Commencing on March 7, 2011, the Waterford Board of Finance (BOF) meets every Monday and Wednesday until March 30, 2011 at 7:00PM in the Waterford Town Hall RTM Meeting Room to consider the Waterford Town Budget for Fiscal Year 2012(July 1, 2011 to June 30, 2012). Although the public is encouraged to attend any these budget hearings, the BOF will make its final recommendation to the Representative Town Meeting (RTM) on March 30, 2011 after a public hearing. The RTM will hold its FY2012 budget deliberations May 2 to 4, 2011. After the budget is approved by the RTM, the BOF will set the tax mill rate. The current mill rate (FY2011) is 18.04, up from 16.86 in FY2010 and FY2009. Due to revaluation, although the mill rate decreased for FY2009 taxes for residents increased due to the increased assessed value of their property.
This is the first year that all town department, board, and agency budgets were reviewed and approved by the Waterford Board of Selectmen (BOS) before being forwarded to the BOF for approval. The BOS completed their budget hearings on February 10, 2011. The BOS reduced the proposed budget by $285,579. The BOS did not review the Board of Education (BOE) Budget.
The Grand total of General Government, Capital and Debt Service and Board of Education budget requests for FY2012 as approved by the BOS is $74,411,296. This is an increase of $2,401,087 or 3.33% from the current year budget of $72,010,209. The FY2011 budget request to the BOF was $73,848,113. The BOF and RTM reduced that request to the current budget of $72,010,209, a reduction of $1,837,904. This 2.95% budget increase resulted in a 7.00% tax increase in FY2011, the current FY.
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Although the Finance Director has not provided an official estimate of revenue for FY2012 at press time, it certainly will not be more than the $4,910,233 that was received in FY2010. Unofficially, the grand list has increased by 0.79% for the FY2012 budget season before any appeals to the Board of Assessment Appeals (this amount to a grand list of $3,703,640,625.46 by my calculations). Using those figures the estimated tax increase to support the budget presented by the BOS is 4.97% to a mill rate of 18.94. I emphasize, these are my calculations and not an official calculation from the Waterford Finance Department.
The total requested General Government Operating budget in $27,697,759. This is an increase of $1,374,899 or 5.22% increase from the current year budget of $26,332,860. The Retirement Commission increase of $1,124,636 or 40.35% from $2,787,511 in FY2011 to $3,912,149 in FY2012 accounts for most of this increase. The Insurance Fund increase of $314,024 or 9.74% from $3,222,571 in FY2011 to $3,536,595 in FY2012 accounts for the remainder of the increase. The Retirement and Insurance budgets will be reviewed on March 21, 2011. Unfortunately, the BOF has no ability to change these amounts dictated by commissions and agencies outside of Waterford. The total of the two increases are greater than the General Government Operating Budget because some departments were able to decrease their budget requests.
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The Board of Selectmen (BOS) is recommending a Public Works Department budget of $4,653,822. This is a $145,578 or 3.03% decrease from the current year budget of $4,799,400.
It is also recommending $1,138,000 for the Current Year Capital Improvement budget (an increase of $154,576 or 15.72% from the current year $983,424) and $615,247 for the Transfer to Capital & Non Recurring Fund Account. This is a $211,753 or 25.60% decrease from current year budget of $827,000. Some of the major expenditures planned or recommended from the Current Year Capital Fund include $1.095 million for the Fleet Management Fund, $23,000 for Information Technology Computer to Plate program for the print shop, and $20,000 for a Sewer System Upgrade for the Library. The recommended expenditures from the Capital Non Recurring Expenditure fund include Lights for the Spera Soccer Field ($34,500), Contribution to the Revaluation Fund of $75,000, Leary Park Road/Parking Improvements ($20,000), Road Reclamation/Overlay ($240,747), Animal Shelter Design ($45,000), Police Department Roof and Gutter Replacement ($135,000), Oswegatchie Fire Department Building Improvements Design ($20,000) and Fire Department Underground Tank Replacements ($45,000). Of note, the Capital Non Recurring Expenditure Fund had an undesignated balance of $4,408,534.95 as of December 31, 2010, a designated balance of $8,639,883.93 and an appropriated balance of $2,878,738.50 for a total balance of $15,927,157.38. The Audited balance of the Fund as of June 30, 2010 was $19,799,113. Approximately $10.5 million of the CNR Fund Balance was used to pay off Bond Anticipation Notes and reduce the Total Bonding in August 2009.
