The Jan. 20 Board of Finance topics included lowering the projected deficit and an increase in next year’s town side budget.

Lowering the projected deficit

Board member and First Selectman Michael Freda outlined potential means to fill a $1.4 million dollar deficit that he has projected for the town’s current fiscal year.

Freda said that contrary to the board’s previous belief, the state would not withdraw three percent of its Education Cost Sharing funding, lowering the projected deficit to $1.366 million. He added that he was expecting the town to receive a $700,000 rebate by the end of February, after reexamining North Haven’s claims history in their final year under former insurance carrier The Hartford.

Lastly, Freda said that a freeze on spending on capital expenditure items in the budget would save an additional $74,100, bringing the projected deficit to approximately $592,000.

“We’re looking for any ways in which we can lower that,” Freda said. “And those numbers can change every day.”

Board secretary Michael Hallahan wondered if the deficit had been inflated. “I want to make sure that the hole we’re projecting is not overstated,” he said.

Hallahan believed that a number of capital expenditure item accounts were frontloaded, allowing for less spending on such items during the rest of the fiscal year.

“There are supplies we need that we may already have enough of for the entire fiscal year,” he said. “For winter maintenance and supplies, we’re projected to go over by $105,000. It’s possible that with an average winter, we could already have all the materials we need for the winter season.”

2010 budget increase

Freda projected that the town side of next fiscal year’s budget would have a 3.7 percent increase over the current year’s town budget.

Of the increase, Freda said, 1.8 percent represented obligated contributions to pension plans, as town investments are down with the economy, and the town must make up the difference.

The remainder of the 3.7 percent represents projected expenditures for all town departments.

Swinkowski cautioned that the 3.7 percent does not include capital or the Board of Education budget.

Energy savings?

The board discussed a United Illuminating Company energy-saving project that was supposed to offset its charges with savings, according to Freda, but instead was costing the town $8,000 a month. The project replaced all the old light bulbs in the six town schools with new, energy efficient bulbs last year.

“We will be bringing the United Illuminating Company in,” said Finance Director Ed Swinkowski. “We want answers.”

“We were told this project would be paid for out of savings,” Swinkowski added.

Freda echoed Swinkowski.

“The United Illuminating Company is going to be asked two very direct questions,” Freda said. “Tell us what this project is about, and tell us what the return on this is.”

Hallahan was pleased with the project’s environmental theme.

“Even if the savings are only what we’re paying, we’re still reducing our carbon footprint,” Hallahan said.

Public comment

During public comment, resident Gerry Feinberg brought up a Town Hall initiative begun after the Department of Community Services investigation several years ago in which one town department is randomly audited every year. The building department was audited in 2008, according to Swinkowski.

Feinberg asked what department had been audited in 2009, as $25,000 remained in the budget for the procedure.

“This year we have not done a department,” Swinkowski replied. “I take the blame. I didn’t bring it to anybody’s attention.”

The meeting marked the first for recently appointed member William Kohlhepp, a Democrat. “I’m happy to be joining you,” he said to the board.