HomeMy WebLinkAboutMinutes - Steering Committee - 01/20/2016STEERING COMMITTEE 20 JANUARY 2016
The South Burlington Steering Commi ee held a mee ng on Wednesday, 20 January 2016, at 6:30 p.m., in
the Library of the Tu le Middle School, 500 Dorset Street.
MEMBERS PRESENT: City Council: P. Nowak, T. Chi enden, M. Emery; K. Dorn, City Manager; School Board: E.
Fitzgerald, Steering Commi ee Chair; M. Lalonde, J. Bea y, D. Fleming, P. Leduc; D. Young, Superintendent of
Schools
ALSO PRESENT: T. Hubbard, Deputy City Manager; J. Stewart, School District; B. Nowak, other members of the
public
1. Agenda Review: Addi ons, dele ons or changes in the order of Agenda items:
No changes were made to the Agenda.
2. Approval of the 18 December 2015 Steering Commi ee Minutes:
The minutes were accepted as presented.
3. Public Hearing on Proposed City Program Budget:
Mr. Hubbard said the es mated Grand List is $29,547,000, which represents a 1-1/2% growth. The proposed
General Fund budget expenditures are $22,934,609. The property tax rate needed to fund the FY17 budget is
$0.4737, an increase of 0.0137 or 2.98%.
Major factors contribu ng to the increase in expenses include: increases in health and property insurances,
pensions contribu on (a 60% increase in payment due to poorer market performance than an cipated; Mr.
Hubbard noted the city is looking at “smoothing” the assets to keep things more even, so there is no more than
a 20% hit in any year), contractual salary increases, HRIP, and a dedicated reserve related to the City of
Burlington/Burlington Interna onal Airport lawsuit.
Mr. Hubbard then enumerated the factors leading to increased revenues, including: fire inspec on fees,
planning & zoning permits, reduc on in Workers Compensa on premiums, local op ons tax, Grand List growth,
electrical inspector fees, and offset from Enterprise Accounts
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20 JANUARY 2016
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The proposed budget includes providing the current level of services in all departments, funding the majority of
recommenda ons in the Human Resources Investment Plan, funding a Housing Trust Fund ($50,000),
contractual salary increases, support for the Capital Improvement Plan (CIP), increased insurance costs, social
service requests, fees to member organiza ons, bonded debt obliga ons, a fund for stewardship of all city
buildings ($75,000), the new public safety tower (coopera ve venture with CWD), and $156,000 designated
reserve for the possibility of a loss of revenue as a result of the Burlington tax appeal.
Mr. Hubbard explained that the Human Resources Investment Plan resulted from a thorough analysis of each
department’s increase in staff needed in the next 10 years. The highest priori es were funded for FY17.
The budget does not fully restore reserve accounts back to 2013 levels or fund all requests in the capital
budget. It does not provide for any kind of stabiliza on fund or fund the remaining increase in the City Center
Reserve Fund. It also does not fund Phase II of the Facility Assessment-Stewardship plan. Renova ons to Fire
Sta on #2 will be put off for one year and will be funded from Fire Impact Fees.
Mr. Hubbard then reviewed the Enterprise accounts. There is an increase in water of $5.39/year; an increase in
sewer fees of $7.57/year, and an increase in stormwater fees of $1.80/year. The total annual increase for all
u li es is $14.76.
For the average home in South Burlington (es mated at $366,000), the impact would be $50.14 for the year;
for the average condo (es mated at $226,000) the impact would be $30.96 for the year.
Mr. Hubbard then explained the city’s ballot item which would take one-half of the 1 cent Open Space Fund for
maintenance of Red Rocks Park, the Wheeler Nature Park, Underwood property, and other city open spaces.
The ballot item would fund this work up front by borrowing $1,300,000 to be repaid over a 10-year period.
4. Public Hearing on proposed City Program Budget for 2016-2017:
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20 JANUARY 2016
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Supt. Young thanked John Stewart, who will be re ring this year, for all he has done over the years for the
School District.
Supt. Young then reviewed the budget prepara on process.
There is an overall increase in the proposed budget of 2.68% and an increase in revenues of 6.18%. The budget
will draw $36,427,476 from the educa on fund. This translates to $15,051 per equalized pupil. The es mated
tax rate will decrease by 2.23%. This will result in a decrease of about $130.00 for the average home and a
decrease of $81.00 for the average condo.
There will be ballot items to cover capital needs and to establish a capital reserve fund for future stewardship
improvements.
Supt. Young said he felt that any changes made by the Legislature would be favorable.
Mr. Stewart then reviewed the history of spending/tax rates for the past 10 years.
Things affec ng the proposed budget include: an increase in health insurance of 5.1%, an increase in
unemployment insurance, a slight increase in life/disability insurance, a larger than minimum payment to the
re rement plan, purchasing 2 fewer buses than last year, and an increase in technical services.
The exis ng debt service is $309,567. The proposed new bond would result in a first payment (interest only) of
$49,642. That bond would cover capital improvements including window replacement at the High School,
athle c field turf replacement, ADA upgrades to rest rooms and the entrance road at Orchard School. It is a 20-
year bond with an annual cost to the average home owner of $27 and to average condo owner of $20.
Mr. Stewart then reviewed specific revenues. He noted the large amount for tui on for students from districts
that do not have a high school and whose students choose to come to South Burlington. The city provides bus
service from Georgia and from the Champlain Islands for these students.
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20 JANUARY 2016
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Mr. Stewart noted that the ballot ar cle for a Capital Reserve Fund does not designate any specific projects.
5. Other Items to Come Before the Steering Commi ee:
Mr. Dorn noted receipt of a request from David Zuckerman that a broader perspec ve be solicited regarding
the legaliza on of marijuana. He has reached some people in Colorado and they would be available for a
conference call. Mr. Dorn felt it would be a good idea for the Steering Commi ee to host that event soon. Ms.
Nowak hoped that anything they would present would be sent to South Burlington digitally up front so people
can have that informa on. Ms. Nowak said she would like to have those in leadership capacity beyond the City
Council and School Board be present. Mr. Dorn said he can reach out to them.
As there was no further business to come before the Steering Commi ee, Mr. Chi enden moved to adjourn.
Ms. Emery seconded. Mo on passed unanimously, and the mee ng was adjourned at 7:35 p.m.
_________________________________
Clerk