An anticipated $37 million in grand list growth before any assessment appeals, along with savings from bond refunding, incremental cuts in select operating allocations, and level state aid reimbursement is expected to result in a Board of Selectmen 2015-16 budget proposal that will fortify local road repair plans, increase the town’s fund balance, and enable key hiring while delivering no tax increase and a reduction in next year’s mill rate.

Those were the major revelations floated January 20 as the Board of Selectmen opened this year’s round of budget deliberations. The grand list is a compilation of every taxable property in town. One mill represents one dollar in taxation for every $1,000 in taxable property.

That $37 million in new assessments will produce roughly $1 million in new taxes for the town, equaling about one-third of a mill impact on the overall rate of  taxation, according to Finance Director Robert Tait. One mill in the tax rate currently raises about $3 million in tax revenue for the town.

To further clarify, Mr Tait said a one percent growth in the grand list equals about one-third mill in added revenue.

After First Selectman Pat Llodra conducted a presentation on her goals and means of achieving them in the coming fiscal cycle, she and Selectman James Gaston, Sr, reviewed and approved almost two dozen administrative line items in the municipal side of the spending plan.

Selectman Will Rodgers was not present for this session.

In a review of the budget presentation following the meeting, Mr Tait told The Newtown Bee that the big ticket commitments in the next budget round include a request to increase the operating budget for road work in the Public Works budget by $250,000.

Mrs Llodra and Public Works Director Fred Hurley have previously addressed how, during lean budget times, a planned $2 million annual allocation to ensure road maintenance and replacement was reduced.

Mr Tait said the added $250,000 request in the next budget cycle will bring that key road maintenance budget another step closer to restoration — to $1.5 million in 2016.

The finance director said the escalating need for an additional professional in the Technology Department is reflected in the new budget request, which adds the payroll and benefits cost in the request. Funding for that position is requested at $55,000 according to Mrs Llodra’s presentation notes.

Capital Nonrecurring Increase

In addition, the selectmen are seeking to add another $100,000 to the town’s capital nonrecurring account. This allocation, if approved, would increase that fund to $250,000.

The capital nonrecurring fund is used as a vehicle for the town to save incrementally each year to eventually underwrite significant capital purchases of things like fire apparatus and large machinery for public works so those expenses do not have to be bonded.

Another small boost to the bottom line is proposed by removing a $50,000 from the selectmen’s budget request to supplement the Edmond Town Hall Board of Managers’ operating expenses. Mr Tait said that the town hall board is currently operating the facility “in the black” and that the town is committing capital borrowing to the board for major projects in 2016 and 2018.

Officials will also continue to monitor the town hall board’s operating expenses, and stand ready to assist in the future if operational costs begin to run in deficit mode, the finance director said.

Board of Finance Chairman John Kortze said that while taxpayers understand that an increase in the grand list means more revenue, which is also welcomed by town officials, “it doesn’t necessarily mean focusing on increases in spending.”

The finance chair said a proposal to keep the selectmen’s budget request flat while reducing the mill rate is a positive for taxpayers, any additional benefits that may accrue because of a collateral grand list increase should be “ a separate discussion.”

The proposed selectmen’s budget requests an overall increase of $483,058 or 1.22 percent, while “priorities” in that request amount to $405,000 in new spending. Mrs Llodra said her overarching budget goals include maintaining current levels of taxpayer services while addressing critical concerns like road maintenance, tech support, and fiscal stability related to the capital nonrecurring infusion.

Contingency Hike Detailed

The selectmen’s proposal includes a 1.29 percent overall increase in wages; a 13.4 percent increase in capital spending; and an almost 143 percent increase in contingency funding. There is also a 2.35 percent reduction in overall debt service for capital projects offsetting the overall 2.43 percent in added municipal spending resulting in the 1.22 percent overall requested increase.

The presentation notes that, “The contingency line item covers wage increases not yet negotiated, emergency building repairs not budgeted for, additional referenda and primary costs, and other unforeseen items. The contingency account has been increased $100,000 over last year’s adopted budget mainly because of the four outstanding employee union contracts (police contract will be for two years). The difference between the current request and the prior year’s amended budget represents, for the most part, permanent commitments paid thru contingency in the prior year (union contract impacts):

*Emergency communications contract $21,000 (net)

*Parks & recreation contract $23,000

*Land use contractual line item (federal government contract) $23,000

*Life insurance renewal $14,000

The selectmen also addressed administrative budget requests for a number of town departments including Selectmen, Human Resources, the Tax Collector, Probate Court, the Town Clerk, Registrars, Finance, and the Fairfield Hills Authority.

Selectmen plan to take up the Public Works, Parks & Rec, and various public safety agencies requests in a special meeting on January 26, and anticipate endorsing the entire recommendation after reviewing the Fire Commission and Booth Library requests on February 2.

A detailed copy of the proposed Selectmen’s budget is available for review by clicking here.