042611-Town-Councils-Budget-Presentation

Transcript 042611-Town-Councils-Budget-Presentation

TOWN OF TOLLAND

Town Council’s Annual Budget Presentation April 26, 2011 and April 27, 2011 – Senior Center

FY 2011-2012 OPERATING AND CAPITAL BUDGET

Town Charter, § C9-9 - Annual Budget Presentation Prior to the Annual Budget Referendum, the Town Council shall arrange for an Annual Budget Presentation to be held no later than one week prior to the Annual Budget Referendum……At the Annual Budget Presentation, the Council will present the Budget to be voted upon at the Annual Budget Referendum.

Prior to such referendum the Council shall have no authority to modify the Budget from that presented at the Annual Budget Presentation. The Annual Budget Presentation is intended to provide information and encourage public discussion, and is in addition to prior public hearings relating to the development of the Budget at which public hearings, public comment and participation is encouraged.

Budget Schedule: Important Upcoming Dates

February 17, 2011 (Thursday) March 8, 2011 (Thursday) March 15, 2011 (Tuesday) March 17, 2011 (Thursday) March 17, 2011 (Thursday) March 22, 2011 (Tuesday) March 23, 2011 (Wednesday) March 29, 2011 (Tuesday) April 5, 2011 (Tuesday) April 14, 2011 (Thursday) April 26, 2011 (Tuesday) May 3, 2011 (Tuesday) By May 12, 2011 (Thursday) Capital Budget Public Hearing – Council Room – 7:30 p.m. Manager convenes joint meeting between Council and Board of Education (by April 11 per Charter requirement) – Council Room – 7:00 p.m. Manager submits Budget to Council (by March 27 per Charter requirement) Advertise Public Hearing 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. PUBLIC HEARING on Manager’s Recommended Budget: Board of Education, Town Government, Capital Improvement Plan – Tolland High School Auditorium – 7:30 p.m. Council Discussion – Budget finalized – Council Room – 7:30 p.m. Advertise Budget ANNUAL BUDGET PRESENTATION MEETING – Tolland High School Auditorium – 7:30 p.m. Annual Budget Referendum Council to establish mill rate upon referendum adoption 3

BUDGET MEETINGS TO DATE

Joint Meeting Between Town Council and Board of Education:

February 10, 2011 (Fire Training Center)

Public Hearing on Capital Budget:

February 17, 2011 (Council Chambers)

Joint Meeting Between Town Council and Board of Education:

March 8, 2011 (Council Chambers)

Special Meeting to Discuss Budget (Planning & Community Development, Law Enforcement and Public Safety):

March 17, 2011 (Council Chambers)

Special Meeting to Discuss Budget (Community Services, General Government, Town Manager/Human Resources, Insurances and Finance):

March 22, 2011 (Council Chambers)

Special Meeting to Discuss Budget (Capital Budget and Public Works & Engineering):

March 23, 2011 (Council Chambers) 4

BUDGET MEETINGS

Public Hearing on Manager’s Recommended Budget:

March 29, 2011 (Tolland High School Auditorium)

Special Town Council Meeting – Budget Finalized:

April 5, 2011 (Council Chambers)

Annual Budget Presentation Meeting:

(Tolland High School Auditorium) April 26, 2011

10. Budget Presentation (daytime) at Senior Center:

April 27, 2011, 12:30 p.m. 5

Combined Vision Statement of Community Conversation Groups

Tolland is recognized as a desirable community in which to live.

Community means a sense of shared values accompanied by the willingness to ensure the safety, well being and respect of our neighbors and neighborhoods.

The Town provides efficient and high quality services in a fiscally responsible and efficient way.

Residents’ quality of life expectations will be preserved by the Town continuing to promote a sound infrastructure and recreational opportunities and with an engaged citizenry

committed to the betterment of the entire community

encouraging a balance among open space, residential and economic development, a town budget process that expands community involvement

and a progressive educational system that meets or exceeds the challenges of a common core of knowledge.

