HomeMy WebLinkAboutAgenda - City Council - 01/08/2024 - Special MeetingSPECIAL CITY COUNCIL MEETING AGENDA
January 8, 2024
Participation Options
In Person: 180 Market Street, Main Floor, Auditorium
Assistive Listening Service Devices available upon request
Electronically: https://meet.goto.com/SouthBurlingtonVT/specialcitycouncilmeeting01-08-
2024
You can also dial in using your phone. 1 (872) 240-3212 Access Code: 839-876-141
Regular Session 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.Councilors’ Announcements and Reports on Committee assignments and City Manager’s Report
(6:45–6:55 p.m.)
6.Consent Agenda: (6:55–7:00 p.m.)
A.*** Consider and Sign Disbursements
7.*** Warned for 6:30 p.m.: Hold a Public Hearing on City Plan 2024 – Paul Conner, Planning &
Zoning Director (7:00–7:30 p.m.)
8.*** City Council discussion of City Plan 2024 and possibly warn a Public Hearing for January
29, 2024 at 7:00 p.m. – Paul Conner, Planning & Zoning Director (7:30-7:45 p.m.)
9.*** Vermont Land Trust/Bread & Butter Farm conservation project at Auclair Farm: Review and
approve Non-Development Agreement (“NDA”) and City Right of First Refusal (“ROFR”) for area
excluded from conservation on Parcel B of the former Auclair Farm property, in line with prior
City Council decision to release pre-approved funds on condition of City Council approval of
NDA and ROFR – Paul Conner, Planning & Zoning Director (7:45-8:00 p.m.)
180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV
10. *** Initial update on the FY25 School Budget and Act 127 and Common Level of Appraisal
(CLA) implications – Violet Nichols, Superintendent of Schools, and Kate Bailey, School Board
Chair (8:00-9:00 p.m.)
11. Other Business (9:00-9:10 p.m.)
12. Adjourn (9:10 p.m.)
Respectfully submitted:
Jessie Baker
City Manager
***Attachments included
Champlain Water District
Check/Voucher Register - Check Report by Fund
From 1/9/2024 Through 1/9/2024
Check Date Check Number Vendor Name Invoice Description Check Amount Invoice Number
1/9/2024 4695 F.W. Webb Company Meter Tail Pieces 555.50 83681693
1/9/2024 4696 Frank W. Whitcomb Construction Stone 298.22 90023-00018712
1/9/2024 4697 Office Essentials of Vermont Envelope and Clips 32.97 39869
1/9/2024 4698 South Burlington Sewer Department December 2023 Sewer Billings 443,326.11 SEWER-123123
1/9/2024 4699 South Burlington Stormwater Department December 2023 Stormwater Fees 183,144.42 STORM-123123
Total 70 - South Burlington Water
Department
627,357.22
Report Total 627,357.22
70 - South Burlington Water Department
SOUTH BURLINGTON CITY COUNCIL
Date: 1/3/2024 7:57:53 AM Page: 1
2
MEMORANDUM
TO: Jessie Baker, City Manager
South Burlington City Council
FROM: Kelsey Peterson, Senior City Planner
Paul Conner, Director of Planning & Zoning
SUBJECT: Draft CityPlan 2024; Second Public Hearing
DATE: January 8, 2024 City Council meeting
This week the Council will hold its “continued” public hearing from January 2nd. The Plan was
enclosed with your 1/2/24 packet and is posted to the website as well, alongside the Planning
Commission’s Report.
Following receipt of any additional comments from the community, the Council is invited to close
the public hearing. From there, the Council has a couple of different options:
Option 1: Adopt Plan as presented. The Council may, following the hearing, take action to adopt
the 2024 City Plan.
Motion: “I move to Adopt CityPlan 2024 as presented”
Option 2: Defer action to a future meeting. The Council may, following the hearing, decide to take
the action to adopt the Plan at an upcoming meeting, as at least one member of the Council will
likely not be present on 1/8.
No action is required at this time except to determine the meeting the proposed action
should be scheduled for.
Option 3: Make changes & vote to warn a third public hearing for 1/29. The Council may, following
the public hearing, make additional changes to the Plan. In order to maintain the continuity of the
City’s Plan, however, it would need to decide at this meeting the specific changes it wishes to make
and then warn an additional hearing for Monday, January 29th.
