05/12/2015

Councilors divided, but approve $35.2 million combined municipal budget with no tax-rate increase for schools

Town Councilors on May 11, 2015 approved a $32.5 million budget for 2015-16, including $23.5 million for schools. The school budget is subject to a townwide validation vote scheduled for June 9.

Following a public hearing, councilors on May 11 voted unanimously to approve proposed spending for town, county and Community Services totaling $11.7 million, carrying with it a 32-cent increase in the tax rate of $16.80.

Councilors subsequently voted 4-3 to approve the school budget, which would add nothing to the tax rate, but only after a motion to approve a compromise, 4-cent tax-rate increase for schools was defeated 3-4. Councilors Jim Walsh, Jessica Sullivan, Kathy Ray and Molly MacAuslan supported the flat-tax budget, while councilors Caitlin Jordan, Jamie Wagner and Patty Grennon supported the school budget proposal that was $60,539 higher.

The second, higher school budget was presented as a compromise by the School Board after the Town Council, meeting as the Finance Committee on April 27, recommended a school spending package of $23.5 million. The budget posed no increase in the tax rate of $12.19 for schools, but was $110,539 less than the $23.6 million spending plan presented by the School Board in late April. That budget would have raised taxes by 7 cents per $1,000 of assessed valuation.

The compromise proposal would have eliminated $50,000 that had been budgeted for an upgrade in accounting software, an expense the School Board was expecting to share with the town but which was not included in the town's budget proposal.

Speakers at a public hearing May 11 were nearly as divided as the council. Of the 16 who spoke, six said they supported the school budget that posed no tax increase. Other speakers said they supported the budget as first proposed by the School Board. One speaker, Philip Road resident Cindy Voltz, presented an online petition with 60 signatures calling for restoration of the original school budget proposal.

At a workshop May 4, School Board members agreed their original proposal could be reduced $110,539 by eliminating the accounting software, $50,000; funding for a human resources position also to be shared with the town, $3,500; half the amount budgeted for website design, $10,000; items in the facilities, office of the superintendent and student-and-staff budgets, $10,309; and, equipment and non-textbook supplies for all three schools, $5,230.

The school budget validation will be held in the High School gym from 7 a.m.-8 p.m. Tuesday, June 9. Absentee voting will continue until 4 p.m. Thursday, June 4. As in past years, voters will also be asked the non-binding question as to whether they think the budget is too high, too low, or acceptable.

Here is a summary of the 2015-16 budget (school budget subject to voter approval):

Budget summary and proposed tax impact: [ download]

	FY 2015	FY 2016	$ Change	% Change
	BUDGET	Proposed	FY 15  to FY 16	FY 15  to FY 16
EXPENDITURES
TOWN SERVICES	$       9,226,784	$       9,814,882	$          588,098	6.4%
COUNTY ASSESSMENT	$       1,108,992	$       1,171,612	$            62,620	5.6%
SCHOOL DEPARTMENT	$    23,240,174	$    23,536,649	$          296,475	1.3%
COMMUNITY SERVICES	$          465,000	$          533,790	$            68,790	14.8%
Local Homestead Exemption	$          199,200	$          199,200	$                     -	0.0%
	$    34,240,150	$    35,256,133	$       1,015,983	3.0%
REVENUE
TOWN SERVICES	$       3,348,264	$       3,484,400	$          136,136	4.1%
SCHOOL DEPARTMENT	$       3,005,579	$       3,203,729	$          198,150	6.6%
TOTAL	$       6,353,843	$       6,688,129	$          334,286	5.3%
NET TO TAXES
TOWN  SERVICES	$       5,878,520	$       6,330,482	$          451,962	7.7%
COUNTY ASSESSMENT	$       1,108,992	$       1,171,612	$            62,620	5.6%
SCHOOL DEPARTMENT	$    20,234,595	$    20,332,920	$            98,325	0.5%
COMMUNITY SERVICES	$          465,000	$          533,790	$            68,790	14.8%
Local Homestead Exemption	$          199,200	$          199,200	$                     -	0.0%
TOTAL	$    27,886,307	$    28,568,004	$          681,697	2.4%
TAX RATES (Rounded to nearest ¢)
TOWN SERVICES	$                 3.54	$                 3.79	$                 0.25	7.0%
COUNTY ASSESSMENT	$                 0.67	$                 0.70	$                 0.03	5.3%
SCHOOL DEPARTMENT	$              12.19	$              12.19	$                 0.00	0.0%
COMMUNITY SERVICES	$                 0.28	$                 0.32	$                 0.04	14.8%
SUBTOTAL	$              16.68	$              17.00	$                 0.32	1.9%
Local Homestead Exemption	$                 0.12	$                 0.12	$                     -	0.0%
TOTAL	$              16.80	$              17.12	$                 0.32	1.9%
			$                     -
TAX RATE VALUATION BASIS	1,660,000,000	1,668,000,000	$ 8,000,000.00	0.5%