HomeMy WebLinkAboutAgenda - Steering Committee - 03/06/2023 - Pre Town MeetingAGENDA
SOUTH BURLINGTON STEERING COMMITTEE MEETING (Joint meeting of the City Council and School Board) South Burlington City Hall
180 Market Street SOUTH BURLINGTON, VERMONT
Participation Options
In Person: 180 Market Street - Auditorium - Main Floor Assistive Listening Service Devices Available upon Electronically: https://meet.goto.com/SouthBurlingtonVT/citycouncilmeeting03-06-2023 You can also dial in using your phone. 1 (571) 317-3122 Access Code: 645-719-013
Pre-Town Meeting Public Information Session and Public Hearings
6:30 P.M. Monday March 6, 2023
1.Pledge of Allegiance (6:30 PM)
2.Instructions on exiting building in case of emergency and review of technology options –
Jessie Baker, City Manager (6:31 – 6:32 PM)
3.Agenda Review: Additions, deletions or changes in order of agenda items (6:33 – 6:34 PM)
4.Comments and questions from the public not related to the agenda (6:35 – 6:45 PM)
5.*** Approve minutes from the January 23, 2023 Steering Committee meeting (6:45 – 6:50PM)
6.*** Presentation of the FY24 School Budget – Violet Nichols, Superintendent (6:50 – 7:20PM)
Complete School Budget Information is available here: www.sbschools.net/budget
7.*** Public Information Session/Public Hearing on the $14,550,000 Capital ImprovementBond Issue to support School District capital improvement needs and Zero Energy Modulars–Violet Nichols, Superintendent (7:20 – 7:50 PM)
8.*** Presentation of the FY24 City Budget – Jessie Baker, City Manager (7:50 – 8:10 PM)
Complete City Budget Information is available here: www.southburlingtonvt.gov/TMD2023 9.*** Public Information Session/Public Hearing on the $15,086,430 City Center TaxIncrement Financing District Bond vote to fund City Center Park, Garden Street, Williston
Road Streetscape, and the East-West Crossing – Ilona Blanchard, Community DevelopmentDirector (8:10 – 8:30 PM)
10.*** Public Information Session/Public Hearing on the $33,833,000 Bartlett Bay WastewaterTreatment Facility General Obligation Bond to support upgrades to the City’s wastewater
collection and treatment system – Thomas DiPietro, Public Works Director (8:30 – 8:50 PM)
11. Adjourn Pre-Town Meeting (8:50 PM)
Following the Pre-Town Meeting a Candidate Forum (for School Board and City Council candidates) will be held at the same link and location and moderated by Vince Bolduc
Respectfully Submitted:
Jessie Baker City Manager
SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023
The South Burlington City Council held a special meeting followed by a Steering Committee
meeting on Monday, 23 January 2023, at 6:30 p.m., in the Auditorium, 180 Market Street, and
by Go to Meeting remote participation.
MEMBERS PRESENT: City Council: H. Riehle, Chair; M. Emery, T. Barritt, Sen. T. Chittenden, M.
Cota; J. Baker, City Manager; School Board: Dr. T. Childs, Chair; C. Tillinghas; V. Nichols,
Superintendent of Schools
ALSO PRESENT: C. McNeil, City Attorney; I. Blanchard, Community Development Director; P.
Conner, Director of Planning & Zoning; M. Machar, Finance Officer; T. Jarvis, School District
Director of Finance; J. Slason, L. Bailey, L. Young, E. Fitzgerald, D. Bugbee, C. Shaw, A. Moore, M.
Ostby, C. Trombly, K. Boozan, K. Jarvis, P. Taylor
CITY COUNCIL SPECIAL MEETING:
1. Instructions on exiting building in case of emergency and review of technology
option:
Ms. Baker provided instructions on emergency exit from the building and reviewed technology
options.
2.Additions, deletions or changes in the order of Agenda items:
No changes were made to the Agenda.
3.Comments and questions from the public not related to the agenda:
Mr. Shaw asked the Council to find a way to honor retiring Legislator Ann Pugh for her 30 years
of service to the community.
Ms. Moore spoke to the need for better lighting and a reduced speed liming in the Dorset Street
area near the schools. Her son suffered a traumatic brain injury when he was struck by a
vehicle in that area. Ms. Moore noted students frequently go through that intersection after
dark when they have participated in after school activities. She said it is not a question of “if”
there will be another terrible accident there but “when.” Ms. Riehle noted this is an item later
on the agenda.
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
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4.Consent Agenda:
a.Approve and Sign Disbursements
Ms. Emery moved to approve the Consent Agenda as presented. Mr. Barritt seconded. Motion
passed unanimously.
5.Open Public Hearing: Hold a public hearing on an ordinance to implement
Education Impact Fees:
Ms. Emery moved to open the public hearing. Mr. Barritt seconded. Motion passed
unanimously.
Supt. Nichols said this proposed ordinance is about finding a space solution to over-enrollment
at Marcott and Orchard Elementary Schools. She noted that city growth is expected to continue
for at least 5 years. The proposal is to fund Zero Emission Modules (ZEMs) at the two schools.
The School Board accepted this proposal with no funding in place. The Board then worked with
Mr. Slason on a plan to tie school impact fees to the ZEMs project. Impact fees would be
phased in, with 50% of the fees collected from July 2023 and 100% from January 2024. It is
anticipated that 90% of the cost of the ZEMs will be collected from these impact fees. The ZEMs
could also be used at the Middle and/or High School in the future.
Mr. Conner explained that the city has the authority to establish impact fees. These fees would
be imposed on new dwelling units and on the addition of bedrooms to existing homes. The
proposed ordinance has a stipend fee based on the number of bedrooms in a unit. Mr. Conner
noted that any unit that qualifies as perpetually affordable housing is exempt from the impact
fee. The fees will be collected by the city and transferred to the School District. The ordinance
includes an administrative fee for all impact fees.
Public comment was then solicited. There was no public comment.
Ms. Emery cited the needs for the ZEMs.
Mr. Cota agreed and asked three questions: 1) Is there a sunset based on growth? Mr. Conner
said the ordinance would sunset upon collection of fees needed for the project. 2) Do the
numbers account for students being tuitioned. Mr. Slason said they are focusing only on
resident students as the number of tuition students fluctuates. 3) How will the phase in work.
Mr. Conner said fees will be charged at the time of issuance of a zoning permit. The
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
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recommendation is that no fee be charged through the end of June 2023. From 1 July 2023, the
fee would be 50% at the issuance of a zoning permit. From 1 January 2024, the full fee would
be in effect.
Ms. Bailey asked why not charge the fee on any home, not only new ones. Mr. Slason said
impact fees apply only to new construction as they cannot justify an old home which is already
paying into the system. The fee is to compensate for the new burden on the school system.
Ms. Bailey noted she could sell her home which has no children in the school system to a family
with children.
Ms. Fitzgerald asked if there are any other impact fees that have the same exemption for
affordable housing. Mr. Conner said there are. He noted that all impact fees follow the same
rules and sunset when a project (projects) tied to the fee is completed.
Ms. Riehle noted that the city has received no emails from developers opposing this ordinance.
Ms. Emery said she received one phone call.
Ms. Riehle then moved to close the public hearing. Ms. Emery seconded. Motion passed
unanimously.
6.Possible action on an ordinance to implement Education Impact Fees:
Ms. Emery moved to approve the ordinance to implement Education Impact Fees as presented
in this meeting’s packet. Mr. Barritt seconded. Motion passed unanimously.
Ms. Baker noted that while the ordinance is not on the upcoming ballot, the bond for the ZEMs
is.
Mr. Slason reiterated the expectation that 91% of the cost of the ZEMs will be recouped through
the impact fee.
STEERING COMMITTEE MEETING:
7.Agenda Review: Additions, deletions or changes in order of agenda items:
No changes were made to the agenda
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
PAGE 4
8.Comments & Questions from the public not related to the Agenda:
No comments or questions were presented.
9.FY24 School Budget and bond vote: Presentation of the proposed FY24 School
Budget and bond vote:
Mr. Jarvis stressed that the problem is that at this time of the year, the School District doesn’t
have all the information needed because the Legislature doesn’t finalize numbers until after the
March election. What is being proposed at this time is a 7.1% increase over last year’s budget.
That represents an 11.27% increase in net education spending per equalized pupil. Mr. Jarvis
noted that last year they had a $2,000,000 surplus of fund that could be spent during COVID.
That is no longer the case.
Mr. Jarvis then showed a pie chart of where school funding goes. The highest percentage is for
salary and benefits. All three unions are currently in negotiations. 65% of the salary money
goes to teachers with the balance to coaches, administrators, maintenance, bus drivers, support
staff, and substitute teachers.
Factors that impact the FY24 budget include:
a.Inflation – though there are signs that this is softening, the number is still
high
b.Negotiations
c.A 12.5% increase in health insurance
d.Labor shortage
e.Deferred maintenance
f.First year debt associated with the bond
Revenue issues include:
a.The $2,000,000 that is no longer available
b.ESSER funding to offset the pandemic is mostly used up
c.The Tax Commissioner’s letter which anticipates a rise of 8.5%
d.Yield increased by an additional 16.2% (which is very high)
e.The equalized pupil count of 2,559.93
f.The CLA at 92.97 which is down from 100.99 in FY23
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
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Ms. Baker noted that the CLA issue is a problem state-wide. Reappraisal companies are booking
3-4 years out. The State is looking at a new method of doing reappraisals.
Mr. Jarvis then showed a graph of staff level trends. He noted the skewing in FY23 due to the
influence of ESSER funds. He also noted that there are students with specific needs for which
they do not have funding. In an effort to get the budget down, the decision was made to cut 24
FTEs.
Mr. Jarvis noted the proposed tax rate is still the 44th lowest in the state though it is hard to
compare South Burlington with anyone else.
Mr. Jarvis showed a graph of Homestead Tax Rate Comparison with Neighboring Districts in
FY23. South Burlington had the lowest compared to neighboring towns.
Supt. Nichols then reviewed the budget priorities and approach as follows:
a. The budget meets student needs
b. The budget supports Act 173 requirements
c. The budget addresses chronic issues in two elementary schools with the
ZEMs
d. The budget prioritizes facilities stewardship to address deferred maintenance
Proposed ESSER funding for FY23 will provide one Student Engagement Coordinator, one Math
Interventionist and .4 FTE Art at the High School.
Proposed additions to the local budget include:
a. .5 FTE Communications Coordinator
b. 3.0 FTE Math Interventionist (1 at Orchard, 1 at Chamberlin, 1 at Tuttle)
c. 1.0 Special Ed Coordinator (to support elementary and middle school)
Ms. Nichols noted there is a 5% reduction in the overall operating budgets of each school and a
reduction of the proposed facilities operating budget. 8 of the open 28 requisitions currently
unfilled have been closed. They have also modified the delivery of nursing services.
