Transcript Pavement Management – Background

STRAW POLL TO BE CONDUCTED AT 9:00 P.M.
Questions:
Please vote just once
1. Do you support the Town Manager’s
budget as proposed? Yes/No
2. Do you support increasing the Town
Manager’s budget? Yes/No
3. Do you support decreasing the Town
Manager’s budget? Yes/No
TOWN OF TOLLAND
FY 2011-2012
BUDGET PRESENTATION
As Proposed by Town Manager, Steven R. Werbner
March 29, 2011
BUDGET PROCESS
Development of the budget begins in October with the preparation of the Board of
Education request and culminates in May with the Town Referendum.
Charter Mandated Process:
Superintendent
Board of Education
Town Manager
Town Council
Voters
Referendum is May 3, 2011 and, if
the budget is defeated, votes are
every two weeks until a budget
is passed.
Public Meetings to Date on Budget
Joint Meeting of Town Council/Board of Education – February 10, 2011
Capital Budget Public Hearing – February 17, 2011
Community Conversation on Budget – February 24, 2011
Joint Meeting of Town Council/Board of Education – March 8, 2011
Budget Review Sessions with Town Council – March 17, 22 & 23, 2011
Public Hearing on Manager’s Proposed Budget – March 29, 2011
Upcoming Meetings
Town Council finalizes Budget – April 5, 2011
Annual Budget Presentation Meeting – April 26, 2011
Budget Presentations at Senior Center – April 27, 2011 @ 12:30 p.m.
Budget Referendum -- May 3, 2011
What is a Budget?
•
A financial plan with sets of priorities and direction that the Town
Officials, Town Council and residents believe accurately reflects
the most important needs of the Town operations.
•
In terms of the Board of Education, the Town Manager and Town
Council, by State law, can only determine a bottom line number.
The allocation of resources is the sole prerogative of the Board of
Education.
TOWN MANAGER’S BUDGET GOAL FOR FY2011-12
Produce a budget that is realistic in light of the
economic times
THIS BUDGET WILL:
Maintain important services
Continue to provide a quality
education for our children
Meet the budget objective of limiting
an increase in taxes to under 3%.
INTRODUCTION
BUDGET PREMISE
The premise from which I am working in preparing this
budget is as follows:

The Town and Board of Education have legitimate needs for
which the associated cost exceeds our ability to pay.

The Superintendent and Board of Education do an excellent job
in identifying their needs which are incorporated into their budget
request.
 A quality education is extremely important for this generation and
generations to come.