Motion: “I move to make the following changes to the draft City Plan as presented and to
warn a public hearing on the modified Plan for Monday, January 29 at 7 pm [insert changes
here]”
180 Market Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sbvt.gov
MEMORANDUM
TO: South Burlington City Council
FROM: Kelsey Peterson, City Planner
SUBJECT: Auclair Conservation
FOR: January 17, 2023, City Council meeting
The Vermont Land Trust and Bread & Butter Farm are continuing to work on closing the conservation
easements on the former Auclair farm property located near the intersection of Hinesburg Road and
Cheesefactory Road. The project involving approximately 375 total acres includes permanent conservation
of approximately 362 acres of farmland, woodland, and wetlands, supports agriculture (including Bread &
Butter Farm and its educational mission) and recreational opportunities for South Burlington, and creates a
new network of public recreation paths. It has been divided into three Parcels: Parcel A, Parcel B, and Parcel
C. Please see the attached map for the locations of these three parcels
The conservation of the three Parcels has continued on three timelines. As noted in the map, Parcel A is 191
acres and was conserved in 2020. The conservation easement on Parcel C is 67 acres and should be closed
on in January 2023, but we have no further updates on if that has happened. VLT will acquire the Parcel C
land after closing on the easement. These transactions require no further City funding.
Parcel B is approximately 104 acres of land to be conserved and approximately 13 acres of excluded area.
Vermont Land Trust is scheduled to close on a conservation easement on Parcel B in February or March
2023. Originally, it was intended that an entity called an “Agrarian Commons” that would acquire the
underlying land concurrent with the closing of the easement, but that entity has not yet been created. The
underlying land will remain held by Dirt Capital, an intermediary funder, until a new entity is established or
Bread & Butter Farm works out another way to acquire the land outright.
The City of South Burlington committed to providing $915,000 from the City’s Open Space Fund to fund
conservation of the Auclair farm parcels, primarily as a funding match and/or other leverage to obtain other
grant funding, including from the federal government. Of that, approximately $605,000 has already been
released. The City Council has approved the remaining $309,033 toward the acquisition of the conservation
easement on Parcel B. The City Council needs to act to release those remaining funds to enable the
acquisition of the conservation easement on Parcel B with a likely closing in February or March 2023.
This will enable the closing of the conservation easement; it does not transfer the underlying land. It
continues to be the intention of VLT and Bread & Butter Farm that the Parcel B land will go to an agricultural
entity. VLT and Bread & Butter continue to work with other partners to determine how to structure such an
entity (likely a new Agrarian Commons model) and to transfer the land from Dirt Capital to the new entity.
It would protect the interests of the City of South Burlington to require a simple Right of First Refusal on the
excluded area (approximately 13 acres not covered by the conservation easement). This provides another
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stopgap because the property will remain in the hands of a funder, not a local nonprofit and/or agricultural
entity. It would not apply to transfers from Dirt Capital to an Agrarian Commons or Bread & Butter Farm, or
similar entity, but it would apply to any transfer to another party. This provides a backstop for the City to
ensure that land related to the land conserved with the contribution of City funds is not sold in the future to
a private enterprise if an agricultural entity does not materialize and the acquisition of the underlying parcel
does not occur.
VLT and City Staff have also worked to write a Memorandum memorializing what the City’s contribution has
accomplished. This includes description of the conservation, recreation, and educational goals that have
been enabled by the City funds. It also describes the intention that the land move into local non-profit
ownership and the City be involved in the governance of a new entity. The Memorandum has also been
attached to this memo.
Proposed Action:
• Allocate the remaining $309,033 from the City’s Open Space Fund toward the VLT acquisition of the
conservation easement on Parcel B conditional on the execution of an acceptable Right of First
Refusal on the so-called “excluded area” of 13.41 acres of Parcel B
• Approve the Memorandum documenting the conservation, agricultural, recreational, and other
public benefit outcomes of the City’s total approximately $915,000 funding
Municipal Land IState LandVLT Conserved Land
1:15,000Subject Parcels
Proposed Public Trail
Proposed Bike Path
Auclair/Bread & Butter Conservation Project
Conservation Overview
City of South Burlington, VT
VermontLand Trust
- 2 -
DIVISION OF PROPERTY AGREEMENT
This Division of Property Agreement (the “Agreement”) is by and between the CITY OF SOUTH
BURLINGTON, a Vermont municipality in Chittenden County, Vermont (the “City”) and WILD
TURKEY DIVIDE, LLC, a Vermont limited liability company with a place of business in Chatham, New
York and its successors and assigns (“Wild Turkey, and collectively with the City, the “Parties”) and is
made and entered into as of _______________2024 (the “Effective Date”).
