Granby Drummer | FY24 Budget Issue

GMHS Auditorium April FOR IMMEDIATE DELIVERY

BOF proposes lowered mill rate; 4.95% budget increase

By Michael B. Guarco, Jr., Chair Board of Finance

The Board of Finance received the final budget requests for FY24 from the Boards of Selectmen and Education at its March 27 meeting in accordance with the budget process outlined within the Charter of the Town of Granby. Both budget submissions came in below the expenditure limitations set by Finance in midFebruary. After a minor revision to the health plan line item because of updated trend and claim data, an overall budget package for upcoming FY24 has been forwarded to the annual budget public hearing to be held on Monday, April 10. The proposed FY24 budget for the Town of Granby totals $53,105,282, a 4.95 percent overall increase over the current fiscal year that ends June 30, 2023. The municipal operating component shows a 4.01 percent increase, primarily driven by salaries and benefits as well as the inflationary impact seen in supplies, materials and energy. The debt service line

item declines by 2.72 percent, while the capital infrastructure component reflects a $300K increase. The capital line item includes roadwork and overlay, buildings, equipment and other infrastructure. The overall municipal portion of the budget shows a 4.68 percent increase year-to-year. The education operational segment carries a 5.08 percent rise as revised by Finance, similarly driven by the change in salaries and benefits, supplies, energy, and this year, by special education needs.

On the revenue side, the $2.507M change in projected expenditures for FY24 are planned to be offset by increased local revenues and additional funding from the state. To a lesser degree, additional property taxes would be raised due to growth in the Grand List and setting of the new mill rate.

The roughly $1M increase in special education spending is due to a heavier case load and a hefty increase in costs. To offset this expenditure, we anticipate a $637K reimbursement from the state’s Special Education Excess Cost Grant.

See Mill rate drops on page 4

Monday, April 10, 7 p.m.

The boards of education, finance and selectmen will jointly present the budget as part of the annual public hearing to be held at 7 p.m. on Monday, April 10. Check the town website for details and a link. A public testing and sealing of the optical scanner machine to be used at the budget referendum will be conducted at 1 p.m. on Tuesday, April 18 at Granby Town Hall.

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name. As in the past, non-registered, but otherwise eligible voters who are Granby property owners will also be allowed to vote. They will need to fill out a special form at the assessor’s table if their name appears on the last published grand list. After the public hearing, absentee ballots can be filed in person with the Town Clerk prior to the vote. Absentee ballots are available until noon on Monday, April 24.

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Town of Granby Budget

By the Numbers

Preparing for tomorrow’s challenges today

By Michael B. Guarco, Jr., Chair Board of Finance

Part and parcel of formulating the budget for next year is keeping in mind how certain decisions made now affect future years. In Granby, the hallmark of municipal government from a fiscal perspective has been taking the long view. We strive to meet the needs of our community while heeding the cost of doing so. For a dozen years, the average mill rate change has

been less than 2 percent annually, and even less than half of that for the most recent years. This does not factor in the impact of revaluation. As we consider the upcoming year, a number of factors could challenge our ability to minimize changes to the mill rate.

Foremost is the current inflationary environment and how it will affect local government labor contracts, as well as the cost changes in materials and supplies. Government is very much a

See Preparing for Tomorrow on page 2

A summary of the FY24 municipal budget

By Mark Fiorentino, First Selectman

In Granby, the process of budgeting and managing our financial resources never really ends. We constantly ask our staff, our volunteers, our civic organizations and our citizens to do more with less.

As the Board of Selectman (BOS) develops the annual budget for your consideration, its overriding goal is always the same. We strive to provide the best municipal services we can and to plan for our future needs and for the maintenance and protection of our town assets, all while minimizing the impact on our taxpayers. This is no easy task, but we are fortunate to live in a town where many groups and individuals are willing to

work collaboratively and creatively to get it done. Together, we provide and enjoy excellent services, including:

• Safe and well-maintained buildings, bridges and roads.

• A Senior and Youth Services Center that provides support and assistance to our most vulnerable citizens.

• Accessible, modern library services.

• Well-maintained and equipped public parks and open spaces.

• Extensive recreational and educational programming, opportunities and activities.

• A certified and well-trained police department.

• Locally managed first responder and emergency services. In at least the last 10 years, including in the proposed budget for this

Preparing for Tomorrow

people business, with compensation being more than half of the overall budget. As go the contracts, so go the budgets, and along with them the mill rates.

