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HomeMy WebLinkAboutMinutes - City Council - 04/11/1996PUBLIC HEARING ON 1996-1997 BUDGET 11 April 1996 The South Burlington Steering Committee held a public hearing on the proposed 1996-1997 City and School Budgets on Thursday, 11 April 1996, at 7:30 p.m., in the Conference Room, City Hall, 575 Dorset Street. Members Present City Council: James Condos, Michael Flaherty, William Cimonetti, Charles Hafter, City Manager; School Board: Theodore Manazir, Dennis Snyder, Julie Duppstadt, Robert Leclair, Bruce Chattman, Superintendent Also Present Peg Strait, Asst. City Manager; Margaret Picard, City Clerk/Treasurer; Bruce O'Neill, Tom Hubbard, Recreation Dept; Marilyn Frederick, School District; Jim Fuller, Eva Diner, Lorrie Doering, Ann & Ron Savitt, Frank & Andrew Sadowski, Clorinda & James Leddy, Bob O'Brien, Al Tremblay, Lynn Vera, Ann Pugh, Monica Farrington, Jan Russell, Irene Stowe, Nancy Chamberland, Anne McKenzie, Linus Leavens, Susan Deacon, Agnes Clift, Leo O'Brien, Peter Crevier 1. Minutes of 21 March 1996: Ms. Duppstadt moved the Minutes of 21 March be approved as written. Mr. Cimonetti seconded. Motion passed unanimously. 2. Presentation of City and School Budgets, Fiscal 1996-7: Mr. Condos introduced members of the Steering Committee. Mr. Hafter then presented the proposed City Budget: The total budget for operating costs and bonded debt is proposed at $8,416,000. This represents an increase of $28,000 over last year, less than a .03% increase. For the third year in a row, the tax rate has been slightly reduced from 83.1 in 1995-6 to 82.8 in 1996-7. The Grand List has increased 1.5%, from $7,115,000 to $7,263,000. The maximum amount that can be raised from taxes for the operating budget is $4,728,272. Mr. Hafter noted that while other communities vote on their budgets based on expenditures, adjusting the tax rate to meet proposed expenses, South Burlington begins with a tax rate and adjusts the budget to meet the tax rate. Since the Grand List has grown only 1½% the operating tax rate can grow by only that percentage, which it has. The total city tax rate of 83.1% includes, in addition to the to the operating tax rate, bonded debt, other entities (CCTA, County Courts, etc.), and the special 5-year highway appropriation approved by the voters (now entering its 3rd year). Mr. Hafter said that the reduction in the tax rate is due to the refinancing of bonds to lower rates. For an average home in South Burlington (valued at $115,000 and currently appraised at $75,000), the homeowner would pay $621. for city services for the year, an average/mo of $51.75. This amount has increased by an average of only $10.00 a year over the last 6 years. Mr. Hafter credited city department heads for the success in keeping the operating tax rate in check. Since 1990, the total tax rate increase has been 5.8% while the CPI has increased 18%. Mr. Hafter then reviewed budget highlights: a. The city has been able to maintain almost all of its programs such as DARE, Kids & Kops, the Bike Path Patrol, etc. b. The State has promised that by July, 1997, the whole state will have E-911 service. Mr. Hafter said this is the one service the people of South Burlington have not been getting for their tax dollars, and that is finally going to be addressed. c. The city is beginning a 2-year comprehensive reappraisal which will be done for the 1998 fiscal year. Driveby inspections will begin in July, 1996. There will be a public education and participation in this process. Capital Purchases/Construction: Fire Department: The Fire Dept. will purchase 2 new pumpers and a defibrillator. There will be a continuing lease payment on the exhaust removal system, Scott Airpacks, and the new station doors. Police: The Police Dept. will purchase 2 new cruisers, lasar radar, and the VIBRS computer system. They will continue the seasonal rental of a motorcycle. Natural Resources: An intern from UVM will help with work on the trail system on the Calkins property. A cross-country ski trail was built this year and will be open to the public next winter. Community Library: The Library will purchase book bins for the children's library. They have also received a 5% increase in the book/periodical budget. Highway Dept: Garage improvements will be made, and next year they will begin the new public works facility. The Dept. will purchase a new Bobcat Loader and pickup truck. Road projects from the special appropriation will be continued. Mr. Hafter said this work is right on schedule. Park Maintenance: Included in plans for the Dorset Park are a new swing set and a new Peewee Baseball field. A grant has been received for extensive landscaping in the area near the park. Sewer User Fees: There will be an increase in sewer rates brought about mainly by the increasing costs of sludge removal/disposal and the building of a reserve for the Bartlett Bay Sewage Treatment Plant expansion. The average family will see a $21.75 increase for the year in sewer fees. Mr. Hafter stressed that South Burlington is very competitive with the rest of the County. Proposed Charter Change: There will be a ballot item relating to the proposed elimination of the machinery and equipment tax in South Burlington. All business personal property first located in South Burlington after 1 April 1996 will be exempt from property tax. Existing equipment will decrease 20% per year over a 5-year period till it, too, is eliminated from this tax. In