TOWN OF TOLLAND

Town Council’sAnnual Budget Presentation

April 27, 2010 andApril 28, 2010 – Senior Center

FY 2010-2011OPERATING AND CAPITAL BUDGET

Town Charter, § C9-9 - Annual Budget Presentation

Prior to the Annual Budget Referendum, the Town Council shall arrange for an Annual Budget Presentation to be held no later than one week prior to the Annual Budget Referendum……At the Annual Budget Presentation, the Council will present the Budget to be voted upon at the Annual Budget Referendum. Prior to such referendum the Council shall have no authority to modify the Budget from that presented at the Annual Budget Presentation. The Annual Budget Presentation is intended to provide information and encourage public discussion, and is in addition to prior public hearings relating to the development of the Budget at which public hearings public comment and participation is encouraged.

February 25, 2010 (Thursday) Capital Budget Public Hearing – Council Room – 7:30 p.m. March 4, 2010 (Thursday) Manager convenes joint meeting between Council and Board of Education (by April 11 per Charter requirement) – THS Library – 7:30 p.m. March 16, 2010 (Thursday) Manager submits Budget to Council (by March 27 per Charter requirement) March 18, 2010 (Thursday) Advertise Public Hearing March 18, 2010 (Thursday) Mgr. discusses Budget w/Council–Council Room – 7:30 p.m. March 22, 2010 (Monday) Mgr. discusses Budget w/Council–Council Room – 7:30 p.m. March 25, 2010 (Thursday) Mgr. discusses Budget w/Council–Council Room – 7:30 p.m. March 31, 2010 (Wednesday) PUBLI C HEARI NG on Manager’s Recommended Budget: Board of Education, Town Government, Capital Improvement Plan - Tolland Middle School Auditorium – 7:30 p.m. April 5, 2010 (Monday) Council Discussion – Budget finalized – Council Room – 7:30 p.m. April 15, 2010 (Thursday) Advertise Budget April 27, 2010 (Tuesday) ANNUAL BUDGET PRESENTATI ON MEETI NG – Tolland High School Auditorium – 7:30 p.m. April 28, 2010 (Wednesday) Budget Presentation at Senior Center – 10:30 a.m. May 4, 2010 (Tuesday) Annual Budget Referendum By May 13, 2010 (Thursday) Council to establish mill rate upon referendum adoption

Budget Schedule: Important Dates

BUDGET MEETINGS TO DATE

1. Public Hearing on Capital Budget: February 25, 2010 (Council Chambers)

2. Joint Meeting Between Town Council and Board of Education: March 4, 2010 (Tolland High School Library)

3. Special Meeting to Discuss Budget (Community Services including Human Services, Library, Recreation & Adult Education and Public Safety): March 18, 2010 (Council Chambers)

4. Special Meeting to Discuss Budget (Capital Budget and Public Works & Engineering): March 22, 2010 (Council Chambers)

5. Special Meeting to Discuss Budget (Planning & Community Development, General Government and Finance): March 25, 2010 (Council Chambers)

BUDGET MEETINGS

6. Public Hearing on Manager’s Recommended Budget: March 31, 2010 (Tolland Middle School Auditorium)

7. Town Manager’s Recommended Budget (daytime) at Senior Center: April 1, 2010, 12:30 p.m.

8. Special Town Council Meeting – Budget Finalized: April 5, 2010 (Council Chambers)

9. Annual Budget Presentation Meeting: April 27, 2010 (Tolland High School Auditorium)

10. Budget Presentation (daytime) at Senior Center: April 28, 2010, 10:30 a.m.

Combined Vision Statement of Community Conversation Groups

Tolland is recognized as a desirable community in which to live.

Community means a sense of shared values accompanied by the

willingness to ensure the safety, well being and respect of our

neighbors and neighborhoods.

The Town provides efficient and high quality services in a fiscally

responsible and efficient way. Residents’ quality of life expectations

will be preserved by the Town continuing to promote a sound

infrastructure and recreational opportunities and with an engaged

citizenry committed to the betterment of the entire community

encouraging a balance among open space, residential and

economic development, a town budget process that expands

community involvement and a progressive educational system

that meets or exceeds the challenges of a common core of

knowledge.

