Budget for 2008-2009

[cruzrt]

The Superindent of Schools is proposing a new budget that has a 7.95% increase. No, that's not a typo. This is madnesss.

[SyZyGy]

Yes, it is, or so it seems.
It's premeditated and ordained.
For better than usual Wethersfield Post article, see:
fixed costs.

[SyZyGy]

The pendulum,
an alloy of
Over-paid pedagogs,
Superfluous administrators,
Unbridled unions,
Scared, selfish parents,
Fawning, aspiring Democrats
(binding arbitration,
collective bargaining),
cuts deeper
the hapless
taxpayers
ever more.

[oldetowne]

We've probably noticed the recent articles in the Courant about other towns' grand list growth. Wethersfield has not weighed in yet. I wonder if it's due to the abysmal (or non-existent) coverage or because the town leaders are reluctant to admit to yet another paltry increase?

The "growth" this year over last was 0.63%, or about $12.6MM. At the current rate of taxation, that would be slightly over $400K in new tax revenue. It looks like the BOE has spent that several times over.

[Dr.Ken Sokolowski]

March 21, 2008

Mayor Andrew Adil
Members of the Wethersfield Town Council
Citizens and Taxpayers of Wethersfield

The proposed 2008-2009 budget certainly presented many challenges to the staff and me as we put together the following 5.53% tax increase document. We know that the national economy is in horrendous shape and that our citizens have to spend more and more money on their daily living. I aimed for a prudent budget that would allow us to keep our present services with no additional programming added, as well as allow us to continue meeting our capital needs. We have made much progress in the last few years in replacing our old and outdated fleet and repairing our buildings and roads. I do not wish to see us go backwards. This budget will allow us keep from falling behind in the progress of previous years, but does not make any major inroads into the substantial list of projects we should be undertaking to move our Town forward.

All new position and additional hour requests have been taken out of the budget. As I have done in previous years, I have attached this list to the end of this message, with my recommended priorities for these positions, so that if there are additional funds, you can place them into the budget for next year. When prioritizing, I tried to look at meeting the needs of the entire Town and what position would affect the greatest number of citizens in a positive manner. I also looked at having Town Department become more efficient and what would translate into better communications with the public.

The 5.53% tax increase consists of a 2.41% increase in the Town budget and a 7.90% increase in the Board of Education budget. This would be an increase of 2.03 in the mill rate, from 32.94 to 34.97. The average homeowner with an assessed home value of $156,188 would have to pay an additional $316.65 in taxes.

Below you will find a summary of the revenues and expenditures, and an outline of the impact the proposed budget will have on our community.

REVENUE STREAMS:

As you are aware, the Grand List rose .6341%, which will produce $413,578 in additional revenue for next year. With high increases in utilities, health care, Metropolitan District Commission (MDC) costs and other items, this amount had been spent many times over in fixed costs. State funding to municipalities will not rise from last year. Our local revenues for next year are projected to go down $603,254 due to a large drop in investment income, collection of back taxes, transfer station fees, Town Clerk recording fees and State transportation grants. Because of this, we were in a deficit position putting together a budget before we even looked at the expenditure side.

It is imperative that we work with our State legislators to allow local option taxes, such as a hotel/motel tax and/or a sales tax, so that municipalities can derive revenues from sources other than the property tax. Several bills during the current legislative session address this issue and the Council of Small Towns (COST) will be forming a committee of local leaders to submit a list of possible revenue sources to the legislators.

Our staff, under the leadership of RaeAnn Palmer is reviewing our user fees, but I feel that we have probably raised fees to the point where further increases would lead citizens to opt out of fee-based services and therefore would not raise additional revenue. There will be very small increases in our proposal to you for user fees but minimal new revenue will be produced.

I have still included an estimate for the continuance of the conveyance tax, which our legislators say will survive for next year, but do not count on it for future years.

FUND BALANCE USAGE:

One of the goals of the Town’s Strategic Plan is to maintain an 8% fund balance, which is measured by the undesignated fund balance as a percentage of the estimated revenues. We project the fund balance will be around 8% at the end of this fiscal year. I am recommending that you use $700,000 of the fund balance to reduce the budget impact on the mill rate, and to use the one time payment from CRRA of $581,000 to offset next year’s fund balance. The money from CRRA is really the taxpayers’ money, and I feel it should go back to them by offsetting the amount they have to pay in taxes next year – a rebate of sorts. The only problem with this is that it could bring us below the 8% target for fund balance. A fund balance below 8% may affect our bond ratings and we are selling bonds this year. Also, because the CRRA funds are a one time payment, next year there will be a $581,000 revenue gap in the budget which we will have to make up some other way.

