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HomeMy WebLinkAboutAgenda - City Council - 01/22/2024 - CC/Steering Committee MeetingCITY COUNCIL MEETING AGENDA STEERING COMMITTEE MEETING AGENDA JANUARY 22, 2024 Participation Options In Person: 180 Market Street, Main Floor, Auditorium Assistive Listening Service Devices available upon request Electronically: https://meet.goto.com/SouthBurlingtonVT/steeringcommitteemeeting01-22-2024 You can also dial in using your phone (872) 240-3311 Access Code: 269-983-877 City Council Meeting (6:30 p.m.) 1.Pledge of Allegiance (6:30 p.m.) 2.Instructions on exiting building in case of emergency and review of technology options – Jessie Baker, City Manager (6:31–6:32 p.m.) 3.Agenda Review: Additions, deletions or changes in order of agenda items (6:33–6:34 p.m.) 4.Comments and questions from the public not related to the agenda (6:35–6:45 p.m.) 5.*** Warned for 6:45 p.m. – Hold a Public Hearing on a charter change proposal to increase the number of South Burlington School District Board Members from five to seven (6:45– 7:15 p.m.) 6.Adjourn (7:15 p.m.) Steering Session (immediately following City Council meeting) 1.Agenda Review: Additions, deletions or changes in order of agenda items (7:15–7:16 p.m.) 2.Comments and questions from the public not related to the agenda (7:16–7:26 p.m.) 3.Consent Agenda: (7:26–7:30 p.m.) A.*** Approve minutes from the November 2, 2023 Steering Committee Meeting. 4.*** Presentation of the FY25 School Budget and other votes – Violet Nichols, Superintendent (7:30–8:00 p.m.) All School District Budget information can be found here. 5.*** Presentation of the FY25 City Budget, bond vote, and possible ballot items – Jessie Baker, City Manager (8:00–8:30 p.m.) 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107| WWW.SOUTHBURLINGTONVT.GOV All City Budget information can be found here. 6. *** Continued discussion of the impacts of Act 127 and the Common Level of Appraisal (CLA) on the estimated Education Tax Rate and shared advocacy (8:30–9:00 p.m.) 7. Other Business (9:00 – 9:10 p.m.) 8. Adjourn (9:10 p.m.) Respectfully submitted: Jessie Baker City Manager ***Attachments included MEMORANDUM TO: South Burlington City Council FROM: City Attorney’s Office RE: Charter Change – Increase the Number of School Board Members to Seven DATE: For January 22, 2024 City Council Meeting / Public Hearing Below is a proposal to amend the City’s Charter to allow for an increase in the number of School Board Members from five (5) to seven (7). This is being provided for your consideration for the first of two public hearings in preparation for a vote by the public by Australian ballot on March 5, 2024. Proposal §301. Officers; general provisions The officers of the City of South Burlington shall be those provided by law for towns, except as otherwise provided by this charter. The officers shall have all the powers and duties necessary to carry out the provisions of this charter as well as those provided by law. The offices of Fence Viewer, Weigher of Coal, and Inspector of Lumber shall be abolished. (1) The officers of the South Burlington School District shall continue to be those provided by law for school or school districts, except as otherwise provided by this charter; provided, however, that the School Directors shall hold no other School District or City office with the exception of the Board of Civil Authority, the Board of Abatement, and as provided otherwise in this charter. When a vacancy occurs on the Board of School Directors, the remaining members of the Board may fill the vacancy until the next annual meeting when the School District shall fill the vacancy. (2) The Council by majority vote of all its members shall appoint annually the City Treasurer, whose office shall be no longer elective, and the City Attorney, Zoning Administrator, Auditor, First and Second Constable, Grand Juror, and Trustee of Public Funds. (3) [Repealed.] §311. Board of School Directors; number; terms of office; election (a) There shall be a Board of School Directors consisting of seven members. (b) Four members shall have terms of office of three years; three members shall have terms of office of two years. (c) All present School Directors shall serve as Directors until the expiration of their terms. and their successors have been duly elected and have qualified. (d) On the first Tuesday in March, 2025, the voters shall elect, from among the legal voters of the city, two members for terms of three years and two members for terms of two years. On the first Tuesday in March, 2026, one member for a term of three years and one member for a term of two years shall be elected. Thereafter, the election of school directors shall be for the length of the term of the member whose term is expiring. (e) All Board of School Directors shall be elected at large. Next Steps The Official Copy of this Charter Change Proposal is attached and is on file with the City Clerk’s Office. A copy of the Annual Meeting Warning that was approved at your last Council meeting is also attached. A second public hearing will be held on January 29, 2024 and a public vote by Australian ballot will be conducted on March 5, 2024. OFFICIAL COPY Proposed Charter Amendments § 13-301. Officers; general provisions The officers of the City of South Burlington shall be those provided by law for towns, except as otherwise provided by this charter. The officers shall have all the powers and duties necessary to carry out the provisions of this charter as well as those provided by law. The offices of Fence Viewer, Weigher of Coal, and Inspector of Lumber shall be abolished. (1) The officers of the South Burlington School District shall continue to be those provided by law for school or school districts, except as otherwise provided by this charter; provided, however, that the School Directors shall hold