Board of Finance - Minutes - 03/02/2020

Board of Finance Monday, March 2, 2020
Special Meeting Minutes
Budget Hearing
Present:
Absent:
Elected:
RTM:
Staff:
Chairman Ronald R. Fedor, Mark Geer, John Sheehan, Kevin Petchark,
Kevin Reardon. Glenn Patterson.
Tali Maidelis
Robert J. Brule, First Selectman : : dy
Thomas Dembek, RTM Moderator; Rich Muckle, Majority Leader} Susan Driscoll, s
Minority Leader. ‘y mS ae
Donald Gray, Interim Finance Director, Chief Brett Mahoney, Mariena
Montgomery, Lt. Marc Balestracci, Officer Nicole VanOverloop, Abbas Danesh,
Treasurer, Maryellen McConnell, Secretary.
Establishment of a quorum and call to order:
A quorum was established and a call to order was established at 7:00 pm,
March 2, 2020.
Public comment: no public comment
Kevin Reardon offered opening remarks, please see attached.
Standing Motion: was made by Glenn Patterson and seconded by Kevin
Petchark to tentatively approve the below budget requests for FY20/21.
Vote: 6-0 Motion: Passed
Police Department Budget:
Motion by Glenn Patterson and seconded by Kevin Petchark to approve the
Police Department budget request for FY20/21 in the total amount of
$6,450,741.
Vote: 5-1 (No-Kevin Reardon) Motion: Passed
Emergency Management Budget:
Motion by Glenn Patterson and seconded by Kevin Petchark to approve the
Emergency Management budget request for FY20/21 in the total amount of
$1,087,258,
Vote: 6-0 Motion: Passed

Board of Finance Budget Minutes — March 2, 2020
Page 2
a CE Za .
Information Technology Budget:
Motion by Glenn Patterson and seconded by Kevin Petchark to approve the
Information Technology budget request for FY20/21 in the total amount of
$824,968.
Vote: 5-1 (No-Kevin Reardon) Motion: Passed
First Selectman Robert Brule took a moment to thank Chief Brett Mahoney for
taking on the responsibility to bring the IT budget and the other budgets to the
board and to acknowledge his hard work.
Contingency Budget:
Motion by Glenn Patterson and seconded by Kevin Petchark to approve the
Information Technology budget request for FY20/21 in the total amount of
$265,000.
Vote: 5-1 (No-Kevin Reardon) Motion: Passed
Adjournment:
Motion by Bill Sheehan and seconded by Glenn Patterson to adjourn the Budget
Meeting of the Board of Finance at 8:39 p.m.
Vote: 6-0 Motion: Passed
Respectfully submitted,
Mark Geer, It, Clerk
cConnell, Secretary
Maryellen

