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04/05/2023 03:24 PMBeginning with an April 6 budget workshop, North Branford’s Town Council will roll up its sleeves to address a proposed 2023-24 Town budget currently staked at $62.91 million. As proposed, the budget carries an annual increase of $4.20 million, or 9.4%. That creates a proposed mill rate of 36.7 mills, up 3.4 mills over the current rate of 33.23 mills. With one mill equal to $1,378,841, the proposed 3.4 mill rate increase equals $4,206,920.
A major factor hitting the proposed budget’s bottom line is 29.41% in new debt service (bond repayment) costs for current major projects underway in town. North Branford has tacked on $1,110,513 in new debt service this year. The total debt service expense in the proposed 2023-24 budget is $4,886,851.
The 2023-24 Town budget proposal includes $20.94 million for town government expenditures and $35.65 million for schools. The proposed $20.94 million government expense side of the budget represents an annual increase of $2.23 million or 11.94%. The schools’ proposed operating budget seeks an increase of $2.91 million or 8.91%.
During its upcoming budget workshops, the council will discuss options which may involve cutting, altering or revising proposed expenditures; and/or offering revenue alternatives, such as further dipping into the general fund balance, to help draw down the proposed bottom line.
Once determined, the Town Council-recommended 2023-24 Town budget and mill rate will be the subject of the annual budget referendum question vote, set for May 9; followed by a final budget adoption vote of the council. The new fiscal year begins July 1, 2023.
A main source of budget revenue comes from the Grand List, which had an increase this year of 1.72% or $777,300. It’s a big drop from last year, when, due to inflated motor vehicle values, North Branford’s Grand List increased by 3.17%.
On April 4, the council held a public hearing on the proposed budget, following presentations by Town Manager Michael Downes and Superintendent of Schools Scott Schoonmaker.
Approximately 50 attended the 8 p.m. hearing in the cafeteria at North Branford Intermediate School (NBIS). The council heard from six residents during the public hearing. Four asked the council to support Parks and Recreation’s request to renovate and reopen the girls softball field at Northford Park. Resident Liz Hoskins asked the council to support the BOE budget as proposed. Resident Cliff Potter voiced his appreciation for the time, effort, thought and dedication the council puts in to create outcomes in the best interests of the town.
Mayor Jeffrey Macmillen said the council has its work cut out for it when it comes to finalizing the 2023-24 Town of North Branford budget.
“This year we will see an increase, but we are going to work very hard to find the right cuts -- not just to make cuts, but the right cuts that will make sense for our town, for our townspeople, the children and [all] the departments that keep this town running,” said Macmillen.
Discussing the Budget
Both budgets are saddled with some fixed costs. On the government side, the substantial debt service increase is largely due to major infrastructure projects underway to build the new North Branford High School (NBHS) and the new North Branford Police Department and Emergency Operations Center. Other newly bonded projects include roof projects at the intermediate school and Stanley T. Williams Community Center.
As previously reported, additional new projects, programs and items will be underwritten using money allocated from North Branford’s $4,186,516.99 pandemic-based American Rescue Plan Act (ARPA) funds. Approximately $1 million in ARPA funds remain for future designation decisions.
Downes noted municipalities nationwide are also facing unwelcome cost increases due to the current economy. He listed inflation, increased costs of materials, supplies and services, skyrocketing costs for employee benefits, insurance, gas, diesel, heating oil, propane and electricity, among some of those cost increase factors.
One result is the cost for disposal of solid municipal waste, up $32,000 as the Town enters the third year of a five-year contract. Municipal employee health care and insurance costs have increased by roughly 8%. Property and causality insurance premium expenses are also rising due to new vehicles and new buildings coming on line.
Additionally, at the state level, there’s the uncertainty of outcomes of the state budget process, policy decisions and unfunded mandates. Revenue from the state accounts for 11.3% of North Branford’s town and education budget combined. This year, North Branford is anticipated to receive $7,112,086 in Educational Cost Sharing grant funding from the state, an annual decrease of $219,239.
Downes presented the proposed $20.94 million government expenditure side of the budget. Of the $20,948,312 total, 11% provides for general government ($2,316,746), 36.70% for public safety ($7,696,637), 21% for public works ($4,406,124), 8.80% for culture and recreation ($1,848,528), 1.57% for health and welfare ($329,628), 2.28% for development and conservation ($478,356), 18.22% for benefits and insurance ($3,817,293), and 0.26% for operating transfers ($55,000).
General government personnel requests proposed by Downes include one new police officer (reduced from the department’s request for two new officers), one new highway crew member for Public Works (reduced from the department’s request for two new crew members), and a new full-time Assistant Town Manager position (funded by rolling together the former vacant part-time position of Economic Development Supervisor and the funding appropriated for utilizing Human Resources consultants). Downes reduced department capital project requests totaling $6,341,804 by $4,452,500, resulting in a proposed capital expense request of $1,889,304.
Schoonmaker shared a summary of the BOE-recommended $35,653,355 proposed operating budget for the school district.
Within the proposed school operations budget are $2,917,641 in increased costs. As previously reported, the greatest cost increase is due to the new, 3-year teachers' contract, which locks in the largest salary increases provided to teachers in over a dozen years. For all staff salaries next year, the schools budget requires an increase of $1,187,707; as well as a $473,078 increase for benefits. It seeks $680,760 to replace extinguished special funding; and $576,094 for all other increases (transportation, professional services, supplies and utilities).
Schoonmaker also outlined specific new personnel requests of one new NBHS business teacher and one new custodian; and two track and field coaches and two assistant coaches (NBIS).
The BOE’s proposed capital budget is $936,500.
In discussing the impact of the cost of the new high school to the taxpayer, Schoonmaker noted the total project budget of $70,331,996 will boil down to a Town cost of $59 million after 43.93% state reimbursement of total eligible costs. For a resident with an assessed home value of $280,000 ($400,000 fair market value) the average tax cost share for the project will be $494 annually, over the life of the debt.
While student enrollment is down slightly from 1557 last year to 1549 this year, Schoonmaker said the number of new residence construction projects in town is an encouraging sign; and the district anticipates enrollment to increase in the coming years.
Following both presentations, Macmillen thanked Downes, Finance Director Anthony Esposito, Town department heads, Schoonmaker, his department and the BOE for the work undertaken to generate and present the proposed government and schools budgets.
“We are not two entities, we are one entity,” Macmillen also noted. “We’re one entity, paying for the betterment of this town. It’s something we want to do right.”
North Branford Town Council’s first budget workshop is set for Thursday, April 6, 7 p.m. at at Town Hall, 909 Foxon Road.