042611-Town-Councils-Budget-Presentation

Report
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
1
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.
2
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
3
BUDGET MEETINGS TO DATE
1. Joint Meeting Between Town Council and Board of Education:
February 10, 2011 (Fire Training Center)
2. Public Hearing on Capital Budget: February 17, 2011 (Council
Chambers)
3. Joint Meeting Between Town Council and Board of Education:
March 8, 2011 (Council Chambers)
4. Special Meeting to Discuss Budget (Planning & Community
Development, Law Enforcement and Public Safety): March 17,
2011 (Council Chambers)
5. Special Meeting to Discuss Budget (Community Services,
General Government, Town Manager/Human Resources,
Insurances and Finance): March 22, 2011 (Council Chambers)
6. Special Meeting to Discuss Budget (Capital Budget and Public
Works & Engineering): March 23, 2011 (Council Chambers)
4
BUDGET MEETINGS
7.
Public Hearing on Manager’s Recommended Budget:
March 29, 2011 (Tolland High School Auditorium)
8.
Special Town Council Meeting – Budget Finalized:
April 5, 2011 (Council Chambers)
9.
Annual Budget Presentation Meeting: April 26, 2011
(Tolland High School Auditorium)
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.
6
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 3rd - POLLS
ARE OPEN FROM 6 AM TO 8 PM
7
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%
8
GROWTH
UNCERTAINTY
REVENUE
2011/2012 SUSTAINABILITY
9
MAJOR REVENUE
CATEGORIES
10
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)
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:
TOTAL DECREASE IN REVENUE:
50,000
30,268
2,754
6,216
(46,000)
(30,855)
(229,868)
12
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
13
TAX COLLECTION RATE
Each year an assumption is made as to the
projected rate of collection as a percentage of the
Grand List.
Rate of
Collection
Total Tax
Revenue
Town Manager
98.6
$37,807,912
Town Council
99.0
$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
GRAND
LIST
YEAR
MILL
RATE
PERCENT
OF LEVY
2002
2000
29.68
99.19
2003
2001
32.35
99.36
2004
2002
33.97
99.43
2005
2003
35.40
99.52
2006
2004
27.22
99.44
2007
2005
28.39
99.28
2008
2006
28.39
99.22
2009
2007
29.51
99.10
2010
2008
29.49
99.19
2011*
2009
29.15
98.99
*
ESTIMATED
15
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
FUND BALANCE
2011 estimated
$5,654,614
11.19%
2010
2009
2008
$5,884,614
$5,755,314
$5,175,165
11.60%
11.40%
10.9%
2007
$4,386,381
9.1%
2006
2005
$4,336,381
$3,906,752
9.7%
9.3%
2004
2003
2002
$3,516,564
$3,082,745
$2,521,653
9.0%
8.2%
7.0%
2001
2000
$2,257,148
$2,164,504
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
19
EXPENDITURE SUMMARY
Category
Adopted
10/11
Town Depts. 10,622,032
Recommended
11/12
Dollar
Change
Percentage
Change
10,818,258
196,226
1.85%
Capital
Expenditures
266,700
335,501
68,801
25.80%
Debt Service
4,622,919
4,751,796
128,877
2.79%
Board of
Education
33,808,535
35,136,107
1,327,572
3.93%
Grand Total 49,320,186
51,041,662
1,721,476
3.49%
20
2011/2012 EXPENDITURES BUDGET
$51,041,662
Capital
Municipal Operating
Debt Service
0.66%
9.31%
Education
21.19%
68.84%
Municipal Operating
$10,818,258
Education
$35,136,107
Debt Service
$4,751,796
Capital
$335,501
21
TOWN OPERATING BUDGET
22
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
23
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%.
25

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.
26
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.
27
BOARD OF EDUCATION
28
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.
30
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.
31
ADJUSTMENTS TO BOE EXPENDITURE REQUEST
Source
Town Manager
Adjustments
Town Council
Adjustments
Direct Grants to BOE
(-$90,000)
(-$90,000)
Reduced OPEB Contribution
(-$95,000)
(-$95,000)
(-$125,000)
(-$595,000)
(-$1,095,525)
(-$100,000)
Insurance Rate Reduction
Savings from Project HSA
Conversions
32
Tolland Public Schools
Proposed Operating Budget 2011-2012
April 26, 2011
33
Tolland Public Schools
2011-12 Proposed Operating Budget
2010-11 Adopted Budget
2011-12 Proposed Budget
$33,808,535
$35,136,107
Increase in Dollars
Percentage Increase
$ 1,327,572
3.93%
34
Tolland Public Schools
Elements of Increase
Increase/Decrease
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
$
$
$
$
$
$
$
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
36
CAPITAL EXPENDITURES
37
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.
38
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.
39
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:
•
7th and last payment for replacement of Engine #340 $70,000.
40
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.
41
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.
42
DEBT SERVICE
43
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.
44
DEBT SERVICE FOR BUDGET YEAR:
$4,751,796
Debt Service Breakdown:
29%
School
Town
71%
45
FY 2011-12 BUDGET
SUMMARY
TOTAL INCREASE IN SPENDING:
AMOUNT TO BE RAISED BY TAXES
REQUIRING A MILL RATE OF 30.28:
INCREASE IN TAX RATE:
$1,721,476
$38,334,252
3.88%
46
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 30.28
Difference
$121,972
$174,246
$3,555
$3,693
$138
$196,130
$280,186
$5,717
$5,939
$222
$375,384
$536,262
$10,942
$11,367
$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:
Old Mil Rate
29.15
Known:
New Mil Rate
30.28
Input the Following: (numbers ONLY, no commas or $)
(B) Your Home's Assessed Value
206500
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.
Click to Calculate
(Results Appear Below)
Results: (Do not enter any information below this box)
Tax Information
Description of Taxes
$ Annual
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.
$ Monthly
6 0 1 9 .4 8
5 0 1 .6 3
6 2 5 2 .8 2
5 2 1 .0 7
Tax Change:
Description of Change
Additional Taxes due to Budget Increase
$ Annual
234
$ Monthly
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”
~
PLEASE VOTE ON MAY 3rd - POLLS
ARE OPEN FROM 6 AM TO 8 PM
53

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