Budget Referendum: Tuesday, May 3

“Shall the Town of Tolland’s proposed 2011-2012 budget of $51,041,662, reflecting a spending increase of $1,721,476 which is an increase of 3.49% resulting in a mill rate of 30.28 mills, be adopted? Yes/No”

PLEASE VOTE ON MAY 3

- POLLS ARE OPEN FROM 6 AM TO 8 PM

TOWN COUNCIL’S BUDGET GOAL FOR FY 11-12

Produce a budget that can be approved by a majority of voters as initially presented and meets the needs of the community THIS BUDGET WILL: Maintain and improve important services Continue to provide a quality education for our children Produce a moderate mill rate increase of under 4%

GROWTH UNCERTAINTY REVENUE 2011/2012 SUSTAINABILITY

MAJOR REVENUE CATEGORIES

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: 0 • Public School Transportation: (104,261) • Adult Education: 8 • Aid to the Blind: (0)  Municipal State and Federal Grants (132,490) 11

Changes in State Aid and Other Sources of Revenue for the Next Fiscal Year Over Current Year Revenues

 Other Non-Tax Revenue:

● ● ●

Prior year taxes: Interest, Liens & Suspense: Telecommunications Access: ● Charges for current services: ● License, Permits and Fees: ● Interest and other revenues: 50,000 30,268 2,754 6,216 (46,000) (30,855)

TOTAL DECREASE IN REVENUE: (229,868)

Summary of Available Additional Non-Tax Revenue for FY 2011/2012

Changes in Non-Tax Revenue Increased Use of Fund Balance Grand List Growth ($229,868) $30,000 $406,355 Total Revenue available excluding taxes generated by a Mill Rate increase, for 2011/2012 $206,487

TAX COLLECTION RATE

Each year an assumption is made as to the projected rate of collection as a percentage of the Grand List.

Town Manager Town Council

Rate of Collection

98.6

99.0

Total Tax Revenue

$37,807,912 $38,334,252 Additional Projected Revenue as a result of the increased rate of collection $526,340 14

TOWN OF TOLLAND, CONNECTICUT TAX RATES AND PERCENT OF LEVY COLLECTED FISCAL YR.

ENDED JUNE 30

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* *

GRAND LIST YEAR

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 ESTIMATED

MILL RATE

29.68

32.35

33.97

35.40

27.22

28.39

29.51

29.49

29.15

PERCENT OF LEVY

99.19

99.36

99.43

99.52

99.44

99.28

99.22

99.10

99.19

98.99

CONSEQUENCES OF INCREASING COLLECTION RATES

• • Should tax collection fall below historical averages, shortfalls in tax collection or other revenue sources would have to be made up from: • Freezing Expenditures Foregoing Capital Projects Use of Fund Balance Using a slightly smaller tax collection rate over the past two fiscal years the Town collected more taxes than projected, which helped to offset reductions in other revenue line items and avoided the need to use budgeted or additional fund balance. 16

2011 estimated 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

FUND BALANCE

$5,654,614 $5,884,614 $5,755,314 $5,175,165 $4,386,381 $4,336,381 $3,906,752 $3,516,564 $3,082,745 $2,521,653 $2,257,148 $2,164,504 11.19% 11.60% 11.40% 10.9% 9.1% 9.7% 9.3% 9.0% 8.2% 7.0% 7.0% 7.2% 17

Tax Revenue Needed to Fund Expenditures Identified in the Town Council’s Proposed Budget

Increased Tax Revenue $1,921,344 (3.88% increase) 18

SPENDING

EXPENDITURE SUMMARY

Category

Town Depts. Capital Expenditures

Adopted 10/11

10,622,032 266,700 Debt Service 4,622,919 Board of Education 33,808,535

Grand Total 49,320,186 Recommended 11/12

10,818,258 335,501 4,751,796 35,136,107

51,041,662 Dollar Change

196,226 68,801 128,877 1,327,572

1,721,476 Percentage Change

1.85% 25.80% 2.79% 3.93%

3.49%

Education

2011/2012 EXPENDITURES BUDGET $51,041,662

Capital Municipal Operating Debt Service 9.31% 0.66% 21.19% 68.84% Municipal Operating $10,818,258 Education $35,136,107 Debt Service $4,751,796 Capital $335,501

TOWN OPERATING BUDGET

   

Expenditure Adjustments

Savings

Negotiated changes to Town employees’ Health Insurance Plans have mitigated increases in health benefits. Whereas overall, health benefits were calculated to increase 11%, 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 October 1, 2011 at a cost of $54,444 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.” 24

 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.