Budget Referendum: Tuesday, May 4

“Shall the Town of Tolland’s proposed 2010-2011 budget of $50,207,031, reflecting a spending increase of

$1,356,965 which is an increase of 2.78% resulting in a mill rate of 29.86 mills, be

adopted? Yes/No”

~~PLEASE VOTE ON MAY 4PLEASE VOTE ON MAY 4TH TH - POLLS - POLLS

ARE OPEN FROM 6 AM TO 8 PMARE OPEN FROM 6 AM TO 8 PM

TOWN COUNCIL’S BUDGET GOAL FOR FY 10-11

Maintain important servicesContinue to provide a quality

education for our children

Have a varied tax impact onresidential properties due to the State

mandated revaluation

Produce a budget thatcan be approved by a majority of voters

as initially presented

THIS BUDGET WILL:

GROWTH

UNCERTAINTY

2010/2011 REVENUE

MAJOR REVENUE

CATEGORIES

Changes in Non-Tax Revenue Categories

2008-2009 Adopted Budget

2009-2010 Adopted Budget

2010-2011 Council Budget

% Change Over

2009/2010

Inc./Dec. Over

2009/2010

Cumulative 2-Year Total

Decrease

State & Federal Grants

$807,455 $745,703 $728,484 -2.31% $(17,219) $(78,971)

Licenses, Permits & Fees

$261,500 $157,725 $194,500 23.32% $36,775 $(67,000)

Charges for Current Services

$596,487 $309,611 $337,494 9.01% $27,883 $(258,993)

Investment Income/Other

$360,917 $213,200 $140,200 -34.24% $(73,000) $(220,717)

Education Grants

$11,199,392 $11,096,698 $11,011,698 -0.77% $(85,000) $(187,694)

Revenue Totals

$13,225,751 $12,522,937 $12,412,376 -0.88% $(110,561) $(813,375)

Summary of Available Additional Non-Tax Revenue for FY 2010/2011

Changes in Non-Tax Revenue -$110,561Increased Use of Fund Balance $50,000Grand List Growth $209,433

Total Revenue available excluding taxes generated by a Mill Rate increase for 2010/2011

$148,8721.15% increase over available non-tax revenue for the 2009/2010

budget

Tax Revenue Needed to Fund Expenditures

Identified in the Town Council’s Proposed

Budget

Increased Tax Revenue $1,181,063 (3.3% increase)

FUTURE REVENUE CONCERNS

Projected Operating State Deficits:

FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014

$735.5 Million $2.7 Billion $2.2 Billion $1.9 Billion

Projected Long Term State Underfunded Obligations:

Bonded Indebtedness $18.0 Billion

State Employee Pensions 9.3 Billion

Teacher Pensions 6.5 Billion

Post Retirement Benefits 26.8 Billion

GAAP Deficit 1.1 Billion

Total: $61 Billion

ECS Grant has not increased in FY 2009/2010 and FY 2010/2011.

3.6%

0.5%

11.2%

4.4%

0% 0%

FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011

Statewide Increases in ECS Funding Levels

• As a result, in FY 2011/2012 the State must find $280 million just to keep the ECS grant level funded, which would be the single largest infusion of dollars into the grant since its inception.

• The State in the current year used $280 million of Federal ARRA dollars to supplant State contributions to the ECS Grant.

The Mashantucket Pequot-Mohegan Grant was instituted in the late 90’s as a new source of revenue to fund at least increased costs of education. 50% of all revenue received by the State was to be returned to municipalities. The initial distribution was at 52.7% and today is at 17.5%.

The History of grant funding since 1998 is as follows:

52.7%

22.3%17.5%

FY-1998 FY-2009 FY-2011

Municipal Share of Mashantucket Pequot-Mohegan Grant

Actual Net Growth in Grand List

3.96%

0.75%

3.89%

1.64%1.79%

3.57%3.30%

2.64%

0.81%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Grand List

Per

cen

t C

ha

ng

e

2001 2002 2003 * 2004 Reval 2005 2006 2007 2008 * 2009 Reval

*Without Impact of Revaluation

In the recently adopted budget mitigation plan for the current fiscal year the State has used up all rainy day funds and has increased the unfunded liability for State pensions and has done little to address the projected deficit for the next fiscal year.

On the local level Grand List Growth has been decreasing and this trend will most likely continue for the foreseeable future.

