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04/27/2024 10:01 AMBranford's extensive budget process continues with the Representative Town Meeting (RTM) review of the Board of Finance (BOF) recommended $135,311,096 Town budget for fiscal year 2024-2025.
The BOF budget recommendation presents a mill rate increase of 0.77 to 30.66 mills, creating a 2.58% annual tax increase. The budget includes a $66,049,110 appropriation for the Board of Education (BOE) operating and capital budget and an appropriation of $69,261,986 for all other town departments.
The RTM can’t raise the BOF-recommended budget total but does have the authority to make further reductions in appropriations. Similar to the BOF process, RTM committees hear budget presentations from individual departments, boards, and commissions, then make committee recommendations to the full RTM in the process of reaching a final budget vote. Once the RTM votes on the final budget, the BOF sets the mill rate based on the RTM-approved bottom line. Branford’s fiscal year calendar begins July 1 and ends June 30.
The BOF budget recommendation, made on April 1 by unanimous vote, represents a reduction from the $138,163,711 bottom line originally requested. One area of significant decrease enacted by the BOF dropped the BOE’s 4.75% annual budget increase request down to the 4% increase recommended by the BOF.
First Selectman Jamie Cosgrove said the BOF adjustment to the BOE budget took into consideration a strategy which allowed for reductions while supporting needs.
“The Board of Finance did end up reducing the Board of Education’s request at this stage; however there is a state statute that allows for the creation of a carry over fund at the end of the year which can be utilized for the next year,” said Cosgrove.
Cosgrove said the education board has signaled it will entertain the creation of the fund at a future BOE meeting; and that Superintendent of Schools Dr. Christopher Tranberg stated to the finance board that, while it was still early to give a hard number, he expected budget dollars left over this fiscal year to be sufficient to cover that .75% reduction. The reduction equates to $437,735 in surplus monies which the BOE would need to retain from from the current budget year. At its April 1 meeting, the BOF requested the BOE act on the fund creation before June 30.
“So in effect, we’re holding the Board of Education harmless through this,” Cosgrove said. “We’re keeping them fully intact through what their request was, and that is important because they were relying on supporting a number of programs and expenses with ESSER funds, and those are expiring, so they were facing a fiscal cliff. So this is a strategy to help them navigate through that drop in ESSER funding without negatively impacting our school system in Branford.”
Federal Elementary and Secondary School Emergency Relief (ESSER) funds were initiated in March, 2020 to be provisioned to temporarily support schools in response to the pandemic.
Cosgrove said the BOF strategy provided to the BOE reflects the importance of the fiscal long view taken by the town’s financial leadership.
“One thing the Town of Branford does really well, for which I give credit to our finance director Jim Finch and our Board of Finance, is long term-planning. We projected out what we foresee coming in with regard to what the needs are, and made a number of assumptions; one being if we can keep the Board of Education at a 4% increase, we can have manageable budgets moving forward,” said Cosgrove.
Other adjustments made by the BOF to the recommended 2024-2025 Town of Branford budget arrived through a combination of actions resulting in a reduction in expenditures, such an adjustment in terms of projected revenue, pursuing grant opportunities which may exist, or bonding.
“We also had some requests for next year which we had dollars to pay for this year; so we did those transfers,” said Cosgrove. “For instance, some IT requirements - we’ll buy the copier and computer today, rather than on July 2.”
Additionally, the BOF-recommended budget reflects Branford’s continued course of fiscal responsibility while addressing needs and remaining mindful of the impact on taxpayers, Cosgrove said.
“Given today’s environment with inflation, the Town is subject to the same pressures as individuals and businesses; but to have a 2.58% increase is reasonable because it’s also important to recognize what’s in that budget, and the needs,” said Cosgrove. “It is bringing on 16 full-time EMTs to meet the medical calls that have been escalating year after year, and that pressure that’s being put on our public safety. It’s creating two new police officer positions, and there hasn’t been an added position for police officers in a number of years. With the call volume, the mandates that are coming, and what they’re required to do to fulfill the policing duties and obligations, that has put an added burden on the department.”
Cosgrove said impacts of the upcoming revaluation also must be recognized as part of Branford’s responsible budget process.
“Next year, the town’s going to be faced with a reval. There are real concerns about the impact and the shift of that reval on residential properties,” Cosgrove said. “We are not only looking at this year, but what is a strategy long-term to be able to maintain manageable budgets and the tax impact. That is of concern. We all see what is happening with residential property values.”
The last revaluation was in 2019 and reflected pre-pandemic market values. The October 2024 revaluation will go into effect for the next year.
Branford’s Grand List includes commercial and residential properties, which are more impacted by revaluation than personal and motor vehicle properties. Cosgrove said town leadership is mindful that the burden of the increase shifts towards residential.
“It’s a challenge that’s not unique to Branford,” said Cosgrove. “In some ways, we’re fortunate to be a solid community that still attracts people so our values not only have remained, but have appreciated. But I am aware of the impact that will have.”