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04/23/2021 12:00 AMOn April 20, the Town Council voted unanimously to recommend a 2021-22 Town of North Branford budget of $55,020,430. While the bottom line represents a $1.083 million annual spending increase over last year's budget, actions taken by the council to control taxation drops the annual mill rate by 0.44 mills to 33.14 mills for the new fiscal year, which begins July 1, 2021. The town's current mill rate is 33.58 mills.
Town Finance Director Anthony Esposito assisted the council on the way to finalizing 2021-22 budget numbers which provide $17,596,097 for all Town Government operations and an operating budget of $32,435,714 for the Board of Education (BOE). Outlay for capital projects totals $1,133,000. Debt service (bond repayment) will cost $3,705,619.
Next, registered voters can come out to the polls for the Town's Budget Referendum vote on the question, "Shall the Town Council Recommended Budget of $55,020,430, which will require a mill rate of 33.14 mills, be adopted?" The vote will be held at the town's two polling places on Tuesday, May 11 from noon – 8 p.m. Voters can weigh in on whether they approve of the budget, or reject it as too high or too low. However, the results of vote will only be actionable by the Town Council if at least 15 percent of the electorate turns out at the polls. Otherwise, the budget will be adopted as recommended by the Town Council.
Whittling Down the Budget in Workshops
During a series of workshops, the council reviewed a proposed 2021-22 Town budget of $55,901,454 requiring a 0.66 mill increase for a new mill rate of 34.24 mills. Meeting with department heads and the BOE with Schools Superintendent Scott Schoonmaker, the council worked to whittle down or otherwise adjust some of the asks being made for the new fiscal year. On April 20, the council voted on final reductions to the proposed budget totaling $1,296,414.
Also on April 20, to help offset taxation, the council designated an additional $450,000 from the General Fund balance to the Town Manager's proposed amount of $350,000; making a total of $800,000 available for the 2021-22 budget.
"If our [tax] revenues are higher than expected and expenses are lower, we might not use all of $800,000," said councilor Rose Marie Angeloni, when making the motion for the $450,000 increase on April 20.
At the minimum, the Town maintains its General Fund balance at a level matching at least 10 percent of the following year's anticipated budget expenditures. The council's practice has been to exceed that percentage, such as maintaining the balance at 17.69 percent in 2020.
"As a council we've been very conservative and watched that number to make sure it stayed healthy for us," said Angeloni.
Bond rating agencies look at a town's General Fund balance as a factor in determining its rating. North Branford has continued to be rated Aa2 by Moody's Investor Services and most recently received an AA+ rating from Standard & Poor's.
While receiving support from the General Fund, the lion's share of budget revenue will come from taxation. Remaining budget revenue will be generated from state grants, licenses, services, fees, etc.
The recommended budget calls for collecting $44,104,603 in property taxes, based on a tax collection rate of 98.5% from the Oct. 1, 2020 net taxable Grand List, which totals $1,329,079,224. The Grand List is compiled using a 70 percent assessment of all taxable property in town. North Branford's Grand List experienced an annual increase of just over 4 percent in 2020.
Changes to BOE, Town Proposed Budgets
While the BOE had requested $33,130,121 for the new fiscal year, the council recognized that the school district will benefit from outside funding sources including some new federal monies being provided to assist schools in recovering from the impacts of the pandemic. With a motion made by councilman Ron Pelliccia, the council voted April 20 to keep the BOE budget flat at $32,435,714; with no annual increase.
By state statute, the Town Council can only enact a lump sum adjustment to the BOE budget. The BOE then decides where to make any needed financial changes or adjustments. In her school budget transmission letter to the Town, BOE chair Shawna Papa-Holzer explained the district's requested 2.14 percent increase in annual spending accounted for covering three positions (instructional coach, instructional paraprofessional and inclusion professional) all previously funded by a School Improvement Grant which ends in June 2021. The percentage increase also supported one new Life Skills teaching position added due to increased enrollment, and provided $8,000 for a Dean of Students stipend for each of the town's schools ($2,000 per school); a previously unpaid supervisory position. The BOE also submitted a capital budget of $102,734 which was accepted by the Town Council.