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
PAGE 6
Mr. Jarvis then reviewed the budget worksheet. The total proposed FY24 budget is
$62,528.029. State and federal revenues will provide $12,911,955 which leaves a balance of
spending at $44,616,074. He then showed a graph of the 19-year trend and said he did not feel
FY24 was a “spike.”
Mr. Jarvis then reviewed the impact of the proposed budget at $51.00 per $100,000 of
appraised homestead value. The tax on a $432,720 home would increase by $285.00 for the
year.
The proposed bond issue includes funding for the ZEMs and $8,550,000 for capital
improvements in the general categories of roofing, HVAC, window replacement, bathrooms,
parking lot sidewalks and kitchens.
There will be presentations of the budget to various city groups until the March vote.
10. FY24 City Budget and bond votes: presentation of the proposed FY24 City Budget
and bond votes:
Ms. Baker said that challenges to the FY24 budget included:
a. Multi-year inflation rates for goods and services
b. COLA at 6.4%
c. Recovery from the COVID years
d. Maintaining service expectations.
Assumptions in preparing the budget included:
a. All bargaining agreements settled
b. 1.75 increase in the Grand List, 10% of which is associated with the City
Center TIF District
c. Increased cost of goods and services
d. ARPA salary and Capital Improvement Plan (CIP) stepdown
e. 6% health insurance increase
f. A savings on $110,000 for Workers Compensation insurance
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
PAGE 7
Budget goals included:
a. Addressing inflation
b. Sensitivity to the tax rate (this is a 2-year budget
c. Increase in park maintenance
d. Restoring of a Police officer and a Deputy Police Chief
e. Restoring of a Firefighter
f. A second ambulance as of 1/1/24
g. The CIP
h. Restoring the GIS/Analyst position to ensure that decisions are data driven
Ms. Baker noted the restoring of a Firefighter will address a non-sustainable situation with
mandatory overtime that is detrimental to the health and well-being of Firefighters. The second
ambulance will address a significant increase in medical calls, 23% of which are now being
answered by mutual aid from other communities.
The proposed city budget will result in an increase of $78.49/year for the average condo and
$117.11/year for the average homeowner.
The proposed budget also includes the one cent Penny for Paths and one cent Penny for Open
Space. Ms. Baker showed a list of the projects those funds have been used for.
Ms. Baker noted that utility rates will also increase as follows:
a. Water – an increase of 8.51%
b. Stormwater – an increase of 1.64%
c. Wastewater – an increase of 8.34%
Emerging issues not covered in this budget include:
a. Additional water storage tank
b. Regional dispatch
c. Recreation Center
Mr. DiPietro then reviewed the bond issue related to upgrade of the Bartlett Bay Wastewater
Treatment Facility to address age-related issues. He showed photos of the critical needs, some
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23 JANUARY 2023
PAGE 8
of which involve equipment that is no longer supported by the manufacturer. He also showed
the proposed site plan.
The bond being voted on will also address solids handling at the Airport Parkway Facility and the
refurbishing of 4 pump station in critical need of replacement.
The total cost of the proposed bond is $33,833,000. Staff is now working on a rate study and on
securing grants to address some of the cost.
Ms. Blanchard then explained the other ballot item related to the TIF District. She showed a
slide of the area which encompasses about 100 acres and explained that TIF money comes from
growth in land value from new development or re-development in the TIF District. 75% of the
tax growth goes to pay for the infrastructure projects in the District. This does not take money
from the School District as the State makes the education budget whole for the duration of the
TIF.
Ms. Blanchard noted that March of 2024 is the last time the city can incur debt in the TIF
District, and there are 4 projects to be voted on. These are:
a. The East-West crossing (bridge over I-89)
b. City Center Park II
c. Williston Road streetscape
d. Garden Street second phase
Ms. Blanchard showed the details of each project and stressed that the vote will not impact the
property tax rate.
Dr. Childs asked about the lighting on the park path. Ms. Blanchard said the path will go from
Barrett Street to Garden Street and will have waist-high lights. The path will be plowed but not
salted.
Mr. Barritt noted there is still a lot of land at the end of Market Street for which there is no
current plan but will probably be developed at some time.
Ms. Ostby proposed an idea for future discussion: exchanging the High School campus for the
Veterans Park campus and building a new High School and Grades 5-12 campus. The High
School could then be repurposed for affordable housing.
SPECIAL CITY COUNCIL/STEERING COMMITTEE
23-JANUARY 2023
PAGE 9
11.Discussion of Dorset Street safety and possible feedback for staff:
Ms. Baker noted the city is working with the Regional Planning Commission on a lighting study
of Kennedy Drive. The city will also do speed and traffic counts on Dorset Street which could
result in meeting the warrant for improvements. There is also a signal adaptation study being
done.
Dr. Childs as whether there could be something like a “beep” when people are exceeding the
speed limit.
Ms. Jarvis asked the time line for the studies. Ms. Baker said the lighting will wrap up this year,
the other next year. Ms. Jarvis asked that Dorset Street get the attention it deserves as 2 of the
5 school buildings are there and it is a hub for pedestrian and bike traffic.
Mr. Barritt said addressing lighting is important as it is hard to see pedestrians coming out of the
dark.
12.Discuss the City Charter Committee’s work to date and associated next steps:
Ms. Baker reviewed the status of the Committee’s work and noted the Committee includes two
School Board members. The have met regularly and have discussed governance models. They
will bring all information to the public this spring and then make recommendations to the City
Council. Eventually, any proposed Charter changes will go to the State Legislature for approval.
13.Other Business:
No other business was presented.
As there was no further business to come before the Council and Steering Committee, Mr.
Barritt moved to adjourn. Ms. Emery seconded. Motion passed unanimously. The meeting
was adjourned at 9:15 p.m.
_________________________________
Clerk
_________________________________
School Board Clerk
SOUTH BURLINGTON SCHOOL DISTRICTFY24 Proposed Budget Presentation For CommunityWe inspire all learners to make a difference in the world
2FY24 BUDGET PRIORITIES AND APPROACH
Budget Priorities and Approach●Develop a fiscally responsible budget in our current economic climate that meets students’ academic, social and emotional needs●Manage financial impacts of inflation, depleted ESSER funding, health insurance costs, union negotiations●Address chronic capacity issues in elementary schools via installation of Zero Energy Modulars (ZEMs)●Prioritize and protect the Facilities Stewardship Plan to address urgent deferred maintenance needs ●More closely align staffing to student ratios to pre-ESSER funding levels3
Budget Priorities and Approach (cont.)●Total staff FTEs reduced by 23.75*compared to current budgeted program levels*It would be premature to say which positions, we hope to maintain valuable staff through natural attrition ●Proposed ESSER-funded positions for FY24: ○1.0 Student Engagement Coordinator (SBHS)○1.0 Math Interventionist (RMCS)○0.4 FTE Art SBHS ●Proposed additions to local budget: ○0.5 FTE Communications Coordinator (Shifted from ESSER)○3.0 FTE Math Interventionist: 1 at Orchard, Chamberlin and FHTMS (shifted from ESSER)○1.0 FTE Special Education Coordinator: 0.5 FHTMS, 0.5 elementary (FY22 FHTMS Special Education Building Coordinator/Special Educator) 4
5PROPOSED FY24 BUDGET SPENDING SUMMARY+ 7.17%Proposed increase for SBSD Expense Budget from FY23 approved budget to FY24 proposed budget+3.93% Impact on Homestead (Residential) School Tax Rate for FY24 (assuming no property tax credit)
FY2024 Proposed SBSD Expense Budget6
7FACTORS IMPACTING THE FY24 BUDGETAPPROACH AND PROPOSAL
Student Enrollment History/Projections (Includes tuition students)8SchoolFY19 FY20 FY21 FY22 FY23 (current)FY24 (Projected)FY25(Projected0FY26(Projected)FY27(Projected)GCS (PK - 5)285 275 282 269 262 270 273 285 294RMCS (PK - 5)358 376 398 415 437 449 457 465 456ORCH (PK - 5)406 433 415 441 451 475 488 491 485Elementary (PK - 5)1,049 1,084 1,095 1,125 1,1501,194 1,218 1,241 1,235FHTMS575 564 506 492 516 556 593 587 617SBHS921 919 907 919 849 814 759 774 812Total Enrollment (PK - 12)2,5452,567 2,508 2,536 2,515 2,564 2,570 2,602 2,664Projected enrollment from McKibben Demographic Research, Inc Population and Enrollment Forecasts,November 2022
9*FY24 enrollment is forecast from McKibben studyEnrollment includes PreK and tuition studentsFTEs include unfilled and ESSER positionsYear 2019 2020 2021 2022 2023 2024Enrollment 2,545 2,567 2,508 2,536 2,515 2,564FTEs 492.00 496.20 486.86 493.35 532.54 508.79Student / FTE Ratio5.17 5.17 5.15 5.14 4.72 5.04Staff Level Trends
10Budget Impact on Education Taxes
FY23 Homestead Tax Rate Comparisons with Neighboring Districts11
Residential Education Tax Rate 19 Year Trend125 Yr Avg FY 2019-2023:$1.4815 10 Yr Avg FY 2014-2023: $1.5352 15 Yr Avg FY 2009-2023:$1.4860Proposed 2024 Rate: $1.3462
(1) Per $100,000 of assessed value(2) Average Condo value in South Burlington(3) Average Primary Home value in South Burlington(4) The School District Tax Rate is subject to change based on legislative actions taken after the budget vote. Also, these calculations do not take into account any property tax credits that the taxpayer may be eligible for based on homestead incomeYEAR2023-24 Annualized School Tax2022-23 Annualized School TaxAnnual Change (rounded)Monthly Change (rounded)Value (3)$437,384$5,888$5,665$223$19Value (2)$293,152$3,946$3,797$149$12Value(1)$100,000$1,346$1,295$51$4FY24 Budget Impact on Education Property Taxes 20
14PROPOSED BOND
Proposed Bond15●Total Bond Request: $14,550,000●$6 Million for Classroom ZEMs (Zero Energy Modular Classrooms)**Now implemented, impact fees will cover an estimated 91% of cost of ZEMs, excluding financing ●$8.55 Million for various capital improvement items in the Stewardship Plan:•Roofing ($2.35 million)•HVAC/Plumbing/AHU ($422.9 thousand)•Window Replacement ($1 million)•Bathrooms ($1.425 million)•Parking Lot/Sidewalk ($1.85 million)•Kitchens ($1.5 million)
16Each classroom averages 959 square feetEach Project Room averages 262 square feet
17
18Shall the issuance of general obligation bonds or notes of the South Burlington School District be authorized in an amount not to exceed Fourteen Million Five Hundred and Fifty Thousand ($14,550,000) Dollars for the purposes of financing the final design, permitting, site work and the construction of renovations, capital improvements and additions to several District school buildings and facilities, together with related eligible project expenses, such improvements to include the addition of zero energy modules (ZEMS) as well as capital improvements pursuant to the District’s Facilities Stewardship Plan?State funds are not available at this time, or this project is not eligible to receive state school construction aid. The South Burlington School District will be responsible for all costs and any borrowing and the costs of the planned improvements and additions.UNDERSTANDING THE BALLOTThe total amount of the bond including 8 ZEMs at 2 elementary schools and deferred maintenance across all 5 schools in the districtmaintenance that includes roofing, HVAC and plumbing, updating kitchen, bathrooms, windows, parking lots and sidewalks❏Yes to authorize the funds❏No to decline the authorization of funds
DISCUSSION & QUESTIONS19
SBSD Budget Worksheet for Proposed FY24 Budget20FY24 Proposed Budget$62,528,029Less Offsetting Local, State and Federal Revenues$12,911,955=Education Spending$49,616,074Equalized Pupils2,561.11Cost per Equalized Pupil (Ed Spending/Equalized Pupil)$19,372.88Yield (set by the Legislature)$15,479Equalized Tax Rate (Cost Per EP/Yield)$1.2516Common Level of Appraisal (CLA)92.97%= Actual Residential Tax Rate(Equalized Tax Rate divided by the CLA)$1.3462
Glossary:21Average Daily Membership (ADM): is a count of resident and state-placed students who receive an elementary or secondary education at public expense. This census data is collected between the 11th and 30th days of the new school year and is used in calculating the number of equalized pupils. Common Level of Appraisal (CLA): is the ratio of a town’s grand list property values to actual homestead market values. This is based on an equalization study performed by the VT Tax Department every year that reviews home sales prices for all the arms-length sales in a town over the prior three year period. The study considers recent sales price (and not the assessed value on the grand list) as the best measure of current market value. For a given level of budgeted Expenditures, changes in the CLA alone can have a significant impact on residential property taxes, especially if home values are generally rising and the town’s assessed grand list values are stale (eg no recent reappraisal). Typically, if a CLA decreases then property taxes will increase, and vice versa.Education Spending:is the amount that needs to be raised by education property taxes, augmented by the Education Fund. This is a calculation of a town’s voted and approved budgeted expenditures minus local revenues.Equalized Pupil: is a calculation that leverages the Average Daily Membership along with other demographic weighted factors in each district (such as distribution of students by grade, poverty levels, students for whom English is not their primary language, etc). A two-year average is used to smooth out annual student population fluctuations in school districts. The objective of calculating equalized pupils is to create an “average” student in terms of assumed costs for a given district. The current formula will be significantly updated for FY25.