SPENDING

EXPENDITURE SUMMARY

2009-2010 Adopted Budget

2010-2011 Manager Proposed

2010-2011 Council

Adopted Budget

$ Change Over 2010

Budget

% Change Over 2010

BudgetPercentage of Total Budget

TOWN OPERATING 10,627,602 10,622,032 10,672,032 44,430 0.42% 21.54%

BOARD OF EDUCATION OPERATING 33,473,797 33,808,535 34,645,380 1,171,583 3.50% 68.55%

DEBT SERVICE 4,544,017 4,622,919 4,622,919 78,902 1.74% 9.37%

CAPITAL IMPROVEMENTS 204,650 266,700 266,700 62,050 30.32% 0.54%

EXPENDITURE TOTALS 48,850,066 49,320,186 50,207,031 1,356,965 2.78% 100.0%

TOWN OPERATING BUDGET

Town’s ability to have limited expenditure increase is made possible by compounding impact of actions taken in the current year as well as

adjustments for the next year.

• In the current year five full or part time positions were eliminated.

• Three positions had reduced hours.

• Two positions were eliminated and replaced with lower cost positions.

• Part time help was reduced.

In this budget one additional position is being reduced in hours to a part time non-benefited status.

These reductions help to reduce salary accounts as well as minimize health benefit increases.

Other large expenditure adjustments from the current year:

• Assessment - $24,361 primarily due to the lower cost of a statistical

revaluation for the next five year period versus a full physicalrevaluation.

• Ice & Snow - $44,732 due to improved practices in our snow and ice

operation which now requires less overtime and fewer materials.

• Town Attorney - $19,000 due to actual experience over the lastseveral years.

• Building Inspection - $11,704 due to one less position in the department.

• Parks & Facilities - $18,610 due to elimination of field lining materials

and clay for baseball infields and $4,000 reduction for Town activities

which is a result of contributions by private youth sports groups. The

materials necessary to line the Board of Education fields for games will

have to be provided by the school system ($8,160).

• Refuse & Recycling - $28,800 due to use of a one-time rebate from CRRA and reduced tonnage as a result of increased recycling.

Town Council Additions to the Budget Recommended by the

Town Manager

• Town Expenditures - $50,000 to potentially fund the following items:– Design for the roof replacement for the lower level of

the Hicks Building

– Additional crack sealing of roads, tree removal and ADA signs

– Additional funds for staff training

– Training funds and equipment for the Fire Department

– Telephone and computer equipment– Overtime funds for State Police to use for

dedicated speed enforcement or other traffic calming expenses

• BOE Expenditures - $836,845 for a total increase over the current year of $1,171,583 or 3.5%.

SIGNIFICANT ON-GOING PROJECTS

SIGNIFICANT PROJECTS

• Design of Geothermal Project at the Hicks Memorial

Building.• Extension of sewers up Route 195 to the corner of

Anthony and Baxter.• Preparation for a grant to construct 40 units of Elderly

Housing on property to be acquired in the center of

Town off Old Post Road.• Design of traffic calming recommendations for the Town

Green.• Continued planning for the development of a Village

Center on vacant property in the vicinity of Exit 68.

BOARD OF EDUCATION

Board of Education Request

• Town Manager’s budget reduced the Board

of Education request but still increased

their budget by 1% or $334,738.

• Town Council’s adopted budget increased

the Town Manager’s proposal for the Board

of Education to 3.5% over 2009/10 or an

increase of $1,171,583.

CAPITAL EXPENDITURES

FY10-11: CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $266,700

• Refurbish the Tolland High School Track Field -

$13,733 (Completed Project Residual $6,267 - total

project cost - $20,000)

• Reserve for current year depreciation for

municipal vehicle replacement - $22,967

Board of Education – Tolland High School:

Town Administration:

FY10-11: CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $266,700

• 6th annual lease payment (of seven) for replacement

of Engine #340 - $70,000

Fire Department:

Capital Equipment:

• Vac-All body for 2000 Truck - $35,000

• Replacement 1999 Toro 16’ Mower - $75,000

This is a specialty mower used 8 hours a day from

May thru November, it has 3,200 hours and is rusted

out. Normally 8 year life cycle.

