During a Special Town Council Meeting on Tuesday, April 25, 2023, the council voted 6-0 in favor of setting the FY 2024 General Fund Budget and the FY 2024 Special Revenue Funds Budgets to a Public Hearing on Monday, May 8.  Councilor Susan Gillis was absent.

The FY 2024 General Fund Budget shows $54,671,521.00 in total expenditures, estimated non property tax revenues of $14,165,851.00 with $40,505,670.00 to be raised from property taxes.  This budget shows a 6.32% increase to the tax rate and an estimated tax rate of $22.486 per thousand valuation.  The FY 2024 Special Revenue Funds Budgets show proposed expenditures of $4,126,254.00 and operating revenues of $3,410,228.00.

The proposed general fund budget includes the School Board’s proposed FY 2024 budget which was presented to the Town Council Finance Committee on Monday, April 24 during a budget workshop.  The School Board FY 2024 budget shows $34,170,00.00 in expenditures and a 6.26% property tax rate increase.  Prior to the special meeting on April 25, the council held a second budget workshop for further discussion of the municipal and school budgets. No reductions to the school budget were made.

One change to proposed general fund budget was made during the April 25 workshop, prior to the special meeting.  The School Building Advisory Committee, which is co-chaired by councilor Penny Jordan and School Board member Cynthia Voltz, are in the process of crafting a budget that would enable the committee to pursue their charge.  Town Manager Matthew Sturgis reported that the committee is anticipating approximately $400,000 in expenses for the coming year, “$125,000 for the Owner’s Representative; $250,000 for plan specifications; and $25,000 for survey work and communication strategy.”  Sturgis offered a couple of options to fund the expense, including rolling part of the expense into a larger bond down the road.  Ultimately, the council opted to send $400,000 out to a five-year bond.  This breaks down to $85,000 per year.  As a result, $85,000 was added to the general fund balance, raising the increase to the tax rate to 6.32% up from 6.09%. Councilor Timothy Reiniger asked if this presumes that the School Building Advisory Committee is planning to rebuild rather than renovate the school buildings.  Jordan answered, “This assumes that we will get to an ultimate design and solution for what the community wants as the outcome.”

Sturgis informed the council that since the March 23 Finance Committee budget workshop, department heads were asked to see if any line items could be deferred.  In conjunction with the Fort Williams Park Committee, Kathleen Raftice, Director of Fort Williams Park, said that the committee had determined that the relocation of the Children’s Garden could be delayed by one year.  This reduces expenditures for FY 2024 by $152,000.

Another item that was reconsidered, but ultimately retained, was the Police Department’s request for two new vehicles.  In a March 27, 2023 Memo, Police Chief Paul Fenton explains why the request should remain in this year’s budget.

“In the interest of safety for the officers that drive these vehicles and the increasing costs of repairs, the department has come up with a replacement schedule that has worked well at maximizing the most from our vehicles. Vehicles are replaced/purchased on a schedule of (1) vehicle a year and (2) vehicles the following year to stagger the costs. Due to supply chain issues and the delayed production of vehicles since COVID, we have deviated from that replacement schedule for the first time in almost 20 years.”

Chair Jeremy Gabrielson asked Sturgis about the town’s revaluation impact on the pro forma.  Sturgis explained, “In a revaluation year, it is hard to determine what the rate is going to be.  The value is going to grow between now and when we go to a tax commitment.”  Currently, the pro forma shows a 1.8 billion tax rate valuation basis.  “That number is an estimate based on what we have for new growth for the town; building permits and other new construction.  That number will change a lot, if not double,” Sturgis said.  “Revaluation is revenue neutral,” Sturgis added.  Currently the ratio is at 50%, when that changes and the voters approve what the amount to be raised will be, “That will be the top of the fraction and the bottom number will be what the town valuation will be.”  Once the revaluation is complete in late summer and total expenditures are approved by the voters, the revised tax rate will be reflected in the Town’s fall tax bill.

Prior to voting to send the budget to a public hearing, Gabrielson said, “I stand behind this budget.  I recognize it is a tax increase, but I think it will allow us to provide the level of service that the people expect in town without unduly adding to the tax increase.”  Finance Chair Nicole Boucher added, “I also believe in this budget.  We are at a point where we do have to make some town investments.  The municipal side needs a little bit of investing right now.”

Boucher encouraged voters to continue to send the council feedback on the proposed budget ahead of the public hearing on May 8.  The council will vote on the FY 2024 Budget at a Special Meeting on Monday, May 15.  Following that vote, the Town Council will send the adopted School Budget FY 2024 to a Citizen Vote on Tuesday, June 13.

For more details information on the entire FY 2024 Budget season, please visit the FY 2024 Budget page.