Glossary (Continued):22Equalized Homestead Tax Rate: is a calculation of Education Spending per equalized pupil divided by the Property Tax Yield.Expenditures: are the total dollars a school district intends to spend in a given Fiscal Year (July 1- June 30).Income Sensitivity: refers to a test in the tax code that allows certain homestead owners who meet designated criteria to have their total property tax bill reduced by a property tax credit based on income. Local Revenues:are money the district has or is owed (e.g. grants, federal dollars, state aid for special education, tuitions, surplus,etc.).Residential Tax Rate (or Homestead Actual Residential Tax Rate): is a calculation that divides the Equalized Homestead Tax Rate by the Common Level of Appraisal (CLA). This rate is then multiplied by the assessed value of your homestead and divided by 100. The resulting education tax is added to the municipal tax to calculate your total property tax due (before any tax credits from the Income Sensitivity test).
Glossary (Continued):23Yield (or Property Tax Yield): is set by the Legislature annually and is the amount equivalent to a $1 homestead tax rate. The Yield is difficult to estimate prior to the VT Tax Commissioners recommendation onDecember 1st as it is driven by the financial status of the state’s education fund and otherpolitical factors. The final Yield is not typically finalized by the Legislature until the end of the session(i.e. after school budgets have been voted on).For more detailed information, please visit Vermont Agency of Education Tax Rate Calculations/Frequently Asked Questions:https://tax.vermont.gov/property/education-property-tax-rates/faqs
FY24 City Budget:Approved by City CouncilJessie Baker, City ManagerMartha Machar, Finance DirectorLeadership Team Pre‐Town Meeting Public Information Session and Public HearingsMarch 6, 2023
Overview•FY24 City Budget─Budget Challenges and Assumptions─FY24 Budget Goals─ARPA Allocations─Pennies for Open Space and Paths─Utility Funds─Emerging Issues•Questions and Comments2All FY24 City Budget documents available here:www.southburlingtonvt.gov/TMD2023
FY24 Budget: Challenges3•Multi‐year high inflation rates for goods and services•COLA currently at 6.4%•Continued need to incrementally recover from lean COVID budget years•Maintaining community’s service expectations and standards as the City grows•Need to smooth General Fund allocation to the Capital Improvement Plan to increase capacity345678Northeast Region CPI‐U
FY24 Budget: Assumptions4•Contractual COLA and step increases per the Collective Bargaining Agreements•Grand List Growth of 1.75% (9.6% growth in TIF, 1% in City‐wide GL)•Increases in cost of goods and services (gas and diesel, supplies and repairs, materials, etc.)•ARPA salary and CIP step down•Health insurance increase of 6%•Casualty and workers comp savings of $110,000•Green Mountain Transit increase of 9.8%($53k)
FY24 Budget Goals5Ensure we are meeting the community’s service expectations as we grow•Address rising inflation rates and cost of living adjustments•Address sensitivity towards tax rate increase by presenting a two‐year budget•Increase capacity to maintain our Parks •Refund (after lean COVID years)•a Police Officer position and Deputy Police Chief position•a Firefighter/EMT position •aGIS/Data Analyst to inform data driven decision making•Establish a second ambulance beginning January 1, 2024•Incrementally invest in our Capital Improvement Plan to ensure we maintain our infrastructure
FY24 Budget Goals: Public Works6Add Parks maintenance capacity in FY24 to address community needs.In the last 22 years, South Burlington added 20 new miles of road without adding a new position in the Highway Division. This capacity will be added in FY25.
FY24 Budget Goals – Police 7Restore two Police Officers over the next two years and reestablish the Deputy Chief position to meet the community’s expectation on response, restore specialized assignments, and do adequate succession planning for the future. In 2020 an analysis was done of our public safety needs •Result: 40 sworn officers and 10 civilians (including dispatch) are needed•Currently we have:CivilianFilled 9Vacant 1Total 10SwornFilled 32Vacant 5Proposed in FY24 2Total 39
FY24 Budget Goals –Fire8Restore a Firefighter/EMT position to meet minimum staffing of 8 Firefighters per shift. Establish a second ambulance starting January 2024 to address that currently, with a single ambulance, 23% of our medical calls are responded to by professionals from other agencies.
FY24 Budget Goals – Capital Improvement Plan9 $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 FY18 FY19 FY20 FY21 FY22 FY 23 FY 24Property Tax ‐CIP FundingFY23FY24 $ change % changeGF Tax Capacity*$2,688,000 $3,118,000 $430,000 16.0%ARPA$672,000 $541,500 ($130,500)‐19.4%Total $3,360,000 $3,659,500 $299,500 8.9%Add incremental investment to sustain tax capacity for infrastructure maintenance and projects.*Includes projects, City Center Reserve, and bond payments
FY24 General Fund Budget10•Fully fund current operations•Restore lean COVID year reductions and incrementally keep up with growth•Maintain $800k funding for TIF Capital Reserve•Two‐year plan•Focus on core municipal government•Future ability to be data driven
FY24 Budget: ARPA11Continue to step‐down ARPA General Fund and CIP spending from FY22 & FY23
Possible future ARPA: Climate Action Plan12NEW: Climate Action Plan Implementation FY24 FY25 FY26STAFF: Climate Director / Technical Planner (implementation strategy, ordinance research and drafting, data collection and reporting, recommendation on financing plan)$119,700 $124,488 $129,468STAFF: Sustainability community engagement manager and analyst (engagement, researcher grants opportunity, relationship, planner)$86,450 $89,908 $93,504Consultant (planning & design of city projects, experts to advise)$100,000 $104,000 $108,160Public outreach funding (meetings, stipends, events by sectors or interest groups, materials)$100,000 $104,000 $108,160Enforcement Team (~3 FTEs: Inspector for single family homes, additional Inspector, Administrative support, 2 vehicles, materials)$500,000 $400,000CIP Additional Investment (City vehicle charging stations, expanded bike/ped facilities, etc)*** TBD TBDTOTAL $406,150 $922,396 $839,292pennies $0.01 $0.02 $0.02percent 2.13% 4.83% 4.39%*** FY24 Proposed CIP includes investment in paths, charging stations at DPW, East‐West bridge, weatherization of Wheeler House, hybrid police cruisers, and upgrade to Airport Parkway and Bartlett Bay Treatment Facilities
Penny for Paths13FY24 CIP ProjectsDorset Street Shared Use Path• Final Design and Construction ($510k)• $500k is grant funded, $10k from Penny for PathsSpear Street Shared Use Path• Design and ROW ($100k)• Penny for Path funded in FY24• Grants, Penny for Paths, and Highway Impact Fees for FY25 and FY26Mary Street Sidewalk• Design and Construction ($90k)• Highway Impact Fee fundedSwift Street Shared Use Path Connection (From Spear Meadows)• Design ($20k)• Penny for Paths fundedCrosswalks (Dorset/Songbird, Spear/Pheasant, Hinesburg/Dubois)• Design ($15k)• Penny for Paths funded86.4% of residential buildings are within 0.1 miles of a shared use path!3.2 miles of shared use path is under design or planned for design within 5 yearsThe Penny for Paths stencil on the Upper Allen Road shared use path.
Penny for Open Space14FY24 CIP ProjectsHubbard Recreation and Natural Area• Final Design and Construction of path, parking area, viewing area, and stormwater infrastructure ($240k)• Grant ($100k), Recreation Impact Fee ($70k), and Penny for Paths ($70k)Red Rocks• Design and Construction for parking area, erosion repairs, and trail improvements ($70k)• Open Space Debt fundedWheeler Homestead and Natural Area• Construction of elements in Management Plan and OSNAP Priority List ($80k)• Open Space Debt fundedRecent trail reconstruction in Wheeler Recreation and Natural Area68% of residential buildings within 0.25 miles of an open space area and/or park!A new Project Manager will be starting in FY23 who will take on Open Space Projects to see them through completion.