addition, there is an item on tax stabilization. Such agreements would be allowed with approval by 4 of 5 City Council members. Mr. Hafter said this is being done so that the city can compete with surrounding towns, and it is hoped that additional business encouraged by this move will help offset money lost from elimination of the personal property tax. Public Hearings on this amendment will be held on 15 April and 22 April at 7:30 p.m. Mr. Leddy asked if this amendment to the Charter will result in loss of city services due to reduced income. Mr. Hafter said the city would not be able to tax above Charter limitations without going to the voters. He said that because the machinery/equipment tax is being phased in, it is hoped that costs can be met within the budget and that the growth in the Grand List will not make it necessary to go to the voters for additional funds. Mr. Leddy asked if the city has any discretion over local taxes such as local rooms and meals tax. Mr. Cimonetti explained that any such taxes would have to be approved by the state. Mr. Leddy then thanked Councilman Flaherty for his 24 years of service to the community. Supt. Chattman then presented the proposed School Budget: He began by explaining the process of building the budget. 4 packages were considered: Package A: what is mandated by state law, graduation requirements, debt service, contractural obligations, Special Education, etc. Supt. Chattman noted that the District has traditionally underfunded contractual obligations. They will not do that this year. Package B: what is currently being done, including some programs that go beyond basic requirements. This package also included preventive maintenance and the current level of staff development. Package C: New strategic initiatives and staff development and technology related to these initiatives. Package D: projected strategic budgets for the next 5 years. Packages A + B would cost slightly over $20,000,000. to fund, and it was realized that projected revenues would not match those costs. Thus, there would have to be budget reductions to stay within Charter limitation. Supt. Chattman then outlined some of the factors impacting the school system. There has been a 20% increase in enrollment since 1992, but during the same time, per pupil expenditure has gone down almost $1000. The Grand List has also not grown at a rate to meet increased costs. The projection is for over 2500 students next year. The total cost for the A & B Packages would be $20,344,437. All available revenues total only $18,658,294. This means that $1,686,143 had to be cut from the budget. Cuts were divided as follows: $983,788 District 606,564 High School 72,331 Middle School 23,561 Elementary Schools (an additional 60,101 was cut for contingency.) Supt. Chattman said they tried to keep reductions as far away as possible from direct services to students. Some of the specific reductions include cuts in outside psychological services, special ed supplies, sabbaticals, buses, team uniforms, equipment and supplies, EAP, Special Ed Summer School, building support staff, networking position, District Administrators' compensation, etc. At the elementary school cuts included technology, field trips, student patrol program and support staff. At the Middle School cuts included computer equipment, Quest, Library AV, athletics, co-curricular, .3 FTE Nurse, music equipment, supplies. Reductions at the High School included supplies, materials and equipment, ancillary services, non-mandated programs and diversified instruction in mandated programs. The total proposed school budget is $18,658,294 with $16,140,654 of this to be raised from taxes. The total tax rate for the schools is proposed a 2.222. Supt. Chattman said they are hoping to get about $908,000 from the state for Special Ed programs. Mr. O'Brien said he is bothered by the deficit, since there is an obligation under state law to eliminate this. He felt it was not being addressed in a forthright manner. Supt. Chattman explained the nature of the deficit. About 75% of it is attributable to summer salaries (the fiscal year is July 1 to June 30, which the contractual school year is September 1 to August 30. Supt. Chattman said that for FY 1996 there is projected to be no additional dept other than summer salaries. Supt. Chattman then outlined plans to solve the deficit problem. These include insuring that annual expenditures don't exceed revenues, retiring the existing cash deficit by committing 1% of the budget to deficit reduction, adopting an accrual accounting system over a 5-year transition period beginning FY 98. This program, he said, has the approval of the Board, the auditors and the Vermont Municipal Bond Bank, and it should retire the deficit in 9 years. Mr. O'Brien said he felt this should be put to the voters to insure that it happens as outlined. Mr. Savitt said he was concerned that tuition costs for students outside the community are lower than the "per pupil" costs. Supt. Chattman explained that what a district can charge for is mandated by the State. The city cannot charge tuition students for the cost of transporting local students. In addition, there are some special ed costs that can't be charged as part of the tuition rate but which can be billed separately. Ms. Deering said she found it inexcusable that this situation has happened and felt there needs to be more accountability for spending. Mr. Leddy said it appeared to him that there were some expenses