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05/14/2019 12:00 AMOld Saybrook’s annual budget meeting was attended by a small number of residents, with a question and comment from just one member of the audience.
The total proposed budget for Fiscal Year 2019–’20 is $46,520,189, an increase of just over two percent from the current year’s spending. This consists of a proposed general government budget of $19,999,442 (up 1.03 percent) and a proposed education budget of $26,520,747 (up 2.75 percent). If the budgets are adopted, the town anticipates a nominal mill rate increase.
The general government and education budgets will be voted on separately at a town-wide referendum on Tuesday, May 14 from noon to 8 p.m. at the Old Saybrook Senior High School gymnasium at 1111 Boston Post Rd.
The question from a resident addressed benchmarks that might give voters a sense of the town’s general government and education budgets as compared to other towns. In preparation for the 2017–’18 fiscal year, however, Old Saybrook moved to a UCOA (Uniform Chart of Accounts) financial system that, although mandated by the State of Connecticut, most towns are not yet using. First Selectman Carl P. Fortuna, Jr., explained that the two different systems make it difficult to compare compliant towns like Old Saybrook with those that aren’t yet compliant.
The same resident complimented First Selectman Carl P. Fortuna, Jr., as well as the school district, for their efforts to convey information to the public, despite there being no daily newspaper that covers the town.
In a speech he gave at the meeting, Fortuna said that the state of the town is “very strong” and that Old Saybrook has “its fiscal house in order.”
“[O]ur budget expenditures are controlled, our revenues continue to be strong, we are addressing town infrastructure projects proactively, our public debt is declining, our rainy day fund balance is the highest it has been in a generation, yearly capital accounts are being funded, and our local business community, despite Connecticut’s weak economy, is vibrant,” he said.
The proposed budget is an extension of a philosophy of fiscal prudence that resulted in a decrease in taxes for the current fiscal year for “the first time in a generation,” Fortuna said.
“For the 2019–20 fiscal year, based on the expenses and revenues as presented, this budget, if passed next Tuesday, will result in a nominal increase in the tax rate,” he stated.
Fortuna addressed four areas in which he believes his administration is demonstrating fiscal responsibility: capital accounts, future and unexpected capital needs, employee benefits, and human resources.
Capital accounts for public works and fire department equipment, state-mandated evaluations, roof repairs, and other projects are managed by directing money to “dedicating sinking funds,” Fortuna said.
“Planning for the future smooths out budget fluctuations while meeting both short and long-term operating obligations in a cost-effective manner,” he said.
A capital non-recurring account is maintained for capital needs that arise unexpectedly, such as the seawall repairs that were necessitated by Superstorm Sandy in 2012, or the repairs being made to the edifice of the Katharine Hepburn Arts Center.
As for employee benefits, the town government has “promoted market-based health insurance and pension options,” he said. As of July 1, 2017, the town phased out traditional defined benefit pension plans for most new employees while maintaining funding of the existing pension plan at more than 90 percent. The new approach to health insurance has “resulted in reasonable renewals with our carrier,” Fortuna said.
According to Fortuna, instead of hiring more people, the town government is “making better decisions when we replace employees.” The reorganization of several departments resulted in savings, and the town’s “information technology strategy enhances service to our residents while keeping costs down by bringing more Town Hall services online...and available to the community from their homes 24/7.”
The town’s strong financial position puts it in the position to “invest in quality of life improvements,” such as improved sidewalks, open space, recreational facilities and good schools, Fortuna said.
“Old Saybrook continues to plan for less state revenue this coming fiscal year, nearly a million dollars less than just five fiscal years ago. Our schools have also have braced for reductions in state funds and have taken prudent steps in anticipation of what lies ahead,” he said. “Despite this, Old Saybrook places before the voters a budget next week that is responsible and responsive to our voter needs.”
Editor's note: An earlier version of this story incorrectly stated that the proposed budget would result in a decreasing mill rate.