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Council hears proposal for in‑house internal auditor; staff outline debt, insurance and legacy capital costs
Summary
Finance staff said they are considering creating an internal auditor position to reduce audit fees and improve internal controls. Councilors were briefed on debt service, high pension-related bond costs and several capital legacy projects including Stratford High and the WPCA flood wall.
Town finance staff told the March 19 workshop they plan to propose an in‑house internal auditor after an audit recommendation, saying the position could speed audits and potentially lower audit fees.
Staff described the internal auditor as a probable budget amendment under consideration and said they are reviewing job descriptions and expected value. The presentation noted most comparable Connecticut towns have internal audit functions in‑house and the position would provide deeper, ongoing review of internal operations than external audits alone.
Officials also reviewed the town’s debt service and legacy capital obligations. Finance staff said debt service represents about 13% of the operating budget, a relatively high share because the town previously bonded pension liabilities. Staff named major bonded projects and legacy obligations that continue to affect capacity: Stratford High (a project cited at about $120 million), annual road bonding (roughly $3 million annually), WPCA flood‑wall bonding (about $17 million) and various building and equipment bonds (fire trucks, EMS building, etc.). Staff attributed the comparatively high debt burden to earlier decisions to bond unfunded pension liabilities rather than pay them from operating revenues.
Councilors asked about insurance and employee benefits. Staff said they are watching insurance renewals closely amid rising market pressure linked to climate impacts and other trends and have completed an asset valuation to support renewals. Gallagher Insurance was named as the town broker assisting with negotiations. Employee benefits are largely self‑insured for medical coverage and staff said claims declined recently; surplus in the health fund is retained for future years.
No formal council vote occurred on the internal auditor in the workshop; staff said any proposal would be made as an amendment for council consideration.