no other School District or City office with the exception of the Board of Civil Authority, the Board of Abatement, and as provided otherwise in this charter. When a vacancy occurs on the Board of School Directors, the remaining members of the Board may fill the vacancy until the next annual meeting when the School District shall fill the vacancy. (2) The Council by majority vote of all its members shall appoint annually the City Treasurer, whose office shall be no longer elective, and the City Attorney, Zoning Administrator, Auditor, First and Second Constable, Grand Juror, and Trustee of Public Funds. (3) [Repealed.] § 13-311. Board of School Directors; number; terms of office; election (a) There shall be a Board of School Directors consisting of seven members. (b) Four members shall have terms of office of three years; three members shall have terms of office of two years. (c) All present School Directors shall serve as Directors until the expiration of their terms. and their successors have been duly elected and have qualified. (d) On the first Tuesday in March, 2025, the voters shall elect, from among the legal voters of the city, two members for terms of three years and two members for terms of two years. On the first Tuesday in March, 2026, one member for a term of three years and one member for a term of two years shall be elected. Thereafter, the election of school directors shall be for the length of the term of the member whose term is expiring. (e) All Board of School Directors shall be elected at large. STEERING COMMITTEE 2 NOVEMBER 2023 The South Burlington Steering Committee held a meeting on Thursday, 2 November 2023, in Room 301, South Burlington City Hall, 180 Market Street, and via Gotomeeting remote technology. MEMBERS PRESENT: City Council: H. Riehle, City Council and Steering Committee Chair; T. Barritt, A. Chalnick, L. Kupferman; J. Baker, City Manager; School Board: K. Bailey, School Board Chair; A. McHenry, C. Tillinghast, T. Warren; V. Nichols, Superintendent of Schools ALSO PRESENT: Chief S. Locke, Deputy City Manager; Chief S. Burke, Police Department; T. DiPietro, Director of Public Works; T. Jarvis, School District Director of Finance; E. Fitzgerald 1. Welcome and Introductions: Ms. Riehle welcomed members and thanked Carol McQuillen for the dinner provided by Common Roots before the meeting. 2. Additions, deletions or changes in order of agenda items: No changes were made to the agenda. 3. Comments & Questions from the public not related to the Agenda: No issues were raised. 4. Minutes of Steering Committee Meeting of 10 July 2023: Mr. Barritt moved to approve the Minutes of 10 July 2023 as written. Mr. Chalnick seconded. Motion passed with all present voting in favor. 5. School Board Directors and City Councilors to introduce themselves and share what brought them to service in South Burlington: Mr. Barritt: Served on the Development Review Board and Library Board of Trustees prior to being elected to the City Council. He decided to join the Council because of what was planned in City Center, including Marcotte School. Ms. Bailey: Moved to South Burlington from New York City in 2017. Graduate of St. Michael’s College. Wanted to run for the School Board because of COVID and how policies related to health and global warming are interacting. STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 2 Ms. Emery: A City Council members for 14 years. Raised in a very political family in Chicago. Teaches French Literature and French Philosophy at UVM. Was active in the PTO, then on the City Charter Committee. Serving on the City Council is one of the most rewarding things she has done. Mr. Warren: This is his first day on the School Board. Grew up in Milton. Has a degree in German Studies. Served as a paraprofessional in South Burlington schools, then worked for IDX developing training materials related to radiology technology. Began to attend School Board meetings and decided to apply for the vacancy on the Board. Ms. Tillinghast: Has 2 young children and an overwhelming sense of responsibility for children. Grew up in northern Vermont, attended UVM studying microbiology. Mr. Chalnick: Came to South Burlington in 2018. A day after he moved in, a big development was proposed down the street from him, and he got involved. He realized there is a chance to make a difference and make things better. Has been an attorney and an engineer. Ms. Nichols: Shares the belief that South Burlington is an incredible place and the concern with the future of its children. Grew up in Vergennes. Began her career teaching math in California, Peru and Vermont. Mr. McHenry: Attended school in South Burlington. Was on the School Board in Barre, and when he moved back to South Burlington and an opening occurred on the School Board, he decided to run for it. Ms. Baker: Has served as South Burlington City Manager for 2-1/2 years. Was a foster care social worker before starting to serve in municipal government in Massachusetts and Vermont. She moved back to Vermont in 2011. Served as Winooski City Manager. Both of her parents were involved in education, her mother supervising college age student teachers at both Marcotte and Orchard Schools. Chief Locke: Vermont native with 32 years in Professional Fire Service, 7 as Chief in Burlington prior to becoming Chief in South Burlington. Married to an educator. Feels privileged to work with Ms. Baker. Mr. Kupferman: His first meeting as newly appointed Interim City Councilor. Moved to South Burlington in 1976. Was active in Burlington prior to that. His main interests are affordable housing and conservation. His 2 daughters went through South Burlington schools. STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 3 Ms. Riehle: This is her twelfth year on the City Council. Worked in health care non-profits, encouraging young people to think of health