Background
1. Wild Turkey owns the lands and premises being all and the same lands and premises
conveyed from Heather Auclair, Jennifer Morway and Heidi Auclair, Trustees of the Ernest Auclair Family
Trust to Wild Turkey Divide, LLC by Warranty Deed dated October 5, 2018 and recorded in Volume 1442
at Page 35 of the City of South Burlington Land Records (the “Property”). The Property is comprised of:
(a) the land depicted as “Wild Turkey Divide, LLC n/f, 1442/35, Lot #2, Slide #623.1, Total Area, 5,114,430
S.F., 117.41 Acres” (the “VLT Parcel”) on a survey entitled: “Conservation Easement Survey Showing
Lands to be Excluded, Lands of Wild Turkey Divide, LLC with Conservation Easement Rights to be held
by Vermont Land Trust, Route 116 & Cheese Factory Road, South Burlington, VT” prepared by Button
Professional Land Surveyors, PC dated November 19, 2021 and recorded in Map Slide ___ of the City of
South Burlington Land Records (the “Survey”); and (b) “Excluded Area, 584,190 S.F., 13.41 Acres” on the
Survey (the “Excluded Parcel”).
2. Wild Turkey is conveying the fee interest in the VLT Parcel to Dirt Captial Partners, LLC
(“DCP”), which is a related entity of Wild Turkey. DCP will then grant a perpetual conservation easement
to VLT on the VLT Parcel then subsequently convey the fee interest in the VLT Parcel to VLT. VLT
anticipates using the VLT Parcel solely for agricultural or forestry purposes.
3. The division of land in South Burlington is governed by Section 15A of the Land
Development Regulations adopted on June 5, 2023 (the “Regulations”) and generally requires approval of
the Development Review Board (the “DRB”); provided however, Section 15A.02 of the Regulations sets
forth a number of “exceptions” involving the division of land that can occur “without first obtaining
subdivision approval from the DRB,” including Section 15A.02(B)(6), which provides:
The division, lease or use of a portion of a parcel larger than twenty-five (25) acres solely for
agricultural or forestry purposes, which does not require a new highway access or the installation
of a permanent road or municipal infrastructure, provided that an instrument which waives
development rights, until or unless subdivision review occurs, is approved by the City Attorney
and City Council and is recorded in city land records.
4. The Parties enter into this Agreement pursuant to Section 15A.02(B)(6) of the Regulations
in order to enable the division of land so as to convey the VLT Parcel to VLT with Wild Turkey retaining
the Excluded Parcel.
5. The City has agreed that a covenant that encumbers the title to the Property and that runs
with the land will ensure compliance with Section 15A.02(B)(6) until or unless subdivision review occurs,
and therefore, VLT and Wild Turkey agree that the following covenants shall apply to the Property.
N O W , T H E R E F O R E ,
In consideration of the foregoing and the mutual covenants and agreements herein set forth, the
parties hereby agree as follows:
Section 1. Applicable Ordinance. This Agreement is created for the purpose of complying with
the requirements of Section 15A.02(B)(6) of the Regulations to ensure the Property is used solely for
agricultural or forestry purposes and does not require a new highway access or the installation of a
permanent road or municipal infrastructure until or unless subdivision review occurs. Also until or unless
subdivision review occurs, Wild Turkey waives all develop rights to the Property. The City hereby agrees
that, provided that the Parties comply with all of the terms and conditions herein,: (a) this Agreement
complies with and satisfies Section 15A.02(B)(6) of the Regulations,; and (b) upon the recording of this
Agreement in the City of South Burlington Land Records, the VLT Parcel can be conveyed to DCP and
ultimately VLT with Wild Turkey retaining the Excluded Parcel without any further action by the City,
including, without limitation, subdivision approval by the DRB or any further action by the Administrative
Officer.
Section 2. Restrictions. Subject to the terms and conditions hereof, and pursuant to the
Regulations, the Property shall be used solely for agricultural or forestry purposes until or unless
subdivision review occurs. No “Development”, as defined by the Regulations shall occur on the Property
until or unless subdivision review occurs.