The other major concern is state government. Changes in state rules and regulations could increase the town’s costs. When the state finds itself with dwindling coffers, the result is a flattening out or reduction in state revenue flow to the municipalities. It has happened before, and it will happen again. The state may be flush with cash currently, but sooner or later that printing press is going to wind down in Washington, and when the state budget feels it, the town will feel it also.

The Town of Granby stands well prepared to face that eventuality. Our reserves are exceptionally well positioned: strong enough to accommodate the next major capital expenditure directly from the General

cont’d. from page 1

Fund and Capital Non-Recurring Fund, without needing to take on long-term bonding. Conservative budgeting and spending in recent years has helped build up the General Fund. While each year we use a portion of the General Fund as part of the revenue side of the budget, it is also the case that in each year some amount of approved expenditures goes unspent, and falls back to the General Fund.

The Board of Finance will continue to manage both sides of the ledger—the revenues and the capital and operating budget expenditures—so that we can effectively and efficiently meet the needs of our community while maintaining mill rate stability (barring reval) with a modest gentle slope over time. This is what we have done—and will continue to do—as we endeavor to maintain the fiscal health of our town, in the best interests of our fellow townspeople.

year, we have been able to maintain, and sometimes expand, all of these services with virtually no increase in full-time staff. But our costs nevertheless increase because of things like contractual obligations, the costs of materials, etc. That is especially true again this year, with nearly every single service being impacted by the lingering effects of high inflation rates.

The main cost drivers for this year include salaries and wages (a $211,555 increase over last year); health insurance ($89,866 increase); recycling collection fees ($23,814 increase); waste collection ($54,214); winter maintenance supplies ($24,000 increase); water service fees ($35,176 increase); and diesel fuel ($7,900 increase).

maintenance and improvement programs.

For the fiscal year 2023-24, the proposed operating budget is $13,104,913. This represents a 4.01 percent increase over the prior year as revised by the Board of Finance. The proposed expenditure for Capital Projects is $2,150,000 and $1,695,078 for debt service. The total proposed municipal budget is $16,949,991.

The Selectmen’s proposed operating budget represents 4.01% increase over FY 22-23.

Over the past several months, we have worked hard with the Board of Finance (BOF) and the Board of Education (BOE) to develop a proposed budget that effectively anticipates and manages these costs without the need to reduce services. The proposed budget also supports several key strategic initiatives, including:

• Continued improvement in our information technology infrastructure and operations.

• Continued improvement in our communication systems and operations.

• Increased investment in our volunteer fire services.

• Technology upgrades in our police operations and communications.

• Increased investment in our road

The process that led to the proposed budget was extensive and included numerous public meetings and workshops where we solicited questions, comments and suggestions. On behalf of all of the members of the BOS, BOE and BOF, thank you to everyone who participated and provided input. A special thanks to former Town Manager Erica Robertson, Kimi Cheng our Director of Finance, Dr. Jordan Grossman, our Superintendent of Schools, and Anna Robbins, our School District Business Manager. And, of course, to all of our department heads and staff.

If you have questions on the proposed budget, or want additional information, please plan to attend the public hearing on April 10, 7 p.m., in the high school auditorium. You can also access a copy of the entire budget book on the Town of Granby Website at: granby-ct.gov.

Most importantly, mark your calendars for April 24. Voting on the proposed budget will take place between noon and 8 p.m. at Town Hall. Please take the time to vote

Thank you for your consideration.

Education Services Breakdown

Services

FY24 education budget continues goal of excellence

By Sarah Thrall Chair, Board of Education

I am pleased to submit the proposed revised FY23-24 Board of Education Budget. This budget represents a commitment to excellence for the continued recognition of the Granby Public Schools as one of the finest school districts in the state. The proposed budget of $36,155,291 represents an increase of 5.08 percent above the FY22-23 budget based on a Board of Finance Meeting held on March 27, 2023. In FY24, our financial challenges include the rising cost of utilities, the transfer of costs from the ESSER Grant to the Operating Budget, as well as the increase in expenses for special education; however, the District staff has worked diligently to realize efficiencies wherever possible while continuing to move the District toward the achievement of the vision of a Granby Public School graduate for every student. New in FY24, Granby Public Schools will offer a Post-Secondary Transition Program for 18- to 22-year-old students at a projected cost savings of $127K to the district.

The budget was developed to support the Granby Public Schools Moving Forward Together Strategic Plan: 2021-2025. The plan includes the following goals:

Student Learning and Achievement Improve student achievement, academic performance and opportunity at all grade levels and for all ability levels and decrease achievement gaps on the path to college and career readiness.

