necessary to prevent cuts to education during this fiscal year. This is not quite true.
All Connecticut municipalities maintain what is commonly referred to as a “rainy day fund”, which is more technically described as the fund balance. Financial advisers recommend that a municipality maintain approximately ten (10%) percent of its overall budget in a special fund balance in case of an emergency. Naugatuck maintains approximately seven and one half (7 1/2) to eight (8) million dollars as undesignated fund balance. This represents about seven and one (7 1/2%) percent of the Borough’s current budget.
A municipality’s fund balance effects its overall financial health. Failure to properly fund this account can reduce Naugatuck’s bond rating, which would increase debt service payments on existing and future obligations incurred by the Borough. Naugatuck’s bond rating can simplistically be compared to an individual’s credit score.
In the early 1990’s, Naugatuck had a negative fund balance. Former and current Controller Wayne McAllister traveled to Wall Street to consult with bond rating agencies to develop a plan to create a stable fund balance for Naugatuck. Within three (3) years, Naugatuck had a positive fund balance, and the Finance Board has worked in the years since to increase the fund balance to recommended levels and protect its use as operating revenue.
This has not always been easy. Funds are appropriated at budget time to fund balance or are accrued from surpluses available at the end of a fiscal year. It is always tempting for members of the Joints Boards of Finance and Mayor and Burgesses (”Joint Boards”) to use the fund balance as operating revenue and thereby reduce the level of taxation required to balance the budget. Although funds have been transferred from fund balance to revenue over the years, doing so has consequences and is almost always done through the regular budget process.
In addition to jeopardizing our bond rating, using dollars from fund balance represents a one-time revenue stream that will not be available in future years. If such monies are used to fund on-going expenses, a municipality will not have the resources to pay for the costs in future years.
Using dollars from fund balance in the middle of a fiscal year would send strong signals of instability to bond rating agencies. The Borough maintains an A+ bond rating, but has already been summoned to Wall Street to explain the reasons for the 2008-2009 educational budget deficit. A reduction to Naugatuck’s bond rating will increase the costs of debt service already incurred on capital projects and the portion of our pension obligations that was bonded in 2003.
In addition to general appropriations to the educational budget, the Joint Boards already allocates over FIVE MILLION and 00/100THS ($5,000,000.00) DOLLARS in bond and pension payments applicable to educational expenditures. Such costs are included as part of the approximately FORTY SEVEN MILLION and 00/100THS ($47,000,000.00) DOLLAR municipal budget.
While what constitutes an emergency can be debated, the financial world does not view it appropriate to cover operating budget deficits that can be addressed in other ways from a fund balance. Long-standing members of the Finance Board have instituted a culture of sound fiscal management to the Borough budget after years of questionable practices. As tempting as it might be to plug holes in particular budgets from the Borough’s fund balance, this is a bad business practice, puts the financial health of Naugatuck in jeopardy, and is not a solution to financial problems.
Posted by Bob on September 23, 2009 under Daily Blogs |
Last night’s Board of Education meeting brought close to fifty teachers, paraprofessionals, administrators and parents to the Tuttle Building to listen to plans to address the 2009-2010 budget shortfall. After determining that certain staffing line items should be reduced due to pending grant reimbursements, options were discussed to address the 2009-2010 budget shortfall in excess of ONE MILLION and 00/100THS ($1,000,000.00) DOLLARS. Some of the following attached documents contain hand-written notes as the same were scanned. Please see the current 2009-2010 budget situation here. Some of the figures have changed due to grant funding, but the overall shortfall is relatively the same due to increased costs in other areas.
Many of the potential solutions involve possible concessions from the different bargaining units representing educational employees. I believe such discussions should have already begun. As frustrated as many of us are with regard to this situation, we need to remember that teachers, paraprofessionals, custodians, cafeteria workers, secretaries and administrators are not the cause of the failure to account for education dollars from the previous fiscal year or the failure to adopt a current, balanced budget three (3) months into this fiscal year. Any attempt to place the blame on the employees of the Board of Education is shortsighted and not a way to begin negotiating concessions.
