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Southington finance board sets consultant's $35.05M starting self‑insurance projection, tables reserve decision
Summary
Board members endorsed consultant projections as the starting self‑insurance figure but voted to table final reserve‑use decisions pending an updated fund balance; a special meeting was set for Dec. 30 to finalize amounts.
The Town of Southington Board of Finance on a recent meeting adopted the consultant's recommended starting projection for the town's self‑insurance budget and delayed any final decision on drawing from the reserve fund until updated fund‑balance figures are available.
The consultant presented monthly projections and trend scenarios and recommended using an expected market trend for the coming fiscal year. "We're saying it's a 7 and a half percent increase to the projected cost," said Vice Chair Joseph Labenet during the discussion of trend assumptions and budget impact.
The nut of the discussion was whether to use reserve funds to blunt the increase. Board members noted that not using reserves would show an approximately 11% budget increase, while using a portion of the reserve would lower that percentage. "I would suggest us utilizing reserve funds, up to potentially $1,000,000," Labenet said as members debated options. Board members and the consultant agreed to update projections monthly and to revisit any adjustment as new claims and trend data arrive.
Because the town finance office was still finalizing audit adjustments and the IBNR (incurred but not reported) number, the board voted to table the final reserve decision and to hold a special hybrid/virtual meeting to act once the fund‑balance number is available. The board set a special meeting for Tuesday, Dec. 30 at 7 p.m. to finalize reserve use and the allocation split.
The board’s action means the consultant's projection will be used as the starting line in the superintendent’s budget materials while the reserve conversation continues. The board emphasized that the projection will be updated each month and that any later adjustments could be made before the budget is finalized in March.