Section 3. Duration. This Agreement shall run with the title to the Property until the first to occur
of the following (each a “Termination Event”): (a) the division of the Property by lawfully permitted means,
including, without limitation, the subdivision approval by the DRB or administrative officer under the
Regulations; (b) an instrument executed by all Parties or their successors and assigns confirming the
termination of this Agreement; (c) the date on which the VLT Parcel and Excluded Parcel come under
common ownership. Upon a Termination Event, this Agreement shall be terminated and be of no force and
effect, and the Parties agree to sign and record evidence of a Termination Event at the request of any Party.
Section 4. Future Review. The City acknowledges and agrees that Wild Turkey (including its
successors and assigns) and VLT (including its successors and assigns) may seek subdivision approval in
the future. Such a subdivision application may be accompanied by Site Plan application or another
application to develop the Excluded Parcel. All owners of the Property must sign any subdivision, Site
Plan, or other application submitted to the City. In the event of such an application, the City acknowledges
and agrees that the VLT Parcel and Excluded Parcel shall be considered to be a single lot for purposes of
Site Plan Review or similar review under the Regulations, including, without limitation, any provision
requiring that a certain portion of the subject property being used for conservation purposes (i.e. the VLT
Parcel shall be considered together with the Excluded Parcel in any subdivision or Site Plan application
requiring a certain portion of a property be used for open space or conservation). Wild Turkey
acknowledges and agrees that during subdivision review, no waiver of the requirements of the City’s Land
Development Regulations then in effect will be granted by the City based on any needs that arise as a result
of the boundary lines drawn during any division of the Property occurring before subdivision review in
compliance with Section 15A.02(B)(6).
Section 5. Right of First Refusal. Upon the conveyance of the VLT Parcel to DCP, the Excluded
Parcel shall be subject to a Right of First Refusal (the “Right of First Refusal”) in favor of the City under
the following terms:
It is expressly understood and agreed that this Right of First Refusal shall not apply to: (i)
the transfer of the Excluded Parcel to a subsidiary or other legal entity owned or controlled
by Wild Turkey or its members; or (ii) the transfer or sale to Bread & Butter Farm LLC
(or an entity owned or controlled by Bread & Butter Farm LLC), Corie Pierce (or an entity
owned or controlled by Corie Pierce), Brandon Bless (or an entity owned or controlled by
Brandon Bless), or the transfer or sale to a nonprofit entity whose purpose is to provide
comprehensive infrastructure in support of the greater farm community; provided,
however, that the Excluded Parcel in the hands of such transferee or transferees shall
continue to be subject to the terms of this Right of First Refusal.
The City acknowledges and agrees that this Right of First Refusal shall be automatically
subordinate in priority to all existing and future mortgages placed on the Excluded Parcel
by Wild Turkey or Wild Turkey’s successors and assigns, without the need for additional
documentation. The Right of First Refusal, however, shall survive foreclosure and remain
in effect unless and until terminated in accordance with this Agreement.
The Right of First Refusal shall terminate upon the occurrence of the first of the following:
(a) upon the failure by the City to exercise its Right of First Refusal within the time period
described below in Section 5(e); (b) upon the recording of one or more deeds conveying
the whole of the Excluded Parcel to the City; (c) upon the recording a written termination
of this Right of First Refusal signed by both Wild Turkey and the City and recorded in the
City of South Burlington Land Records; or (d) upon a Termination Event.
Upon receipt of a bona fide offer to purchase all or a part of the Excluded Parcel from a
third party, Wild Turkey shall provide the City with written notice of all of the terms of
such third-party offer (the “Offer Notice”). A third-party offer made to Wild Turkey
containing one or more conditions precedent shall be deemed a bona fide offer for the
purposes of this Right of First Refusal. If the City elects to exercise its Right of First
Refusal, the City shall have the option to waive such conditions precedent at the time of
exercise, or it may have the benefit of such conditions.
The City shall exercise its Right of First Refusal, if at all, by delivering a written acceptance
notice to Wild Turkey, within sixty (60) days after the City receives the Offer Notice (the
“Acceptance Notice”).
If the City delivers its Acceptance Notice and exercises its right to purchase the property
described in the Offer Notice, Wild Turkey shall convey the property described in the Offer
Notice to the City upon the same terms and conditions as described in the Offer Notice.