FY10-11: CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $266,700

• Upgrade of Base Station Repeaters located at

Highway, Parks & Facilities and the Tower Site are

mandated by FCC to be licensed and operating in

narrowband emissions before 1/1/13 - $20,000

• Pollution Abatement at Highway Garage pursuant to

long standing Consent Decree - $30,000

Public Facilities:

FY10-11: CAPITAL PROJECTSFUNDED BY OTHER SOURCES

Board of Education:

Tolland Intermediate School:• Roof Top HVAC Replacement - $140,000 (Non-referendum notes)

Tolland Intermediate School: • Asbestos Floor Tile Removal - $207,327 (Non-referendum notes)

$207,327 (School Construction Grant)

Birch Grove Primary School:• HVAC BVH/JCI Upgrade - $35,497 (School Construction Grant)

$15,313 (Completed Project Residual)

FY10-11: CAPITAL PROJECTSFUNDED BY OTHER SOURCES

Fire and Ambulance:• Contribution from Ambulance Fees to a reserve for Emergency Services Equipment

Reserve - $200,000 (Ambulance Fees)

Parks and Recreation:• Resetting of slab sidewalk on Tolland Green - $15,000 (LOCIP)

Public Facilities:• New Lodge roof and decks - $35,000 (Lodge Funds)• Water line connection to highway garage - $10,287 (LOCIP).

Completed project residual $25,713 – total project cost - $36,000• Removal and replacement of underground diesel and gas tanks at highway garage - $50,000

(LOCIP). Completed project residual $20,000 – total project cost - $70,000

Construction and Reconstruction:• Route 195 sewer extension - $200,000 (State & Federal Grant)

$800,000 (Assessment Fees)

FY 10/11: PROJECTSFUNDED BY OTHER SOURCES

Pavement Management: • Road Maintenance - $713,328 (Non-referendum borrowing) and $150,000 (TAR)

$58,159 (LOCIP)

• The Town Council increased Road Maintenance by $300,000 (Non-referendum borrowing) in conjunction with their Adopted Budget.

DEBT SERVICE

TOLLAND DEBT SCHEDULE 2010-11 THROUGH 2014-15

% change

FY10/11 - $4,622,918 1.74%

FY11/12 - $4,651,975 0.63%

FY12/13 - $4,443,619 (4.48%)

FY13/14 - $4,417,844 (0.58%)

FY14/15 - $4,391,399 (0.60%)

Both Moody’s & Fitch Financial rating agencies have indicated thatthe Town’s debt is moderate and manageable and in line withCommunities that have similar credit ratings.

DEBT SERVICE FOR BUDGET YEAR: $4,622,918

School

Town

Debt Service Breakdown:

75%

25%

TOTAL INCREASE IN SPENDING: $1,356,965

AMOUNT TO BE RAISED BY TAXESREQUIRING A MILL RATE OF 29.86: $37,299,772

FY 2010-11 BUDGET SUMMARY

REVALUATION

IMPACT OF REVALUAITON ON AVERAGE RESIDENTIAL PROPERTIES WITH

NO INCREASE IN EXPENDITURES FOR THE NEXT FISCAL YEAR

Difference from Current Taxes

Taxes for a house assessed at $206,500 before revaluation

$6,089.69 None

Taxes for a house assessed at $206,500 after revaluation with no increase in assessment

$5,943.07 -$143.62

Taxes for same house with a .19% increase in a assessment ($206,892)

$5,954.35 -$135.33

Taxes for same house with a 5.422% increase in assessment ($217,672)

$6,264.60 $174.92

Taxes for same house with 7.99% increase in assessment ($222,999)

$6,417.91 $328.23

BUDGET IMPACT ON AVERAGE PROPOERTIES

WITH NEW ASSESSED VALUES

Tax impact for house assessed at $206,892

$223.44

Tax impact for house assessed at $217,672

$235.68

Tax impact for house assessed at $222,999

$240.84

Impact of Revaluation and Proposed Town Council Budget on Average

Residential Property

$48,850,066

2009-2010

Current Mill Rate

at 29.49

$49,320,186

2010-2011

Town Council Proposed

at 29.86

Increase/Decrease

2010/2011

Tax Bill From Current Taxes

Taxes for a house assessed at $206,500 BEFORE revaluation: $6,089.69

Taxes for same house with .19% increase in assessment – new assessment $206,892

$6,177.80 $88.11

Taxes for same house with 5.42% increase in assessment – new assessment $217,692

$6,500.28 $410.60

Taxes for same house with 7.99% increase in assessment – new assessment $222,999

$6,658.75 $569.07

Click here onthe tolland.org home page toaccess theTax CalculationForm

Tax Calculation Form

for 2009 Revaluation and the FY2010/ 2011 Town Managers proposed Budget

This calculator reflects the proposed Town Managers Budget which can be seen in its entirety on the Town’s web page