A $500 increase in the Fire budget for the Explorer Program.

Town Council Additions to the Budget Recommended by the Town Manager • Town Expenditures - $15,500 to fund the following items:

– Move up the hiring date of the Assistant Public Safety Supervisor from January 1, 2012 to October 1, 2011 at a cost of $15,000.

– $500 for program materials for the Fire Explorer program.

BOARD OF EDUCATION

BOARD OF EDUCATION FUNDING AS RECOMMENDED

Board of Education Request $36,016,107 6.53% Town Manager Recommended $34,637,431 2.45% Town Council Adopted $35,136,107 3.93% 29

Board of Education Request

•

Town Manager’s budget reduced the Board of Education request but still increased their budget by 2.45% or $828,896.

•

Town Council’s adopted budget increased the Town Manager’s proposal for the Board of Education to 3.93% over 2010/2011 or an increase of $1,327,572.

Reduction to Original Board of Education Request Consist of the Following

• • •

$595,000 savings in the Health Insurance Account as a result of percentage increase adjustments. The rate of increase has been lowered from 18.66% to 11.3% primarily through adjustments in coverage for large claims and recommended by our health benefits consultants.

•

$100,000 savings in the Health Insurance Account from possible conversion of employees to the HSA insurance platform.

$95,060 savings from OPEB contributions for the next fiscal year due to adequate annual funding of our Trust Account.

$90,000 savings in special education costs due to a direct payment in the same amount from the State Board of Education.

ADJUSTMENTS TO BOE EXPENDITURE REQUEST

Source Direct Grants to BOE Reduced OPEB Contribution Insurance Rate Reduction Savings from Project HSA Conversions Town Manager Adjustments (-$90,000) (-$95,000) (-$125,000) (-$1,095,525) Town Council Adjustments (-$90,000) (-$95,000) (-$595,000) (-$100,000) 32

Tolland Public Schools

Proposed Operating Budget 2011-2012

April 26, 2011

Tolland Public Schools 2011-12 Proposed Operating Budget 2010-11 Adopted Budget 2011-12 Proposed Budget Increase in Dollars Percentage Increase $33,808,535 $35,136,107 $ 1,327,572 3.93%

Tolland Public Schools

Elements of Increase

Personnel (Salaries & Benefits) Medical insurance benefits GASB Other Post Employment Benefits Transportation Special Services Athletics (Personnel and Program) Other (Instructional Programs, Facilities Services, Support Services) Total

Increase/Decrease

$ 274,602 $ 527,468 $ 0 $ 107,797 $ 110,084 $ 172,564 $ 135,057 $ 1,327,572 3.93% 35

Tolland Public Schools

Please Remember to Vote! Annual Budget Referendum Tuesday May 3, 2011

CAPITAL EXPENDITURES

SIGNIFICANT ON-GOING PROJECTS

• • • • •

Implementation of HVAC/Geothermal improvements at the Hicks Memorial Building.

Completion of extension of sewers up Route 195 to the corner of Anthony and Baxter.

Implementation of roof improvements at Library.

Implementation of elevator at Town Hall.

Implementation of asbestos floor tile removal project at the Middle School.

FY11-12: SIGNIFICANT CAPITAL PROJECTS FUNDED BY THE GENERAL FUND Total Amount: $335,501



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: $335,501



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:

• 7 th and last payment for replacement of Engine #340 $70,000.

FY11-12: SIGNIFICANT CAPITAL PROJECTS FUNDED BY THE GENERAL FUND Total Amount: $335,501



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: $335,501



Drainage:

• Infrastructure Drainage designs for Weigold Road, Baxter Street and Sugar Hill Road systems - $50,600.



