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03/23/2019 09:35 AMWith some state cuts and costs as well as capital projects to consider, North Branford's starting point for annual budget deliberations begins with $55.22 million bottom line, up 5.66 percent or $2.957 million. But with $2.050 million of that increase proposed to be drawn from Town's General Revenue Fund, taxpayers would see only a 0.50 mill rate increase, up from 33.39 mills to 33.89 mills.
A public hearing on April 2, followed by Town Council budget workshops, will allow the Town Council to review and adjust the figures proposed by the town government and schools. A full budget overview presentation and public hearing on the 2019-20 Town Budget is set for Tues. April 2, at 8 p.m. in the cafeteria at North Branford Intermediate School (NBIS).Town Council budget workshops April 3 - 9 will follow to adjust, finalize and ratify a recommended budget. Voters will then be asked to weigh in on the budget during annual advisory budget referendum question vote.
The Numbers
The proposed budget (town government operations, schools, capital improvements and debt service) totals $55,226,946. The budget's proposed total ask from taxpayers next year is $42,177,244 which is up $1,152,543 for a 2.81 percent increase over last year's revenue request. In 2018-19, tax payers experienced a mill rate decrease of 0.11 mills with a zero percent tax increase.
With needed capital projects, as well as an initial state budget impact of up over $571,000 (as proposed by Governor Ned Lamont in February), Town Manager Michael Paulhus said he built a $2,957,569 million increase into the proposed budget as a starting point for the council to consider. He said the proposed one-time $2,050,000 that would be taken from the Town's General Revenue Fund falls within mandated borrowing guidelines.
"It would be calculated that safely we could take up to $2 million to use as a one-time capital purchase; not in the operating budget, but in the capital side," Paulhus told Zip06/The Sound. "It's there as a point of conversation to bring up to the council. They can decide to take that much; they could decide they're not comfortable with that much. But that's how much we could use within the rule of thumb [and] not violate our own fund policies."
The requested $2.050 million increase is currently earmarked in the 2019-20 capital budget to replace North Branford Fire Department's Tower One ($1,250,000) and to add $800,000 to the Fire-Equipment Reserve.
Proposed operating expenses for police, fire, public works, parks and recreation, town hall departments and boards and commissions requests make add up $15,619,383 for an annual increase of $172,557 or 1.12 percent.
Proposed school operating expenses, adjusted to include a possible contribution to the state Teacher Retirement fund, totals $32,419,225 which is an annual increase of $772,050 or 2.44 percent.
State Impacts
In operating expenses, Paulhus said the proposed budget builds in the possibility of being hit with a $571,742 annual cost increase, based on Governor Ned Lamont's (D) proposed state budget cuts and costs announced on Feb. 20, 2019. The governor's proposal cut North Branford's Education Cost Sharing (ECS) grant by $477,816; cut Local Capital Improvement Program (LoCIP) funding by $14,594, cut $4,179 from adult education grants and sought a Teachers Pension Contribution from the town totaling $83,511.
However, the most recent news from Hartford is those numbers may be reduced for North Branford. On March 19, Paulhus invited State Representative Vincent Candelora (R, District 86) and State Senator Christine Cohen(D, District 12) to the Town Council meeting to provide any updates on what type of impacts the Town can expect from the state budget. Cohen was unable to break away from committee work in Hartford to attend the March 19 Town Council meeting.
Candelora told the council that, while a report from the state's legislative appropriations committee won't give a clearer picture of the proposed biennial state budget until at least the first week of May; based on the discussions and tax proposals in early sessions rolling out in Hartford, the council could probably halve the governor's Feb. 20 proposed impact on North Branford for the 2019-20 fiscal year. Candelora made the comment in response to a question from Deputy Mayor Rose Marie Angeloni.
"When the governor came out with his proposal...North Branford roughly had about a $500,000 decrease in the first year. In budgetary purposes for us, is that a good number to stick with?" asked Angeloni.
"I would cut that in half, at the least; and as we go forward, I think we're going to need to do what we've been doing over the last two years – keep a dialogue going over the next few weeks to see how things are baking out," said Candelora, adding, "But quite frankly, if tax increases are imposed at the levels they're being proposed, I can't see any towns getting cut, based on this budgetary framework. Because we're looking at $4 billion in tax increases [over two years, or] $2 billion in one year, on a $20 million budget. If those go through, there's got to be a way to skin the cat without cutting towns; because it's just going to be another tax increase."
Rep. Candelora also cautioned that, although recent discussions on the state's biannual budget planning now pin a proposed Teacher Pension cost share of some $70,000 on North Branford next year; that number "accelerates quickly" the following year, asking about $250,000 from the town in 2020-21. Candelora said a "bigger dialogue" to include towns is needed at the state level on the state subject of shifting proposed Teacher Pension costs to towns.
Candelora, who is also Deputy House Republican Leader, spent some time addressing the council's questions on proposed school district regionalization. He said the regionalization discussion was only in the very beginning stages at the state level. Candelora added he felt much more needs to be addressed and considered, including putting "proper audits" in place and adding the state's big cities (New Haven, Hartford, Bridgeport) to the conversation of finding savings at the state level.
"They need to come to the table and be accountable, if that's going to continue. Of the $2 billion in education funding, small towns get very little portion of it," said Candelora,
He said the regionalization question is far from being answered.
"There's just a lot that goes into this, and I don't see this being a topic for this session at all," said Candelora.
Next Steps in North Branford's Budget Process
The Town Council, which is also the Town's Finance Board, received 2019-20 budget request overviews on March 12, and will take in more on March 26, from town government department heads and school leaders and the BOE. The council's turn to make fiscal adjustments to the proposal begins with a full budget overview presentation and public hearing on the 2019-20 Town Budget for Tues. April 2, at 8 p.m. in the cafeteria at North Branford Intermediate School (NBIS).
The council has scheduled April 3, April 4 and April 9 at 7 p.m. at Town Hall for workshops to adjust, finalize and ratify a Town Council-recommended budget, which will then be sent to the polls in May for the North Branford's annual advisory budget referendum question vote.
The budget's total ask from taxpayers next year would be $1,152,543, which equates to a half mill increase, up from. The requested $2,050,000 increase is earmarked in the capital budget to replace North Branford Fire Department's Tower One ($1,250,000) and to add $800,000 to the Fire-Equipment Reserve. In operating expenses, Town Manager Michael Paulhus said the proposed budget includes a $571,742 increase, built in to address the governor's proposed state budget cuts and costs to the Town.