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Pedro E, Segarra Mayor April 15, 2015 Dr. Beth A. Schiavino-Narvaez, Superintendent Hartford Public Schools 960 Main Street, 8" Floor Hartford, CT 06103, eat Dr. Schiavino-Narvae: ‘As my staff and I have been developing the Recommended General Fund Budget for Fiscal Year 2016, we have identified several issue areas in which we believe the City and the Hartford Public Schools (HPS) ean work together to our mutual benefit. I have outlined, below, the issues jnvolved and our thinking with regard to actions that can be taken. Once you have had an opportunity to review these issues, T look forward to discussing these matters with you and coming to an agreement Health Care: As part of our health care cost containment efforts, the City issued a Request for Information (RFI) to determine whether seeking competitive proposals for administration of our ‘employee health care plans would be likely 10 generate savings. The responses to the RFI songly indicated tht it would be advisable to do so. In fact, analysis showed that HPS could ‘sve up to $7 million over the next thre years. Consequently, the City recently issued a Request for Proposals (RFP) fora heath plan administrator. We asked for exch responder to propose two ‘options ~the first for the City and the Hartford Public Schools and the second forthe City alone. ‘Although your staff indicated that HPS did not wish to participate, given the magnitude of potential savings, Fhope we ean discuss ths issue more fully before you make a final decision. ‘Vehicles and Technology Equipment: For soveral years, th City has been employing a leasing rangement, in lew of purchase, to acquire new vehicles and technology equipment, Using this tethod, the cost ofthe equipment is amotized over an extended period and this has allowed us to save significant dollars in our operating budget. We believe that it will be beneficial for the Hartford Publie Schools to employ this mechanism as well. My staff is available to assist you in «comparison of expenditures for purchase versus leasing, We believe you will see significant savings in your FY 2016 budget and I would welcome a discussion of this approach, 550 Main iret ‘Telephone (860) 757-9500 Facsinile (860) 722-6606 OPER Trust: As you know, the City Administeation, City Treasurer, and Court of Common, Council are working together to establish a Trust Fund for Other Post-Fmployment Benefits (OPER), We expect to establish the Fund before the end of ths fiscal year. Our OPEB actuary, ‘Segal Consulting, estimates thatthe Hartord Public Schools isilty will be $19.3 million, AS you are aware, there is presently $36 million in an internal service fund and the City budgeted a ‘raw-down of $3,815,000 ffom this fund to be made in the 2014-15 fiscal year. I will be authorizing the draw-down to take place this month, After these finds have been transfered and once the HPS OPEB liability is determined, the remaining balance in the account will be placed under City control. In Kind Services: Fr the past three years, the Harford Public Schools has reimbursed the City for services which the City bas funded and provided to HPS, such as utilities, legal services, and public safety services. The calculations of amounts owed have been done af the end ofthe fiscal year, negotitions have occurred, and the transfer of funds has been accomplished in the Tollowing fiscal year, For FY 2014, the amount of reimbursement was $5.3 million, In order to ‘improve the budgeting process for both the City and HPS, Iam requesting that HPS include this annual expense in their FY 2016 budget and that reimbursemeat be made by HPS to the City on monthly bass would suggest that we discuss these issues at our next mesting on April 24* at 1 PM, I look

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