Town of North Branford. Town Manager’s Proposed Budget Fiscal Year 2009-2010. Budget Process. The budget process should be viewed as a priority-setting one where scarce resources are allocated. This year, the resources are more limited than normal.
Fiscal Year 2009-2010
The budget attempts to balanceincome
with demands for service.
Board of Education
Proposed funding levels allow for a status quo budget to:
Face required mandates;
No new staff;
No new services;
Increased utility costs
Health Insurance increases of 10%.Expenditure Summary:General Government
In developing the budget for FY 2010,every effort was made to explore new and creative ways of meeting the demands for service.
Thank you to all the Department Heads and the Superintendent of Schools for cooperation and teamwork in addressing these critical issues.
The above breakdown of expenses includes contractual obligations and increases in non-discretionary spending. Capital outlay is for departmental operating equipment.
Capital expenditures allow for future needs to be addressed as identified in the Capital Improvement Program.
Capital Expenditure Needs:
Public Works Sander Building Phase II
Police HQ Garage and Addition
Emergency Communications Improvements
Swajchuk Park Phase II
Fire Equipment ReplacementExpenditure Summary:Capital Improvements
Total Estimated Cost: $ 300,000
Fund Balance Transfer - $76,000
CRRA Settlement - $224,000
Increases in the Debt Service Expenditures for the FY 2010 Budget are due to the following commitments of the Town:
REVENUES TO FINANCE THE PROPOSED BUDGET as identified in the Capital Improvement Program.
The property tax remains the Town’s main source of revenue accounting for 73.4% of all revenues.
Grand List growth is a combination of slight increases in real property values and similar declines in the value of motor vehicles.
October 1, 2007 October 1, 2008 Increase/Decrease
Real Estate $1,146,462,830 $1,153,960,160 $7,497,330 0.6%
Motor Veh. $ 103,641,100 $ 100,374,490 $3,266,610 (3.3%)
Pers. Prop. $ 34,374,085 $ 38,900,412 $4,526,327 11.6%
Total $ 1,284,478,015 $1,293,235,063 $8,757,047 .7%
State aid has been used to limit property tax increases. Cuts in the State budget pass the tax burden to local taxpayers.
Successive State budgets have limited aid to cities and towns, resulting in a tax shift from the tax base of the State to that of local government.
Interest Income is a reflection of the national trends and is expected to continue declining over the next several months.
Fees and Charges – increases should be limited to avoid passing on additional costs to taxpayers.
Real Estate Conveyance Tax Income is expected to decline with activity in the housing market falling.
Building and Land Use/ Development Fees should be limited to avoid deterrents to economic development opportunities.Financing the Budget:Other Revenues
PROPOSED TAX RATE is expected to continue declining over the next several months.
The Proposed Budget requires a tax rate of 26.34 mills – an increase of 1.39 mills or 5.5%.
The major reasons behind the increase are:
Pro-Rata Mill Rate Distribution
While the Council will be pressured to reduce taxes, it will take large cuts to reduce the tax rate. In this scenario, $636,889 in cuts changes the tax increase from 3.88% to 2.43%.
The answer is NO
But given the economic uncertainties, it’s a
maybe with a little luck…
and some hard work…
BOARD OF EDUCATION
PROPOSED BUDGET OVERVIEW
Deborah Prunier, Chair
Board of Education