EXPENDITURES:

All of the huge increases that affect us as individuals in our daily lives also affect the Town’s budget. We have projected the following increases for our budget for fixed costs:

• Electricity 10.00%
  
• Diesel Fuel 36.00%
  
• Gasoline Fuel 38.00%
  
• MDC Charges 7.33%
  
• Health Insurance 17.50%
  
• Pension Costs (Town Only) 3.95%
  
• Refuse Disposal 5.72%
  
• Dial A Ride Services 5.01%
  
• Liability and Worker’s Comp Insurance 4.35%

These increases have an enormous impact on the 2008-2009 budget.

Because of this and because I was trying to keep the tax increase to a minimal amount, there were many cuts that I would not normally recommend to you. Below you will find some of the items cut or reduced.

1) Reduced contributions to outside agencies.

2) Reduced funding for our 375th Anniversary Celebration from $50,000 to $15,000

3) Eliminated requests for additional emergency management supplies and an increase in salary for the Emergency Management Director.

4) Eliminated grant locator funding.

5) Eliminated money for recycling education

6) Eliminated $10,000 for a Fixed Asset Appraisal Service to implement an inventory system, which is a future requirement of GASB.

7) Cut technology equipment requests more than in half, although technology equipment is something that we need to improve and enhance ever year.

8) Reduced Economic Development and Tourism requests by half

9) Reduced overtime in the Police Department by approximately $60,000, specialized agency supplies to below last year’s budget and technology equipment by 50%

10) Eliminated the Fire Department’s request for a 3.5% increase in their stipends. Virtually eliminated their technology requests and equipment requests are below last year’s budget. Eliminated the request for a new Chief’s vehicle. Eliminated the $100,000 partial payment for the new Fire Truck. We already have a $100,000 deposit for the truck in the 2007-2008 budget and because it will take a year to build the vehicle, I felt we could wait until 2009-2010 to budget for the next payment. This is really not what we should be doing, as it is prudent to keep setting aside money to pay off the lease, but the 2008-2009 budget could not withstand this payment amount.

11) I propose shutting off 1/3 of the streetlights, which will lead to substantial savings in future years. Because there is a cost to shut off the lights, you will not see as much of a savings this year, as you will in following budget cycles. This will also assist in energy cost reductions.

12) Reduced the hours for the transfer station based on usage by the public throughout the year.

13) Utilized escrow funds to offset the costs of the ROPES and Crossroads programs.

14) The Library Board had requested a large increase in their budget to offer more programs, staffing, computers, equipment and book/audio offerings for the public to enjoy in their newly renovated building. I have reduced this substantially which will result in closing the children’s area at night during the week. This was a suggestion made by the Library Director, so the Library can achieve their goals for the new fiscal year.

15) Reduced the fleet purchases by 50% from last year. I hope to be able to buy some of the vehicles this year utilizing the CNEF reserve funds from the reduction in costs anticipated for revaluation. Our fleet is in sore need of replacement and I have kept in the budget the replacment of four police vehicles, the final payment for a new Animal Control van, and funds for the replacement of a large mower and one dump truck.

16) Eliminated any reserve funds for GASB 45 requirements and the future replacement of our radio system

17) Reduced the original request of the Capital Improvement Advisory Committee by $535,198. That leaves the Capital Projects list increased by only $111,713 from last year. I have kept intact the request for road funds, as it is important that we keep up with the progress we have made through the $3 million bond that was passed by our voters. We have spent all of that money so it is imperative that we continue to utilize our general funds to continue moving ahead with road improvements throughout Town. Funds have been left in to finish the Council Chambers, repave the Town Hall/Library parking area, fulfill any federal mandates, begin the Goff Brook study, continue work at the Community Center, new fields for Millwoods, caulking for Willard Pool and the maintenance of Town building roofs. I did have to eliminate funding for the Silas Deane Façade Program, which I am hoping can be funded through STEAP funds. I also eliminated funding for the Redevelopment Agency. This group of volunteers still has most of their $50,000 left from this year, which can be held over into the new fiscal year.

Needless to say, all of these decisions were extremely hard and if it were not for the horrendously tight fiscal times, I would not recommend most of them to you.

SOLUTIONS:

The State did award our Town some of the Service Sharing grant funds, so we hope to reduce costs in some areas for future years, as the grants are implemented. The Governor has recommended that this program be funded again next year, and it is imperative that we continue to work with our neighboring communities to consolidate services and cut costs by working cooperatively with one another.