Town and Board of Education Services are of the highest
quality, yet our cost for such services are in most cases lower
than other comparable municipalities.
 No one wants to see existing programs in either the Town or
Board of Education eliminated.
 At the local level, REALITY is, that the property tax will only
absorb a limited amount of the increase necessary to address
our legitimate needs. While some are in a position to pay more
in taxes, many are not. Therefore, the full amount of
expenditures requested from Departments, including the Board
of Education, are in my opinion not affordable.
BUDGET PARAMETERS
How did I arrive at the financial plan I am proposing?
 Analyzed revenues based on end of last year results as well as the
first six months of this fiscal year.
 Monitored actions taken at the State level to reduce or at best keep
municipal aid flat.
 Established in November of 2010 budget instructions for all
departments with a goal of limiting any tax increase to under 3%.
BUDGET PARAMETERS (continued)
 Discussed in December of 2010 the budget parameters I
established with the Town Council.
 In February of 2011 held a Community Conversation on the status
of revenues and budget parameters to get public input.
 Have continued to monitor local, State & Federal revenues and
have continually tested my original expenditure assumption against
potential tax impact.
•
Only after determining available resources do I then
establish what I believe to be appropriate expenditure
limits.
BUDGET PARAMETERS (continued)
 While approval of the final budget amount at referendum is not the
ultimate factor I use to establish budget parameters, I feel it is my
Charter mandated responsibility to recommend a budget to the
Town Council which can be supported from what I perceive to be a
reasonable revenue perspective.
LOCAL FINANCIAL CONCERNS GOING FORWARD
• Local government is limited by State law in regard to its ability to
raise funds. Therefore, we are heavily dependent on property
taxes and State revenues as sources of revenue to fund local
programs.
• The level of State aid to municipalities is insufficient to meet
the growing cost to towns and cities and places an
unacceptable burden on the local property tax, in particular
education.
• Local governments cannot continue to provide the same or
an improved level of service unless property taxes increase
for a sustained period of time.
LOCAL FINANCIAL CONCERNS GOING
FORWARD (continued)
• Senior citizens on fixed incomes and others in lower income
brackets are finding it difficult to stay in their homes; working
people are continuing to lose jobs; government workers in
many communities including Tolland have in the recent past
accepted wage freezes and other concessions to help reduce
expenditures.
• The State of Connecticut continues to impose many unfunded
mandates on towns and boards of educations. The Town of
Bristol recently calculated that they are spending over $14
million on unfunded or partial funded State mandates.
STATE OF CONNECTICUT
BUDGET CONCERNS
The State of Connecticut is projected to continue to have large deficits
over the next several years jeopardizing our level of State aid.
Future Projected Operating State Deficits:
FY 2011/2012
FY 2012/2013
FY 2013/2014
$3.3 Billion
$3.1 Billion
$3.1 Billion
Future Projected long-term State underfunded obligations:
Bonded Indebtedness
$18.0 Billion
State Employee Pensions
9.3 Billion
Teacher Pensions
6.5 Billion
Post Retirement Benefits
GAAP Deficit
Total:
26.8 Billion
1.1 Billion
$61.7 Billion
STATE OF CONNECTICUT
BUDGET CONCERNS (continued)
• It is interesting to note that the State is projecting a positive balance
at the end of this fiscal year in the amount of $57.2 million, but only
as a result of one time windfalls from the Federal Government and
significant borrowing authorized last year, use of all Rainy Day
Funds plus an additional charge levied on our electric bills.
• Without these one time sources of revenue Connecticut would have
had a $2 billion deficit at the end of the current fiscal year.
• The Governor’s budget going forward does not rely on this one time
source of revenue or borrowing for operating expenses which
necessitates either increased taxes, decreased expenditures or a
combination of both.
Impact of Governor’s Budget on Tolland
•
Most Education and Non-Education grants were funded at the same
levels as in the current year. ECS, our largest State grant for
education is currently budgeted at $10,759,283. State-wide prior to
