NEWTOWN - The Board of Finance, meeting Thursday, July 23, discussed the financial impact of the teachers' contract negotiations and the close of the fiscal year.Members also heard a proposal for new legislation to help promote open space in Newtown while reducing the expense of purchasing land.Board Chairman John Kortze presented an update on teachers' contract negotiations and efforts to facilitate participation by the Board of Finance.
The Board of Education has agreed to allow only Board of Finance member Michael Portnoy to attend the scheduled negotiation meetings.
Mr. Portnoy would act as an observer and non-voting participant. He cannot attend most of the meetings due to scheduling conflicts.
He and Mr. Kortze would like the Board of Education to permit an alternate to attend the meetings when Mr. Portnoy cannot.
Mr. Portnoy said the Board of Finance and the Legislative Council both handle Newtown's finances. It is difficult for one person to adequately represent Newtown's financial interests and facilitate communications with the Board of Education.
According to Mr. Kortze, Board of Education Chair Elaine R. McClure originally told him she would decide whether or not to add an alternate. More recently he said, Ms. McClure said the entire board would need to meet publicly in order for that decision to be legal.
Mr. Kortze wanted the record to show there's been no public meeting scheduled by the Board of Education to discuss the addition of an alternate.
He said the time-frame for negotiations is such that the window for permitting input by the entire Board of Education is closing and he does not want a subset of that board making important decisions without that input.
"This is a horrific example [of working with boards and each other], in my opinion," said Mr. Kortze.
He said he is concerned the Board of Finance will not be represented in negotiations for the single largest contract impacting Newtown's finances.
The Board of Finance then reviewed information available after the close of the fiscal year.
At the end of the last fiscal year, the town expected a deficit of $2.6 million. Although the town will not finish the books until the end of August, the actual deficit will probably be closer to $500,000, board members learned.
Members of the board noted that many town departments did a very good job of holding expenses.
Finance Director Bob Tait said that the tax collection rate is at 99 percent but the town will be short more than $550,000 due to deductions in the grand list because of revaluation.
Mr. Tait said there is a list of properties, valued at $8 million in assessments, for which the town cannot identify an owner.
Mr. Tait's department has tried to identify the owners but the work is complex and time consuming. He said specialists might need to be hired to do the job.
George Ferguson, vice chairman of the Conservation Commission, told finance board members that there is a piece of legislation at the state level that the Conservation Commission is looking to adopt at the town level that would allow the town to purchase the development rights on property for the consideration of abatement on property taxes.
For example, for a property worth $5 million, the town could offer the owner $1 million in tax abatements on that or any other property the owner has in Newtown.
The legislation would give the Legislative Council and Board of Selectmen another tool to use when looking at the future use of property in town.
The Conservation Commission wants input from the Board of Finance before finalizing the local ordinance with the town attorney and presenting it to the Board of Selectmen.
Mr. Ferguson presented a flow chart that illustrates the town's process if an applicant is interested in taking advantage of the ordinance.
Board member Joe Kearney asked what would happen if too many people wanted to use this legislation and how the town would decide between offers.
Mr. Ferguson noted his concerns. He gave an example of two comparable offers where the town would give preference to land where the owner offers public access for passive recreation.
In answer to board member James Gaston's question about the purpose of the legislation, Mr. Ferguson said it was primarily to preserve open space.
Board member Harry Waterbury asked how commissioners would determine if a piece of land is worth protecting.
Mr. Tait said they would use the same process as any land considered for open space.
Mr. Kortze said the ordinance should be clearly defined and quantified so it is not left to interpretation.
Board members agreed they should be included in the flow chart that describes the town's process for using the legislation because this could impact town revenue.
Mr. Ferguson noted the board's concerns and said Conservation commissioners would review the local ordinance with consideration of these comments.
At Mr. Kortze's request, he will also prepare a scenario that compares using the ordinance to the town buying land outright.
The board approved transfers on the agenda and adjourned.