care as a career and helping health care professionals stay in Vermont. Served in the State House and Senate and was a middle school teacher for 10 years. Her husband encouraged her to run for an opening on the City Council which she has enjoyed more than the Legislature because it is more immediate and more efficient. Chief Burke: Has served in law enforcement for 30 years, 22 of which were in Burlington. He was hired by South Burlington in 2018. Is married to a nurse and has 2 sons. He likes local government because you can “move the ball down the field.” P. Burke: This is his 27th year at the High School, 23 as principal. Feels very strongly about the education that is provided to young people in South Burlington and feels students deserve the best. T. Jarvis: South Burlington native who now serves as Senior Director of Finance and Operations for the School District. His father was on the first South Burlington City Council. Noted that the city has become much more complicated since then. Served in Peace Corps in Africa. Has spent 34 years in the finance field. Loves the city and decided this job was the next step in his career. T. DiPietro: Has worked for the City for 18 years, the last 2 as Director of Public Works. His mother has been active in the PTA, his father in sports. He enjoys working with the community and taking on a project and seeing it through to the finish. 6. Discuss shared values around community and school safety: Mr. Chalnick said everyone wants children to be safe. He hoped the two boards could break through some stalemates at this meeting. Ms. Bailey thanked Mr. Chalnick for working with her on how to get on the same page. She noted that when safety issues were raised by students, parents and staff, particularly outside Marcotte School, a community member mentioned “complete streets” and “safe routes to school.” She then reached out to see what other communities are going and contacted Local Motion. They have a level of expertise and coordination that South Burlington should take advantage of. They have a “safe routes to school” task force which they facilitate and manage. It includes crosswalks, crossing guards, and an education effort. This has budgetary STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 4 implications. Ms. Bailey suggested that the City and School District form a task force and lean on those experts. Superintendent Nichols said she had a conversation with Ms. Baker, Ms. Riehle and Ms. Bailey and said they all have the same goals and all want students to be safe. She hoped they can continue to come together and make progress. She has also had meetings with parents who are concerned with safety including lighting and school zones. Ms. Baker shared information regarding the Bike/Ped Committee and Safe Routes to School. Supt. Nichols said they are “burning through” crossing guards and need to find people trained in traffic management. They are willing to talk about cost sharing. They are particularly looking for this at Marcotte School. She liked the task force idea. Mr. Kupferman raised the question of the responsibility of the people doing the building near Marcotte School. Ms. Emery asked whether the path is still being used. Supt. Nichols said Snyder-Braverman has been fantastic. The path varies between open and closed. Kids are going to school different ways because a lot of sidewalk is closed during the construction. Snyder- Braverman is concerned with the lack of control on Market Street and student safety. Ms. Riehle asked whether Snyder-Braverman is looking to have “flaggers.” Supt. Nichols said they haven’t discussed that. Ms. Emery asked why the driveway on the west side of Marcotte isn’t being used. She said if traffic can be moved one way, it would be more comfortable. Ms. Baker said they should think about that. Mr. Chalnick said there are other hot spots as well. He would be happy with expense sharing. There needs to be conversation as to who would hire, train, etc., away from the Council and School Board. Ms. Emery said students need to learn how to navigate crossing lights as 12 year olds, before they start driving at 16. She explained how she trained her children to walk to school safely. Ms. Tillinghast said that may not be representative of all parents, and some kids have to get up, make breakfast, and leave for school on their own. Ms. Baker said the joint task force is an exceptional idea. She felt the infrastructure is safe, but there is a perception that it is not safe. What is on the street now will change in coming years; STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 5 there will be a shared use path; Garden Street will be open; there will be bridge to the park. It would be powerful to walk through those stages together. Ms. Riehle asked about next steps. Ms. Bailey said Local Motion has worked school by school. The last one they did was in 2012, and South Burlington has changed a lot since then. She suggested the task force include a Council member and a School Board member. She was willing to volunteer to represent the School Board. Supt. Nichols said Local Motion can facilitate putting together that group. She felt that would relieve a lot of parental anxiety. Mr. Barritt noted that some school buses are half empty and parents are driving their kids to school. Supt. Nichols said there is a national shortage of bus drivers. They have looked at enrollment and routes and have been able to maximize capacity of buses. There are buses at different times of day (e.g., half-time students), and the driver shortage has made things difficult. There are also equity issues as to who is prioritized re: getting kids to school. One bus largely serves marginalized students, and parents can’t get the kids to school if that bus is canceled. Ms. Emery noted that Local Motion was brought in when Market Street and Williston Road