The City’s Right of First Refusal shall automatically terminate if the City fails to deliver
its Acceptance Notice to Wild Turkey within sixty (60) days after the City receives the
Offer Notice or if the City otherwise notifies Wild Turkey that it does not wish to exercise
its Right of First Refusal. The execution and recording of an Affidavit by Wild Turkey
following the expiration of the sixty (60) day period after the City receives the Offer Notice
that the City failed to deliver its Acceptance Notice within the required sixty (60) day
period shall be conclusive evidence of the termination of the Right of First Refusal. If the
City does not exercise its rights hereunder, Wild Turkey shall be free to sell the described
property to the original offeror according to the terms of the Offer Notice; provided,
however that if such sale is not completed within one (1) year of the date of the Offer
Notice, this Right of First Refusal shall be reinstated as to such property.
Section 6. Waiver. The failure of either party to insist on strict performance of any of the
provisions of this Agreement or to exercise any right it grants will not be construed as a relinquishment of
any right or a waiver of any provision of this Agreement. No waiver of any provision or right shall be valid
unless it is in writing and signed by a duly authorized representative of the party granting the waiver
Section 7. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the Parties hereto and their respective successors and assigns..
Section 8. Governing Law. This Agreement shall be governed and construed in accordance with
the laws of the State of Vermont, without regard to its choice of law rules.
Section 9. Notices. Any notices to be given pursuant to this Agreement shall be sufficient if given
by a writing deposited in the United States mail, certified mail or registered mail, return receipt requested,
postage prepaid, by commercial courier, provided the courier's regular business is delivery service and
provided further that it guarantees delivery to the addressee by the end of the next business day following
the courier's receipt from the sender, by facsimile or by email (provided that the electronic process used is
reasonably secure and not easily susceptible to manipulation) addressed as follows:
If to the City: City of South Burlington
Attn: Jessie Baker, City Manager
City Hall, 180 Market Street
South Burlington, Vermon 05403
jbaker@southburlingtonvt.gov
If to Wild Turkey: Wild Turkey Divide LLC
Attn: Jacob Israelow
32 Main Street, Suite 203A
Chatham, NY 12037
Email: jacob@dirtpartners.com
or to such other person, address or number as the party entitled to such notice or communication shall have
specified by notice to the other party given in accordance with the provisions of this Section 8. Any such
notice or other communication shall be deemed given: (i) if mailed, three (3) days after being deposited in
the mail, properly addressed and with postage prepaid; (ii) if sent by courier, the next day after being
deposited with the courier, properly addressed and with prepaid; (iii) if sent by telecopy or email, when
transmission has been electronically confirmed; and (iv) if sent by e-mail, upon receipt of a read-receipt or
other acknowledgment of receipt by the recipient.
Section 10. Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same instrument.
Section 11. Further Assurances. The parties agree to execute, acknowledge, if necessary, and
deliver such documents, certificates or other instruments and take such other actions as may be reasonably
required from time to time to carry out the intents and purposes of this Agreement.
Section 12. Severability. If a court of competent jurisdiction determines that any portion of this
Agreement is illegal, unenforceable or invalid, then that portion shall be considered to be removed from
this Agreement, the remainder shall remain in full force and effect, and the parties shall cooperate to modify
the Agreement to cause it to conform to the original language of the Agreement to the extent consistent
with the finding of the court.
Section 13. Entire Agreement. This Agreement constitutes the entire agreement between the
parties relating to its subject matter, and supersedes all prior representations, understandings and
agreements, written or oral, express or implied.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties, as evidenced by the signature of their Duly Authorized
Agents, do hereby execute this Agreement this ____ day of ______________, 2024.
CITY OF SOUTH BURLINGTON
By:____________________________________
Duly Authorized Agent
STATE OF VERMONT
COUNTY OF CHITTENDEN, SS.
Before me, on this _____ day of ________________, 2024, personally appeared
______________________, Duly Authorized Agent of CITY OF SOUTH BURLINGTON, known to me
to be the person who executed the foregoing instrument, and he/she acknowledged this instrument, by
him/her signed, to be his/her free act and deed and the free act and deed of CITY OF SOUTH
BURLINGTON.
Notary Public
Printed Name:
Commission No.:
Commission Expires: 1/31/25
[Signature Page Follows]
WILD TURKEY DIVIDE, LLC
By:____________________________________
Duly Authorized Agent
STATE OF _____________
COUNTY OF ___________________, SS.
