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03/31/2018 10:56 AMOn Tuesday, April 3, North Branford town management and school leaders will give an overview of their parts of the proposed $52.64 million 2018-19 town budget, followed by a public hearing on the budget convened by the Town Council. The special meeting of the Town Council and public hearing is set for 8 p.m. April 3 in the cafeteria at North Branford Intermediate School (NBIS).
The budget includes a $32.38 million request from the Board of Education (BOE) to run the town's schools and meet contractual and other obligations; an increase of 4.48 percent over current the school budget. The municipal side of the budget seeks $15.35 million, an increase of 3.18 percent year-to-year.
As proposed, the 2018-19 budget carries a proposed mill rate increase of 1.46 mills, raising the current 33.51 mill rate to 34.97 mills. North Branford's mill rate increase last year (2017-18) totaled 1.53 mills.
North Branford continues to rely on generating budget revenue from taxation, with an estimated collection rate of 98.7 percent from the Grand List. The town's Grand List saw a small positive gain this year (Oct. 2017 net taxable Grand List), coming in at $1,247,996,912, an annual increase of .87 percent or $317,403 in additional revenue.
Additional funding to help offset the tax impact of a mill increase includes borrowing from the town's general fund balance. During last year's state budget uncertainties, the town directed $750,000 from the general fund to offset mill rate increases. This year, Town Manager Michael Paulhus is recommending $350,000 borrowed from the general fund to offset taxes; with another $400,000 borrowed to help fund much-needed capital improvements.
SCHOOLS' REQUEST
The proposed BOE $32,386,538 operating budget includes a request of new certified teaching positions equaling 4.2 Full Time Equivalent (FTE) while incorporating the reduction of the equivalent of 2.6 FTE existing certified teaching positions, for a net increase request of 1.6 FET certified staff.
The BOE budget also calls for one new pre-K paraprofessional and upgrading four existing paraprofessionals to behavior technicians.
Fixed costs in the schools' budget includes salaries of $754,313 and health insurance at $313,646. Also adding to the increase: $342,341 for costs adjustments in professional services, utilities, transportation and outside tuition.
The BOE also submitted a capital budget request totaling $389,280. Included in the request: $40,000 for design work to develop a construction estimate for a North Branford High School (NBHS) "renovate-as -new" project, including new heaters for two gyms ($25,000 previously funded). The BOE capital breakout also requested $220,000 for replacement of heat/cool ventilators at NBHS and Totoket Valley Elementary School, $48,000 for North Branford auditorium brick waterproofing, $59,280 for asbestos abatement at NBHS and $22,000 to replace a district facilities pick-up truck.
But with a critical need to undertake several townwide capital projects, the proposed 2018-19 Town Budget submitted by Paulhus scales back the school capital budget plan to include only two projects, $22,000 for a replacement pick-up truck and $48,000 for auditorium brick waterproofing. Both are earmarked for funding by state aid municipal project grant monies.
CALLING FOR MORE CAPITAL FUNDING, TOWN-WIDE
With the 2018-19 proposed Town Budget, Paulhus is requesting a significant increase in capital funding -- approximately $1.2 million. That includes funding some projects with $830,000 from tax revenue, others using $400,000 from the general fund, and additional funding anticipated with $295,000 in town aid, $297,775 in state municipal project grant funding, and $110,000 in state LOCIP funding (local capital improvement program).
Paulhaus said the proposal addresses critically-needed capital fund investments to replace aging town equipment, vehicle and facility needs, and underwrite system infrastructure needs.
Saying the "lifecycle of our town roads has been stretched to its limits," Paulhus noted the capital fund request would also support a much needed road improvement plan, with $250,000 for chip sealing and $250,000 for pavement overlay among other costs.
Additionally, proposed signifcant capital spending in the budget calls for $125,000 for the 2020 Grand List revaluation, $250,000 for fire equipment reserve, $250,000 for Public Works equipment reserve and $80,500 for police vehicles.
Paulhus identified Public Works, Police and Fire as departments most heavily in need of a replacement plan for aging facilities (projects have been deferred in the past) and upkeep and replacement vehicles supporting town services.
The $1.2 million bottom proposed by Paulhus includes funding two BOE capital budget requests for total of $70,000. The two school district projects, earmarked in the capital budget to be funded by state aid municipal project grant monies include $22,000 for a replacement pick-up truck and $48,000 for auditorium brick waterproofing.
BUDGET CONSIDERATIONS
Paulhus describes the municipal side of the 2018-19 budget as "very lean" while also responding to town and capital improvement needs.
"This budget is about funding obligations and addressing the department's needs," he said his Proposed Budget overview memo, issued March 13. "It is a very lean budget stretching the limits of service. However, the proposal for investment in capital, if funded, would be a significant step toward more efficient services."
Paulhus also listed for consideration several department requests which were brought to his attention as significant to operation needs for their respective departments, but not funded in the proposed budget. To free up money for proposed capital improvement funding, the proposed budget doesn't fund a request to add four police officers (a cost of $445,275 excluding medical benefits). The Recreation Dept. requested additional funds for park maintenance and equipment rentals to meet demands which require the replacement of equipment and increased service contracts. Paulhus also noted the budget does not fund a Public Works request to create a "Superintendent" position at Public Works.
"Currently, the department is run without a second in command as a non-union management position," Paulhus noted. "The request [was] not funded given the level of increase in the overall budget from obligations. The request would add $109,653 if funded. However, the department has requested two laborer positions to be funded as part of the re-structuring effort."
The town's municipal departments have fixed budget costs totaling $732,000 for contractual wage increases, health insurance and pension contributions.
North Branford's debt service (bond repayment) schedule requires a budgeted $4,070,376 for principal and interest payments in the 2018-19 fiscal year. That figure is expected to remain "consistent" in the coming years, given the Capital Improvement Plan the town has adopted, said Paulhus. In 2017-18, the town's debt obligation payout was $4,289,220.
Following the April 3 Special Meeting and public hearing, the Town Council will convene for budget workshops scheduled for April 4 and 5 with the possibility of finalizing and voting on a recommended budget taking place at either session. The council will also approve the annual Budget Advisory Referendum question at that time, which will be put to a vote on the second Tuesday in May, by Town Charter.
Polls will be open on Tues. May 8 from noon – 8 p.m. for registered voters to answer the recommended budget referendum question in one of three ways: by either voting the budget is acceptable; by rejecting it for being too high, or by rejecting it for being too low. By Town Charter, at least 15 percent of the electorate needs to turn out for referendum question voting results to be effective as a recommendation to the Town Council.