designs were being considered. Ms. Bailey asked about Shelburne Road. Ms. Emery said that is a State highway, and the City has no control. Mr. Jarvis noted that of the 2600 total students, 2000 are registered to take the bus. That is 70%. Ms. Riehle said the issues regarding Marcotte will not go on forever. She felt it makes sense to see if the Williston Road entrance can be used. Supt. Nichols said she fully supports that. She also felt it would help if the School district had knowledge when developments are planned so they can troubleshoot before there are problems. Ms. Baker said the city is happy to share that information. She added that “issue spots” will ebb and flow, and the task force can help with that. Supt. Nichols said it is not safe to have children crossing Shelburne Road. Mr. Barritt asked how many 3, 4, and 5 year olds are crossing Shelburne Rd. Ms. Emery said if there are 3 year olds crossing Shelburne Rd., the schools need to work with those families. Ms. Riehle noted that the city is having traffic studies done so there can be school zones. That just doesn’t happen. Ms. Emery said she would favor 25 mph on a Dorset St. school zone. Mr. STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 6 DiPietro explained the new work that is being done on Dorset Street. There will be exclusive 4- way stopping phases. They are trying to move the engineering study done as quickly as possible. This may require a more complex school zone, and with complexity comes cost. Ms. Riehle said that sharing information with the PTO cold be a helpful way to educate and change perceptions. Supt. Nichols said she was happy to work with Ms. Baker and Ms. Bailey on shared messaging. Mr. Barritt asked if the 4-way stop on Market Street is working. Supt. Nichols said she is hearing good things and it is much appreciated. There are still challenges with crosswalks being blocked. Mr. Kupferman said he felt it is up to the developer/construction people to help provide for safety. Ms. Riehle said she thought a 4-way stop at Kennedy/Dorset Street would be helpful. Mr. Barritt noted that some bike/walk routes for kids are not aesthetically pleasing, and he wouldn’t want a child to have to walk down Shelburne Road. Mr. Chalnick said he was willing to be on the Task Force. Ms. Emery suggested Nic Anderson. Mr. DiPietro stressed working in conjunction with the Bike/Ped Committee so there are no conflicts. 7. Discuss future community conversations the two elected bodies want to have in the future: Ms. Riehle noted the importance of discussing future growth plans, bonding, big cost items that have to go to the voters. Mr. Chalnick asked if it would be helpful to have a more predictable growth rate in the city. Supt. Nichols said it would. She noted that Mr. Conner has had some good projections that he has shared with them. Having a growth cap could allow planning for schools. He felt this would be a good discussion to have. Ms. Emery noted that demographers have been wrong in the past, so you can’t know what the future will hold. Supt. Nichols said the School district would like to partner on a Recreation Center with the city. South Burlington schools are the eleventh most deteriorated in the State. They have been “patching” for a long time. There could be a bond as early as FY26, and they need envisioning work, then architectural work, and critical community engagement. They need to plan now. STEERING COMMITTEE 2 NOVEMBER 2023 PAGE 7 Ms. Emery asked if the focus will be to add to elementary schools. Supt. Nichols said they now have the ZEMs which given them time at the elementary schools so they can focus on the Middle and High Schools. If the community doesn’t support moving 5th graders to the Middle Schools, they may need an elementary school sooner. Ms. Bailey said she envisions schools as a community resource, a place where people can go when there is an emergency. She thought there should be “true shared ownership.” Ms. Riehle said there is a City Emergency Plan that includes the schools. Ms. Emery noted schools in Europe are adding heat pumps, insulation, etc., for $7,000,000, and they are net zero afterwards. She stressed that there are solutions out there and hoped they can have that conversation. Supt. Nichols said they were happy to do that. 8. Other Business: No other business was presented. As there was no further business to come before the Steering Committee, Mr. Barritt moved to adjourn. Ms. Bailey seconded. Motion passed with all present voting in favor. The meeting adjourned at 8:45 p.m. _____________________________, Clerk ______________________________, School Board Clerk South Burlington School District January 22, 2024 Steering Committee Meeting FY25 Budget We inspire all learners to make a difference in the world. 1 Violet Nichols, Superintendent Tim Jarvis, Sr. Director of Finance and Operations TABLE OF CONTENTS 1.Budget Information a.Contributing Factors 2.Worksheet for Board Adopted FY25 Budget 3.FY25 Budget Highlights 4.FY25 Notable Incremental Expenses 5.Looking Beyond FY25 6.Explanatory Note of FY22 Audit Surplus 7.Considerations for Proposed Staffing Levels 8.Proposed Staffing Changes 9.Act 127 Tax Impact 10.Expenditure Impact on Post-CLA Tax Rate 11.Current Status 12.Timeline 2 BUDGET INFORMATION This board-approved FY25 budget would generate a residential homestead tax rate increase of: 18.26% after applying CLA (5.00% before applying CLA) * Note: 60% of SB homestead owners pay a lower rate by receiving a property tax credit based on household income and home value 3 This budget prioritizes student-facing positions, an elementary literacy program, math and literacy specialists, supports multilingual and special education students, and includes facilities upgrades related to our safety audit. BUDGET DEVELOPMENT INFORMATION: Contributing Factors Expenditures ●Current estimated inflation