By Stephen P. Clark
Staff Writer
March 15, 2008
STAMFORD - The Board of Finance this week unanimously approved a $3.6 million budget transfer from the Glenbrook, Belltown, and Turn of River volunteer fire departments to Stamford Fire & Rescue after last month's approval of a contract that unified all paid city firefighters.
The transfer moves all personnel-related budget items. Director of Administration Sandra Dennies originally sought to move $1.8 million from Glenbrook and Belltown, but city Budget Director Peter Privitera asked the finance board to include Turn of River, which he said was accidentally omitted. Turn of River has a pending lawsuit against the city to block intervention of management or operational control.
When questioned by finance board member Joseph Tarzia, Privitera said the accounting transfer would not cause any legal problems.
"These are the paid firefighters who voted to become part of Stamford Fire & Rescue," he said.
The city's plan to improve fire coverage through restructuring triggered a fight for control of the volunteer firehouses last year, leading to layoffs, lawsuits, counter proposals and public feuding.
The Belltown and Glenbrook departments lost their court battles and five paid firefighters to layoffs in July, but Turn of River was able to get an injunction to block layoffs, arguing that the move violated its management agreement with the city.
Glenbrook eventually agreed to the city's plan, but Belltown became a strictly volunteer fire department in January when eight of its last nine paid firefighters joined Stamford Fire & Rescue in January after Belltown's management agreement with the city expired. The ninth one retired.
Tarzia asked Privitera on Thursday night why the transfer request was being made now.
"As part of the mayor's budget, we want to do it this year so we can get our accounting in order by July 1," the start of the next fiscal year, Privitera said. He added that Stamford Fire & Rescue has managed these budgets all year.
The transfer mostly covers salaries and benefits.
"The biggest difference is they're going to be wearing a Stamford Fire & Rescue patch on their arms," Privitera said.
The Board of Finance also approved $2 million in supplemental capital funds for a mixed-use, mixed-income project near the Transit Center that will include 50 affordable housing units out of 240 overall units. Only 29 affordable units were required.
"We think it's a potential home run for the city," Land Use Bureau Chief Robin Stein said.
The board also approved transferring $27.4 million from the Smith House Fund to the general fund as part of Mayor Dannel Malloy's move to include Smith House in his operating budget.
Finance board members approved $200,000 in supplemental capital appropriations to restore the Michael A. Boyle Stadium at Stamford High School and $236,000 for the Board of Education to create an energy reserve from a surplus it had last fiscal year.
Finance board member Tim Abbazia requested changing fiscal policy to require the city to contribute half of any surplus to the rainy day fund if it is less than 5 percent of the latest approved budget.
"Every year, we have a surplus and the mayor decides what to put in the rainy day fund," Abbazia said. "At the last meeting, we found out that the fund wasn't as well-funded as it should be."
Last month, the city's financial adviser, Barry Bernabe, warned board members that Stamford's AAA bond rating is at risk because the city's rainy day fund is less than 1 percent of its overall spending. Rating agencies recommend that municipalities maintain at least 5 percent of their total budget in that fund.
But Abbazia added that more discussion is needed before the board changes policy.
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