Before me, on this _____ day of ________________, 2024, personally appeared
______________________, Duly Authorized Agent of WILD TURKEY DIVIDE, LLC, known to me to
be the person who executed the foregoing instrument, and he/she acknowledged this instrument, by him/her
signed, to be his/her free act and deed and the free act and deed of WILD TURKEY DIVIDE, LLC.
Notary Public – State of Vermont
Affix Notary Stamp/Seal
[Signature Page Follows]
Vermont Land Trust, Inc. and Dirt Capital Partners, LLC join in the execution of this Agreement
as anticipated successors to Wild Turkey Divide, LLC and, upon obtaining an interest in the
Property, agree to be bound by the terms and conditions of this Agreement.
VERMONT LAND TRUST, INC.
By:____________________________________
Duly Authorized Agent
STATE OF VERMONT
COUNTY OF _______________________, SS.
Before me, on this _____ day of ________________, 2024, personally appeared
______________________, Duly Authorized Agent of WILD TURKEY DIVIDE, LLC, known to me to
be the person who executed the foregoing instrument, and he/she acknowledged this instrument, by him/her
signed, to be his/her free act and deed and the free act and deed of WILD TURKEY DIVIDE, LLC.
Notary Public – State of Vermont
Printed Name:
Commission No.:
Commission Expires: 1/31/25
WILD TURKEY DIVIDE, LLC
By:____________________________________
Duly Authorized Agent
STATE OF _____________
COUNTY OF ___________________, SS.
Before me, on this _____ day of ________________, 2024, personally appeared
______________________, Duly Authorized Agent of DIRT CAPITAL PARTNERS, LLC, known to
me to be the person who executed the foregoing instrument, and he/she acknowledged this instrument, by
him/her signed, to be his/her free act and deed and the free act and deed of DIRT CAPITAL PARTNERS,
LLC.
Notary Public –
Affix Notary Stamp/Seal
January 4, 2024
Dear State Legislator,
I am writing to share my grave concerns related to public education funding after
receiving Common Level of Appraisal (CLA) information in conjunction with
impacts associated with Act 127.As a result, South Burlington School District is in
a grim position.For FY25 our CLA is 82.54%,which gives us a post-CLA
homestead tax increase of 18.26% (it would have been 28.45% without the 5% cap).
If we had zero increases in expenditures from our FY24 budget, because of the Act
127 methodology and CLA impact, our post-CLA tax increase would still be
13.57%. To get to 13.57%, which is nearly triple our historic rates, we would need to
cut $6.6 million from our FY24 budget, which would decimate our schools. It would
be the equivalent of approximately 75 teachers. Our community cannot support even
a 13.57% homestead tax increase (with historic trends being closer to 5%) and I am
concerned our budget will be voted down in March, causing a genuine crisis in our
schools. If that occurs, how can we meet education quality standards, class size
requirements, implement Act 173 or VTmtss? How can we serve the needs of our
special education or multilingual students? How could we even transport students to
schools?
Looking ahead, my concerns grow exponentially surrounding the impacts of Act 127
and CLAs in South Burlington and Chittenden County, especially as we prepare for
FY30, where there will be no tax cap to protect taxpayers from large increases
generated by the implications of Act 127 and lowered CLAs. The reductions that the
South Burlington School District would have to make to put forward a budget
anywhere near historic tax rates would irreparably harm our schools for years to
come. Without reappraisal, CLAs will likely continue to drop. Nearly all of
Chittenden County (except Charlotte and Richmond, who had new appraisals
performed in 2023) will be facing similarly daunting tax increases:
Further,the yield’s ability to support Act 127 obligations is also extremely troubling.
Even with responsible expenditure increases by Districts negatively impacted (i.e.
lower than the 9.9%net education spending per LTWADM threshold that secures the
5%pre-CLA cap on tax increases),the yield is at a level that must decrease to
support the funding model.I would additionally implore you to implement a CLA
cap to help mitigate the already debilitating impact of Act 127 on our local
education taxes.
I ask that you consider these concerns and reevaluate improvements to education
funding.I support the State’s goals of improving equity and overall education
quality statewide,and I think with modifications to Act 127,we could make greater
strides toward these shared goals.Public education is not only crucial for the
students we have in our schools every day,but for the community of South
Burlington,and our state as a whole.We are all in this together.