Pavement Management:

• Design and construction of the rear parking lot at the Hicks Memorial Municipal Center - $29,793.

DEBT SERVICE

TOLLAND DEBT SCHEDULE 2011-12 THROUGH 2015-16

FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 $4,751,296 $4,797,741 $4,724,537 $4,676,459 $4,691,778 % change 1.87% .97% (1.53%) (1.02%) (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%

FY 2011-12 BUDGET SUMMARY

TOTAL INCREASE IN SPENDING:

$1,721,476

AMOUNT TO BE RAISED BY TAXES REQUIRING A MILL RATE OF 30.28: INCREASE IN TAX RATE:

$38,334,252 3.88%

TAX IMPACT

Property Tax Impact of the Town Manager ’ s Recommended Budget for Three Average Assessments 2009 Assessment

$121,972

Equivalent Value

$174,246

Taxes at 29.15

$3,555

Taxes at 30.28

$3,693

Difference

$138 $196,130 $375,384 $280,186 $536,262 $5,717 $10,942 $5,939 $11,367 $222 $425 Formula to determine tax impact: Current assessment x current year mill rate (29.15) Compared against Current assessment x proposed mill rate (30.28) Difference equals tax impact 47

Click here on the tolland.org home page to access the Tax Calculation Form 48

Tax Calculation Form

FY2011/2012 Council Proposed Budget This calculator reflects the Proposed Councils Budget which can be seen in its entirety on the Town’s web page.

The final mill rate for the Town’s budget will be determined after a budget is approved at referendum which is held on May 3, 2011. Should the budget be defeated, additional referendums are held every other Tuesday until a budget is adopted.

Known: Known:

Old Mil Rate New Mil Rate

29.15

30.28

Input the Following:

(numbers ONLY, no commas or $)

(B)

Your Home's Assessed Value Your new assessed value can be located by clicking here 2009 Revaluation Data . Hard copies of your assessment information including assessment prior to revaluation are at the Town Assessor’s Office. 206500 Click to Calculate (Results Appear Below)

Results:

(Do not enter any information below this box)

Tax Information Description of Taxes

Old Taxes Due Your Assessment multiplied by 29.15, then divided by 1,000.

Proposed Taxes Due multiplied by 30.28 then divided by 1,000.

Tax Change: Description of Change $ Annual

6019.48

6252.82

$ Annual $ Monthly $ Monthly

501.63

521.07

Additional Taxes due to Budget Increase 234 20 49

What Can You As A Citizen Do Going Forward?

Become involved Be informed… • Sign-up for our E-blast newsletter on the website – tolland.org

• Like us on facebook and follow us on Twitter at Town of Tolland • Volunteer for town boards/commissions ◦ Board of Building Appeals ◦ Permanent Celebration Committee ◦ Tolland Economic & Community Development Corporation 50

◦ Tolland Energy Task Force ◦ Tolland Non-Profit Housing Corp.

• Submit suggestions, questions or comments via the town’s website; a new interactive suggestion/comment box will become active soon on the homepage through which citizens can submit an inquiry and then view the Town’s posted response 51

ANNUAL BUDGET REFERENDUM IS TUESDAY, MAY 3 - POLLS ARE OPEN FROM 6:00 AM TO 8:00 PM

Tolland Has Two Polling Places: Voting District #1: votes at the Hicks Memorial Municipal Center (town hall) at 21 Tolland Green (located at the intersection of Route 195 and Old Post Road) in the gymnasium. Parking is available in the main parking lot off of Old Post Road.

Voting District #2: votes at Tolland Senior Center at 674 Tolland Stage Road. Parking is available.

You may direct questions regarding your voting district to any of the following offices:

Registrars of Voters - (860) 871-3634 Town Clerk’s Office – (860) 871-3630 Town Manager’s Office – (860) 871-3600 52

Budget Referendum: Tuesday, May 3

“Shall the Town of Tolland’s proposed 2011-2012 budget of $51,041,662, reflecting a spending increase of $1,721,476 which is an increase of 3.49% resulting in a mill rate of 30.28 mills, be adopted? Yes/No”