2009, this grant was increasing approximately 5%/year. For Tolland
that was approximately $400,000-$500,000 additional dollars
annually. The grant has not increased the past two years and will not
increase for the next two years.
•
Notable exceptions are: Pilot Grant for Manufacturing Machinery &
Equipment (MME). This grant was eliminated State-wide. The loss
of revenue to the Town was estimated to be $80,000 for the next
fiscal year.
•
Transportation Grant was reduced by $90,000.
•
New forms of revenue recommended such as a portion of increased
sales tax based on retail sales in the community, boat tax, tax on
hotels, car rentals, planes and tax on cabarets will have only a
minimal impact on Tolland.
Major Concern for the Future Status of ECS Grant
Town
Revenues
2011 - 2012
Changes in State Aid and Other Sources of Revenue
for the Next Fiscal Year Over Current Year Revenues
 State Aid for Education
(104,253)
• ECS:
• Public School Transportation:
0
(104,261)
• Adult Education:
• Aid to the Blind:
8
(0)
 Municipal State and Federal Grants
(132,490)
Changes in State Aid and Other Sources of Revenue
for the Next Fiscal Year Over Current Year Revenues
 Other Non-Tax Revenue:
● Charges for current services:
6,216
● License, Permits and Fees:
(46,000)
● Interest and other revenues:
(30,855)
TOTAL DECREASE IN REVENUE:
(307,382)
Grand List Growth at 1.10
after adjustments for new construction,
elderly exemptions, MVS and
slight decline in the mill rate and excluding
the impact of the State mandated
revaluation= $406,355
History of Grand List Growth Percentage:
Actual Ne t Growth in Grand List
( w i t h o u t ma r k e t i mp a c t o f
r e val uati on)
Percent Change
5.0%
4.0%
3.96%3.89%
3.0%
3.30%3.57%
2.64%
1.79%1.64%
2.0%
1.10%
0.81%0.75%
1.0%
0.0%
Oc t-0 1
Oc t-0 2
Oc t-0 3
Oc t-0 4
Oc t-0 5
Re val ua
Oc t-0 6
Grand List
Oc t-0 7
Oc t-0 8
Oc t-0 9
Re valu
ation
Oc t-1 0
NEW DWELLING START CHART
JAN
8
6
11
6
FEB
7
4
10
9
MAR
13
7
8
8
APR
13
6
7
7
MAY
11
8
11
7
JUNE
8
16
10
9
2004 single family
active adult
apartments
7
4
3
9
4
4
2
12
4
2005 single family
active adult
apartments
4
5
5
1
12 units
3
2006 single family
active adult
apartments
2
4
5
1
5
3
3
4
3
4
3
4
2
3
2000
2001
2002
2003
1
2007 single family
active adult
apartments
2
2
2
JULY AUG SEPT
10
6
11
6
12
6
5
11
6
9
11
5
2
6
6
2
12 units 24 units
2
1
0
2
2009 single family
active adult
apartments
1
1
2010 single family
active adult
apartments
0
1
2011 single family
active adult
apartments
0
0
3
3
0
0
1
DEC
5
11
8
9
TOTALS
113
92
98
95
6
6
4
8
7
1
4
73
14
5
2
2
5
4
2
5
1
50
9
48 units - 4 bldgs
2
3
4
3
1
4
1
2
38
19
12
2
8
5
1
3
42
7
16 Units-2 bldgs
3
0
1
1
16
2
2
2
0
5
2
0
0
0
1
7
0
0
8 units
2008 single family
active adult
apartments
OCT NOV
12
9
5
5
7
4
7
8
8 units
1
0
3
1
0
0
2
1
1
1
0
0
0
0
Fund Balance
An increase in the use of Fund Balance by
$30,000 to a total of $230,000 is
recommended to be used as a revenue in
these difficult economic times.
Rating agencies recommend that Fund
Balance percentage for towns with a AA credit
rating be in a range of 10%-15% of operating
expenditures.
This is not a “revenue source” that should be
relied upon in the future. This is a one time
use of funds that may not be able to be
duplicated in future years.
FUND BALANCE
2011 estimated
2010
$5,654,614
$5,884,614
11.19%
11.60%
2009
2008
2007
2006
$5,755,314
$5,175,165
$4,386,381
$4,336,381
11.40%
10.9%
9.1%
9.7%
2005
2004
2003
$3,906,752
$3,516,564
$3,082,745
9.3%
9.0%
8.2%
2002
2001
2000
$2,521,653
$2,257,148
$2,164,504
7.0%
7.0%
7.2%
With less revenue than the prior year and limited
grand list growth, there is little room for growth in the
budget unless property taxes are increased.
TRENDS IN GENERAL F UND
REVENUE SOURCES
“W here Our Rev enue Comes F rom ”
100%
80%
1.6
3.8
3.8
25.7
24.9
71
71.4
3.9
4.3
3.5
2.9
2.2
2.4
1.6
24.3
23.4
22.4
24.4
24.4
24.2
23.8
22.8
74.1
72.7
73.3
72.1
72.7
73.5
74.4
75.6
60%
40%
20%
Property Taxes
State Aid
Other Sources
11
/1
2
FY
10
/1
1
FY
09
/1
0
FY
08
/0
9
FY
07
/0
8
FY
06
/0
7
FY
05
/0
6
FY
04
/0
5
FY
03
/0
4
FY
FY
02
/0
3
0%
Expenditures
EXPENDITURE SUMMARY
Category
Adopted
10/11
Town Depts. 10,622,032
Recommended
11/12
Dollar
Change
Percentage
Change
10,832,492
210,460
1.98%
Capital
Expenditures
266,700
305,708
39,008
14.63%
Debt Service
4,622,919
4,751,796
128,877
2.79%
Board of
Education
33,808,535
34,637,431
828,896
2.45%
Grand Total 49,320,186
50,527,427
1,207,241
2.45%
Magnitude of Recommended
Expenditure Increases