WATERFORD 2020/2021
NOTES
OPENING REMARKS
KEVIN REARDON
- OF THE TOP TEN TAXPAYERS:
© 3 ARE DOMINION AT A TOTAL CURRENT ASSESSMENT OF $1,095,966,840 OR 33% OF
OUR GRAND LIST
© 4 ARE RETAIL ADDING ANOTHER $97,661,394 OR another 2.95 % OF OUR GRAND LIST
(CRYSTAL MALL ALONE IS $42,255,410 OR 1.28%) ,
THE TOTAL OF DOMINION AND RETIAL IS $1,193,628,234 OR APRX 36%.
IN TEN YEARS THE NRC LICENSE EXTENSION RUNS OUT AT MILLSTONE AND THEY WILL BEGIN
DECOMMISSIONING. iT IS UNLIKELY THAT WE WILL IMMEDIATELY LOSE ALL OF THE ASSESSMENT AT
MILLSTONE BUT | BELIEVE THAT IT IS NOT UNREALISTIC TO EXPECT THAT WE WILL LOSE AS MUCH AS
80% WHICH WILL REMOVE $877,000,000 FROM CURRENT GL OR 27%. ADD IN ANOTHER PERCENTAGE
POINT OR TWO FOR THE LOST OF RETAIL DUE TO THE EFFECTS OF ON-LINE SHOPPING AND YOU ARE AT
30%. | ACTUALLY EXPECT OUR REVENUE FROM RETAIL OPERATIONS WILL GO DOWN MUCH FASTER
AND SOONER THAN TEN YEARS FROM NOW AS MALLS AND RETAIL STORES CLOSE.
ASSUMING NO CHANGE IN THE OTHER GRAND LIST EVALUATIONS (WHICH WILL INEVITABLY CHANGE IF
AND WHEN REMAINING RETAIL STARTS APPEALING ASSESSMENTS), AND ASSUMING ABSOLUTELY NO
CHANGE IN SPENDING EITHER UP OR DOWN, VERY SIMPLY STATED THE TOWN WILL NEED TO RAISE
TAXES BY NO LESS THAN 30% JUST TO STAY EVEN. AND THAT’S ASSUMING ALL CURRENT BURGETS ARE
IMMEDIATELY FROZEN AT ZERO CHANGE.
IF WATERFORD KEEPS SPENDING AT THE CURRENT RATE, EVERY TAX PAYER WILL SEE AT LEAST A 30%
INCREASE IN THEIR TAX BILL. IT 1S UNLIKELY THAT THIS COULD OR WOULD BE TOLERATED BY OUR
RESIDENTS. WITH A 30% INCREASE IN TAXES OUR RESIDENTS WILL BE PAYING TAXES COMPARABLY TO
NEW LONDON. THIS WILL HAVE A DISTINCT IMPACT ON EVERY WATERFORD HOMEPOWNER’S REAL
ESTATE MARKET VALUE WHICH, IN TURN, WILL NEGATIVELY IMPACT THEIR TAX ASSESSMENT (WHICH
AS WE KNOW IS BASED ON MARKET VALUE) WHICH, IN TURN, WILL FURTHER NEGATIVELY IMPACT OUR
GRAND LIST AND TAX REVENUE WHICH WILL CAUSE A FURTHER INCREASE IN THE MILL RATE. SERVICES
WILL HAVE TO BE CUT; POLICE OFFICERS LAID OFF; POTENTIALLY SCHOOLS CLOSED AND TEACHERS
FIRED; MUNICIPAL SERVICES SIGNIFICANTLY REDUCED OR ELIMMINATED. THIS WILL THEN EVEN
FURTHER NEGATIVELY IMPACT THE MARKET VALUE OF OUR RESIDENT'S HOMES AS POTENTIAL BUYERS
WILL LOOK TO OTHER TOWNS TO RESIDE IN. LACKING BUYERS FOR NEW PURCHASES WILL INEVITABLY
LEAD TO A FURTHER REDUCITON IN MARKET VALUES WILL THEN SUBSEQUENTLY REDUCE THE GRAND
LIST, AND THEN TAX REVENUE. AND SO ON, AND SO ON. THE MILL RATE MUST AND WILL GO UP.
THE ONLY ALTERNATIVE IS TO CONTROL TOWN SPENDING NOW — NOT IN FIVE OR TEN YEARS. WE
MUST REIGN IN OUR OPERATIONAL COSTS. WE MUST REDUCE OUR COSTS. THIS SHOULD BE DONE
CONSISTENTLY EACH AND EVERY YEAR MOVING FORWARD.

