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HomeMy WebLinkAboutMinutes - Steering Committee - 01/20/2021STEERING COMMITTEE 20 JANUARY 2021 The South Burlington Steering Committee held a meeting on Wednesday, 20 January 2021, at 6:00 p.m., via Go to Meeting remote technology. MEMBERS PRESENT: City Council: H. Riehle, Steering Committee Chair; T. Barritt, T. Chittenden, M. Emery, D. Kaufman; K. Dorn, City Manager. School District: E. Fitzgerald, M. Lalonde, B. Minier, B. Burkhardt, A. McHenry; D. Young, Superintendent of Schools ALSO PRESENT: T. Hubbard, Deputy City Manager; I. Blanchard, Project Manager, P. Burke, D. Bugbee 1. Agenda Review: No changes were made to the Agenda. 2. Review and Approve Minutes of 9 November 2020: Mr. Barritt moved to approve the Minutes of 9 November 2020 as written. Mr. Kaufman seconded. Motion passed unanimously. 3. City and School District Budget Presentation: a. City FY22 Budget: Mr. Hubbard said the major considerations in preparing the FY22 budget were: a. Sensitivity to the tax rate in light of COVID b. Maintaining the current level of service (which for the first time has not been possible) c. Meet all contract obligations d. Supporting the Capital Improvement Plan (CIP) e. Funding the annual assessment and other entities Of the $50,700,000 total city budget, $26,745,677 is from the General Fund. Projected revenue is $9,300,000, leaving $17,400,000 to be raised by taxes. The total increase in expenses from FY21 is $145,923. The decrease in revenue is anticipated at $261,960. This leaves an increase in the tax rate of 0.98. STEERING COMMITTEE 20 JANUARY 2021 PAGE 2 The major items in the CIP include: a. Paving (the hope had been to fund this at $1,000,000, but it was cut to $700,000 b. Tree care (emerald ash bore removal was projected at $100,000 and was cut to $50,000 c. Fleet cuts for both the Fire and Police Departments d. Police equipment and computerization e. Parks improvements (some of which will be funded by impact fees) f. Fire/Rescue (an ambulance replacement was deferred) The total CIP funding is $400,000 below what was approved for FY21. Some things are on hold to determine receipts from local option taxes, and some projects have been moved to future years. There have also been some staff positions that will not be funding in FY22. These include one Police officer, one Firefighter, City Planner, Deputy Finance Officer, parks laborer, HR assistant. Four other positions were merged into two positions. Expense factors in the proposed budget include projects in the CIP, health insurance (up 5%), agreements with collective bargaining, Workers Compensation and other insurances, increase in funding to open the new Library (equipment and staffing), and an anticipated decrease in local option tax revenue of $250,000. These factors total $1,300,000. Special assessments, including the Winooski Valley Park Department, Regional Planning Commission, County Court, Green Mountain Transit, Vermont League of Cities & Towns, Front Porch Forum and CCTV total $836,000. Revenue factors include: a. An estimated 1% growth in the Grand List b. Increase in ambulance fees c. Recording fees/vital records d. Fire and electrical inspections e. Rentals at 19 Gregory Drive (thanks to the Miller family which turned the entire building over to the city 10 years earlier than planned, there are now 2 tenants providing rental income) STEERING COMMITTEE 20 JANUARY 2021 PAGE 3 f. Retiring the debt on the Public Works building g. Use of special funds (City Center funds, Energy projects) h. Grant monies i. Approved bonding Utility rates for the city’s 3 utilities will be increasing slightly in FY22 which will cost consumers a total of $14.50 more per year. The average single family home owner will see a total annual increase in property taxes of $18.76. The average condo owner will pay $13.01 more per year. In addition to the budget, there will be elected positions on the ballot and a TIF bond issue. All ballots will be mailed to active voters on about the 10th of February. Ballots can be returned by mail, dropped off at an outside drop at City Hall, or brought to polling places. Mr. Hubbard noted that budget books will be available at the end of the month. Mr. Dorn noted that there will be a $4,000,000+ ballot item to complete Garden Street. This will be financed through Tax Incremental Financing (TIF) and will be the fourth project to be so financed. Ms. Blanchard then described the Garden Street project and showed a slide of the project area. Work will include curbing, bike facilities, and utilities connections. The project is 100% TIF eligible and will not result in any tax increase. Ms. Blanchard noted that this year the city has received over $260,000 from TIF eligible projects including Healthy Living, Allard Square, and Lake Champlain Housing. Ms. Blanchard added that as other projects are built, the increment will surpass the debt payment. Mr. Dorn noted the city also has a City Center reserve fund to augment payments to cover the debt in the early years. Ms. Riehle noted that 2 more City Center projects have already been permitted, both for market rate housing, which is a very positive sign. b. School District Budget: Supt. Young said that in preparing the FY22 budget, the School Board recognized the pressures of the pandemic, increased school enrollment, and capital related needs. To address these, the budget includes minimal staff increases (still below the FY20 levels) and a $2,500,000 bond issue. STEERING COMMITTEE 20 JANUARY 2021 PAGE 4 The Superintendent noted that South Burlington has been recognized as the #1 School District and the #1 High School. The proposed FY22 budget reflects an overall expenditure increase of 5.88% and a net increase of 3.59% in Education Fund spending. Contributing to increased costs are the following: a. Salary/wages b. Health Insurance (a significant increase) c. Equipment repair/maintenance d. Purchased services e. Bringing back reductions from FY21 f. One school bus g. Technology h. HR software i. Transportation Dispatcher/Router j. HR Employment Coordinator k. Financial Literacy person l. Teachers at Chamberlin and Marcotte to address increased enrollment m. Non-union Support Staff increase in salary Supt. Young noted that the PreK-12 enrollment in FY21 was 2,527. The projection for FY 22 is an enrollment of 2,574. He then showed a chart indicating the numbers of students in classrooms in the various schools and the numbers of teachers in those schools. All elementary schools except for Chamberlin have more than 400 students, some of the largest schools in the state. The total proposed FY22 school budget is $55,623,080. There is a 7.7% increase in revenue which will result in the tax rate going down 4.15%. Supt. Young stressed that this is based on a CLA (common level of appraisal) of 100%. Net spending per pupil would be $16,155. Supt. Young noted that the State has indicated that the number of equalized pupils is going down slightly. He said they are working with the State to figure out how this can be possible, so that number is not to be considered final. Under the proposed budget, the average condo owner would pay $172 less in school taxes. The average single-family homeowner would pay $228 less. Supt. Young showed a review of the school district’s tax rate history. The 10-year average increase per year is 1.38%. He also showed a comparison to statewide estimates. STEERING COMMITTEE 20 JANUARY 2021 PAGE 5 Supt. Young then explained how the CLA works. He noted that he has been told that homes in the city are selling at or above their appraised value. He then noted that 68% of the city’s homeowners qualify for income sensitivity reductions. Of the 215 Vermont school districts, 107 spend more per equalized pupil than South Burlington does. Supt. Young then explained the request for a $2,500,000 bond to address school maintenance concerns (roofing, floors, doors, etc.). He noted there will also be a ballot article which would allow the school district to use any FY21 surplus to apply to COVID expenses that were not reimbursed. He read the language for this item. Mr. Chittenden asked whether the city will have all the reappraisals done for the next tax bill. Mr. Dorn said he can’t say for certain, but it looks as if that will happen. Supt. Young said that what people will pay depends on that new appraisal. Ms. Riehle asked if the bond issue passes whether the first payment is included in the FY22 budget. Supt. Young said the first interest payment on the bond is ($32,000). He cited Burlington High School as an example of what happens when maintenance needs are not addressed when needed. The Superintendent noted that the Middle School roof is now 20 years old and has a lot of square footage. 4. Legislative Update: Rep. Lalonde said that Act 48 has been passed out and will allow for the mailing of all ballots. There is also money to pay for this from the Secretary of State’s office. Another big issue now is the revenue forecast update. Rep. Lalonde said because things were so dire in December, the projected yield was lower than it is likely to be. Projections are now much better because of money from COVID relief funds, and tax rate numbers will probably be lower than what was projected. Mr. Barritt said he saw a news item regarding the unfunded portion of the State Teachers Retirement Fund. He asked whether the schools would have to make up the difference. Rep. Lalonde said the Fund is in worse shape than they had thought. Treasurer Pearce suggested some things to address this, but it is premature to say what options will be put in place and whether there will be a local impact. STEERING COMMITTEE 20 JANUARY 2021 PAGE 6 Supt. Young said some things are already underway including merger benefits and return of universal breakfasts. House Bill 35 would eliminate eligible construction costs from the spending calculation of school districts. House Bill 54 would address how to calculate equalized pupils. He stressed the need to understand all the factors before changing anything. Rep. Lalonde said one other bill would address how negotiations are being conducted and what is negotiable. This could add to local costs. Ms. Fitzgerald noted that she and Ms. Burkhardt testified on this yesterday. Sen. Chittenden noted that he has been assigned to the Senate Education Committee. They are currently reviewing a recent count decision and taking testimony from colleges. They are also looking at a required Civics course in high schools. Ms. Riehle commended the School Board on a budget that she can support and thanked them for “a thankless task.” She then recognized outgoing School Board members Fitzgerald and Lalonde and thanked them for their many years of service and hard work. 5. Update on 180 Market Street: Ms. Blanchard noted that the building is officially named South Burlington Public Library and City Hall. Construction is 75% complete. Work on the Marcotte School property is 100% complete. On the first floor, painting is going on, especially in the Children’s Library. Each floor is at a different level of completion. Exterior work will be completed in the spring. A City Council tour of the building is being planned for February or early March. There will also be a virtual tour which will allow for questions from viewers. Ms. Riehle said she toured the building with a potential donor last week, and it was very exciting to see the colors. She said this will be a Library the city will be very proud of. 6. Other Business: No other business was presented. As there was no further business to come before the Committee, Mr. Barritt moved to adjourn. Ms. Fitzgerald seconded. Motion passed unanimously. The meeting adjourned at 7:15 p.m.