In the four years prior to FY2009/10 the Town’s average expenditure
increase was $487,046.

In the same time period the Board of Education’s average
expenditure increase was $1,428,309.

In the current year the Town reduced expenditures from the prior
year by $5,570 while the Board of Education increased by
$334,738.

For the next fiscal year my recommended budget increases Town
expenditures over the current year by $210,460 while the Board of
Education is increased by $828,896.

Neither the Town or Board of Education can, in my opinion, operate
effectively in the next fiscal year with an increase or lack thereof at
the levels of the last two fiscal years.
Town Operational Cost in millions 2001-2012
12
$ Cost in millions
10
8
7
7.6
8.3
8.7
8.9
9.4
9.9
10.5
10.9 10.63 10.62 10.83
6
4
2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
BOE Operational Cost in millions 2001-2012
40
$ Cost in millions
35
30
25
20.7
22.48
24.67
26.58 27.8
29
30.4 31.6
33.5 33.5 33.8 34.68
20
15
10
5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2011/2012 EXPENDITURES BUDGET
$50,527,427
Capital
Municipal Operating
Debt Service
0.61%
9.40%
21.44%
68.55%
Education
Municipal Operating
$10,832,492
Education
$34,637,431
Debt Service
Capital
$4,751,796
$305,708
Details of Town Expenditure Request
Savings
Negotiated changes to Town employees’ Health Insurance Plans have
mitigated increases in health benefits. Whereas overall, health benefits were
calculated to increase 18%, the Town’s costs actually decreased by 3.5%
due to the benefit changes. These changes saved the Town $116,456.
Elimination of Refuse & Recycling Coordinator position for a savings of
$25,750. These responsibilities have been absorbed by the Director of
Administrative Services and other staff.
Limited Adjustments
$100 on-call stipend for Part-Time Animal Control Officers ($5,200 annually
split by days of the week worked). This is to recognize the two part-time
employees who must be on call on off hours each day of the week. In
addition, $5,000 for actual hours worked that are currently taken from
personnel contingency.
Administrative Secretary in Fire Department increased from 35 to 40 hours to
be in line with the operation of the Fire Office ($4,988 in salary).
The position of Assistant Public Safety Supervisor budgeted starting January
1, 2012 at a cost of $39,444 with benefits for half a year. During the current
fiscal year, the consulting firm of Field Services Inc. was engaged by the Town
of Tolland to perform a feasibility study of the Tolland Fire Department and its
ability to provide the current level of service to the Town in the coming years.
The report stressed that moving forward, the department focus should
primarily be personnel and staffing. Much focus was placed on the Public
Safety Supervisor position which generally is considered a 40-50 hour
position, but in reality works on a regular basis in excess of 70 hours per
week. The demands of the position to supervise both paid and volunteer staff
are 24 hours a day. The study concluded that “there is considerable concern
that the Fire Chief may be overstretched”. The recommendation is to hire a
second in command who can mirror the responsibilities of the Public Safety
Supervisor in terms of supervising staff and responding to evening calls in a
command capacity. In addition, this position would serve as a Deputy Fire
Marshal and be in charge of the Town’s communication function. The Board
of Directors of the Tolland Fire Department Inc. concurs with this
recommendation and has stated “The Board heartily agrees with this
conclusion. Volunteer officers cannot be counted upon to reduce the
workload.”

Included within the Fire, Public Safety, Emergency Management and
Law Enforcement budgets are the cost of the administrative functions
associated with the reverse 911 Everbridge System. This will allow for
telephone messages to be sent to residents on general topics of
importance ($4,050).

Adjust the pay grade level for the position of Public Safety Supervisor
and Public Works Operations Manager by one grade and increase the
base salary of each position by $5,000 to reflect increased
responsibilities and work levels as well as hours worked at a cost of
$9,000 (partial offset by State Grant).

Implementation of a Health Wellness Initiative at a cost of $7,000 paid
out of funds available in the Health Insurance account in the current
year. Industry experts predict that the Town should see reductions in
future health insurance expenditures at a rate of 3-5 times the
investment made in the Wellness Program.

Increase the cost share for Health Insurance, which unaffiliated
employees of the Town will pay, from 14% to 16%, except for those
employees who participate in the Health Wellness Initiatives which
would reduce the increase by 1%.