Community Engagement Enhance communication and build trusting relationships with all stakeholders.

Safety and Social Emotional WellBeing Foster a safe and positive social emotional environment for everyone.

Budget Development and Fiscal Management Practice responsible

budget development and management through transparency and maximize available financial resources through a balance of fiscal discipline and innovative educational investments.

Embracing Diversity Adopt and promote strong instructional, curricular and leadership practices that embrace and advance knowledge and acceptance of human diversity and that eliminate bias.

Professional Learning Develop the instructional skills and strategies of our teaching staff through ongoing, meaningful and systemic professional learning opportunities.

Five factors drive the budget

+2.66% Base

+2.11% Special Education

+0.50% All other line items

−0.21% Retirement Savings

+0.02% ESSER Grants

The budget is a spending plan that is responsive to the needs of the district and will continue to move our incredible district forward. This budget will continue our commitment to student achievement and excellence for all students; maintain a focus on teaching and learning; continue to extend opportunities to all students considering their social and emotional well-being; maintain class size according to Granby Board of Education guidelines; continued focus on our Anti-Bias and Anti-Racism Action Plan; recruit and retain the most effective staff that is representative of our school community; and, provide a safe and healthy environment.

In closing, I want to thank the entire Granby Community for supporting our school system. Our success would not be possible without all of the support and ongoing commitment shown to our students. It is because of the collective efforts of the town that students within the Granby Public Schools are able to start their journey to fulfilling their dreams.

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Please consult the table above for exact figures.

Projected change in student population FY23-FY28

Debt Service as a percentage of Granby’s FY24 budget (The lowest percentage in 20 years)

Mill rate drops

Another significant change in the revenue outlook is the inclusion of the $1.1M in car tax offset as shown in the governor’s biennial budget proposal. As our new mill rate will be far less than it was—and below the 32.46 cap on vehicles enacted last May at the state level—the concern was whether we would see this money come to Granby. The state Office of Policy & Management has confirmed that under the governor’s proposal—if approved by the legislature—we would receive this money in FY24. Contrary to the two-year distribution shown in the governor’s budget, we would not see it in FY25 because of our reducing the mill rate subsequent to reval. While helpful given its magnitude, the $1.1M is a one-shot deal, and we have elected to handle it as such. By moving the change in taxes after factoring in growth to just below 1 percent rather than the 2 percent we felt we were looking at two months ago, we are spreading out its use over the next few years. These and other changes to the local and intergovernmental revenue line items cover the bulk of the change in expenditures, with the balance being derived via property tax.

The property tax revenue line item is proposed to change from the current year’s budget number of $41,300,483

cont’d. from page 1

to $42,251,062. The bulk of the $951K increase will come from growth in the Grand List as opposed to setting a new mill rate. While the revaluation process has shifted values around, it does not increase total property taxes within the town. Rather, it affects their distribution.

Summarizing, per Charter, the Board of Finance will conduct the annual public hearing on the proposed budget for the subsequent fiscal year on the second Monday in April. This meeting will take place on April 10, in the High School auditorium at 7 p.m. for public review and comment on the proposed FY24 budget. Following the presentation by the Boards, and after questions and comments from the public, the hearing will be closed. This is the final opportunity for the public to review and provide input and comment on the budget request before the actual budget referendum. Once the hearing is closed, the Board of Finance will meet to consider what it has heard, and not heard, and will then forward to machine vote the final budget proposal for FY24, as is or modified as Finance views appropriate. Again, per Charter, this referendum shall be held on the fourth Monday of April. The vote will take place at the town hall from noon to 8 p.m. on April 24.

3.2% 874

Boards

BOARD OF EDUCATION

Sarah Thrall, Chairman

Rosemarie Weber, Vice-Chairman

Donna Nolan, Secretary

Kristina Gilton

Monica Logan

David Peling

Whitney Sanzo

BOARD OF SELECTMEN

Mark H. Fiorentino, First Selectman

Mark C. Neumann, Vice-Chairman

Margaret Q. Chapple

Frederick A. Moffa

Kelly O. Rome

BOARD OF FINANCE

Michael B. Guarco, Jr., Chairman

Alfred Wilke, Vice-Chairman

Jenny P. Emery

Kevin G. Hobson

William Kennedy

James Tsaptsinos

87,312 Est. Library circulation

142 Est. game and fishing licenses

41 Square miles in area

25

1,725 Enrolled in

10,500 Est. calls for police service

Numbers shown reflect the Debt Service schedule – principal and interest –for existing bonding, as well as for new debt to be issued.