rate of 2.5-3.0% will cause upward pressure on non-compensation expenses (e.g. supplies, professional services, transportation, equipment). ●Combined Impact of negotiated CBA settlements for the teachers and union support staff, increases in non-union wages, higher staff replacement costs and proposed net FTE changes will add approximately 5.4% to the total expense budget for Salaries & Wages. Union negotiation for Administrators is still in progress. ●Estimated 11.76% increase in health insurance and other employee benefits will add approximately 2.5% to the total expense budget. ●Principal and Interest payments on the approved 2023 Bond (ZEMs and Capital Improvements) and other debt will add approximately $1M in expenses. Continued focus on addressing deferred maintenance/facilities needs and school safety enhancements. Use of Previous Surplus ●$2.27M budget surplus from FY22 is proposed to be transferred to the Capital Reserve Fund for future facilities needs (requires voter approval). We also anticipate an available surplus of approx. $500,000 from FY23 (pending finalized audit). Revenues ●Impact fees to offset investment in ZEMs (estimated by city at approximately $1.1M). State Factors ●The Dec. 1st Tax Commissioner’s Letter announced a FY25 Yield of $9,452. It was then reduced to $9,171 on 1/9/24. This is 40.5% lower than FY24’s Yield. ●Common Level of Appraisal (CLA) was released the evening of 1/2/24 at 82.54% with SB suffering a 11.22% decrease which dramatically raises the residential education tax rate, even with the Act 127 pre-CLA cap of 5.00% 4 FY25 Budget Expenditures $71,192,891 Increase of 13.86% vs FY24 (Net increase of 10.82% without $1.9M allocation to Capital Reserve Fund) Less Offsetting Local, State and Federal Revenues $13,442,056 =Net Education Spending $57,750,835 LTW ADM (Long Term Weighted Average Daily Membership)4,123.53 Net Ed Spending per LTW ADM (Net Ed Spending divided by LTW ADM)$14,005 (Increase of 9.40%) Estimated Yield (to be set by the Legislature)$9,171 Equalized Tax Rate (Net Ed Spending per LTW ADM divided by Yield)$1.3172 (5% capped rate) (Notional Increase of 21.73% at calculated rate of $1.5271) Common Level of Appraisal (CLA)82.54% (Decrease of 11.22% vs FY24) = Actual Residential Tax Rate (Equalized Tax Rate divided by the CLA)$1.5959 (Increase of 18.26% vs FY24) SBSD BUDGET WORKSHEET FOR PROPOSED FY25 BUDGET 5 FY25 PROPOSED BUDGET HIGHLIGHTS 6 FY25 NOTABLE INCREMENTAL EXPENSES 7 LOOKING BEYOND FY25 8 Act 127 was designed to give school districts that are disadvantaged by the new weighting system (the “givers”) a 5-year period to adjust spending levels without suffering egregious impacts to their homestead property tax rates during this period, and especially after the tax relief cap is lifted in FY30. However, the steep decrease in CLA for SB has created a significant current and future tax challenge. Historical tax rates could only be achieved through extreme cost-cutting (or a legislative change in the Act 127 methodology). It is unlikely that the CLA will rise in future years as SB home sale prices are likely to continue to exceed their appraised values. Given that approximately 80% of our entire expenditure budget is allocated to employee wages and benefits, management of staff FTE levels is the primary lever we can use to protect ourselves from these negative impacts. EXPLANATORY NOTE ON FY22 AUDIT SURPLUS 9 The FY22 financial audit reflected a surplus of $2,266,362. Per Vermont statute, this can be applied in one of 2 ways: Option 1: Carry the funds into the FY25 budget as revenue. Given the mechanics of Act 127, choosing this option in the adopted budget would have zero impact on the homestead tax rate, thus adding no value to the district or the taxpayer and is essentially throwing away the surplus at this expenditure level. Option 2: Allocate the funds to our Capital Reserve Fund for future facilities improvements. This is the tax-efficient option adopted by the Board and will appear on the March ballot for voter approval. CONSIDERATIONS FOR PROPOSED STAFFING LEVELS 10 ●Net addition of 0.6 FTEs for FY25 Budget ●Education model changes for Special Education Services driven by requirements of Act 173 (MTSS - Multi-Tiered System of Supports) ●Prioritize elementary literacy program, math and literacy specialists, multilingual students with student-facing positions PROPOSED STAFFING CHANGES 11 Location Role FTE Rationale Estimated Cost (Salary and Benefits) Funding Source Orchard Unfilled Interventionist (for 1 Special educator) -3.0 Model change to support special education students, reduce hard to fill/unfilled intervention/para positions. -$192,033 local RMCS 2.0 Para Educators (for 1.0 Special educator) -2.0 Model change to support special education students; hire highly qualified staff and reduce hard to fill/unfilled intervention/para positions. Aligned with Act 173 -$137,886 local FHTMS Universal Design for Learning (UDL) Coach -1.0 Prioritizing student-facing positions; reappropriated grant funding toward RMCS literacy specialist. -$116,181 100% Grant funded FHTMS 2.0 Para Educators (for 1.0 Special educator) -2.0 Model change to support special education students; hire highly qualified staff and reduce hard to fill/unfilled intervention/para positions. Aligned with Act 173 -$137,886 local District Unfilled Bus Drivers -2.0 Currently have 4 unfilled FTEs, remaining unfilled for long periods of time, we are actively seeking drivers -$107,000 local District Mentor Coordinator -0.5 FTE reappropriated to multilingual coordinator based on student need -$34,600 local SBHS .4 Art-ESSER -0.4 Pottery, Advanced Art, & Photography. All sections are currently full or near full. Allows students to meet Graduation Requirements/Proficiencies -$33,810 local PROPOSED STAFFING CHANGES 12 Location Role FTE Rationale Estimated Cost (Salary and Benefits) Funding