Thank you for your consideration and your service to our communities.I feel
fortunate to work in a state where our legislators and senators support education and
equity.
Sincerely,
Violet Nichols
Superintendent,South Burlington School District
South
Burlington
School District
January 10, 2024
Final Draft of FY25 Budget
We inspire all learners to make a difference in the world.
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Violet Nichols, Superintendent
Tim Jarvis, Sr. Director of Finance and Operations
Annette Harton, Business Manager
TABLE OF CONTENTS
1.Third Draft of Budget Information
a.Contributing Factors
2.Worksheet for Proposed 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.FY24 vs FY25 Tax Rates
11.Current Status
12.Timeline
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THIRD DRAFT OF BUDGET INFORMATION
This working draft of the FY25 proposed budget
would generate a residential homestead tax rate
increase of:
18.27% 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
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This draft 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.
Revenues
●$2.27M budget surplus from FY22 can be applied either
as an offset to FY25 budget expenses, or allocated for other purposes (with School Board/voter approval).
We also anticipate an available surplus of approx.
$500,000 from FY23 (pending finalized audit).
●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, which is 38% lower than FY24’s
Yield.
●Initial new pupil weights of Act 127 were released by
state on 12/5 and continue to be revised
●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 Proposed Budget Expenditures $69,192,891
Increase of 10.66%
Less Offsetting Local, State and Federal
Revenues
$13,442,056
=Net Education Spending $55,750,835
LTW ADM (Long Term Weighted Average Daily
Membership)4,105.56
(As of 01/02/2024)
Net Ed Spending per LTW ADM
(Net Ed Spending/LTW ADM)$13,579.35
(Increase of 6.07%)
Estimated Yield (to be set by the Legislature)$9,452
Equalized Tax Rate (Spending per LTW
ADM/Yield)$1.3172
(5% capped rate)
(Notional Increase of 14.52% is rate of $1.4367)
Common Level of Appraisal (CLA)82.54%
(Decrease of 11.22%)
= Actual Residential Tax Rate
(Equalized Tax Rate divided by the CLA)$1.5959
(Increase of 18.27%)
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.
Employee expenses in the FY25 budget represent a 9.87% year-on-year increase. They
contribute 7.94% of the 10.66% expenditure increase we are recommending for FY25. The
recurring cost of salaries and benefits is likely to continue to rise over the next few years, further
reinforcing the need to closely manage our total number of FTEs, as well as other expenditures,
in order to prepare ourselves for the ramifications of the tax cap removal scheduled for FY30.
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 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.
Option 2: Allocate the funds to our Capital Reserve Fund for future facilities
improvements. From an accounting perspective, it is necessary to treat the amount
as revenue, which will be offset. While there is zero impact on the homestead tax rate,
the “gross” expenditure line of the budget will reflect a higher dollar value (i.e. a 14.28%
increase versus the effective 10.66% increase contained in the current proposal). This
is completely offset by an equal and opposite increase in the revenue line.
We strongly recommend that the Board support Option 2 and places this item on
the March ballot for voter approval to reappropriate FY22 surplus funds to our
Capital Reserve Fund.
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.
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
6.07% Net Education Spending per pupil increase
and a notional pre-CLA calculated tax increase
of 14.52%, 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
FY24 vs. FY25 TAX RATES (post CLA)16
●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
$64,670,000 and $71,380,000 (currently set at $69,192,891) 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 13.57% because of the Act 127 methodology and CLA impact
WHERE DO WE CURRENTLY STAND?
●The current working draft of our FY25 budget reflects:
○Expenditures: $69,192,891 (10.66% increase vs FY24
adopted)
○Revenues: $13,442,056 (4.11% increase vs FY24 adopted)
○Net Ed Spending: $55,750,835 (12.36% increase vs FY24
adopted)
●Given the per pupil spending threshold and tax capping
mechanics of Act 127, the Expenditure line could be as low
as $64,670,000 (3.42% increase vs FY24 adopted) and as
high as $71,380,000 (14.16% 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 18.27% after CLA).
17
BUDGET DEVELOPMENT PROCESS: Timeline
●January 22: Steering Committee Meeting
●February 5: Budget Books Available
●March 5: Town Meeting Day-
Vote on the school budget
●Updated information available at
www.sbschools.net/budgetfy25
18
Thank you!
DISCUSSION & QUESTIONS
19
Act 127
www.sbschools.net/budgetfy25