Re-title the positions of Working Foreman in the Parks & Facilities
Department and Highway Superintendent in the Highway Department to
Public Works Supervisor. Along with the Public Works Operations
Manager, these two supervisory positions provide oversight and
direction for all Parks and Highway activities. The initial cost for this
reclassification will be an increase of $3,000 to the Working Foreman
position; however, there will be a future savings of approximately
$15,000 with the adjustment of the Highway Superintendent’s position
to a lower wage group when the current employee retires.

$27,000 for the connection fee to tie the Hicks Municipal Building into
the Town’s public sewer system.

The Water Commission and Water Pollution Control Authority have
each authorized the allocation of $15,000 from their funds to hire a 24
hour per week, non-benefitted Engineering Assistant position to assist
with the many technical responsibilities confronting the Commission.
This position would work under the direction of the Town Engineer.

A $38,103 increase in the contractual cost for Resident State Trooper
services.
Savings identified total $142,206. The cost for new items
listed is $135,785. Therefore, the total savings to the Town is
$6,421.
Board of Education Request
• Board of Education request is reduced from
6.53% to 2.45%, which is a reduction of
$1,328,676, but an increase of $828,896 over
current year expenditures.
• When factoring in the Board of Education
portion of debt service, the Board of
Education-related expenditures are 71% of the
overall Town budget.
Basis for BOE Funding Recommendation
Savings
•
$95,060 can be saved based on excess funding of our OPEB Trust
Account.
•
$90,000 can be saved based on a direct payment in the same amount
which will be made by the State Department of Education to the Board of
Education for special education expenses.
•
It is apparent that one could divide the Board of Education percentage
request into two major components.
Major Cost Components
Operational Costs & Employee Medical Benefits
•
The percentage increase requested for operational expenses is 2.36% after
factoring in the adjustments mentioned previously. My recommended
budget increase for the Board of Education is 2.45%, which provides for the
full cost of these expenses.
Basis for Recommendation
•
The original percentage increase requested for Employee Medical Benefits
is 3.6%. This amount has been reduced by $125,000 based on a reduction
in health insurance premiums from 22% to 18.66%. The remaining
$1,095,525 increase cost could be absorbed without an increase in the
health insurance line item if the vast majority of teachers and administrators
elected the option currently existing in their contract to move from their
current health insurance plan to a high deductible (HSA) plan.
•
A similar HSA plan is currently the only option for Town Hall, Fire
Department and several non-union employees of the Board of Education.
•
HSA plans in the future may not be the ultimate answer to addressing
health care inflation, but currently it is our only option.
•
The Town and Board of Education are investigating health insurance
pooling and wellness programs as the primary means of reducing future
medical costs. Such costs statewide are projected to increase in the 810% range for the foreseeable future.
WHAT IS AN HSA?
A high deductible Health Insurance Plan with Health Savings Account
(HDHP/HSA):
The first $1,500 for an individual or $3,000 for a family in medical
expenses is paid for by the employee via a deductible. Once
deductible has been met, coverage is then paid in full in accordance
with plan provisions.
Contributions are put into a Health Savings Account pretax which
remains with the employee for life to be used for eligible expenses and
can be carried over year to year.
To encourage employees to enroll in the Plan, the Town and nonunionized BOE employees initially have the deductible subsidized by
the employer in the amount of 75%. Therefore the employees cost for
the deductible are $375 for an individual or $750 for a family. The
amount of any subsidy is a negotiable item.
The benefits of the HDHP/HSA plan are the same as the traditional
Town Point of Service plan with the same network for physicians.
Example of POTENTIAL cost savings:
Expected premium cost for typical BOE family plan:
$26,892 per year.
Expected premium cost for HSA plan based on Town family plan:
$16,152 per year.
Difference is $10,740 per year, per person.
In the BOE budget there are 308 certified employees out of a total of
382 employees.
If 252 or 81% certified employees chose this option the approximate
savings would be as follows:
Cost for current plan - $5,062,462
Cost for HSA plan $2,964,930
Difference $2,097,532
Cost for BOE covering 75% of high deductible assuming 252 BOE
employees - $473,625.
You must subtract the $473,625 from the $2,097,532 as well as 20%
for employee contributions ($418,706) resulting in a total potential
savings of $1,205,201 to the BOE.
WHAT DOES THE EMPLOYEE
GET OUT OF THIS?
They pay their cost share amount on a lower premium base:
Assume a 20% cost share for employees on an HSA base vs.
traditional plan.
Savings to the employee is $2,148 per year for a family plan.
Employees are responsible for the $750 of the deductible
which must come off the $2,148 cost share savings for a total
savings of $1,398 per year.
Summary: The potential is for a million dollar plus savings in
health insurance expenses for the BOE. Employees could
save some $1,398 per year in addition to having the BOE put
$2,250 into their health savings account. This could be a winwin situation under present pricing scenarios for all involved
without significantly impacting the health insurance coverage
for BOE employees.
POSSIBLE FUTURE BOE FUNDING CONCERNS
•
•
•
•
Elimination of the BOE Federal Jobs Grant which provided approximately
$600,000 over two years.
– Any jobs covered under the grant will have to be absorbed with local
funds or lost.
Teachers’ salaries will have to be budgeted at contract rates for FY-2012
and FY-2013.
Health Insurance rates may increase at a rate of 8-10%.
Fuel costs may continue to escalate.
Town’s Commitment to Education
The Town has a strong ongoing
Commitment to Education
68.55% of every tax dollar spent goes toward
funding education. More of our limited dollars are
each year spent for education.
Trends in % of BOE Expenditures to overall Town Budget
68.80
68.60
68.52
68.54
68.55
2009-2010 Budget
2010-2011 Budget
2011-2012 Budget
68.40
Percent
68.20
68.00
67.85
67.80
67.60
67.48
67.40
67.20
67.00
66.80
2007-2008 Budget
2008-2009 Budget