The restated mil rate shown below is the rate that would have to be used to generate the same tax revenue in FY 2010/11 as in the FY 2009/10 budget. This would assume no

changes in expenditures in the 2010/2011budget. It is provided to assist the individual tax payer to evaluate the impact of revaluation. The final mil rate for the Town’s budget will

be determined after the Town Council adopts a budget and it is approved at referendum which will be held May 4, 2010.

Known: Old Mil Rate before Revaluation 29.49 Known: New Mil Rate after Revaluation 28.78 (restated)

Proposed: Mil impact of proposed Town Manager Budget

29.15

Top of Form

Input the Following: (numbers ONLY, no commas or $)

(A) Your Home's Assessed Value BEFORE Reval. 206500

(B) Your Home's Assessed Value AFTER Reval. 217672 Your new assessed value can be located by clicking here 2009 Revaluation Data. Hard copies of your assessment information including assessment prior to revaluation are at the Town Assessor’s Office.

(Results Appear Below)

Results: (Do not enter any information below this box)

Percentage (%) Change in Your Assessment: Calculation is made using the following formula: (B) New Assessment - (A) Old Assessment divided by (A) Old Assessment 5.42%

Tax Information Description of Taxes Annual Monthly Old Taxes Due (A) Your Assessment Before Reval. multiplied by 29.49, then divided by 1,000.

6090 508

New Taxes Due with Only Revaluation Included (B) Your Assessment After Reval. multiplied by 28.78, then divided by 1,000.

6265 523

New Taxes Due with proposed Budget multiplied by 29.15 then divided by 1,000.

6346 529

Tax Change: Description of Change Annual Monthly New Taxes due to revaluation This number is fixed, and cannot change due to budget adjustments

175 15

New Taxes due to Budget Increase 81 7 Proposed Taxes 256 22

Bottom of Form

What Can You As A Citizen Do Going Forward?

• Become involved

• Be informed…subscribe to the electronic newsletter on the website (www.tolland.org)

• Volunteer for town boards/commissions

◦ Board of Building Appeals

◦ Inland Wetlands & Watercourses Commission

◦ Permanent Celebration Committee

◦ Tolland Economic & Community Development

Corporation

◦ Tolland Energy Task Force◦ Tolland Non-Profit Housing Corp.◦ Water Pollution Control Authority

• Submit suggestions, questions or comments via the town’s website; a new interactive suggestion/comment box will become active soon on the homepage through which citizens can submit an inquiry and then view the Town’s posted response

Voting District #1: votes at the Hicks Memorial Municipal Center (town hall) at 21 Tolland Green (located at the intersection of Route 195 and Old Post Road) in the gymnasium. Parking is available in the main parking lot off of Old Post Road.

Voting District #2: votes at Tolland Senior Center at 674 Tolland Stage Road. Parking is available.

You may direct questions regarding your voting district to any of the following offices:

Registrars of Voters - (860) 871-3634Town Clerk’s Office – (860) 871-3630

Town Manager’s Office – (860) 871-3600

ANNUAL BUDGET REFERENDUM IS ANNUAL BUDGET REFERENDUM IS

TUESDAY, MAY 4 - POLLS ARE OPEN TUESDAY, MAY 4 - POLLS ARE OPEN

FROM 6:00 AM TO 8:00 PMFROM 6:00 AM TO 8:00 PM

Tolland Has Two Polling Places:

Budget Referendum: Tuesday, May 4

“Shall the Town of Tolland’s proposed 2010-2011 budget of $50,207,031, reflecting a spending increase of

$1,356,965 which is an increase of 2.78% resulting in a mill rate of 29.86 mills, be

adopted? Yes/No”

~~PLEASE VOTE ON MAY 4PLEASE VOTE ON MAY 4TH TH - POLLS - POLLS

ARE OPEN FROM 6 AM TO 8 PMARE OPEN FROM 6 AM TO 8 PM