Much has been made of the raises contained in the recent teacher’s contract. The teachers did nothing other than negotiate a new collective bargaining agreement with the Board of Education, one which was approved by both sides. After agreement was reached with regard to the new contract but before ratification by the Borough Board, the stock market collapsed and the global economic climate changed dramatically. While the contract contained significant concessions by the union, most sources indicate a willingness on a part of the Naugatuck Teacher’s League (”NTL”) to discuss ways to lessen the burden on taxpayers. Rather than beginning that dialogue, the following months resulted in two (2) futile arbitration hearings, lots of rhetoric and unnecessary attorney’s fees and arbitration costs. Despite this sequence of events, NTL remains willing to discuss ways to help.
The itemization of potential cuts presented last night was described by the Superintendent as not a proposal, but a starting point for discussion. While I applaud Tuttle administration for exploring different options, it would have been a better idea to begin discussion with the bargaining units before “discussing” specific cuts. Many perceive the “discussion” of cuts as an attempt to intimidate the NTL. One principal I articulated during the mayoral campaign was that contract negotiations should not be done through the press. Once such proposals are presented at public meetings, this concept is destroyed.
Other administrative proposals presented were a furlough program and an early retirement proposal. Such proposals will also require negotiations. Board of Education and municipal figures differ slightly.
I have compiled a summary of potential savings with assistance from the Borough business office. The document lists all options that have been identified with potential costs and offsets included to the best of our ability. Certainly other options could be identified as discussions continue and should be considered. Although I have a conflict of interest due to my wife’s employment and will not take part in any decisions regarding principals, I maintain my long-standing position that we should analyze the need for all administrative positions before removing teachers or paraprofessionals from the classroom. A summary of district-wide furlough savings and a sample layoff cost is included.
No decision that will be made will be without pain or cost. We must remember, however, that we are ultimately dealing with people’s lives. Taxpayers, many experiencing their own individual economic struggles, will feel an impact in one way or another; in this fiscal year or in future years. Teachers, paraprofessionals, custodians, cafeteria workers, secretaries and administrators; many of whom have planned their lives in accordance with their employment; are exposed to loss of job and income. Most importantly students, our children, face the prospect of losing educational services that our vital to their success. Any decision we make should be creative, well-thought and have the least impact on those who have done nothing to deserve being put in jeapordy.
Posted by Bob on September 18, 2009 under Daily Blogs |
Congratulations to the Naugatuck High School Greyhounds football team which upset Seymour 27-13 at DeBarber Field. The Wildcats were ranked fifth (5th) in the state in the New Haven Register’s preseason poll. While preseason rankings are sometimes based more on reputation than merit, Naugy’s win is a significant victory over a quality program.
Trailing 13-12 late in the third (3rd) quarter, Quarterback Erich Broadrick engineered a lengthy and time consuming drive for the go-ahead score behind a punishing line and pounding running of Dashawn Wingate and Marty DeJesus.
Receiver Tyler Conklin was also a key factor connecting with Broadrick for the first (1st) score of the game. Lineman Dan Mariano and Aaron Echevarria were dominating on both sides of the ball.
Coach Rob Plasky and his staff did an excellent job preparing the Hounds and executing a fantastic game plan. While one (1) win does not make a season, Naugy made a statement that they are ready to contend after a difficult 2008 season. As evident by the enthusiastic Naugatuck crowd traveling last night to Seymour, the Borough’s proud, football tradition is alive and well.
For more local football, check-out Steve Fainer’s NVL football blog at http://nvlfootball.blogspot.com.
Posted by Bob on September 16, 2009 under Daily Blogs |
Much attention has been duly devoted to the 2008 – 2009 Board of Education budget deficit. The Joint Boards of Finance and Mayor and Burgesses recently authorized the transfer of ONE MILLION TWENTY TWO THOUSAND EIGHT HUNDRED FORTY EIGHT and 49/100THS ($1,022,848.49) DOLLARS from contingency to cover the shortfall. Said funds were obtained from surpluses in existing municipal accounts. Funds appropriated to contingency from 2008-2009 departmental surpluses can be viewed here. Funds appropriated from contingency to cover deficits in 2008-2009 budget accounts can be viewed here.