The Town since 1998 has committed substantial capital
dollars to school improvements. Debt service for the
next year is $4,751,796 of which 71% is for schools,
particularly the addition to Birch Grove School and the
new High School. This cost is not included as part of
the Education budget.

The Town spends approximately $300,000 per year in
staff salaries and materials to maintain all outside
grounds of Board of Education facilities as well as snow
removal services for Board of Education parking lots.
This cost, as well as any yearly increases is not
included in the Education budget, but rather the Town’s
Parks Department.
CAPITAL BUDGET
Everything the Town does, from providing services to its residents and
citizens, to equipping employees to effectively perform their jobs, requires
the existence of certain basic physical assets.
Assets include:
 Streets
 School Facilities
 Parks
 Large Equipment
 Buildings
 Technology
Assets must be purchased, maintained and replaced on a timely basis or their
usefulness in providing public services will diminish.
The Town’s Five Year Capital Improvement Program is developed to ensure
adequate capital investment in the Town’s assets and to provide an orderly method
for funding these assets.
FY11-12: SIGNIFICANT CAPITAL PROJECTS
FUNDED BY THE GENERAL FUND
Total Amount: $305,708
Town Administration:
• Reserve for current year depreciation for
municipal vehicle replacement - $21,789.
 Board of Education – Tolland Intermediate School:
•
Sidewalk Paving - $15,000.
•
Skylight Replacement - $26,000.
FY11-12: SIGNIFICANT CAPITAL PROJECTS
FUNDED BY THE GENERAL FUND
Total Amount: $305,708
 Capital Equipment:
•
Dump Truck #36 Replacement – Parks & Facilities
replacement of 1992 one ton Dodge dump truck with
a new one ton truck with plow and all season body $76,819.
 Fire Department:
•
7th and last payment for replacement of Engine #340 $70,000.
FY11-12: SIGNIFICANT CAPITAL PROJECTS
FUNDED BY THE GENERAL FUND
Total Amount: $305,708
Public Facilities:
•
Upgrade of Base Station Repeaters located at
Highway, Parks & Facilities and the Tower Site are
mandated by FCC to be licensed and operating in
narrowband emissions before 1/1/13 - $20,000 –
second of three payments.
•
One additional gas pump and flow fuel part for
recently installed above ground fuel tanks at the
Highway Garage plus removal of the old tank $25,500.
FY11-12: SIGNIFICANT CAPITAL PROJECTS
FUNDED BY THE GENERAL FUND
Total Amount: $305,708
 Drainage:
•
Infrastructure Drainage designs for Weigold Road,
Baxter Street and Sugar Hill Road systems - $50,600.
TOLLAND DEBT SCHEDULE
2011-12 THROUGH 2015-16
% change
FY11/12 -
$4,751,296
1.87%
FY12/13 -
$4,797,741
.97%
FY13/14 -
$4,724,537
(1.53%)
FY14/15 -
$4,676,459
(1.02%)
FY15/16 -
$4,691,778
(0.33%)
Both Moody’s & Fitch Financial rating agencies have indicated that
the Town’s debt is moderate and manageable and in line with
Communities that have similar credit ratings.
DEBT SERVICE FOR BUDGET YEAR:
$4,751,796
Debt Service Breakdown:
29%
School
Town
71%
MILL RATE IMPACT OF THE
FINANCIAL PLAN
Mill rate = 29.99
An increase of 0.84 mills compared to the current
mill rate of 29.15.
TAX IMPACT
Property Tax Impact of the Town Manager’s Recommended Budget for Three Average Assessments
2009 Assessment
Equivalent Value
Taxes at 29.15
Taxes at 29.99
Difference
$121,972
$174,246
$3,555
$3,658
$103
$196,130
$280,186
$5,717
$5,882
$165
$375,384
$536,262
$10,942
$11,258
$316
Formula to determine tax impact:
Current assessment x current year mill rate (29.15)
Compared against
Current assessment x Town Manager’s proposed mill rate (29.99)
Difference equals tax impact
APPROVED TAX INCREASE/DECREASE OVER
THE PAST 6 YEARS FOR THE AVERAGE
RESIDENTIAL HOME
FISCAL
YEAR
MILL
RATE
MILL RATE
CHANGE
AVG ASSESS
OF HOME
TAX BASED
ASSESSMENT
$206,500
$5,620.93
TAX $
INC/DEC
2005/2006
27.22
2006/2007
28.39
1.17
$206,500
$5,862.54
$241.61
2007/2008
28.39
0
$206,500
$5,862.54
$0.00
2008/2009
29.51
1.12
$206,500
$6,093.82
$231.28
2009/2010
29.49
-0.02
$206,500
$6,089.69
2010/2011 *
29.15
-0.34
$217,692
$6,345.72
2011/2012
29.99
0.84
$217,692
$6,508.99
* REVALUATION YEAR
6 year average increase in taxes - $148.01
($4.13)
$256.04
$163.27
CONCLUSION
Sustainability is the key to any financial plan – Can
the investments we make today be sustained over time
knowing what we know about the current and upcoming
financial concerns? It is not just “I can absorb a tax
increase this year to improve a desired program”, it is
“can you absorb a tax increase, in an increasing
amount, over a prolonged period of time, to
maintain/improve a program?” That is the budget
realities of our economic times, made only more of a
reality by current actions at the State and Federal
levels.
Budget Schedule: Important Upcoming Dates
February 17, 2011 (Thursday)
Capital Budget Public Hearing – Council Room – 7:30 p.m.
March 8, 2011 (Thursday)
Manager convenes joint meeting between Council and
Board of Education (by April 11 per Charter requirement) –
Council Room – 7:00 p.m.
March 15, 2011 (Tuesday)
Manager submits Budget to Council (by March 27 per Charter
requirement)
March 17, 2011 (Thursday)
Advertise Public Hearing
March 17, 2011 (Thursday)
March 22, 2011 (Tuesday)
Mgr. discusses Budget w/Council–Council Room – 7:30 p.m.
Mgr. discusses Budget w/Council–Council Room – Immediately
following regular Town Council meeting.
Mgr. discusses Budget w/Council–Council Room – 7:30 p.m.
March 23, 2011 (Wednesday)
March 29, 2011 (Tuesday)
PUBLIC HEARING on Manager’s Recommended Budget: Board
of Education, Town Government, Capital Improvement Plan –
Tolland High School Auditorium – 7:30 p.m.
April 5, 2011 (Tuesday)
Council Discussion – Budget finalized – Council Room – 7:30 p.m.
April 14, 2011 (Thursday)
Advertise Budget
April 26, 2011 (Tuesday)
ANNUAL BUDGET PRESENTATION MEETING – Tolland High School
Auditorium – 7:30 p.m.
May 3, 2011 (Tuesday)
Annual Budget Referendum
By May 12, 2011 (Thursday)
Council to establish mill rate upon referendum adoption