that didn't get budgeted for over the past few years. He said he can't understand the problem so he couldn't support the solution proposed. He was concerned that the consequence was an impact on education services and student services. He commended administrators for taking cuts in their own salaries, but he was concerned with "selective reduction" in staff benefits. He felt it meant loss of stability and continuity because special ed students will be tutored by part time people. Ms. Vera said she was also dismayed that the lowest paid people get the worst hit, with full time aides being reduced to half-time and thus losing both salary and benefit packages. She also said she had been pleased to see increases in allocation for technical education for juniors and seniors and asked if any of that funding will be cut. Supt. Chattman said they will have more funds for students to attend Technical Centers to compensate for reductions in some school programs. Mr. Sadowski said that a petition drive has been held under a project called KIDS (Keep Imagining Dynamic Schools) and a carefully worded ballot item has received the required number of signatures to placement on the May ballot. They are asking for a one year, one time appropriation to restore core programs and technology. He said it was the opinion of many people in the community that the cuts made were too deep, too severe, especially at the high school. He said they hope approval of this item will give a short term reprieve to allow for a long-term solution to be found. Supt. Chattman invited residents with concerns to come in and discuss the situation with him and to offer any suggestions as to solutions. He said one of the major problems is that of unfunded state and federal mandates, which are beyond the control of the schools. He noted the State Legislature makes changes after local budgets are set, and these mandates have to be adhered to by local communities. Supt. Chattman said the petition from KIDS has been placed on record by the School Board and will be warned for placement on the ballot. Ms. Duppstadt said the Board had taken the position not to raise taxes. Mr. Savitt asked what guarantee is there that if the ballot item is passed it will be managed any better? Ms. Clift asked how many of the proposed cuts are sustainable for more than a year. Supt. Chattman said many of the cuts will continue. He stressed that this is not a short term problem, and there is no simple answer. Ms. Clift asked if there has been any success in finding alternative revenue sources. Supt. Chattman said Mr. O'Day has met with 8th grade parents and boosters and there is a commitment to fund freshman athletics. There is also a plan being developed for a ticket service for a 5:30 p.m. bus. Mr. Trombley asked why, if the deficit has been increasing for 5 years, it is only being revealed now. Ms. Frederick said it has always been in the annual report. Supt. Chattman said that last year the Board adopted a resolution to reduce the deficit and they are now focusing attention on it so the public can be aware. Mr. Trombley said he was very concerned with the ethics and morality of reducing positions in order to reduce payment of benefits to employees. Ms. Farrington asked if the cuts in administration compensation is "real salary" or things like travel expenses. Supt. Chattman explained that cuts for contractual people have to be real dollars. This is being discussed. Other groups are also having discussions. Three administrators are not part of the bargaining units, and they have volunteered to take reductions. These will be real dollars, but they can be achieved in various ways (salary, benefits, etc.). Ms. Farrington asked if the new principal will be hired at a reasonable rate. Supt. Chattman replied that the salary for this position is in the bargaining agreement. It also depends on what the market will bear. He said they will purchase the services of the best person at the least possible amount, and that it will be within the proposed budget. Mr. Cimonetti then elaborated on the reappraisal process. He stressed that it is not about raising more money. The process is under the control of the city, but the state has mandated that all property be fairly appraised at market value. South Burlington has fallen 36% behind. The city is, however, in good shape because the dispersion rate between various types of property is very small. He stressed that reappraisal will not solve any deficits. Mr. Hafter asked if the School District is having to pay the costs of adult vocational education. Supt. Chattman said that is true. The state has declared that vocational education is an entitlement, even for those who have a diploma. Ms. Frederick said they city is currently paying for 8 adults, but this could change dramatically. Mr. Snyder said he felt this should be paid for by the State Dept. of Employment and Training. Supt. Chattman noted that on April 17th, the schools will be hosting an open house to show the results of remodeling at Orchard and Chamberlin Schools, the Middle School and the High School. Bus service between schools will be provided. Work is not yet completed at Central School, and a separate open house will be held when that work is done. Supt. Chattman also announced that the next School Board meeting will be held on Wednesday, 17 April, at 7:30 p.m. As there was no further business, the meeting was adjourned at 9:40 p.m. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.