Source SBHS Student Engagement Coordinator-ESSER 1.0 Manages SBHS Activities Block, engages all students by providing access to clubs, encourages attendance $72,545 local FHTMS Special Educator 1.0 Model change to support special education students; hire highly qualified staff and reduce hard to fill/unfilled intervention/para positions. Aligned with Act 173 $106,860 local FHTMS Health & Wellness-ESSER 0.2 Needed to support health curriculum mandated by law $22,280 local Chamberlin Health & Wellness-ESSER 0.2 Needed to support health curriculum mandated by law $19,900 local RMCS Health & Wellness-ESSER 0.5 Needed to support health curriculum mandated by law $55,699 local RMCS Math Interventionist-ESSER 1.0 Necessary to provide layer II interventions as required by Act 173 $135,804 local RMCS Special Educator 1.0 Model change to support special education students; hire highly qualified staff and reduce hard to fill/unfilled intervention/para positions. Aligned with Act 173 $106,860 local PROPOSED STAFFING CHANGES 13 Location Role FTE Rationale Estimated Cost (Salary and Benefits) Funding Source RMCS Literary Specialist 1.0 Necessary to provide layer II interventions as required by Act 173 $106,860 100% grant funded Orchard Health & Wellness-ESSER 0.5 Needed to support health curriculum mandated by law $55,699 local Orchard Special Educator 1.0 Caseload numbers as well as a shift in special education practices $106,860 local District Multilingual Coordinator 1.0 Needed to support our increasing multilingual student population, including an increase in students who are new to the United States, as well as those with interrupted learning. Reappropriating mentor coordinator FTE as well as multilingual liaison funding. $115,299 .8 local, .2 Title III District Custodians 1.1 Currently being filled by subs, this is associating an FTE with work being performed, likely to be cost neutral $91,565 local District PreK Coordinator 1.0 Necessary to support PreK programming and ensure early childhood success $106,860 Grant Funded (IDEAB) District Contingency Teacher 1.0 Due to Policy G6, class size $106,860 local Total 0.6 TOTAL $450,555 ACT 127 TAX IMPACT ●Once all the necessary formula inputs and calculations are provided by the state (e.g. Yield, new Act 127 Pupil Counts), there are 2 simple questions we need to answer to assess the Act 127 tax impact of our proposed budget. There are 4 potential scenarios based on those answers. ●Note that all tax rates mentioned below are on a pre-CLA (Common Level of Appraisal) basis. ●Per the terms of Act 127, if in any given year the District does not qualify for the 5% pre-CLA cap, it will lose the tax protection offered by that cap for each subsequent year through FY29. Does our calculated FY25 per pupil spending number go up by 10% or more compared to the FY24 equivalent number? NO YES Does our calculated FY25 homestead tax rate go up by more than 5.00% compared to the FY24 rate? NO District tax rate is as calculated and there is no Tax Rate Review or cap on tax rate. District tax rate is as calculated , potentially subject to a Tax Rate Review. YES District tax rate is capped at a 5% increase and there is no Tax Rate Review. This scenario is where we currently are with a 9.40% Net Education Spending per pupil increase and a notional pre-CLA calculated tax increase of 21.73%, capped at 5.00% District tax rate is capped at a 5% increase and a Tax Rate Review is held. If the budget increase is deemed justified, the district rate is capped at 5%. If the budget increase is determined not to be fiscally prudent, the 5% cap does not apply and the district tax rate as calculated is applied. 14 ACT 127 TAX IMPACT (pre-CLA)15 Impact on Post-CLA Tax Rate 16 FY24 vs. FY25 TAX RATES (post CLA)17 ●92.97% is current CLA for FY24 ●60% of SB homeowners (3,036 recipients from 5,073 total homesteads) are eligible to pay a lower rate than above by receiving a property tax credit based on household income and home value ●If CLA had remained the same as it was in FY24 (92.97%), the tax impact would reflect only the 5% cap offered by Act 127. The further increase to 18.27% is entirely attributable to the CLA impact which is out of SBSD’s control ●The calculated tax rate above remains exactly the same for expenditure levels between $63,254,000 and $71,505,000 (currently set at $71,192,891) due to the 5% pre-CLA cap ●Even with a zero increase in expenditures versus FY24 ($62,528,029) our post-CLA tax increase would still be 16.54% because of the Act 127 methodology and CLA impact WHERE DO WE STAND? ●The Board-adopted FY25 budget reflects Expenditures of $71,192,891 (13.86% increase vs FY24 adopted; 10.82% increase net of the $1.9M allocation to the Capital Reserve Fund that has no impact on the tax rate) ●Given the per pupil spending threshold and tax capping mechanics of Act 127, the Expenditure line could be as low as $63,254,000 (1.16% increase vs FY24 adopted) and as high as $71,505,000 (14.36% increase vs FY24 adopted) with the exact same impact on the residential homestead tax rate (a 5.00% increase before the Common Level of Appraisal is applied, and 18.26% after CLA). 