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04/07/2016 02:42 PMAfter weeks of budget workshops, the nine-member Town Council went back into last night's budget deliberations and slashed $1 million in education spending; on the heels of Tuesday's April 5 Town Budget public hearing, attended by about 70 residents. See news of the Town Council's April 6 changes to the Town Budget, which decreased a proposed seven percent mill rate increase down to 2.89 percent, here
Of the ten residents who spoke during the Public Hearing on April 5, five made a case for cutting spending and keeping taxes low at a time when salaries are flat and fixed incomes are being drilled into by health care increases, higher state taxes and other costs. A general sentiment shared by several speakers on April 5 was the desire to see the Town Council work harder to ensure the town generates a "big picture" plan for economic growth to help take away the tax burden.
At the time of the hearing, the proposed Town Budget carried a bottom line of $51.3 million; with the lion's share (60 percent) for schools. As it stood, the budget would have delivered a 6.89 percent tax increase and 2.17 mill rate bump (to 33.25 mills). The Town Council went into the budget season facing a Grand List revenue loss of $1 million next year, due to downward trending property revaluations. The town also needs to cover an additional $248,600 in debt spending next year; as the first payment of a new $5 million bonding issue taken on in 2015 for road infrastructure improvements.
With regard to the dropping Grand List and the proposed mill increase impact, Town Manager Michael Paulhus showed a chart on April 5 illustrating a Colonial home valued on the 2015 Grand List at $241,850 and a Raised Ranch valued at $192,700. Before the revaluation, both homes were assessed at a higher rate (Grand List 2014); the Colonial at $251,850 and the Raised Ranch at $199,500. Last year's mill rate of 31.08 created at $7,827 tax bill for the Colonial and a $6,200 tax bill for the Raised Ranch. With the proposed 2.17 mill increase, the Colonial's property tax would have increased by $214 and taxes on the Raised Ranch would go up by $204.
Deputy Mayor Joseph Faughnan pointed out that the Grand List's downward trend would help to somewhat lessen the impact of the proposed 2.17 mill increase on many taxpayers.
"The tax increase in this particular budget year, because of the revaluation results in town that resulted in a million less in property values, that is a balance that people should understand," said Faughnan. "Yes, we're looking at a potential two mill increase: however, the likelihood is their home is assessed less than it was in the prior year. So that's an important point for people to understand."
Speaking later in the evening, resident Gary Cuozzo disagreed with that philosophy.
"Somebody said this isn't really an increase because we're rebalancing because the property values (on the) Grand list dropped. Well, it is an increase," said Cuozzo. "When the property values back in 2005 – '06 were going through the roof, I don't remember my mill rate dropping. And now I'm being told this is just because we have the rebates through the Grand List being down. Well I don't really buy it. If they went back up, are we going to drop the mill rate? I'm guessing that that's not going to happen."
Cuozzo also pointed out that income levels are not rising to meet the increase tax demands hitting residents in the form of rising town, state, federal and other taxes.
"When people are watching at best their salaries stay the same; and you're going to take another $200 away or another $300; keep in mind it's on top of (other) tax increases, "Cuozzo said. "It's not any easy thing to deal with; and the people are exiting -- the 'For Sale' signs prove it."
With a son in the town's school system, Cuozzo said, "I'm not saying education isn't important (but) we have to be realistic... (that's) a lot of money to be spending."
Cuozzo, a member of the CT Leadership Council for the National Federation of Independent Businesses, said the state is scrambling to cover a huge budget deficit while the tax base is drying up as more and more companies move away.
"The solution is we have to start planning the budget," he said. "Put a cap on things, start trending down – we have to start going in the other direction and we have to plan that (otherwise) when the state pulls all its funds, you'll have a catastrophic budget problem."
BOE Director of Curriculum/Instruction Sarah Querfeld presented the school districts' requested $1.4 million expenditure increases and "unknowns" (including kindergarten enrollment, attrition, retirements, resignations, Title One grant money) factoring into this year's BOE budget. The largest increase is contractual, with the teachers' contract and other certified salary changes adding $534,809 to the bottom line.
"The teachers' contract is in the third year of an arbitrated award, where the teachers won," noted Querfeld. "They received step increments, which is costly, and also money on top of steps; and additionally administrators got a 2.5 percent increase."
Non-certified school salary increases need $84,901. Health insurance expenses for the district are going up by $311,273. Outside tuitions (students placed outside the district, including those at ACES) will cost $71,658 while the schools expect oil and natural gas adjustments to cost an additional $121,598 next year.
The schools budget also sought to add three spots at New Haven's Educational Center for the Arts for qualifying incoming high school students; changing a part-time Special Education position to full-time with a salary of $42,609; bringing in a second Instructional Coach (assisting grade 6 -12 teachers) at $65,125; replacing a paraprofessional with a full-time school librarian at Jerome Harrison School (K-2) at $47,620, and $36,600 to fund a pay increase for substitute teachers to address the increased CT minimum wage and compete with surrounding districts. Another new request is $23,510 for new uniforms for high school football, boys' soccer and basketball and girls' lacrosse.
The school budget presentation also illustrated how cuts to past budgets have impacted class size and elective positions to the detriment of student learning.
Resident Roger Munck asked the Town Council to "stop spending" and suggested an "activity value analysis" to review management positions within the town's education system to assess, "...what do they do, how long do they do it, and what are we paying for it? You'll find about 80 percent of middle management in the Board of Education can disappear," said Munck. "We're paying people to do things double."
Resident Theresa Frandsen said the town needs to support the school budget so that cuts won't impact class size.
"Class sizes need to say the same; not get bigger," said Frandsen. "Kids learn better when they get more attention from teachers."
Resident Melissa Hoskins supported the BOE budget and said her son has complained of disruptions in his classroom on occasion due to teachers needing to address students who should have a paraprofessional or aide to oversee them; but do not. She noted cuts to the budget do impact class size, saying her son's third grade class size was 18 – 20 students two years ago while his fifth grade class this year has 25-26 students. She also said the schools need to keep "specials" for students, such as music, sports and theatre programs.
Resident Brandi Little agreed cutting teachers and increasing class sizes would be a mistake and Querfeld, speaking as a resident, also supported the BOE budget.
Two residents said they polled family in other towns to find that, in homes of similar size to the North Branford residents', their relatives enjoy comparable-to-better town services in North Haven and Guilford, yet pay $2,000 to $2,500 less in taxes per year. Another resident told the council how increasing costs such as health spending are eating away at her fixed $1200 monthly pension, adding that while she sympathizes with the BOE's needs, "...that's not the taxpayers problem...that's the Board of Education's problem (and) I resent the fact that we are expected to keep shelling out money, money, money."
Resident Donna Moeller said her taxes have almost doubled since 2004 and that while good school systems will attract young families to purchase homes here; the burden of supporting the schools shouldn't be on the taxpayers.
"You can't have homeowners pay more and more," she said, adding the town needs to bring in more commerce to help support the tax base.
"It's disappointing to look at other communities around and how they've expanded and are bringing in business, and still maintaining the nice charm of their communities," said Moeller. "We keep hearing North Branford is going to develop and recruit business (but) nothing is happening."
Resident Lynn Riordan said "education is everything" and she would understand if taxes need to increase for the time being; but only if there was also a plan in place to move the town forward so the burden can be lifted off residential property owners. She said she agreed more new businesses are needed here.
"I think raising taxes is going to have to take place for a little while until we come up with a plan," said Riordan. "I love this town; I'm willing to do my part, whatever it takes. Let's come up with a plan."
Riordan also thanked the Town Council and BOE for tackling the budget each year, saying "it's no fun."