FY24 Utility Rates15UtilityExisting Fiscal Year 2023 RateFiscal Year 2023 Annual Fee for the Average Home‐OwnerProposed Fiscal Year 2024 Rate% Increase from FY’23 to FY’24Annual Increase for South Burlington Home‐OwnerStormwater$7.32 per month for residential units$87.84$7.44 per month for residential units1.64%$1.44Sewer$44.49 per 1,000 cubic feet$356.82$48.20 per 1,000 cubic feet8.34%$29.76Water$33.37 per 1,000 cubic feet$267.63$36.21 per 1,000 cubic feet8.51%$22.78Total increase to average homeowner for South Burlington FY’24 utility fees: $53.97Sewer and Water rate increases driven by Bartlett Bay Wastewater Treatment Facility Improvements and anticipated 2024 Water storage bond vote.Sewer and Water rates are the lowest compared to similar Vermont communities.
Stormwater Fund16Capital Improvement Plan•Stormwater Treatment Practice (STP) Construction•Kennedy Drive Pond 2•Kennedy Drive Pond 7•Expansion of the Bartlett Bay Stormwater Treatment System (BBSTS)•Bartlett Bay Road Culvert•Engineering and design work•Fleet Purchases•Vacuum truck (split with Wastewater)•Street sweeper•1‐Ton truck$12,668,857.0$0.00$2,000,000.00$4,000,000.00$6,000,000.00$8,000,000.00$10,000,000.00$12,000,000.00$14,000,000.002005 2010 2015 2020CUMULATIVE GRANT FUNDING AWARDED TO THE SOUTH BURLINGTON STORMWATER UTILITY
Wastewater Fund17Wastewater rate increase driven by the Bartlett Bay Wastewater Treatment Facility Improvements and other capital projectsCapital Improvement Plan•Bartlett Bay Wastewater Treatment Facility Upgrade•Pump Station Upgrade•Fleet purchase: Vacuum truck (split with stormwater)$0.00$200.00$400.00$600.00$800.00$1,000.00$1,200.00Annual Sewer Fee for Single Family HomeAnnual FY22 Sewer Fee for Single Family Home
Drinking Water Fund18Water rate increase driven by an anticipated bond vote in 2024 for storage capacityCapital Improvement Plan•Water Storage Capacity –Design and construction of additional water storage in the high service area•Interconnection with CWD Main behind the UMall•Water Meter Replacement Program•Lead Service Line Survey$0.00$100.00$200.00$300.00$400.00$500.00$600.00$700.00$800.00$900.00$1,000.00Annual Water Fee for Single Family HomeCommunityAnnual FY22 Water Fee for Single Family Home
Emerging Issues19•Two‐year operations proposal •Requires another increase in FY25 to add staff capacity, incrementally invest in the CIP, and step‐down ARPA funding•Significant Executive Team transitions•Future for Regional Dispatch•2024 Bond Vote on Water storage capacity•No funding allocated for Recreation Center planning•Fire collective bargaining agreement expires at the end of FY24•Wage pressure in surrounding municipalities – especially in public safety
Article IV -TIF District Bond Vote
2023 Town Meeting
Est. TIF Bond $4.3M
East West Crossing
Walk bike bridge over I-89
Est. TIF Bond $1.3M
Williston Rd Streetscape
(south side)
Est. TIF Bond $8.3M
Garden Street
(Williston Road
Intersections)
Est. TIF Bond $1.1M
City Center Park II
Project Amount/% TIF
(TIF Financing Plan)
Project Approved TIF Financing Plan
Garden Street (mainly Phase II) $8,272,560 (100%)
East West Crossing $4,367,400 (30%)
Williston Road Streetscape $1,298,388 (50%)
City Center Park Phase II $1,148,082 (100%)
Total: $15,086,430
Garden Street
Williston Road intersections
Design Level 60%
Anticipated
Year of construction 2024
Budget $8.27 M
% TIF District Eligible:100%
Funding Sources:100% TIF
Federal-Aid Eligible?
Project Extent:
Yes
White St to Patchen Rd
Al’s French
Fries
Gracy’s
East-West Crossing
walk bike bridge over I-89
Design Level:30%
Anticipated Year of
Construction:2025
Budget:$14.55 M
% TIF District Eligible:30%
Funding Sources:$4.3M TIF
$9.8 M Federal
$0.5 M to be identified
Federal-Aid Eligible?
Project Extent:
Yes
Staples Plaza to CVS edge
Williston Road Streetscape
south side shared-use path & lighting
Design Level 60%
Anticipated Year of construction 2024
Budget $2.6 M
% TIF District Eligible 50%
Funding Sources $1.3M TIF
$0.8 M Federal
$0.5 M undesignated
Federal-Aid Eligible?
Project Extent
Yes
Dorset to Midas Drive
City Center Park –Phase II
boardwalk connection
Design Level:60%
Anticipated Year of
construction:2023-24
Budget:$1.1 M
% TIF District Eligible:95%, 5% expended prior phase;
so 100%
Funding Sources:$1.1M TIF
Federal-Aid Eligible?
Project Extent:
No
From Barrett Street to Market
Street and Garden Street via
shared use path
City Center
TIF District
2012 Property
Value
In 2012 the PROPERTY VALUE
was FROZEN
TIF Debt payments are made from taxes collected on the growth in land value
(taxes on value ABOVE 2012 value –75% of City and State)
2012 Property
Value
2017 –2037 GROWTH
PROPERTY VALUE
The City keeps
75%to service
TIF Bonds.
PROPERTY TAXES ON NEW DEVELOPMENT
25% of taxes on growth go to City & State Ed Fund
2012 Property
Value
2017 –2037 GROWTH
PROPERTY VALUE
THE CITY KEEPS
75% OF TAXES
ON NEW VALUE
TO PAY
TIF BONDS.
25% goes to City
and State as it
would otherwise
TIF
ED &
CITY
PROPERTY TAXES ON NEW DEVELOPMENT
Please note:
All TIF Debt is general obligation debt backed by the full faith and credit of the City;
if increment is insufficient to service debt, the City is still required to make
payments regardless.
Total TIF debt incurred to date: $10.5 M
Total TIF debt issued or intended to be issued under approved authorizations:
$14,430,062.
This authorization under consideration by the voters: $15,086,430.
Maximum TIF debt (if authorized by the voters and then the Council): $29,516,492.
Expected
Development
(Catamount Run
shown in red)
Catamount Run: 295 units
UVM MC: 181 units
Open by 2026: 476 more homes
Expected Revenues to Fund TIF District Debt
(All Projected Development)
Estimated Bond Debt Payments through 2038
(Expenditures)
Estimated debt service for this Vote $21.5 M
Expected TIF Fund Annual and Final Balances
PUBLIC NOTICE
CITY OF SOUTH BURLINGTON
CITY CENTER TAX INCREMENT FINANCING DISTRICT BOND
This Public Notice has been prepared by the City of South Burlington. It provides information
regarding the Article IV on the March 7, 2023 ballot. Article IV seeks voter authorization to
issue bonds, pledge the credit of the City, incur indebtedness and expend funds of the City to
finance and pay for improvements benefitting the City Center Tax Increment Financing (TIF)
District – more particularly City Center Park Phase II, Garden Street (Williston Road
intersections), Williston Road Streetscape and the East-West Crossing (walk bike bridge) – to be
repaid using a portion of the tax revenue derived from real property development within the TIF
District (TIF increment).
By this notice the City’s voters are provided information concerning the proposed projects, the
improvements to be made, the debt and terms of indebtedness to be incurred, the total incurred to
date, and the expected sources of funds to repay that indebtedness.
The City’s lawful voters are also provided information concerning the anticipated development
or redevelopment to occur and a notice regarding the nature of the debt as backed by the full
faith and credit of the City.
WARNING AND PUBLIC VOTE
The City Council held a public hearing at its December 5, 2022 meeting to take public comment
and approved a necessity resolution at its December 19, 2022 meeting, "Resolution of Necessity
for City Center TIF District Capital Improvement Projects." By resolution, the City Council
authorized the following question be placed on the ballot for the March 7, 2023 Town Meeting:
ARTICLE IV
CITY CENTER TAX INCREMENT FINANCING DISTRICT BOND
Shall general obligation bonds or notes of the City of South Burlington be issued, the full faith
and credit of the City pledged, direct payments of TIF increment be made, or any combination
thereof, in an aggregate principal amount not to exceed, after taking into account state or federal
grants-in-aid and other funds currently available to the City, Fifteen Million Eighty-Six Thousand
Four Hundred Thirty and 00/100 Dollars ($15,086,430) to fund public infrastructure or capital
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 2
improvements and related costs of projects in or having a nexus to the City Center Tax Increment
Financing (TIF) District, specifically:
(a) City Center Park (boardwalk connection): being the construction of new paved pathways
and an elevated boardwalk between Barrett Street, Market Street and Garden Street and
related amenities;
(b) Garden Street (Williston Road intersection realignment and intersection improvements):
being realignment of the Williston Road-White Street-Midas Drive intersection and
improvements to the Hinesburg Road-Patchen Road- Williston Road intersection, and
related transportation and utility upgrades;
(c) Williston Road Streetscape: being the installation of a shared-use path on the south side of
Williston Road between Dorset Street and Midas Drive and related utility and
transportation upgrades; and
(d) East-West Crossing: being a walk-bike bridge over I-89 at Exit 14,
recognizing that tax increment revenue from taxable properties within the TIF District shall be
pledged to and appropriated for payment of TIF District debt? To date, City voters have approved
TIF District debt totaling $29,402,000, of which $14,430,062 has been or is eligible to be repaid
in whole or in part using TIF District incremental revenue.
FINANCING OF PUBLIC IMPROVEMENTS - INDEBTEDNESS
Subject to the receipt of necessary voter approval, the City intends to finance the portion of the
TIF improvements that is eligible for TIF District Financing by issuing bonds (or notes in
anticipation of bonds) or incurring interfund indebtedness, the total principal amount of which
shall not exceed $15,086,430.
Bond Issues
The City may issue such bonds through a direct competitive or negotiated sale, sell them through
the Vermont Municipal Bond Bank or take out a loan, as the City Council determines to be most
appropriate. The term of the debt may vary and would not exceed twenty years, and the interest
rate, costs, and other terms fees will be determined based upon market conditions at the time the
debt is issued.
Debt Service
The City has options as to the type of debt, from whom the City obtains financing, and the
payment structure. Depending upon market conditions, the City may make direct payments, use
an anticipation note, take out an interfund loan or bond, delay interest payments, or otherwise
structure financing in such a way as to most benefit the taxpayers.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 3
Use of Bond Anticipation Notes
If voters approve the issuance of debt, the City may use Bond Anticipation Notes to cover
anticipated costs of construction. It is expected that this would be repaid in full by one or more
bonds as applicable. The City will take into account prevailing market conditions, and the build-
out schedule for the capital improvements, and the financial implications in the decision to issue
bond anticipation notes (BANs). It is the City’s intention that any BANs (together with accrued
but unpaid interest) and any interfund loan would be repaid from bond proceeds. Please note
that if an interfund loan is used as a bond anticipation note, interfund loans are, by law, interest
free borrowings.
