NAUGATUCK — The Joint Boards of Mayor and Burgesses and Board of Finance last week approved transfers totaling $430,628 to balance out the 2018-19 budget.
The joint boards transferred $333,661 from the employee medical benefits account and $96,067 from wage increases to cover a deficit of $430,261 in pension costs and a slight overage of $367 in the building repairs budget.
Controller Allyson W. Bruce said confusion between the borough and the Board of Education over when pension payments will decrease led to the deficit in the pension account. Overall, she said the borough had to budget $4,447,400 for pensions and the school board was responsible for $1,463,700 of it. The school budget included $1,033,439 for pension payments.
The school board is also projecting a year-end deficit of $247,000 for the 2019-20 fiscal year, which includes an overage of $453,000 in pension costs. The excess pension costs will be offset some by an estimated $311,000 savings in health benefits. The projected deficit is less than 1% of the school budget.
Bruce assured joint board members that the school board is going to balance its budget.
“They’re completely aware of the amount they have to pay out of their budget and they’re actively working on managing within what they have,” Bruce said.