As I mentioned earlier, we must work with our State Legislators to allow Towns the local option to raise revenues in unique ways, other than by the property tax. Again, this could include a hotel/motel tax, sales tax, or a minimal vehicle registration tax that could assist us with paving our local roads.

I continue to work with our unions to have our employees pay more health insurance co-pays, reduce benefits for retirees, and control wage increases. I have just begun negotiations with the middle management union and the AFSCME group representing the secretaries, dispatchers and other employees. I will be reviewing this budget scenario with them so they understand the ramifications of our budget for next year and the next few years. I will also be asking all employees’ assistance in making suggestions for reductions to our budget. I welcome their thoughts.

As I did last year, I will be holding budget forums for residents. As I schedule these, I will let you know. Please feel free to attend. Last year’s forums went very well and were very informative to me as well as to the residents. If any citizen wishes to host a Budget Forum with 15-20 residents in attendance, please contact me.

The staff and I look forward to meeting with you and reviewing the budget requests. We are here to assist. As you proceed with the budget process, please keep in mind that a mill is worth $2,003,873, so therefore, for every $200,387 you add or delete, the mill rate will go up or down 1/10 of a mill.

The Department Heads did an excellent job in preparing their budget proposals. Most kept their budgets in line with last year’s the best they could given the huge increases in fixed costs. I thank them so much and also want to applaud the efforts of Lisa Hanthingy, Finance Director, and Rae Ann Palmer, Assistant to the Town Manager, who put in a lot of time and effort to work with me on this budget. I would also like to thank Gale DiLuzio, Executive Secretary, and Paul Dudley, Data Services Manager, for their assistance and hard work in preparing the final budget book.

I highly encourage taxpayers to attend our Public Hearing on April 21, 2008 at 7:00 pm at the Silas Deane Middle School Auditorium so we can hear from you on how you wish your dollars to be spent in Wethersfield. I also encourage people to call me (721-2801) or contact me with letters or e-mails ([e-mail]), so I can pass their comments along to you, the Town Council. The Town Council must adopt the budget no later than May 15, 2008.

Sincerely,

Bonnie L. Therrien
Town Manager

[cruzrt]

Let's be clear here. Therrien's budget cuts are overstated for shock value. Cutting hours for the Transfer Station: do the citizens know that it is already closed 2 full days during the week? Shutting off 1/3 of street lights: trying to panic the citizens. The actual problem here is the BOE's absurd 7.9% increase. When will our town officials reenter the real world?

[oldetowne]

You are exactly right.

The other point that gets lost here is that there is absolutely no attempt to look at the item that accounts for between 80% and 85% of the budget - personnel in the form of wages and benefits. It starts from the premise that every single town and school employee is essential and can't be eliminated and that they are all entitled to the contractual pay increases that are a luxury afforded to none of us in the private sector.

Finally, seeing additional new kinds of taxation as the solution once again misses the whole spending side of the equation.

[Dr.Ken Sokolowski]

A condensed version of an article from
the Wethersfield POST of 03/27/2008

State: High school must renovate facility

By: Ted Glanzer , Correspondent

Regardless of whether voters approve a referendum in November, Wethersfield High School will have to undergo a major renovation project within the next few years to comply with federal civil rights laws, according to a school official
.
Assistant Superintendent Karen Baldwin said Tuesday [3/25/2008] at a Board of Education meeting that the state Department of Education issued a report pursuant to a routine Civil Rights Compliance Review to ensure that all students and staff have access to the high school building and the education programs of the school.

Because Wethersfield receives funds from the federal government, the school district must comply with laws that protect individuals from being discriminated against based on their race, national origin, gender or disability.

.....The letter, however, provides a number of recommendations for the school's building to comply with anti-discrimination laws that protect individuals with disabling conditions.

The school building, the letter stated numerous times, has programs that "when viewed in entirety are not readily accessible to handicapped persons and/or are not in compliance with federal law or regulations."

That includes lack of access to some ramps, entrances, exits, doors, floors, signage, water fountains, toilets, stairs, elevators, rooms, controls, and fire alarms in areas throughout the building.

.....Specifically, if voters approve a referendum for renovating the high school (the possible referendum is also expected to include the renovation of Hanmer Elementary School, which is not subject to federal civil rights compliance reviews), then the school district will be reimbursed for approximately half of the cost of construction.

.....If voters do not approve the referendum, then the school district would be required to comply with federal law by including the corrective measures in the capital improvement program in the town budget, a move that would require the town to cover 100 percent of the construction costs.

The law requires the school district to make the changes at the high school within a "reasonable" period of time, which, Baldwin said, would probably fall in the three to five-year range.