In FY2012 the Fleet Management Plan Fund is expected by the plan to purchase 3 new Fire Pumpers (2 large and 1 small), 5 Police Vehicles, 2 Public Works Vehicles, 2 Planning Department Vehicles, and 1 Utility Commission Vehicle at a total estimated cost of $1,325,236. As of January 31, 2011, the Fleet Management Fund Balance was $1,333,127.
The BOF Hearings for the Public Works, Capital, and Capital Non Recurring Funds are on Wednesday March 23, 2011.
Other Large Ticket budgets to be reviewed include the Police Commission Budget proposal of $4,916,721 and Emergency Management budget of $872,283 increases of $70,615 or 1.46% and $41,296 or 4.97%, respectively over the current year budgets of $4,846,106 and $830,987. The Waterford Public Library is requesting $1,048,703. This is $31,826 or 3.13% above the current year budget of $1,016,877.
The Library, Police Commission and Emergency Management BOF hearings will be held on March 7, 2011.
The Fire Commission and Fire Companies combined budget request for FY2012 is $2,558,343. This is $21,929 or 0.86% over the current year combined budget of $2,536,414. The fire companies budgets are all less because the Fire Commission has absorbed the individual department’s fuel and electricity costs in the Fire Commission budget. The Fire Commission and Fire Companies BOF hearings will be March 16, 2011.
Recreation and Parks is requesting $1,331,699 plus a now separate request for Community Use of Schools in the amount of $283,346 in FY2012. This is decrease from the FY2011 budgets of $1,421,569 for Recreation and Parks and $291,562 for Community use of schools. This is a $98,086 or 5.373% decrease from FY2011.
The FY2012 Insurance request is $3,536,595. This is a $314,024 or 9.74% increase over the current year’s $3,222,571 which was $538,617 or 20.07% over the FY2010 insurance request.
The FY2012 Retirement budget is $3,912,149. This is $1,124,638 or 40.35% over the current year’s $2,787,511. There is actually an additional $435,257 due this fiscal year that was not determined by the State Retirement Commission until after the FY2011 budget was requested.
The FY2012 Debt Service request is $2,045,876. This is $164,437 or 7.44% less than the current year’s $2,210,313. This slight decrease is a result of the low interest rates for August 2010 bond and bond anticipation notes request.
Recreation and Parks, Insurance, Debt Service, and Retirement budgets will be heard on March 21, 2011.
The Board of Finance only has bottom line approval of the FY2012 Board of Education Budget of $42,914,414. This is a $1,247,802 or 2.99% increase over the current year budget of $41,666,612. The FY2012 Board of Education Budget hearing by the BOF will be March 28,2011.
The Estimated General Fund Unreserved Balance as of January 31, 2011 was $9,787,518 or 13.1% of the proposed FY2012 budget. This balance is slightly above the 10-13% range established by the BOF Unreserved Fund Balance Policy of 10/07/2008.
All of the budget figures for FY2012 noted above are proposals that may be decreased but not increased by the BOF and the RTM. The total of the FY2012 budget minus the expected revenues for FY2012 will determine the amount of dollars needed to be raised by property taxes. The dollars needed, plus the expected percentage of collections will determine your taxes in July 2011 and January 2012. The Town has benefited from the ‘soft landing’ provided by the System Benefit Charge that was written into the Electrical Deregulation Bill in 1998. The current FY2011 System Benefit Charge Revenue is $1,088,015. This is the last installment for the System Benefit Charge Revenue. It will not be a revenue source for FY2012.
The BOF and the RTM have their work cut out for them to see if there are any reductions possible. To lower the proposed budgets, it may be necessary to reduce services. Public input always makes for a more intelligent decision.
Come to the Board of Finance and RTM budget hearings and make your voices heard. The members of the BOF and the RTM are very interested in your inputs.
