By Sarah Opdahl

On Wednesday, December 18, New Fairfield’s Board of Finance (BOF) met to discuss a number of topics, including the upcoming budget season and the tax implication of new home assessments. Of interest to many residents are the five-year revaluation statements which hit mailboxes in late fall and reflect that New Fairfield’s property assessments increased 55% on average, with some residents rece iving letters confirming higher or lower percentages. While fears are un derstandably running rampant, BOF member Mr. Wes Marsh attempted to dispel rumors about how these assessments translate to taxes. Marsh explained the assessment process and how it relates to the grand list and the mill rate. He stressed that residents have options for appeals and the many opportunities that are available for tax relief for veterans and other resident populations. Town Assessor Mr. Richard Seman will be invited to the next BOF meeting to further provide information.

Medical updates were concerning to BOF members, as some claims continue to run high, especially in pharmacy expenses, which are  significantly higher than last year. Hospitalizations are also on the rise, in addition to increasing emergency room visits. In a comparison of first quarters year-over-year, the overall plan is tracking 12.7% higher this year. The Town’s medical consultant projects  the need to budget for an 8% increase in medical, from $6.9 million last year to $7.45 million.

Chair Ms. Thora Perkins walked fellow members through the BOF budget, which includes costs associated with the Town’s annual audit, administrative work for the recording secretary, and advertising associated with budget referendums. Budget meetings have begun in the Town and the school’s education budget will be presented to the Board of Education on Thursday, January 16. Perkins encouraged fellow board members to attend, but also explained that a joint “discussion” session will be held in February. The hope is for a much more collegial budget season.

A report that is used to analyze medical claims is in flux, as agreed upon changes were partially implemented. Town Finance Director Mr. Vladimir Kan explained that he is waiting for more information on what statistical method the BOF wants to use in incorporating a twelve-month rolling average. He will refresh an email to appropriate BOF members to prompt responses.

There was a brief discussion about the need to ask the state for an extension for the Town’s audit, which has happened before. Kan cited staff turnover in the Finance Department as the reasoning for the extension request. It was also noted that the auditor, PKF O’Connor Davies, has also had trouble with turnover.

BOF members discussed their current policies, which were under review and whether any needed modification. It was noted that some policies under consideration were never finalized, including the Public Comment Policy. They hope to consolidate all final policies on the Town website to make them easily available to board members, Town employees, and residents.

Ms. Cheryl Reedy gave an update on the Capital Projects Subcommittee, which has held several “fact-find ing” sessions to get an in-depth sense of what capital expenses will include in the coming years. Having met with most Town departments and groups, subcommittee members will now begin to organize the copious amounts of collected information. Reedy was hesitant to say how much of the proposed work will be acted upon in the near future as “we are not going to have enough money” to complete capital projects in a large-scale way at this point. She went on to stress, “we can’t take on a huge new burden of capital this year…there will be a while before we have some debt service drop off and we have money available to go into the plan.”

Kan gave a presentation on “Free Cash Surplus” rules, which details  the possibility of using surplus as revenue in the general fund, in addition to the ways it is used currently in the unassigned general fund, the medical fund, and more. Some BOF members were wary of the notion, explaining that they are aware of this possibility but are not convinced it is a good plan. “We never want to do that, because the only thing that does is create a hole,” Reedy said, explaining that the Town has used this method in the past and regretted it.

In discussing future agenda items, BOF members asked again for an update on the bus lot project, about which there were zero updates in any recent Town meetings.

The next regular Board of Finance meeting is scheduled for Wednesday, January 22, 7:30 p.m.