After a public hearing and two lengthy workshop meetings, on March 12 the Board of Finance (BOF) voted to move the proposed fiscal year 2018-’19 budget forward to town meeting and then referendum with a $500,000 cut to the overall operating budget. The cut is to be split evenly between the town and Board of Education (BOE) budget.

With the reduction in place, the total budget comes to $97,460,807, a budget increase of 2.39 percent. The town budget is $29,466,978, an increase of 2.82 percent, and the BOE budget is $59,497,175, an increase of 1.44 percent, after a $250,000 reduction to each operating budget. The total debt service cannot be reduced and is included in the total town budget at $8,496,654, an increase of $617,620 or 7.84 percent.

On Feb. 6, the Board of Selectmen (BOS) approved the initial proposed, combined town and BOE operating budget for fiscal year 2018-’19 of $97,960,807, an increase of $2,772,638 or 2.91 percent. The BOE proposal includes three bonding items rolled into one bonding question for HVAC upgrades at the schools.

At the BOF workshop in March 12, many board members commented that the town and BOE presented conservative budgets with very little fat but due to the current economic climate, further cuts were required.

“I think the budgets are outstanding and I wish times were different…All in all I think the budget is fair, just at this time I don’t think it is affordable and there are a lot of Guilford residents who are feeling the pinch,” said BOF member Veronica Wallace. “I think this year for a little bit we have to kick the can down the road and unfortunately I have to agree that a $500,000 is probably appropriate. That would put us more in line with the cost of living.”

BOF member Jonathan Trotta said he wanted to see deeper cuts than $500,000. He said he would like to see a total reduction of roughly $1,571,000 to be split into a $425,000 reduction to both operating budgets and an additional offset from the undesignated fund balance to the pension line.

“I just don’t feel that these decreases are going far enough to change the trajectory that we are on,” he said.

Since the town now has a healthy rainy day fund, the BOF has started to have some conversations about what some of the money could be used for in town. However, First Selectman Matt Hoey said he would not support using the money to offset the pension contribution because that means the town would start the next year in the hole because the contribution was paid with a one-time funding source.

“That is a fool’s errand because the next year you will be looking for ‘x’ to fill the hole,” he said. “This board is not in favor of using it to offset budgetary increases.”

Wallace said she wouldn’t want to see the BOF go any further that $500,000 at this point because deeper cuts will start to affect services in town. BOF member Ken MacKenzie said he does not support the budget and wanted to see the town look at several different areas to make structural changes to save money.

“If the public comes back and wants cuts, I think we could save a meaningful amount of money through some head count reductions,” he said. “…I would like to see us just once put a budget out there that we have to work to get to. We have been overtaxing people for years.”

The budget passed 5-1 with Ken MacKenzie casting the dissenting vote. Trotta said despite wanting a deeper cut, he supports the budget because it does have some reductions.

The BOF does not have the authority to direct the BOE as to where to make the cuts in its budget. The BOF can direct the BOS on the cuts, but elected not to do so. Both boards will now have to decide where to make the reductions in their respective budgets.

In addition, the BOF approved a total bond request of $3,650,000 for the BOE for HVAC projects at Baldwin Middle School and Melissa Jones Elementary School by a 5-1 vote. According to the BOE, the HVAC projects are urgent.

“The projects we are asking to have approved at Baldwin and Jones are not nice to have projects—they are projects that have to be done now,” said BOE Chair Bill Bloss. “Period. The HVAC is 60 years old at Jones and it is almost that much at Baldwin. They don’t make spare parts for these components anymore. We are spending a lot of money trying to keep them going and it is time to cut the cord on them and replace them.”

The Mill Rate

Much of this year’s budget process has been dominated by trying to separate the projected mill rate increase from the operating budget increase. With the BOF reduction, the projected mill rate for the coming year is 31.30, a mill increase of 1.94 or 6.60 percent up from the current year’s mill rate of 29.36.

The major driver to the mill rate increase is the Grand List, which fell by about 3.72 percent this year down to $2.9 billion after the recent revaluation. The Grand List is broken down into real estate, personal property, and vehicles; this year the town experienced a roughly four percent drop in real estate evaluation. BOF Chair Mike Ayles said it is important to understand that the Grand List is driving a majority of the mill rate increase, but residents need to understand that just because the mill rate goes up doesn’t necessarily mean your taxes go up too.

“If the Grand List goes down four percent and your assessed value goes down four percent, it’s tax neutral,” he said. “So what we really need to focus on and what I think this board has been focusing on all along is what the revenues and expenditures are, not what the mill rate number is because in a reval year it fluctuates.”

To help residents understand their taxes in a revaluation year, the town has built a tool for residents to plug in their own assessments and find their estimated tax increase. Find the tool at www.ci.guilford.ct.us.

The annual budget meeting is set for Tuesday, April 3 at 7:30 p.m. at the Guilford Community Center, 32 Church Street.