18 BUDGET DEVELOPMENT PROCESS: Timeline ●January 30: Budget Books Available ●March 4: Pre-Town Meeting Day meeting ●March 5: Town Meeting Day- Vote on the school budget ●Updated information available at www.sbschools.net/budgetfy25 19 Thank you! DISCUSSION & QUESTIONS 20 Act 127 www.sbschools.net/budgetfy25 SBSD Budget Workshop - FY25 estimate with Act 127 LTW ADM SBSD Budget FY25 Status FY24 with LTW ADM and yield estimate FY25 estimate with LTW ADM Change % Chg Residential Property Tax Impact Monthly Change $20.54 Monthly Change Monthly Change Expenditure Budget Funds 01 & 03:State Level Factors FY25 $9,171 82.54% Less "Other" Revenue Funds 01 & 03: $71,192,891 4,123.53 Net "Ed Spending" Per LTW ADM Property Yield: $247 $60.93 $89.98 $62,528,029 $71,192,891 $8,664,862 Assumed level of additions/reductions:0.0000 Property Yield: Additional Reductions:* CLA: $12,911,955 $530,101 possible revenue budget changes: Adjusted Revenue Budget:$12,911,955 $13,442,056 $530,101 State on Behalf Payment / Prior Year Deficit: (Net) State Education Fund:$49,616,074 $57,750,835 $8,134,761 LTW ADM 3,875.64 4,123.53 247.89 Adjusted Expenditure Budget:$62,528,029 $8,664,862 LTW ADM $12,802.03 $14,005.19 $1,203.16 $9,822 $9,171 ($651.00)$1,596 Residential Tax Rate w/ CLA:1.3494 $1.5959 $0.2465 $4,734 $6,991 13.86% 4.11% 4.11% 16.40% 6.40%Before income sensitivity and with the CLA the residential property tax per $100,000 homestead value is estimated as:9.40% -6.63%Total Change from FY24 Tax on a $296,619 condo Change from FY24 $731 Tax on a $438,050 home Change from FY24 $1,080 . 13.86% 5.00% $13,442,056 Residential Tax Rate (w/o CLA - 5% Cap):$1.2545 $1.3172 $0.0627 18.26% January 17,2024 Dear South Burlington Community, I am writing to you today to share information regarding our fiscal year 2025 Board-approved budget and to request your public endorsement of our budget.We are facing an unprecedented proposed budget this year due to changes in the education funding formula,mainly Act 127 as well as seeing a dramatic tax increase associated with the decline in our Common Level of Appraisal (CLA). Since November,school districts around Vermont have been planning the FY25 budgets with various challenges and changes due to Act 127’s education spending formula.The impact of Act 127 paired with a drastic decrease in the CLA this year has resulted in an unprecedented proposed homestead tax rate increase of more than 18%in South Burlington.With school budgets finalized by Boards and voters considering their options on Town Meeting Day,I am advocating for modifications in the education funding formula for FY26,and need to ensure strong schools and unimpacted programming in the meantime,which requires your support. South Burlington was reappraised in 2021 and the CLA decreased from 100.99 to 92.97 in 2022. We are now further hit by a more than 11%decrease in CLA to 82.54 this year.Although we support the spirit of Act 127 and appreciate the temporary cap on the pre-CLA tax rate,it is difficult to celebrate a tax rate that could have been 28%,lowered only to 18%due to the 5%cap associated with Act 127,as neither are popular or feasible increases for our community to support.Also important to note is that the cap is only in place through FY29. Without a change in education funding for FY25,our community is left with few options.Even if we reduced our current expenditures by $4.4M,the tax rate would remain at an 18.27% increase from FY24.The district’s expenses could be as low as $64,670,000 (3.42%increase)or as high as $71,380,000 (14.16%increase)with the exact impact on the residential homestead tax rate.With the new spending formula and CLA combination,even at a 0%increase from our current FY24 budget,the post-CLA tax increase would be 13.57%.If the district rolled over the FY24 budget of $62 million,we would need to cut $8.5 million and consider reductions and eliminations in critical programming from athletics to the arts. As conversations continue at the local and state level,I am asking you to join me in supporting the FY25 budget.I believe that strong schools equal a strong community and that our local economy is supported by the excellent programming offered in our schools.This proposed budget supports school safety upgrades,structured literacy,academic supports,and equity supports. Your written,public endorsement of our budget would mean a great deal for our schools and local community.For additional information and materials for your consideration to share with your colleagues,neighbors,and loved ones,please visit sbschools.net/budgetfy25.You can also email our Communications Coordinator,Julia Maguire,at jmaguire@sbschools.net or call our offices at (802)652-7250. In partnership, Violet Nichols Superintendent of Schools FY25 City Budget and Town Meeting Day Ballot Items Jessie Baker, City Manager Martha Machar, Finance Director Steven Locke, Deputy City Manager Thomas DiPietro, Public Works Director Steering Committee January 22, 2024 FY25 City-wide Budget 2 General Fund Drinking Water Stormwater Wastewater Special Funds FY25 City Budget General Fund $35,251,108.44 Drinking Water $ 3,876,831.35 Stormwater $ 4,181,968.61 Wastewater $ 6,124,656.24 Special Funds*$15,481,500.00 $64,916,064.64 *Special Funds include TIF, Energy Fund, Impact Fee Funds, etc. FY25 City Budget Continues commitment to service delivery •Makes strategic investments in public safety ̶Completes implementation of the second ambulance ($220,000) ̶Adds a Highway position ($77,000) •Increases in sidewalk maintenance ($38,000) •Adds a part time Library position ($23,500) •Increases funding to the Housing Trust Fund ($25,000) 3 FY25 City Budget Continues Investments in School Safety •Reinstates the SBPD Youth Services Sergeant ($107,000 net) •Funds School Crossing Guards at 50% ($30,000) •Directs capital funds to infrastructure improvements on Dorset Street at the Middle School and High School ($100,000) 4 FY25 City Budget Takes first financial steps to implement the adopted Climate Action Plan •General Fund capacity for a Climate Director and targeted consulting needs ($190,000) •Fund Green Mountain Transit increase ($63,000) •Allocates ARPA funding ($417,000) for ̶Electric lawn mower ̶Charging stations at DPW ̶Weatherization and window replacement ̶Public Transit Study ̶Active Transportation Projects 5 FY25 City Budget Assumptions •2.0% growth in the total Grand List •4.4% growth in the TIF Grand List •7.0% increase in the Local Options Tax •Contractual COLA of 2.80% and related step increases •New Child Care Contribution payroll tax (.33% or $48,253) •Health