Direct Payments of TIF Increment
Direct payments of TIF increment to reimburse TIF project expenditures require voter
authorization under the TIF Statute and this option is included in Article IV. This authorization
of direct payments is required prior to any reimbursement to the City for project expenditures
from the TIF Fund using TIF increment. Direct payments would only occur at a time that TIF
increment is available in the TIF Fund.
Pledge of the Credit of the City
Although the City projects that TIF increment will be sufficient to service the City’s obligations
if the voters approve Article IV on the March 7, 2023 ballot, voters are reminded that if the TIF
funds are insufficient to pay the principal and interest on the debt as the same comes due, for
whatever reason, including a decrease in property tax or repeal of a state property tax source,
unless otherwise determined at the time of such repeal, the City shall remain liable for payment
of the principal and interest for these obligations for the term of indebtedness until fully paid.
Tax Increment Financing Authorization
At this point in time the City is asking voters to approve the City’s proposed debt issuance for
the TIF eligible portion of the four City Center projects: $15,086,430. This public investment
will support future development projects within the TIF District including the multiple buildings
included in Catamount Run and other future private developments along Market Street, Garden
Street, Dorset Street, San Remo Drive and Hinesburg Road which are supported by these
transportation and park infrastructure improvements. See City Center TIF District for more
information on expected TIF District development outcomes and revenues.
If approved by the voters on March 7, 2023, the City Council will be authorized to issue TIF
financed debt and service it with TIF increment, and/or make direct payments for project costs.
The combined value of TIF debt proceeds and direct payments of TIF increment may not exceed
the $15,086,430 authorization.
TIF District Votes and Debt Approved or Incurred
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 4
State statutes require that City Center TIF District financed debt must be incurred by March of
2024.
The City Council is not required to issue all or any TIF District financed debt under this
authorization, even once approved by the voters, but if the City Council does so, it is only
authorized by the State to do if issued by the end of March 2024.
To date, the City has issued $10,429,962 of debt serviced by TIF increment. This is the total
cumulative amount of TIF district financed debt incurred.
Voters approved $5,000,000 for Market Street and City Center Park Phase II in 2016, in 2017 a
bond was issued for $5,000,000.
Voters approved $20,400,000 for the South Burlington Public Library and City Hall in 2018,
$5,429,962 was issued as TIF financed debt in 2020 and 2022, with the remainder of the
authorization issued as separate bonds and financed by City Reserve funds (not TIF financed).
Voters approved $4,002,550 for Garden Street and related costs in 2021, no debt has been issued
or direct payments made to date under this authorization.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 5
THE FOUR TIF PROJECTS
There are four projects that may be funded with this authorization:
City Center Park Phase II (boardwalk connection): This project will result in paved pathways
for bicyclists and pedestrians to travel between Market Street, Garden Street and City Center
Park (with an elevated boardwalk across Tributary 3 to the Potash Brook wetlands) and through
City Center Park to Barrett Street.
These new walk bike pathways and upgrades to the existing path will include paving and related
amenities such as lighting, benches, bicycle parking, landscaping, wetland protection, and
signage.
Overview of City Center Park Phase II pathways to be added/upgraded connecting the park to City Center and creating a north-south
connection for walking and biking.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 6
Garden Street (Williston Road intersection improvements): The Garden Street project
includes the public construction of roadway segments A, C and D. This TIF District financing
authorization will enable the construction of Segment D. Funds may also be used on a portion
of Segment C, specifically the Midas Drive segment.
Garden Street Project Overview
Segment D – Williston Road Intersections. This segment is shown as D on the Garden Street
Project Overview. It will align White Street and Midas Drive so they form a right-angle
intersection with Williston Road. Crosswalks and turning lanes (left and right) will be located on
all four roadway “legs” of the intersection.
Figure 1: Illustration of the proposed realignment of the Williston Road White Street/Midas Drive intersection and the improvements to
the Hinesburg Road/Patchen Road intersection with improvements between.
Al’s
French Fries
Gracy’s
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 7
Improvements are also planned for the Hinesburg Road, Patchen Road and Williston Road
intersection and Williston Road between these two intersections. Improvements include
roadway, traffic signal, pedestrian and bicycle accommodation, stormwater treatment, utility,
lighting and other transportation and streetscape upgrades.
Segment C – Connector. Funding already authorized. From the northern edge of the existing
Garden Street roadway north of Market Street through Midas Drive. This segment (shown as C
on the Garden Street Project Overview) includes roadway construction southeast of Midas Drive
and curb, paving, utility, streetlight, walking and bicycle facilities, and landscaping on Midas
Drive. Portions of the Midas Drive segment may be funded under this authorization.
Segment A – West End. Funding already authorized. From Dorset Street through to the bridge –
between Trader Joes and Healthy Living. This segment includes utilities, street lights, walking
and bicycling facilities, curb work, intersection signal work and landscaping (shown as A on the
inset diagram Garden Street Project).
Segment B – Private Sector funded. Segment B has been constructed north of Market Street and
is in progress south of Market Street. Segment B is being undertaken by South Burlington City
Center, LLC as part of the Snyder-Braverman development of the surrounding land.
Williston Road Streetscape: The Williston Road Streetscape will result in accommodations for
pedestrians and bicycles on the south side of Williston Road (a shared-use path). The project’s
wider green space between the curb and the shared-use path, where feasible, will improve the
condition for walkers and bicyclers in inclement weather, provide snow storage and a buffer
from traffic. New pedestrian-oriented streetlights will improve evening visibility on the shared-
use path, at crosswalks, and at transit stops.
Williston Road Streetscape Location
This project extends from Dorset Street to Midas Drive. This project will not affect the width of
the Williston Road vehicular paved area.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 8
This project is also supported by a federal grant in the amount of $800,000, for which the TIF
District financing is also a required match.
East-West Crossing (a walk bike bridge over I-89 at Exit 14): This project will facilitate
travel throughout the region via a bridge over Interstate 89 at Exit 14. Shared-use paths for
bicycles and pedestrians will connect the bridge over the interstate to Williston Road at Staples
Plaza and the existing Dorset Street path at the CVS. Spur paths will connect the project to
Quarry Hill (a future connection) and the University Mall. The paths and bridge will be well-lit,
with resting places to enable access for multiple abilities and ages. Some landscaping is planned
for the bridge. This facility is planned to be open 24-hours per day, 7-days per week all year.
Location Map: East-West Crossing Walk Bike Bridge Project
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 9
Artist's rendering of the project in the evening and approaching the bridge from the east path.
This project is also supported by a federal RAISE grant in the amount of $9.8 million, for which
the TIF District financing is most of the required match.
SUMMARY OF EACH PROJECT’S TIF DISTRICT FINANCING ELIGIBILITY
Project TIF Eligibility Note (See Funding Sources Section Also)
City Center Park 95%
As the City’s 5% share of total project costs was funded
from recreation impact fees during Phase I, the proposed
TIF district financing will fund 100% of Phase II.
Garden Street 100% No City funds required.
Williston Road
Streetscape 50%
The City has an $800,000 federal grant for most of the
50% match and has planned to use a grant or reserve
funds or a grant for the remainder.
East West Crossing –
Walk Bike Bridge
over I-89
30%
The City has a $9.7 M federal grant for 67% of the cost
and will seek funding or use funds already set aside for
City Center, transportation or pedestrian and bicycle
improvements for the remaining 3%.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 10
TIF DISTRICT FINANCED PROJECT COSTS
Categories of expenditures for TIF district financed public improvements includes:
• environmental assessment and remediation;
• surveying;
• engineering, design, permitting and inspection;
• general site work (including site preparation and stabilization);
• utility infrastructure, connections and relocation (water, sewer, electrical,
communications, and stormwater);
• green infrastructure;
• public accessibility improvements;
• preparation of design & maintenance guides associated with the projects;
• construction of all improvements
• bike amenities;
• public amenities;
• public art and place-making;
• wayfinding and signage;
• landscape improvements;
• bridges, boardwalks, spans, supports, embankments, earthworks and other associated
structures
• walls, stonework, railing, benches, bicycle parking and other outdoor permanent
furniture;
• road, sidewalk, crosswalk, lighting, landscaping and parking infrastructure;
• preparation of design & maintenance guides associated with the projects;
and eligible related costs associated with the above categories, or as attributable to the projects.
PROJECT FUNDING IN ADDITION TO TIF DISTRICT FINANCING
The estimated cost for all four projects is $26,573,388. The total debt authorization on the ballot
is for $15,086,430.
The budgeted cost for these improvements is $26,573,388 based on secured funding and
estimated costs as follows:
PROJECTED
EXPENSE TOTAL FUNDING SOURCES
TIF Project Budgeted Cost TIF District Financing
(this vote)
Federal Funds
(secured)
Other funds
(such as grant or
designated fund)
City Center Park $1,148,082 $1,148,082 0
Garden Street $8,272,560 $8,272,560 0
Williston Road Streetscape $2,596,776 $1,298,388 $800,000 $231,888
East-West Crossing
$14,555,970 $4,367,400 $9,768,834 $480,000
Total: $26,573,388 $15,086,430 $10,568,834 $721,888
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 11
Specifically:
Debt Authorization on the March 7, 2023 ballot: $15,086,430
Tax Increment Financing Debt, with an estimated 14-year term
at 4.26% with 5-year delayed principle payments and level
payments thereafter.
Federal Funds: $10,568,834
RAISE US Department of Transportation Grant for the East-
West Alternative Transportation Crossing ($9,768,834)
Federal Aid (VTrans Award) for the Williston Road
Streetscape ($800,000)
Other City funds: $721,000
Revenues to be made up by grants or existing funds for
City Center or pedestrian/bicycle improvements
AMOUNT PER PROJECT IS ESTIMATED
The amount of debt used for each specific project may be adjusted from that estimated as actual
costs are incurred. The total aggregated amount of debt issued under this authorization shall not
exceed $15,086,430.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 12
CITY CENTER TIF DISTRICT
In March of 2015, the Vermont Economic Progress Council (VEPC) unanimously approved the
City Center Tax Increment Financing Plan. This was updated in December 2021 by an approved
Substantial Change. The TIF District allows the City to annually retain 75% of the growth in
property tax revenues (TIF increment) since 2012 within the TIF District to finance public
improvements included in the Financing Plan.
Actual use of TIF financing may occur only if approved by a public vote.