EVEN WITH A REDUCTION IN OUR SPENDING OVER THE NEXT TEN YEARS THERE WILL STILL BE AN
IMPACT WHEN WE LOSE THE REVENUE FROM DOMINION BUT, HOPEFULLY, AT THAT POINT WE WILL
HAVE STREAMLINED OUR OPERATIONS AND THE INEVITABLE INCREASE IN TAXES WILL BE OFFSET BY A
MORE EFFICIENT AND LEANER TOWN OPERATIONS.
THE QUESTION IS IF YOU KNEW THAT TEN YEARS FROM NOW YOU WERE GOING TO LOSE 30% OF YOUR
INCOME WOULD YOU TAKE STEPS NOW TO PREPARE FOR IT OR WOULD YOU PUT BLINDERS ON, MAKE
BELIEVE THAT IT IS NOT COMING, AND HOPE FOR THE BEST.
1AM PERSONJALLY PUZZLED WHEN | COMPARE OUR TOWN BUDGET TO OUR NEIGHBOR EAST LYME.
AND | WILL PREFACE THAT | GATHERED MUCH OF THIS INFORMAITON FROM THE ANNUAL REPORTS BY
THE CONNECTICUT RESOURCE CENTER.
EAST LYME IS SLIGHTLY LARGER IN AREA THAN WATERFORD: WATERFORD IS 33 SQUARE MILES,
WHEREAS EAST LYME IS 34 SQUARE MILES.
EAST LYME’S AND WATERFORD’S YEAR-ROUND POPULTION IS ALMOST EXACTLY THE SAME AT
APPROXIMATELY 19,000. THAT SAID, EAST LYME’S POPULATION SPIKES IN THE SUMMER.
EAST LYME’S HOUSEHOLD INCOME IS SLIGHTLY HIGHER THAN WATERFORD BUT BY LESS THAN $4000
PER HOUSEHOLD.
BOTH EAST LYME AND WATERFORD HAVE ALMOST EXACTLY THE SAME STUDENT POPULATION AND THE
SAME NUMBER OF SCHOOLS. ALMOST EXACTLY THE SAME NUMBER OF HOUSING UNITS.
BUT, EAST LYME’S GRAND LIST IS OVER $1 BILLION DOLLARS LESS THAN WATERFORD; 33% LESS.
(COINCIDENTALLY, THAT IS ALMOST EXACTLY THE ASSESSMENT OF DOMINION). YET THEIR MILL RATE IS
ONLY LESS THAN 1 MILL HIGHER THAN WATERFORD.
EAST LYME’S PER CAPITA TAXES ARE $2,875.00 WHEREAS WATERFORD’S IS $4,505.00
- EAST LYME’S GENERAL GOVERNMENT BUDGET IS JUST UNDER $15,000,000 LESS THAN
WATERFORD’S. — 44% LESS,
- EAST LYME’S CAPITAL & DEBT BUDGET (IN 2019/2020) IS APPROXIMATELY $5,400,000 LESS
THAN WATERFORD ~— 45% LESS. . . - .
- OF THE GENERAL GOVERNMENT BUDGET, EAST LYME’S POLICE BUDGET IS $3.6 MILLION
DOLLARS LESS THAN WATERFORD’S — 58% LESS.
- IN TOTAL EAST LYME IS SPENDING IN THEIR 2019/2020 BUDGET $21 MILLION LESS THAN
WATERFORD OR 22% LESS.
THE ONLY BUDGET WHERE EAST LYME OUTSPENDS WATERFORD IS EDUCATION BUT ONLY SLIGHTLY AT
2.4% MORE; JUST $1 MILLION.

SO, HOW COULD THIS BE? THE ANSWER IS OBVIOUS. IT IS SIMPLY BECAUSE EAST LYME SPENDS LESS
MONEY THAN WATERFORD BECAUSE THEY HAVE LESS TO SPEND. WHEREAS WATERFORD HAS IT SO WE
SPEND IT,
| DOUBT | WILL BE ON THE BOARD OF FINACE TEN YEARS FROM NOW IF 1 AM EVEN AROUND THEN. BUT
| AM VERY WORRIED ABOUT THE GENERATIONS TO FOLLOW AND WHAT WILL BECOME OF OUR TOWN
WHEN THE ‘DOMINION WELL’ RUNS DRY, THE MILL RATE DOUBLES, RESALE VALUES OF HOMES PLUMET
AND PUBLIC SERVICES ARE CUT.
TO PROTECT OUR TAX PAYERS AND THE TOWN I INTEND TO CRITICALLY ANALYIZE EACH AND EVERY
BUDGET AS BEST! CAN. MY MISSION WILL BE TO VOTE AGAINST BUDGET INCREASE REGARDLESS OF
CAUSE. THIS INCLUDES CONTRACTURAL OBLIGATIONS. BETTER TO CUT STAFF BY ONE OR TWO PEOPLE
NOW THEN TWENTY TEN YEARS FROM NOW. THERE MAY BE SOME EXCEPTIONS TO MY POSITION BUT
PROBABLY FEW.
{ CAN CLEARLY SEE THE TRAIN COMING AND | WANT TO BE PART OF PREPARATIONS, NOT THE
REACTION.
THANK YOU.