Comments from members of the Joint Boards and the Board of Education have been heated in recent weeks. I have been vocal in expressing my disappointment over the deficit. The reality is that almost no one wants to divert attention from our common goal of a better education for our children. Budget deficits detract from this endeavor, divide people and reduce the public trust in their government. While we must learn from the lessons of the 2008-2009 budget, it is now time to move forward and ensure that we address the pressing issues that confront the 2009-2010 budget.
The 2009-2010 budget adopted Tuesday evening contains approximately ONE MILLION THREE HUNDRED THOUSAND and 00/100THS ($1,300,000.00) DOLLARS worth of cuts to personnel that need to be made in the next couple weeks. The decisions that will follow to account for this shortfall will be painful no matter what form they ultimately take. We need to consider all options and be creative to ensure that whatever actions are taken have the least impact on students and staff.
Posted by Bob on September 14, 2009 under Daily Blogs |
The recent article in the Waterbury Republican-American regarding the struggling business climate along Rubber Avenue resulted in strong comments from some of the existing business owners. Our office received a couple calls wondering why the mayor’s office would allow any negative statements to be made about Rubber Avenue.
The simple answer is that our office does not control what is said or written by the media about any topic. Our office was contacted by the Republican-American with regard to why businesses, some with national affiliation, have struggled during recent years. Having been involved with numerous economic development projects and organizations for over twelve (12) years, I answered the questions frankly and honestly. My comments have been consistent with public statements I have made for many years, including during this year’s mayoral campaign.
I couple business owners have reacted to our office for doing so, which certainly is their right. If a newspaper article and some comments from a mayor are what it takes to spark discussion about ways to address long-standing concerns associated with the Rubber Avenue corridor, we welcome such a reaction. One business owner informed me that the article may have started a “revolution” led by Rubber Avenue business owners. My response is that it is about time.
This is not the first time a commercial corridor in the Naugatuck Valley has experienced difficult times. My first job after graduating law school was with the Greater Waterbury Chamber of Commerce, Inc. As Director of Government and Economic Affairs, one on my responsibilities was to address the concern of member businesses along the Wolcott Street and Lakewood Road commercial corridor in light of the closure of the Naugatuck Valley Mall. Business owners were concerned about the numerous closings occurring in the area and what the future of the area would be. After organizing key leaders at the old Scoreboard Restaurant, it was decided after much debate that working together was necessary to revitalize the area. Current State Senator and President of KarTele Communications Rob Kane was elected the first chairperson of the Wolcott Street/Lakewood Road Business Association, which became a standing committee of the Greater Waterbury Chamber. Three (3) paid staff persons from the Chamber including myself were appointed to assist in scheduling meetings, organization events and developing common marketing campaigns. The “Magical Retail Mile” name was developed and signs were constructed at the gateways of the area. Outreach was made to non-Chamber members to become involved.
While Wolcott Street and Lakewood Road received a significant boost in retail activity after the redevelopment of the old mall property, businesses that became involved in the association were prepared for success as a result of the groundwork built during the time of transition. Businesses and property owners along Rubber Avenue face different, more complex problems. Route 69 (Wolcott Street in Waterbury) is a major state road leading to two (2) major cities. Population densities increase the further south one travels into Waterbury. Rubber Avenue is a regional road at most, and more likely a local one. Population densities decrease the further west one travels away from the highway. The lack of long-term planning and auxiliary roads between and/or behind properties restrict traffic flow during certain times of day. None of these obstacles make success impossible or even unlikely, but we would be imprudent to not to consider their consequences.
At one time in Naugatuck’s history, everyone shopped in Downtown. As the rubber factory declined and eventually closed, Rubber Avenue replaced Church Street as the main shopping destination for most Naugatuck residents. The dominance of Rubber Avenue was short-lived, however, as national retail giants began exercising significant buying power to compete against local and regional stores. Consumers became accustomed to traveling longer distances to other towns in search of savings. While certain businesses such as grocery stores can survive due to different business models, local shops struggle unless there is critical mass of successful businesses attracting customers in large numbers.