On the Town side, the $17,637,714 operating budget presented by Town Manager Michael Paulhus remained largely intact. Paulhus sought a $1.35 million increase over last year's budget with $710,000 of that increase needed for fixed costs (contractual wage increases, health insurance and refuse removal). Combined with anticipated flat municipal aid, the Town side of budget had little room for discretionary funding, Paulhus noted in his annual budget letter.
Key budget considerations included requesting additional funds to cover new lease agreements with three fire companies that own their own buildings, bringing in an arborist to replace utilizing an outside contractor for Public Works, and restoring a Central Services part-time secretary back to full-time; based with three major capital projects on the horizon as well as the need for support within the Central Services and Social Services departments, Paulhus noted. As previously reported, in the new fiscal year, the Town will be bonding $81.925 million for a new high school, police station and emergency services communications center (the town will be reimbursed $29,100,282 from the state for $66.24 million high school project).
With regard to fixed costs, the Town budgeted for a 39 percent increase in refuse removal costs, due to new costs being experienced by municipalities for services including bulk pickup/volume fees and the cost to recycle; a 4 percent health care insurance increase required on the state partnership plan and a 4.59 percent increase on the Teamsters medical plan.
Additionally, the Town budgeted for increased legal costs in anticipation of labor contract negotiations in the new fiscal year.
Faced with hitting limits on some deferred projects for infrastructure including road work, facility maintenance and vehicle upkeep and replacement programs, Paulhus also recommended continuing the practice of using 1 mill in capital funding from taxation, or approximately $1.309 million, to allow the Town to develop a long-term plan for replacing equipment in departments including Public Works, Police and Fire, as well as reviving the town's road improvement plan.
On April 20, as part of its move to increase General Fund monies by $450,000, the council voted to designate $50,000 of it to increase funding for some requested Public Works projects; thereby increasing the proposed budget request from $12,500 to $62,500. Additionally, the council addressed financing the Public Works pavement overlay project by directing $100,000 from the General Fund to help defray the total cost of $400,000.
The Town Council also supported a Town budget request for one new full time position, budgeting $61,413 for a new supervisor reporting to the Public Works Director. The new post has a January 1, 2022 start date.
The council also followed Angeloni's recommendation to deny changing the part-time (25-hour weekly) Central Services purchasing secretary position to full-time. The decision was based on an open part-time secretarial position in the Parks and Recreation Commission budget which could be tweaked to provide some hours as a support position across departments.
On April 20, the council also repaired a $17,247 error in calculation in the Police department secretary budget which erroneously included a 15 percent wage increase with benefits. Additionally, the council closed the Town's Self Insurance Savings Account (due to all claims being paid out), and transferred the budgeted $50,000 to go toward Other Post-Employment Benefits (OPEB) contributions.
The council also examined a requested $195,000 expense under Debt Services which had been submitted as a savings account place holder for interest on anticipated debt issuance for upcoming major projects. Noting the council removed all $140,000 proposed in 2020-21 for the debt service savings account to help reduce the mill rate last year, Angeloni said reducing the 2021-22 budgeted number of $195,000 by $45,000 would help to reduce the mill rate in the new budget year, while still adequately funding the account. The council voted unanimously to reduce the proposed debt services savings account from $195,000 to $150,000.
Angeloni's proposal to decrease the Ambulance Contractual Services account by $50,000 was also passed by the council on April 20. While the town's ambulance service, started several years ago, continues to provide 100 percent of service, the account has run in the red since inception. Combined with a decrease in calls in the past year, proposed budgeted funding for the account was "...increased dramatically to try and make up that shortfall," said Angeloni. She also noted that decreasing the account by $50,000 still provides for a $25,000 increase in funding over last year.
Angeloni also said the Town can continue to add to the account each year, "... until we get to a point when we're in the black. We're working toward that."