REVENUES TO SERVICE TIF DISTRICT FINANCED DEBT
The City began collecting TIF increment in tax year 2017-2018 (FY 2018). Increment is
property tax revenue generated by new development - the TIF District’s increase in property
value since the April 1, 2012 baseline.
TIF increment is 75% of both a) these new State Education property taxes and b) these new
Municipal property taxes. The City will collect this revenue through tax year 2036-2037 (FY
2037) – a 20-year period. These revenues would not exist but for the City’s investment in public
capital projects. After FY 2037, 100% of these new revenues go to the State Education Fund and
the City’s General Fund.
TIF Increment is 75% of new property tax revenues generated by the growth in property value in the City Center
TIF District since April 1, 2012. It is collected annually through tax year 2036-2037.
Information Regarding Article IV
March 7, 2023 Ballot - City Center Tax Increment Financing
Page 13
There are over 40 properties within the current boundary of the TIF District. Private
development or redevelopment of any one of these properties between now and the April 1, 2036
Grand List increases the property value resulting in an increase in TIF increment collected.
Each year TIF increment collected is added to a special City TIF increment fund where it is held
apart to be available only to service outstanding TIF District debt.
The City’s projection of these TIF District revenues shows that debt issued under this
authorization will not raise the tax rate as the TIF District debt is able to be serviced with TIF
increment.
PROJECTED TIF INCREMENT REVENUES
The City estimates that the TIF increment (tax revenue generated from taxable improvements
made in the City Center TIF District and lawfully retained by the City) will be sufficient to
cover:
• the costs of the proposed capital improvements that are TIF District financing eligible
(City Center Park, Garden Street, Williston Road Streetscape and East-West Crossing
walk bike bridge over I-89), and
• debt service on the indebtedness incurred to finance these capital improvements.
TIF funds are dependent upon the pace, intensity and taxable value of development that occurs in
the TIF District. The City has projected the growth of development occurring in the TIF District
and the expected TIF funds to be generated over time using assumptions and expectations that
that have been reviewed by VEPC as reasonable.
Financial Model – Two TIF Increment Projections
This notice includes a financial model: 2023 Town Meeting TIF Revenue and Debt Model. This
model shows projections of City Center TIF district tax increment revenues until 2037. The
model has two TIF increment projections. One projection is the City’s estimate of TIF increment
revenues – All Projected Development – which projects the TIF revenues due to development
over the life of the TIF District. This is the revenue the City expects to collect.
This projection is updated from the projection that was provided to VEPC in the TIF District
Substantial Change Approved December 17, 2021 (which revised the TIF District Financing
Plan post-COVID). For more information on the projection assumptions please see the
Substantial Change as it describes the construction of the projection in great detail. Newer
information such as the Catamount Run development and the higher interest rates on municipal
bonds that was not known in 2021 has been incorporated.
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March 7, 2023 Ballot - City Center Tax Increment Financing
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Because of the TIF District investments in City public infrastructure, the City Center TIF District
projection – All Projected Development – estimates that resulting private development will
generate:
• $49 M of increment to be available for TIF district financing.
• Of this, $36 M represent new State funds and $13 M represent new City funds that will
be set aside in a special fund (75% of the taxes on growth-new development-over 20
years – the TIF increment).
• $4.3 M in new revenues that will go to the City’s General Fund and $12 M in new
revenues will go to the State Ed Fund (25% of the taxes on growth over 20 years).
• At the completion of the TIF District (2037) City tax revenues in the amount of $2 M
annually for the City and $5.8 M annually for the State.
• A surplus of $8.4 M, which will be distributed to the City and the State Ed Fund.
If TIF funds are insufficient to pay all the principal and interest on the City’s TIF related
indebtedness, for whatever reason, the City will be required to pay the principal and interest
remaining. There is no guarantee that development will occur or occur in the time or of the
type(s) forecast. To understand the risks, the City prepared the Existing Development and
Pipeline projection.
This second projection shows the estimated TIF increment revenues on existing and pipeline
development. Development projected is limited to existing buildings built since April 1, 2012
and those which are in development, subdivision or environmental permit review, with no other
activity through 2037.
These two projections have been prepared and are shown in the attached 2023 Town Meeting
Revenue and Debt Model as a high and low in order to show both 1) the City’s expectation of
what would occur, and 2) what if nothing beyond what is in the pipeline where to be developed.
In the Existing Development and Pipeline projection, if after pipeline projects were developed,
no other parcel were to develop in the TIF District, there would be a shortfall of $6.7 M in 2039
when all debt is paid off.
If no additional development (the Existing Development and Pipeline projection) occurs, the
projection shows the City Center TIF District outcomes as follows:
• $34 M will be available for TIF district financing.
• Of this, $25.2 M represent new State funds and $8.8 M represent new City funds that will
be set aside in a TIF special fund (75% of the taxes on growth-new development-over 20
years – the TIF increment).
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• Over the life of the TIF district, $2.9 M in new revenues will go to the City’s General
Fund and $8.4 M in new revenues will go to the State Ed Fund (25% of the taxes on
growth over 20 years).
• At the completion of the TIF District (2037) City tax revenues will have risen to $1.1 M
annually for the City and $3 M annually for the State.
The City also has a reserve fund (currently servicing the debt on the South Burlington Public
Library and City Hall, including the Senior Center) which would reduce the out-of-pocket
amount from $6.7 M to $3.9 M. See the section entitled Reserve Fund Model to learn more
about the role of the Reserve Fund, as well as the attached 2023 Town Meeting TIF Revenue and
Debt Model. While the existing and pipeline projection is not what the City expects, see also the
section Risk Management for more information on how the City is planning to mitigate this risk.
DEBT SERVICE
The City anticipates that the bulk of the private development throughout the TIF District will
occur after the City incurs this debt and has constructed public infrastructure to support such
development. The City expects over the twenty years it is permitted to collect TIF increment
(Fiscal Year 2037), that it will collect more than enough tax increment to fully service debt
issued. However, during some periods of development of the District, the TIF Increment Fund,
in the servicing of the debt, will likely not collect sufficient funds to fully service the debt in
some years, and this shortfall will be made up in later years.
Debt Service Model
The hypothetical debt presented in the attached 2023 Town Meeting TIF Revenue and Debt
Model is based on estimated debt service schedules from the Vermont Bond Bank bond. This
models the fund balances over the life of and at the conclusion of the TIF District.
The model includes the maximum authorization ($15.1 million). It divides the debt service
between the four projects according the estimated amount each would use of the bond. Debt
payments would begin in FY 2024. This debt modeled has a 14-year term with a 4.26% interest
rate, five years of interest-only payments (delayed-principal payments) and level payments
thereafter. This is a more expensive debt structure, the City will seek the best structure to fit the
City’s finances at the time of application for debt.
The model also incorporates existing debt and expected debt which voters have already
authorized (Market Street, City Center Park Phase I, 180 Market Street, and Garden Street
(segments A and C).
To address the anticipated lower levels of increment in the earlier years of private property
development, the City has modeled the effects of using the City Center CIP Reserve Fund to
ensure that if the TIF increment fund has a cumulative shortfall in any given year (expected), the
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March 7, 2023 Ballot - City Center Tax Increment Financing
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City has the cash flow necessary to service debt obligations until the TIF increment collected is
sufficient.
Reserve Fund Model
The City Center Reserve Fund is funded annually through the collection of taxes. Over the past
seven years, this fund has grown to an annual contribution of as much as $860,000. The funding
level for fiscal year 2023 is $800,000, and there is currently $2.9 million dollars in the fund.
This fund is used to service debt for non-eligible portions of TIF District projects and is currently
servicing debt on the South Burlington Public Library and City Hall.
This fund is shown in the attached model in a secondary function of this fund – a cash cushion.
The cash cushion enables the City is able to make TIF District financing debt payments in a
timely manner while allowing the increment to accrue to the fund over time.
Fund Balances Model
The 2023 Town Meeting TIF Revenue and Debt Model, in addition to showing two projections
of increment revenue generation over the remaining term of the TIF District, also models the TIF
increment fund balance for All Projected Development and for Existing Development and
Pipeline using the total estimated debt service.
The first projection, the All Projected Development, shows the TIF increment the City estimates
to receive. This is the revenue the City will use to service all TIF financed debt including for
these projects.
The second shows the estimated TIF increment to be collected from existing, permitted, or
anticipated to be permitted development in the near term (the remaining property owned by
SBCC, LLC and under contract to be developed by Snyder-Braverman) – the Existing
Development and Pipeline projection.
These are presented as best- and worst-case scenarios to demonstrate both the expected outcome
of a net TIF increment surplus of $8.4 million that would be apportioned to the State Education
Fund and the City and the no-additional-development estimated risk of a $6.7 million shortfall
(defrayed by the Reserve Fund for an estimated final shortfall of $3.9 million).
The annual balance of the Reserve Fund is also modeled. There are figures showing the annual
transfer of tax revenues to the Reserve Fund and debt payments from the reserve fund for non-
TIF financed debt. The Reserve Fund balances are modeled in order to show how the Reserve
Fund acts as a cash cushion in years when the TIF debt service is greater than the TIF increment
available at the time (expected under either projection).
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March 7, 2023 Ballot - City Center Tax Increment Financing
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Risk Management
The City is taking steps to realize the City’s All Projected Development estimate. While the
Existing Development and Pipeline Projection is not the expected outcome it is a tool to allow
the City to evaluate risk. The incorporation of the Reserve Fund balance into model does defray
the risk to $3.9 million, however, this does not make it optimal.
To address this, the City will focus on reaching out to potential developers and property owners
throughout the TIF District to encourage full buildout of prime properties in City Center.
In addition, the City will seek additional grant funding for federal aid eligible projects: Williston
Road, Garden Street Intersections (on Williston Road), and the East-West Crossing.
The City also will continue to evaluate debt instruments and lenders. The final instrument,
structure, source and terms chosen will be that which at the time is the best fit for the needs of
the City due to factors such as condition of financial markets, projected private development in
the TIF District, and interest rates.
ESTIMATED DEVELOPMENT AND DISTRICT OUTCOMES EXPECTED TO OCCUR
BECAUSE OF THE PROJECTS
The City’s All Projected Development shows estimated revenues based on existing and expected
private investment including what has been built since 2012, pipeline projects and that which
would reasonably occur on the remaining developable TIF District parcels through 2036. The
projected TIF District increment is based on modeling the build-out of the remaining
undeveloped or underdeveloped parcels. This excludes protected wetlands, the school parcel,
parcels developed in the past 30 years and small parcels.
Overall, over 1,000 new units of housing, and over 200,000 square feet of new commercial
(retail and office) are anticipated expected be built because of the TIF District public
investments.