insurance increase of 16.4% •Property and equipment insurance increase of 8% 6 FY25 General Fund Budget FY24 FY25 % change Tax rate change General Fund $31,140,318.33 $35,251,108.44 13.20% Non-property Tax Revenue $11,752,019.41 $14,207,968.22 20.90% To be Raised by Property Tax $19,388,298.92 $21,043,140.22 8.54% Total Estimated Tax Rate (with pennies)$0.4916 $0.5202 5.82%$0.0286 Impact (with pennies)Difference Avg Condo $1,457.14 $1,543.03 $84.85 Avg House $2,150.18 $2,278.76 $125.31 FY25 General Fund Budget FY24 average condo assessment = $296,619 FY24 average house assessment = $438,050 7 Utilities FY25 proposed total annual increase to average homeowner = $64.29 Stormwater•Personnel and related benefits cost Sewer•Personnel and related benefits cost•Increase in chemical costs allow us to lower phosphorus to the lake•Building capacity to pay for bond Water•Personnel and related benefits cost•Second water tower for the high service area Utility Existing Fiscal Year 2024 Rate FY24 Annual Fee for the Average Home- owner* Proposed Fiscal Year 2025 Rate % Increase from FY24 to FY25 Annual Increase for South Burlington Homeowner Stormwater $7.44 per month for residential units $89.28 $7.68 per month for residential units 3.2%$2.88 Sewer $48.20 per 1,000 cubic feet $386.56 $52.42 per 1,000 cubic feet 8.75%$33.82 Water $36.21 per 1,000 cubic feet $290.40 $39.65 per 1,000 cubic feet 9.5%$27.59 * Calculation based on 1 ERU for stormwater and 8,020 cubic feet / year of sewer and water usage. 8 FY25 General Fund Summary 9 Administration 15% City Clerk 2% City Council 0% DPW 19% Fire & EMS 19% Library 3% Outside Organizations 3% Physical Plant 4% Planning & Zoning 2% Police 22% Recreation & Parks 4%Debt & Capital Reserve 7% Water Tank Expansion Bond Vote 10 Photo of Existing Tank Rendering of Site with Second Tank Added System Overview Source Water Treatment Distribution Network Storage (Lake Champlain) (CWD) (City) (City) (CWD) Project Benefits More Water Storage •Will provide enough water in the high service area for the foreseeable future (50+ years). •Allow us to meet regulatory requirements. •Provides more water storage in the event of an emergency (e.g. CWD pump / pipe failure, large water usage for firefighting, etc) Maintenance & Redundancy •More easily complete maintenance by temporarily taking one tank off-line. Pressure •The project will not increase pressure beyond what is provided today, but the second tank will provide greater operational flexibility so that the system can be operated towards the higher end of operating pressures. Main Service Area High Service Area Current Capacity Allocated Capacity 499,100 Gallons Per Day 24% of Storage Capacity Average Daily Demand 1,435,600 Gallons Per Day 68% of Storage Capacity Excess Storage 42,300 Gallons 2% of Storage CapacityShelburne Allocation 81,000 Gallons 4% of Storage Capacity Fire Flow Demand 42,000 Gallons 2% of Storage Capacity Currently Using an Allocated 98% of Existing 2.1 Million Gallon Capacity Average Daily Demand/Usage: Based on metered data Allocations: Anticipated usage based on structure type and size that must be available Fire Flow: Storage for sustained water usage during a fire Proposed Project New ‘Twin’ Standpipe Tank 53 ft diameter 127 ft height 2,100,000 gallon capacity Following Project, High Service Area would have 4.2 million gallons of storage capacity, sufficient for foreseeable long- term needs. Total Project Cost Item Description Total Estimated Cost Construction of Tank $4,320,000 Construction Contingency (15%)$648,000 Preliminary Engineering $23,200 Final Design and Permitting $259,000 Construction Phase Services $450,000 Other Costs $24,000 Total Project Cost:$5,724,200 Recommended Bond Amount:$5,750,000 •Awarded $500,000 Community Recovery and Revitalization Grant (CRRP). Completing grant agreement now. Estimated Impact on Rates •Assuming a $5.75M loan, over a 30-year term, at 4.40% interest (current rate available). •Our annual loan payment would be $349,000* •In order to make this loan payment, our rates would increase by $4.82* per 1,000 cubic feet of water. •This would result in an annual increase of $38.66* for the average residential user. *These values represent a worst case scenario and do not include project cost reductions related to grant funding. Comparison of Regional Water Rates $- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00 South Burlington Essex Junction Williston Essex Town Shelburne Milton Burlington Hinesburg An n u a l W a e r C o s t s FY 23 Typical Residential Customer Project Schedule Projected Date Task 2023 May Start Final Design December Final Design 90% Permit to Construct (PTC) Application 2024 March PTC Issued / Complete Final Design Conduct Bond Vote Summer Advertise for Bids Fall Begin Construction 2025 Fall Finish Construction This represents the most aggressive possible project schedule. We may choose to bid in spring 2025 for reasons related to project financing. Ballot Language Potential Charter Change: School Board Expansion 20 Potential Charter Change •Council is considering a Charter change to expand the School Board by two (seven total) •4 members have 3-year terms •3 members have 2-year terms •Public Hearings ̶Tonight ̶January 29, 2024 at 6:30 p.m. •Potential Timeline ̶January 29th – Council will consider whether to move this to the voters ̶If voters approve, would go to the Legislature ̶If Legislature approves, would go to the Governor ̶Likely not to be in effect until 2025 or 2026. Potential Charter Change Next Steps •January 22 –Steering Committee •January 31 –SBBA Annual Event •February 1 –Budget Books and Annual Reports available •February 1 –Town Meeting TV Broadcast (recording available) •March 4 –Annual Town Meeting Presentation •March 5 –Town Meeting Day! 23 All FY25 City Budget documents are available here: https://tinyurl.com/SBFY25Budget