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04/08/2020 08:43 AMResponding to Governor Ned Lamont’s recent executive order suspending requirements for municipalities to hold referendum votes on budget, the Board of Selectmen (BOS) authorized the Board of Finance (BOF) to proceed with the budgeting process without the possibility of a referendum.
The executive order states that the BOS of any town meeting municipality in the state “shall authorize the budget-making authority within said municipality to adopt a budget...and set a mill rate,” while still maintaining public input requirements and taking “all reasonable steps” to publicize the budget and accept public comments, with the goal of allowing municipalities to proceed with their budget processes without unduly endangering people’s health.
Though the BOS does not at this point have any power to alter the budget or schedule, as the BOF had already voted to approve it before the coronavirus shutdown, it recommended the timeframe for public comment and potential revisions by the BOF be extended two weeks, with a final BOF vote on Tuesday, May 5.
There was some ambiguity as far as whether the BOS or BOF had the power to extend the timeline, with Town Attorney Pamela Millman recommending that the BOS call its vote a recommendation, which would then become mandatory pending further legal review.
First Selectman Matt Hoey told the Courier that following the meeting, legal counsel confirmed that the BOS had the power to set the budget timeline. He said they would plan on changing the recommendation to a mandatory order at their next meeting.
The recommendation is that the BOF spend the month of April continuing to review and accept public comments, holding as many public input sessions as necessary, before taking their final vote on May 5.
Originally, the intent had been to hold the final budget vote on Monday, April 20, with all public comments due before that date, and one special virtual meeting of the BOF on Monday, April 13 specifically for those comments to be read and addressed publicly.
Additionally, Hoey said that if it became necessary for whatever reason, the final budget vote could be pushed back further, with Thursday, May 21 being the latest allowed by the executive order.
Members of the BOS emphasized that the extension would allow the town to evaluate everything that has changed since the onset of the coronavirus pandemic, and hear from anyone who had not already had a chance to speak on the budget process, which mostly wrapped up before the pandemic shutdown.
“I believe it would be prudent to take into account the potential for the additional 30 days to allow the public more time to comment on the budget and to allow the BOF to be in a better position to evaluate whether this budget is right for this coming fiscal year,” Selectman Susan Renner said at the meeting.
“Each taxpayer’s situation has substantially changed [from] what it was three, four, five weeks ago,” said Selectman Charles Havrda. “I think their input is going to be valuable.”
Hoey said that any further extension of the date would be based on how much input there was from the public, and what that input was.
BOF Chair Michael Ayles told the Courier that as of right now, he did not think there would be a need for substantial changes to the budget that was approved at the beginning of March.
The budget as it currently stands is approximately $31.6 million for the town and $61.8 million for the schools—a 3.40 and 1.94 percent increase over last year, respectively.
“I’ve shared this with Matt [Hoey],” Ayles said. “Obviously I see that there might be changes as we go through next year, after the budget is approved. But the only thing I could see happening is expenses either increase or revenues dropping.”
Ayles said the town would confront these things as they came up, with the confidence that they are in “good shape” financially, with a healthy unassigned fund balance.
“I wouldn’t want to jump to conclusions and start making any changes to what [has been] vetted out and approved,” he said.
One scenario would see the BOF recommending expense cuts to the BOS and the Board of Education if there were larger or long-term impacts, Ayles said, but he emphasized that for smaller things, the town’s $10 million unassigned fund balance could likely serve in the short term.
A loss of revenue from building permits or interest income—things Ayles admitted are very possible—would not cause any huge issues in the short-term, he said. The town is also assured a 75 percent reimbursement from the federal government through FEMA for any pandemic related emergency expenses, Ayles said.
“That’s a big help as well,” he said. “It’s literally weathering the storm, as if it were a prolonged storm.”
But Ayles was also careful to point out that things have changed rapidly, and no one really knows what to expect as the pandemic continues.
One positive in Guilford, Ayles said, was the fact that the town had already held several public workshop and input sessions before the shutdown.
He pointed out that there was very little engagement from the public during those, though everyone was on board with having more virtual opportunities for people to speak up, considering there is no longer going to be a vote.
“If we get lots of correspondence and comments and concerns from the public about the budget, we’re going to take that under consideration,” Ayles said. “It’s very fluid. In two weeks there might be a complete change.”
Taking comments by email could be a positive in some ways, and Ayles said it was certainly possible people would speak up now that they were being encouraged to do so via the Internet. He said he had personally already heard from at least one person worried about the impact of the pandemic on the town.
Ayles said the plan would be to read and respond to every single question or concern submitted to the BOF, though he said if that number became overwhelming they might have to condense or consolidate.
Anyone wanted to send comments or questions on the budget can email townbudget2021@ci.guilford.ct.us.
The town and school budgets can be viewed on the town’s website at www.ci.guilford.ct.us/proposed-budget-information.