Many private projects have already been built – Union Place (opening this spring), Dover Place,
Champlain Housing Trust’s Garden Apartments, Allard Square affordable senior housing,
Blackbay Venture’s two town home projects, Trader Joe’s, and Pier 1.
One project is in construction - Prospect Place. This project will add 120 housing units (the
largest development to be constructed to date), a day care and a space for a ground floor
commercial business.
The largest TIF District property, owned by South Burlington City Center, LLC is the site of
many these projects. This site also contains the South Burlington Public Library and City Hall.
Snyder-Braverman, the developers for the property, have completed state-level wetland,
stormwater and Act 250 permitting for the entire property to support future development.
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March 7, 2023 Ballot - City Center Tax Increment Financing
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These developers are in the process of permitting the remainder of the property, the bulk of
which will be developed as Catamount Run. This project includes investment from UVM and
will result in an estimated 36,000 new square feet of commercial space and at least 295 new
housing units. A site plan approval was just issued for the first block of this development.
Catamount Run artist’s illustration of B Block – three buildings that received site plan approval in 2023 including over 18,000 square
feet of ground floor commercial.
A full build-out of the TIF District is estimated to add just over $310,000,000 worth of assessed
value to the City’s Grand List. As of April 1 of 2022, more than $30,000,000 in new assessed
property value has already been added to the TIF District. The Existing Development and
Pipeline model (which excludes additional development) is projected to generate just over half
that amount or $163,000,000.
Access to the park area, the expanded capacity for pedestrians and bicyclists, intersection
capacity and safety upgrades, and improved access to resources such as transit, schools, and
public buildings supports this private investment. These public resources enable the private
sector to build more homes and space for commercial activity at a higher rate of development
than would have occurred otherwise.
This material and other information regarding the history of the City Center TIF District are
available online at www.SouthBurlingtonVT.gov. You may also call 802-846-4107 if you have
questions.
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March 7, 2023 Ballot - City Center Tax Increment Financing
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The public is also invited to a Public Information Session/Public Hearing on this bond and other
ballot items which will be held on March 6, at 6:30 PM in the Auditorium at the South
Burlington Public Library and City Hall located at 180 Market Street in South Burlington, VT.
2023 TOWN MEETING TIF REVENUE AND DEBT MODELJuly 1 2017 - June 30 20182018 (FY) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034DEADLINE TO INCUR DEBT: MARCH 31, 20241 (Year of TIF Revenue)234567891011121314151617TIF DISTRICT FUND PROJECTIONANNUAL INCOME: PROJECTED TIF DISTRICT INCREMENT REVENUEALL PROJECTED DEVELOPMENT72,939.84$ 84,928.06$ 158,868.78$ 264,380.07$ 413,448.15$ 468,742.47$ 628,813.73$ 975,926.66$ 1,791,747.94$2,383,732.05$3,068,505.98$ 3,247,191.44$ 3,318,274.75$ 3,571,866$ 3,760,503$ 4,295,231$ 4,473,423$ EXISTING DEVELOPMENT AND PIPELINE (SBCC, LLC - SNYDER-BRAVERMAN) 72,939.84$ 84,928.06$ 158,868.78$ 264,380.07$ 413,448.15$ 471,775.84$ 631,915.14$ 979,097.69$ 1,434,694.83$1,756,272.92$2,394,858.20$ 2,559,986.23$ 2,617,210.23$ 2,675,768$ 2,735,691$ 2,797,014$ 2,859,771$ FY 2018-FY2022 is ACTUAL REVENUE (INCREMENT)INCREMENT TOTALALL PROJECTED DEVELOPMENT49,172,630.29$ EXISTING DEVELOPMENT AND PIPELINE34,101,991.88$ ANNUAL EXPENDITURES - TIF FUND2018 (FY)20192020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034TIF FINANCING BOND PAYMENT SHEDULES (amt, purpose, term, interest)All TIF Debt has 5 Year Delayed Principle Payments2017 Market St & City Center Park ($5M, 20 YR, 3.39%)voted 2016134,660.75$ 162,133.34$ 162,133.34$ 162,133.34$ 162,133.34$ 162,133.34$ 491,383.39$ 482,933.34$ 473,983.34$ 464,533.34$ 454,583.34$ 444,250.01$ 433,566.68$ 422,567$ 411,300$ 399,783$ 388,050$ 2020 180 Market Street ($5M, 17 YR, 1.90%)voted 201871,373.60$ 87,099.98$ 87,099.98$ 87,099.98$ 87,099.98$ 502,412.81$ 499,433.64$ 495,912.81$ 491,041.97$ 484,239.88$ 475,954$ 466,936$ 457,398$ 448,088$ 2022 TIF Bond Payment ($0.43M, 15 YR, 2.03%)voted 20184,693.30$ 5,613.25$ 5,613.25$ 5,613.25$ 5,613.25$ 50,582.46$ 50,296.98$ 49,963.69$ 49,582.60$ 49,154$ 48,677$ 48,099$ 47,380$ Estimated 2023 Garden St Phase I ($3.52M, 14 YR,4.26%)voted 2021100,467.84$ 149,952.00$ 149,952.00$ 149,952.00$ 149,952.00$ 479,040.60$ 479,040.60$ 479,041$ 479,041$ 479,041$ 479,041$ Estimated 2024 Garden Street Phase II ($8.27M, 14 YR, 4.26%)vote 2023236,115.41$ 352,411.06$ 352,411.06$ 352,411.06$ 352,411.06$ 1,125,821.62$ 1,125,821.62$ 1,125,822$ 1,125,822$ 1,125,822$ 1,125,822$ Estimated 2024 Williston Road Streetscape ($1.23M, 14 YR, 4.26%)vote 202337,058.59$ 55,311.33$ 55,311.33$ 55,311.33$ 55,311.33$ 176,699.02$ 176,699.02$ 176,699$ 176,699$ 176,699$ 176,699$ Estimated 2023 City Center Park Boardwalk ($1.15M, 14 YR, 4.26%)vote 202332,768.56$ 48,908.29$ 48,908.29$ 48,908.29$ 48,908.29$ 156,243.72$ 156,243.72$ 156,244$ 156,244$ 156,244$ 156,244$ Estimated 2024 Ped/Bike Bridge over I-89 ($4.37M, 14 YR, 4.26%)vote 2023124,654.33$ 186,051.24$ 186,051.24$ 186,051.24$ 186,051.24$ 594,364.18$ 594,364.18$ 594,364$ 594,364$ 594,364$ 594,364$ RELATED COSTS - DIRECT REIMBURSEMENT$477,650voted 2021364,400$ 5,100$ 5,100$ Subtotal TIF BOND SERVICE: 40,284,594.18$ Total TIF FUND EXPENDITURES:40,762,244.18$ (with direct reimbursement)FUND BALANCE - TIF INCREMENT2018 (FY) 2019 2020 2021 2022 2023 20242025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ANNUAL BALANCE - PROJECTEDALL PROJECTED DEVELOPMENT(61,721)$ (77,205)$ (3,265)$ 30,873$ 159,522$ 181,127$ (502,487)$ (392,354)$ 17,105$ 576,549$ 1,275,079$ (270,233)$ (181,284)$ 92,022$ (62,979)$ 852,681$ 1,052,637$ EXISTING DEVELOPMENT AND PIPELINE(61,721)$ (77,205)$ (3,265)$ 30,873$ 159,522$ 184,161$ (483,246)$ (389,183)$ (339,948)$ (50,910)$ 601,431$ (957,439)$ (882,348)$ (804,076)$ (1,087,790)$ (645,536)$ (561,016)$ CUMULATIVE BALANCE - PROJECTEDALL PROJECTED DEVELOPMENT(61,721)$ (138,926)$ (142,191)$ (111,318)$ 48,204$ 229,331$ (273,156)$ (665,510)$ (648,405)$ (71,857)$ 1,203,222$ 932,989$ 751,705$ 843,727$ 780,748$ 1,633,430$ 2,686,066$ EXISTING DEVELOPMENT AND PIPELINE (61,721)$ (138,926)$ (142,191)$ (111,318)$ 48,204$ 232,365$ (250,882)$ (640,064)$ (980,013)$ (1,030,923)$ (429,492)$ (1,386,931)$ (2,269,279)$ (3,073,355)$ (4,161,145)$ (4,806,681)$ (5,367,697)$ FINAL YEAR (2037) TIF INCREMENT FUND BALANCE ALL PROJECTED DEVELOPMENT8,361,478$ EXISTING DEVELOPMENT AND PIPELINE(6,693,021)$ July 1 2017 - June 30 20182018 (FY) 2019 2020 2021 2022 2023 20242025 2026 2027 2028 2029 2030 2031 2032 2033 2034RESERVE FUND PROJECTIONANNUAL INCOME TRANSFERS FROM GENERAL FUNDAnnual Transfer to City Center Reserve Fund 750,000$ 860,000$ 750,000$ 860,000$ 800,000$ 800,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ 860,000$ ANNUAL EXPENDITURES - RESERVE FUNDCITY SHARE OF PROJECT COSTS - DEBT PAYMENTS FRm THE CITY CENTER RESERVE FUND2019 180 Market Street Bond - ($14M, 30 YR, 3.7%)583,452$ 926,056$ 917,423$ 908,626$ 899,596$ 890,239$ 877,532$ 867,452$ 859,308$ 846,624$ 832,620$ 817,496$ 801,487$ 784,733$ 767,387$ 2022 Bond - 180 Market St (.97M, 30 YR, 2.03%)5,306$ 58,100$ 57,312$ 56,525$ 55,737$ 54,949$ 54,162$ 53,374$ 52,586$ 51,798$ 51,011$ 50,223$ 49,435$ Estimated 2024 Bond - Williston Rd Streetscape - (0.4M, 20 YR, 4.31%)3,238$ 29,271$ 28,585$ 27,899$ 27,214$ 26,528$ 25,842$ 25,157$ 24,471$ 23,785$ 23,100$ RESERVE FUND BALANCECumulative City Center Reserve Fund Balance:2,700,000$ 3,450,000$ 3,726,548$ 3,158,000$ 3,095,271$ 2,928,545$ 2,768,399$ 2,652,365$ 2,550,511$ 2,460,210$ 2,379,527$ 2,313,001$ 2,261,952$ 2,227,501$ 2,210,532$ 2,211,790$ 2,231,868$ Accounts for non-debt payment debits to fundJuly 1 2017 - June 30 20182018 (FY) 2019 2020 2021 2022 2023 20242025 2026 2027 2028 2029 2030 2031 2032 2033 2034CASH CUSHION: Annual Reserve Balance PLUS TIF Increment MINUS TIF and City Share Debt ServiceALL PROJECTED DEVELOPMENT2,638,279$ 3,311,074$ 3,584,357$ 3,046,682$ 3,143,475$ 3,157,876$ 2,495,243$ 1,986,855$ 1,902,105$ 2,388,353$ 3,582,749$ 3,245,990$ 3,013,657$ 3,071,228$ 2,991,280$ 3,845,220$ 4,917,935$ EXISTING DEVELOPMENT AND PIPELINE 2,638,279$ 3,311,074$ 3,584,357$ 3,046,682$ 3,143,475$ 3,160,910$ 2,517,517$ 2,012,300$ 1,570,498$ 1,429,287$ 1,950,034$ 926,070$ (7,327)$ (845,854)$ (1,950,613)$ (2,594,891)$ (3,135,829)$