Many other business districts and corridors have similar yet very unique stories. The initial steps to enact change are recognizing the situation, gathering information and organizing together for common good. Our administration is more than willing to assist in this process. We extend an invitation to host a meeting of Rubber Avenue merchants and property owners at town hall or attend such a meeting at one of the businesses located in the area.
Posted by Bob on September 4, 2009 under Daily Blogs |
The Naugatuck Sports and Support Group (NSSG) met on Wednesday, September 2, 2009, to review a ranking of potential sites for active recreational fields. All potential sites were selected and reviewed by the Borough’s Engineering Department led by newly-appointed Director of Public Works Jim Stewart. Please view the field ranking chart here.
Sites were divided into those currently owned by the Borough, private sites and those which are likely to come under Borough control upon completion of residential subdivisions in progress. Each location received a straight numerical ranking based on the points given, and an additional rank given for logistical reasons by the engineering department.
NSSG members agreed that the most feasible sites for field construction should be examined in greater detail for the October meeting. Cost estimates, estimated times for completion and various options will be further analyzed by the engineering department. The sites include:
- Fawn Meadow – potential for one (1) field;
- Apple Estates – potential for two (2) fields;
- Cross Street – potential reconstruction of existing fields to a full-size field expansion; and
- Country Hollow Estates – potential for practice field.
In addition, NSSG members requested an inquiry as to whether or not any reconfiguration could be made to the field at City Hill Middle School.
Very few of the privately owned sites represent realistic options, mainly due to topography and potential commercial value. The highest ranking site is currently owned by Chemtura along the Naugatuck River near the current Breen/Rotary sports complex. Much more investigation is needed with regard to this sites potential.
A study of space needs and current field usage drafted by Borough Planner Keith Rosenfeld can be viewed here.
More specific plans should emanate from next month’s meeting.
Posted by Bob on under Daily Blogs |
The Board of Mayor and Burgesses voted 7-3 to authorize the Park Commission to develop a plan for a passive park at the Gunntown Property. While the vote fell short of placing a conservation easement on the property, the Park Commission plan will create a deed restriction against the property preventing anything but passive recreation at Gunntown in the future.
The vote represents an end to a fourteen-plus (14+) year debate over whether or not use the property for active field space, passive recreation or some other public use. As neighboring communities installed numerous natural and synthetic grass complexes, Naugatuck focused its attention disproportionately on an environmentally-sensitive property that could have hosted one field with little hope for proper maintenance. Thankfully this debate has ended and we can move forward to comprehensively address our need for quality field space while providing Naugatuck with its first passive park.
This issue has divided our community for over a decade. While our opinions may have differed as to what to do with Gunntown, those on all sides of the issue were well-intentioned. The reality is protecting passive open space and improving and increasing active field space are not mutually exclusive. We now need to concentrate our efforts to find the most pragmatic and economical locations for better fields.
Posted by Bob on September 2, 2009 under Daily Blogs |
For many years local officials have discussed the reorganization of several Borough departments into a true public works model. Last night the Board of Mayor and Burgesses took action to begin this long overdue process. The Board voted 8-2 to authorize our administration to amend current Borough Engineer James Stewart’s existing contract to appoint Mr. Stewart as Director of Public Works. This is the first step in what will be additional steps to make Naugatuck’s public works system work more efficiently.
The addendum includes no pay raise for Mr. Stewart, who has been assisting with day-to-day operations at the Street Department since the recent retirement of the superintendent. Further discussions will be on-going with regard to additional changes. Our administration would also like to thank the hard-working employees at Public Works for their continued professionalism and willingness to assist during this transition.
Change often takes patience and persistence, but the time has never been better to begin implementation of public works reform. Naugatuck taxpayers deserve a government that works better for less.
Posted by Bob on September 1, 2009 under Daily Blogs |
The Borough Board meeting will begin at 6:00 PM tonight, Tuesday, September 1, 2009, at City Hill Middle School. An executive session will be commenced immediately thereafter, reconvening to public session at approximately 7:00 PM.
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