In a special meeting scheduled an hour before the Town Council meeting, Superintendent of Schools Dr. Colleen Palmer presented the Board of Education 2010-11 financial forecast.

Her goals were to present a high level view of the school board's financial needs and highlight issues in the budgeting process.

She noted that increases in contractual wage obligations and health care costs will impact the budget.

Negotiations with the Monroe Education Association begin in summer 2010 and she expects transportation and energy costs to drive up budget expenses.

Dr. Palmer said there was a "devastating loss of people" due to layoffs.

"Last year we cleaned the cupboards in terms of looking at every staff member," she said.

She presented a preliminary budget analysis, noting unique conditions for this particular budget. Funds previously available for unforeseen expenses are gone. For example, the school board liquidated an oil credit in spring 2009 to offset expenditures.

A series of extraordinary health claims depleted reserves in the self-insurance fund. She specifically referenced the July bill amounting to $975,000.

The school board had delayed payment on a bond last year, which results in a payment in the amount of two years for the 2010-11 budget.

Dr. Palmer noted these factors have created the "perfect storm of bad things and [there is] no safety net."

She said she is challenged to find a way to balance the 2010-11 budget, noting the numbers would be, "difficult for the community to accept."

She ended her presentation by saying, "I'm very thrilled I have this many people sitting in front of me and we're talking about this in September."

Town Council Chair Enid Lipeles invited members of the audience to offer comments and ask questions.

In answer to the first question, Dr. Palmer said, "Two things we're taught as superintendents are that you don't touch busing or redistricting. But, we may be at a point where it makes sense to look at redistricting."

Council member Patrick O'Hara asked if the school board could raise tuition funds from students in nearby areas.

Dr. Palmer said it would be unlikely that other school districts would pay to send their students to Monroe schools but the school board is looking at creating new revenue streams.

She explained the alternative education department has approached other districts to offer programs for expelled students and she has asked all departments to develop plans for creating revenue.

In answer to another question from Mr. O'Hara, Dr. Palmer said the athletic directors are working with various businesses to sell banner space on the athletic fields for a goal of $20,000.

Director of Parks and Recreation David Z. Freedman asked if there was any effort to consolidate resources with the town.

Dr. Palmer said she wants to explore all avenues and has a meeting to discuss snowplowing options. She added that the town and school board are not two separate organizations.

First Selectman Thomas Buzi agreed that salaries and medical costs are drivers behind the budget and asked if the MEA would consider some kind of give-back to the town in order to save jobs.

The school board has put medical expenses out to bid with the intention of finding savings. The current provider, Healthnet, has not been successful in implementing a Health Savings Account plan. Many districts have found savings by enticing employees to use an HSA.

David Fritz, a Board of Finance member, suggested his board and the school board form a committee to address the budget, looking at items not normally reviewed.

The Town Council then convened its regular meeting, during which Mr. Buzi said the Jewish Home for the Elderly had decided to move to Trumbull because of state Department of Environmental Protection restrictions.

He announced he would meet with Jewish Home for the Elderly representatives on Wednesday, September 30, after asking them if the project had any chance in Monroe.

The response was, "Absolutely." Mr. Buzi told the council, "This thing has taken as many twists and turns as an Alpine ski trail. Stay tuned."

When Mr. Buzi announced the Farmer's Market would be extended another three weeks due to its popularity, Mr. O'Hara asked if the town could recognize the market master for her work.

Mr. Buzi agreed, saying he proclaimed her day last year and would be happy to do it again this year.

He presented the council with information the council had requested, a bonding example that uses scenarios to illustrate Monroe's potential debt service as a percentage of the total budget and in mills.

Noting that the examples suggested $2 million per year for roadwork, Mr. O'Hara asked how many miles per year the Public Works Department could handle without impacting regular operations such as street sweeping.

Director of Public Works Art Baker answered they could handle the amount of roadwork funded by $2 million.

Council member Tony Unger noted the capital improvement committee had recommended projects that would exceed $8 million in costs. He suggested budgeting more than $2 million for roads and other projects suggested by the committee.

"You have to remember the roads in town didn't get bad last week," Mr. Buzi said. "It took 20 years [for them] to get that way."

He said the town could throw a lot of money at the problem and quickly pave or take a long-term approach and address other issues.

Mr. Baker said his plan is to start paving in the next fiscal year, starting July 1.

Using this date, Mr. Unger suggested discussing how to prepare for that and Carl Tomchik from the Finance Department said the town could plan financially as illustrated in Mr. Buzi's debt service examples.

Council member Dee Dee Martin referenced a letter she wrote on behalf of the council, asking for help in removing barriers to accessing ARRA stimulus funds to pave town roads.

Mr. Baker told the council he had submitted a paving proposal to the state, suggesting the town chew up the top surface of Cutlers Farm Road from Wolfe Park to Cross Hill Road and pave it.

The state inspectors responded by saying the town should reclaim the road, removing and replacing curbs and shoulders, which adds a great deal of cost.

The Public Works Department would not be able to do the work itself as one of the goals of ARRA is to create jobs at competitive wages.

This recommendation changes the scope of the project from a three-mile project to one mile, ending at Elm Street.

Council member J. P. Sredzinski reminded the council he is on the Greater Bridgeport Regional Planning Agency and said agency members are aware of the frustration felt by towns who feel they could do the projects faster and cheaper.

Mr. Sredzinski doubted a letter to Gov. M. Jodi Rell would help because the federal government is holding the money and the governor does not have the power to release it.

The council decided to send two letters, one to President Obama and the appropriate federal senators and the other to the governor, state Department of Transportation and state Senate.

When Mr. Sredzinski suggested the letter ask for an amendment to alleviate the restrictions of ARRA, Ms. Lipeles asked him to help draft the letter and he agreed.

Before adjourning, the council unanimously approved a $9,800 contract to study and verify revaluation data collected by Monroe and recommend how the town should finalize the 2009 grand list to be in compliance with state and industry standards.

The grand list, which is due by January 31, represents the status of Monroe property on October 1.

Mr. Buzi complimented the Board of Assessment Appeals and the Department of Assessment for their hard work in maintaining data integrity.