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HomeMy WebLinkAboutAgenda - Steering Committee - 03/04/2024 - Town Meeting180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV STEERING COMMITTEE MEETING (Joint meeting of the City Council and School Board) MEETING AGENDA MARCH 04, 2024 Participation Options In Person: 180 Market Street, Main Floor, Auditorium Assistive Listening Service Devices available upon request Electronically: https://meet.goto.com/SouthBurlingtonVT/citycouncilmeeting03-04-2024 You can also dial in using your phone. (872) 240-3212 Access Code: 589-515-581 Pre-Town Meeting Public Information Session and Public Hearings 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.*** Presentation of the FY25 City Budget – Jessie Baker, City Manager (6:45-6:55 p.m.) Complete City Town Meeting Day information is available here: www.southburlingtonvt.gov/government/town_meeting_day_2023.php 6.*** Public information session and public hearing on the $5,750,000 Water Storage Tank General Obligation Bond – Thomas DiPietro, Public Works Director (6:55-7:10 p.m.) 7.*** Public information session and public hearing on the City Charter Amendment ballot item to increase the number of South Burlington School District School Board Members to seven – Jessie Baker, City Manager (7:10-7:20 p.m.) 8.*** Presentation of the FY25 School Budget and Ballot items – Violet Nichols, Superintendent (7:20-8:20 p.m.) Complete School Budget information is available here: www.sbschools.net/page/fy2025-budget-information 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV 9. Interested in learning more about our City Council and School Board Candidates? Please watch the South Burlington High School Debate Team’s Candidate Forum available here: www.tinyurl.com/sbdebate2024. 10. Adjourn Pre-Town Meeting Respectfully submitted: Jessie Baker City Manager ***Attachments included FY25 City Budget and Ballot Items: Pre-Town Meeting Day Public Information Session and Public Hearings March 4, 2024 Jessie Baker, City Manager Steven Locke, Deputy City Manager Martha Machar,Finance Director Thomas DiPietro, Public Works Director 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. Of this total budget, $21M is proposed to be raised from property taxes. 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 Project Description •Construction of an additional 2.1 million gallon welded steel water tank at the existing site on Dorset Street. 11 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 Charter Change on School Board Expansion 21 Potential Charter Change •The Charter change would expand the School Board by two (7 total) •4 members have 3-year terms •3 members have 2-year terms •Potential Timeline ̶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 City and School Budget Books and Annual Reports are available. March 5 –Town Meeting Day! Polls are open 7:00 am to 7:00 pm 24 All FY25 City Budget documents are available here: tinyurl.com/SBFY25Budget Planning for a Vibrant South Burlington is available here: www.southburlingtonvt.gov South Burlington School District Pre Town Meeting Day Presentation 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 THE FY25 BUDGET ●Prioritizes student-facing positions ●Includes important school safety enhancements ●Supports social and emotional learning needs of students ●Bolsters academic rigor ●Provides structured literacy programming ●Increases multilingual supports ●Maintains Act 173/MTSS ●Features savings for critical future facilities needs 2 BUDGET INFORMATION The board-approved FY25 budget is $71.2 million, which is 13.86% higher than FY24’s budget of $62.5 million (10.82% higher excluding the proposed $1.9 million allocation to the Capital Reserve Fund). With the passage of H.850, the homestead education property tax rate increase is now 23.25% (up from 18.26% under the prior Act 127 language). 3 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). 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 has since been adjusted multiple times (current estimate for model is $9,775) ●Common Level of Appraisal (CLA) or “Real Estate Inflation Factor” was released the evening of 1/2/24 at 82.54% with SB suffering a 11.22% decrease which dramatically raises the homestead education tax rate 4 SB Homestead Tax Rates and CLA 5 FY25 NOTABLE INCREMENTAL EXPENSES 6 EXPLANATORY NOTE ON FY22 AUDIT SURPLUS 7 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 to offset expenditures. Given the original mechanics of Act 127, choosing this option in the adopted budget would have had zero impact on the homestead tax rate. This tax dynamic has now changed under H.850 whereby the tax rate could now be lowered under this option. Option 2: Allocate the funds to our Capital Reserve Fund for future facilities improvements. This was the option adopted by the Board and will appear on the March ballot for voter approval. CONSIDERATIONS FOR PROPOSED STAFFING LEVELS 8 ●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 RMCSOrchard SBHS Additions ●1.0 Student Engagement Coordinator Reductions ●0.4 Art Net addition=0.6 FTE Chamberlin Additions ●0.5 Health and Wellness ●1.0 Math Interventionist ●1.0 Literary Specialist ●1.0 Special Educator Reductions ●2.0 Para Educators Net addition=1.5 FTE Addition ●0.2 Health and Wellness Net addition=0.2 FTE District Additions ●1.0 Multilingual Coordinator (partially grant-funded) ●1.1 Custodians ●1.0 Pre K Coordinator(grant-funded) Reductions ●2.0 Unfilled Bus Drivers ●0.5 Mentor Coordinator Net addition=.6 FTE Additions ●0.5 Health and Wellness ●1.0 Special Educator ●1.0 Contingency Teacher Reductions ●3.0 Unfilled Interventionists Net reduction=.5 FTE FHTMS Additions ●1.0 Special Educator ●0.2 Health and Wellness Reductions ●1.0 Universal Design for Learning (UDL) Coach ●2.0 Para Educators Net reduction=1.8 FTE Total Additions=0.6 FTE Thank you! DISCUSSION & QUESTIONS 10 www.sbschools.net/budgetfy25