2023 TOWN MEETING TIF REVENUE AND DEBT MODELTIF DISTRICT FUND PROJECTIONANNUAL INCOME: PROJECTED TIF DISTRICT INCREMENT REVENUEALL PROJECTED DEVELOPMENTEXISTING DEVELOPMENT AND PIPELINE (SBCC, LLC - SNYDER-BRAVERMAN) FY 2018-FY2022 is ACTUAL REVENUE (INCREMENT)INCREMENT TOTALALL PROJECTED DEVELOPMENT49,172,630.29$ EXISTING DEVELOPMENT AND PIPELINE34,101,991.88$ ANNUAL EXPENDITURES - TIF FUNDTIF FINANCING BOND PAYMENT SHEDULES (amt, purpose, term, interest)2017 Market St & City Center Park ($5M, 20 YR, 3.39%)voted 20162020 180 Market Street ($5M, 17 YR, 1.90%)voted 2018 2022 TIF Bond Payment ($0.43M, 15 YR, 2.03%)voted 2018Estimated 2023 Garden St Phase I ($3.52M, 14 YR,4.26%)voted 2021Estimated 2024 Garden Street Phase II ($8.27M, 14 YR, 4.26%)vote 2023Estimated 2024 Williston Road Streetscape ($1.23M, 14 YR, 4.26%)vote 2023Estimated 2023 City Center Park Boardwalk ($1.15M, 14 YR, 4.26%)vote 2023Estimated 2024 Ped/Bike Bridge over I-89 ($4.37M, 14 YR, 4.26%)vote 2023RELATED COSTS - DIRECT REIMBURSEMENT$477,650voted 2021Subtotal TIF BOND SERVICE:40,284,594.18$ Total TIF FUND EXPENDITURES:40,762,244.18$ (with direct reimburseFUND BALANCE - TIF INCREMENT ANNUAL BALANCE - PROJECTEDALL PROJECTED DEVELOPMENTEXISTING DEVELOPMENT AND PIPELINECUMULATIVE BALANCE - PROJECTEDALL PROJECTED DEVELOPMENTEXISTING DEVELOPMENT AND PIPELINE FINAL YEAR (2037) TIF INCREMENT FUND BALANCE ALL PROJECTED DEVELOPMENT8,361,478$ EXISTING DEVELOPMENT AND PIPELINE(6,693,021)$ RESERVE FUND PROJECTIONANNUAL INCOME TRANSFERS FROM GENERAL FUNDAnnual Transfer to City Center Reserve FundANNUAL EXPENDITURES - RESERVE FUNDCITY SHARE OF PROJECT COSTS - DEBT PAYMENTS FRm THE CITY CENTER RESERVE FUND2019 180 Market Street Bond - ($14M, 30 YR, 3.7%) 2022 Bond - 180 Market St (.97M, 30 YR, 2.03%)Estimated 2024 Bond - Williston Rd Streetscape - (0.4M, 20 YR, 4.31%)RESERVE FUND BALANCECumulative City Center Reserve Fund Balance:Accounts for non-debt payment debits to fundCASH CUSHION: Annual Reserve Balance PLUS TIF Increment MINUS TIF and City Share Debt ServiceALL PROJECTED DEVELOPMENTEXISTING DEVELOPMENT AND PIPELINE2035 2036 2037 2038 2039TOTALS:181920Total:4,792,325$ 5,394,282$ 6,007,500$ (High)49,172,630$ 2,923,995$ 3,100,025$ 3,169,351$ (Low)34,101,992$ 20352036 203720382039BOND PAYMENT TOTAL:376,117$ 364,017$ 351,800$ 339,500$ -$7,243,694$ 439,332$ 430,384$ 425,855$ -$-$6,036,760$ 46,539$ 45,596$ -$513,017$ 479,041$ 479,041$ 479,041$ 5,011,641$ 1,125,822$ 1,125,822$ 1,125,822$ 11,778,154$ 176,699$ 176,699$ 176,699$ 1,848,595$ 156,244$ 156,244$ 156,244$ 1,634,595$ 594,364$ 594,364$ 594,364$ 6,218,137$ Total:40,284,594$ DIRECT REIMBURSEMENT5,100$ 5,100$ 5,100$ 5,100$ 82,650$ 477,650$ 20352036 2037203820391,393,068$ 2,017,017$ 2,692,577$ (344,600)$ (82,650)$ (475,261)$ (277,240)$ (145,573)$ (344,600)$ (82,650)$ 4,079,135$ 6,096,151$ 8,788,728$ 8,444,128$ 8,361,478$ (5,842,958)$ (6,120,198)$ (6,265,771)$ (6,610,371)$ (6,693,021)$ 20352036 2037 2038 2039 20402041860,000$ 860,000$ 860,000$ 860,000.00$ 860,000.00$ 860,000$ 860,000.00$ 749,850$ 732,140$ 714,299$ 696,449.00$ 678,394.00$ 660,695$ 643,102.00$ 48,648$ 47,860$ 47,072$ 46,284.72$ 45,497.04$ 44,709$ 43,921.68$ 22,414$ 21,728$ 21,043$ 20,356.95$ 19,671.26$ 18,986$ 18,299.90$ 2,270,957$ 2,329,228$ 2,406,814$ 2,503,723.49$2,620,161.19$2,755,771$ 2,910,447.67$ 2035 2036 2037 203820396,350,091$ 8,425,379$ 11,195,542$ (3,572,002)$ (3,790,970)$ (3,858,957)$
Bartlett Bay Wastewater Treatment Facility Improvements Bond VoteApproved by City CouncilThomas DiPietro, Public Works Director Pre‐Town Meeting Public Information Session and Public HearingsMarch 6, 2023
Bartlett Bay Bond VoteThe City is proposing a $33,833,000 bond to support upgrade of the Bartlett Bay Wastewater Treatment Facility (BBWWTF) and related wastewater infrastructure. This includes:•Reconstruction of the Bartlett BayWastewater Treatment Facility.•Improvement of the infrastructure tohandle the solids generated throughthe process.•Refurbishment of four pump stationsthat collect wastewater and convey itto the Bartlett Bay WastewaterTreatment Plant.
Bartlett Bay Bond Vote: Treatment FacilityHistory and Goals•Facility was constructed in 1970 and lastupgraded in 1999.•Wastewater treatment plants have a designlife of ~50 years and upgrades are necessaryevery 20‐30 years.•The existing plant is aging and must beupgraded to ensure that the City can safelyconvey and treat the wastewater generatedby our residents and businesses.•Maintaining our wastewater treatmentinfrastructure is critical to protecting thewater quality of our local streams and LakeChamplain.
New Headworks BuildingNew Operations Building and Maintenance GarageAeration Tank, Blowers & Intermediate Pump RefurbishmentClarifier, RAS, WAS RefurbishmentNew Culvert & Security FenceNew Filter Building Addition, Filter Refurbishment & New UV SystemNew OutfallNew Sludge Handling Tanks, Solids Handling & Chemical Storage FacilitiesProposed Site Plan
Bartlett Bay WWTF –Age Related Needs1)Wear on interior of secondary clarifier, 2) Leaking ceiling in Pump Building, 3) Sludge storage blowers installed 1987, 4) Hole above ladder in sludgestorage tank
Critical Age‐Related Needs•Headworks –Gritremoval is original(1973) and obsolete.Screening (1999) isineffective leading toissues downstream.•UV disinfectionsystem (1999) is nolonger supported bythe manufacturer.•Sludge Storage Tank–Leaking and canonly be filled belowholes
Bartlett Bay Bond Vote: Solids Handling•Solids from the BBWWTF are trucked to theAirport Parkway WWTF where they areprocessed to Class A Biosolids using a 2Phase Anaerobic Digestion (2PAD) process.•2PAD system currently limited by volatilesolids reduction (VSR).•Primary clarifiers can’t be taken down forcleaning/maintenance or in an emergency.•Would provide operational flexibility / buffer.•Includes minor repairs to solids storage tankthat was previously taken out of service.4thprimary clarifier at the APWWTF was value engineered out of 2009 upgrade
Bartlett Bay Bond Vote: Pump Stations4 pump stations and buried force mains are proposed for replacement•In service for over 50 years.•Cost of force main failures and repairs are increasing.•Located within 40’ to 250’ of Lake Champlain.•Upgrades needed to reduce the risk of wastewater spill intoShelburne Bay.•This project is needed to protect public health and the environment.25YEARSTypical service life of a pump station25YEARSTypical service life of a pump station
Refurbishment of Wastewater Pump Stations in the Bartlett Bay WWTF Sewershed
Bartlett Bay Pump StationRefurbishment of Wastewater Pump Stations in the Bartlett Bay WWTF Sewershed
Bartlett Bay Bond VoteUtility Rate Impact•South Burlington currently has the lowest wastewaterrates in the State of Vermont. •The work required to upgrade our system, and coveredby this bond vote, would result in a 6.75% rate increase each year for the next four years. •This would mean that the average homeowner’s annualwastewater bill would be $71.00 higher four years fromnow than it is today.BBWWTF Construction $22,151,000BBWWTF Solids Handling at APWWTF Construction$1,823,000Refurbishment of Wastewater Pump Stations Construction$4,456,000Preliminary/Final Design/Construction Engineering Services$5,271,000Legal/Administration/Permitting (0.5%) $132,000Total $33,833,000$0.00$200.00$400.00$600.00$800.00$1,000.00$1,200.00Annual Sewer Fee for Single Family HomeCommunityAnnual FY22 Sewer Fee for Single Family Home
Project Schedule2022Prepare bond documents2023Bond vote2024Bidding2024Construction2023Public information meetings2023Final design to prepare contract documents (plans and specs for bidding)APRIL 2023 –APRIL 2024JUNE 2024 –JULY 2026NOV. 2022 –JAN. 2023FEBRUARY 2023MARCH 2023MAY –JUNE 2024First debt paymentJULY 2027 2027
Why now?•Anticipated need to upgrade•Established and documented critical needs and identifiedrecommended plan•Currently observing operational issues anticipated with age•Bond authorization indicates support from the community and makesthe City more competitive in pursuing additional grantsNote: Bond authorization doesn’t obligate the City to spend the full amount.