.....In other business, Karen Clancy, director of business services, discussed a report on the 2007-08 budget, which includes the enforcement of a freeze on spending to offset unexpected health insurance costs and higher-than-expected utility costs.....
©Wethersfield Post 2008

Commentary:

That the Town is being held to Federal regulations having taken Federal money should be no surprise to anyone, especially the Town. It should also be a warning that every time the Town takes money from the Feds or the State, there will always be strings and consequences attached.

Let's assume that the 3-5 years (mentioned above by by Baldwin) to accomplish compliance is true. Is this November the best time for a double-barreled referendum (WHS+ Hanmer) - especially one which will have to be about TWICE the size of the ill-fated redevelopment referendum? With the current roiling financial markets and instability and increased precautions of the bond markets is this really the best time for such a whopping referendum? Would it not be prudent to delay by say two years a referendum for at least the High School? With at least a 5.53% tax increase, is this really a good time to pry more money from the gasping and gagging taxpayers in Town?

[SyZyGy]

LOOKING FOR SAVINGS
IN ALL THE WRONG PLACES

Consider the Manager's
"Budget Message"

Town Manager says she recommends a 5.53% tax increase on property owners. She recommends a 2.41% "Town" Budget increase and NO changes in the 7.90% increase in the BOE's budget request.

BOE's proposed budget, Mar,08, was 7.90% increase of which 94% (7.44%) is attributed to "fixed costs" - loosely translated to mean mostly salaries, benefits and pensions of hundreds of mostly unionized staff.

In the vicinity of $800 of every $1000 dollars you pay in taxes goes to the unionized teachers and contracted members of the education establishment for current and retirement benefits, benefits, benefits.

The "Town" has to make-do with the remaining, meager $200. The unionized teachers are politically protected and the rest of us are not from real-time, major economic down-turns.

We the non-unionized have to make do with less, but teachers do not. The Town has to cut back - real-time, but the BOE-WPS does not, year after year after year.....

It's time to tell the unions-controlled, entrenched Democrat politicians to fix this problem before only unionized teachers will be able to afford living in Wethersfield!

In the meantime, tell the Council to cut the only line item in the BOE's budget that the Council has control over - the bottom line. And make it significant!

[Bulldog]

" Eliminated any reserve funds for GASB 45 requirements and the future replacement of our radio system".

I guess $3,000,000 radio systems don't go as far as they used to!

[cruzrt]

The town web site shows no more budget meetings and a public meeting scheduled for Monday to adopt the budget. So, they must have finished. Does anyone know what the new mill rate will be?

[oldetowne]

There may be some last minute adjustments. But don't expect the tax increase to be any less than 5%.

I heard through the grapevine that only within the past couple of days did anyone figure out that Bonnie's proposed budget represented a 6.2% increase in spending instead of the 5.5% that she mentioned in the budget letter and in all of the press.

With that kind of sloppy bookkeeping, I wouldn't begin to guess what the real increase will be.

[Jubashero]

Actually 6.16% (2.03 mill increase from a mill rate of 32.94). I figured the Town Manager's forte is funding and that she knew some tricks to her trade to make it look less. One trick is getting $580K from CRRA, put that into the rainy day budget, pull out $700K from that rainy day budget and then report it as "other". To me this $700K represents an unreported increase in taxes by taking it from savings. With that additional item, the increase is approximately 7%. Things haven't changed.

I think a slate of independent candidates has to run for council with only one platform - ammend the charter to have citizen referenda for the budget - and I am sure they will be elected.

[RGarrey]

In tonight's budget I understand is the purchase of a new 100' ladder firetruck for Company one. This is to replace an older ladder truck. The town has a newer 100' truck as well as another 75' ladder truck. I question whether the town of our size needs three large ladder trucks. Also we have mutual aid agreements with Rocky Hill and Newington if we should ever need more than two large trucks at any one time. This truck is estimated to cost 1.2 million dollars.


We can debate whether or not there is a need for this truck and maybe I could be convinced, maybe not, but there is a much bigger issue here I believe. The town is planning on purchasing this truck with a lease to own deal. This will eliminate the need to go to referendum on this piece of equipment. That is the same thing the town did with the artificial turf. The rights of voters to approve large capital items such as this is an important part of our charter. The Council has now figured out how to circumvent our rights to vote on these large items. I have always been opposed to a budget referendum but if this is the way the council is going to operate, then I would change my mind.

[cruzrt]

Council meeting tonight is scheduled to approve the new tax mill rate. Can some one of the posters who attends the meeting put up a message with the new numbers?