Granby Drummer | FY24 Budget Issue

Drummer FY24 BUDGET ISSUE

F O R I M ME DIAT E DE LI V E RY

The Granby

Special Budget Issue • April 2023

at GMHS Auditorium

April 24, 12-8 p.m. Machine Vote at Town Hall

BOF proposes lowered mill rate; 4.95% budget increase 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

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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

FREE

2023–2024 Town of Granby Budget

$53,105,282 Funds Transfer

REVENUES

EXPENDITURES

0.8%

100%

100%

Local Revenues

Intergovernmental Revenues

1.4%

16.8% Education Services 68.1%

Other Property Tax

1.4%

Property Tax Levy

79.6%

Mill rate drops to

Municipal Services 31.9%

31.89

Annual Budget Hearing 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.

Vote in the April 24 Budget Referendum!

The Town Budget Referendum will be held on Monday, April 24 in the Town Hall Meeting Room, 15 North Granby Road. The polls will be open from noon to 8 p.m. As with all opportunities to vote, if you can, please plan to bring an ID, preferably a photo ID to be checked off our official voter list to vote on a paper ballot.

The check-in tables will be separated based on STREET address, not last

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April 10, 7 p.m. PUBLIC HEARING

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

*****************ECRWSS****

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.

0 0 0 0 Note: Revenue percentages are rounded, so totals may exceed 100%. See chart below for exact numbers.

By the Numbers REVENUE

Property Tax Levy Other Property Tax Intergovernmental Revenues Local Revenues General Fund & Sewer Utility Fund Transfer

Total

42,251,062 740,000 8,941,799 722,561 449,860

$53,105,282

Mill Rate

31.89 EXPENDITURES

Municipal Services Total Education Services Total

Budget Grand Total

16,949,991 36,155,291

$53,105,282

Preparing for tomorrow’s challenges today

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

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

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 See Preparing for Tomorrow on page 2

Page 2

The Granby Drummer

Special Budget Issue April 2022

Municipal Services 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

Board of Selectmen Expenditures: $16,949,991

Debt Service 10.0%

General Government Department (Operations) 77.3%

BOS & BOE Capital Equipment/Improvement Allotment 12.7%

year, we have been able to maintain, maintenance and improvement and sometimes expand, all of these programs. services with virtually no increase For the fiscal year 2023-24, the proin full-time staff. But our costs nevposed operating budget is $13,104,913. ertheless increase because of things This represents a 4.01 percent increase like contractual obligations, the costs over the prior year as revised by the of materials, etc. That is especially Board of Finance. The proposed true again this year, with nearly every expenditure for Capital Projects is single service being impacted by the $2,150,000 and $1,695,078 for debt lingering effects of service. The total prohigh inflation rates. posed municipal budget The Selectmen’s The main cost is $16,949,991. drivers for this year The process that led proposed operating include salaries and to the proposed budget budget represents wages (a $211,555 was extensive and inincrease over last cluded numerous public 4.01% increase year); health inmeetings and workshops surance ($89,866 where we solicited quesover FY 22-23. increase); recytions, comments and cling collection fees suggestions. On behalf ($23,814 increase); waste collecof all of the members of the BOS, tion ($54,214); winter maintenance BOE and BOF, thank you to everyone supplies ($24,000 increase); water who participated and provided input. service fees ($35,176 increase); and A special thanks to former Town Mandiesel fuel ($7,900 increase). ager Erica Robertson, Kimi Cheng our Over the past several months, we Director of Finance, Dr. Jordan Grosshave worked hard with the Board of man, our Superintendent of Schools, Finance (BOF) and the Board of Eduand Anna Robbins, our School District cation (BOE) to develop a proposed Business Manager. And, of course, to budget that effectively anticipates all of our department heads and staff. and manages these costs without the If you have questions on the proneed to reduce services. The proposed budget, or want additional posed budget also supports several information, please plan to attend the key strategic initiatives, including: public hearing on April 10, 7 p.m., in • Continued improvement in our inthe high school auditorium. You can formation technology infrastructure also access a copy of the entire budget and operations. book on the Town of Granby Website • Continued improvement in our at: granby-ct.gov. communication systems and operaMost importantly, mark your caltions. endars for April 24. Voting on the • Increased investment in our volunproposed budget will take place beteer fire services. tween noon and 8 p.m. at Town Hall.

• Technology upgrades in our police Please take the time to vote. operations and communications.

Thank you for your consideration.

• Increased investment in our road

Please consult the table at bottom right for exact figures.

Preparing for Tomorrow cont’d. from page 1 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

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.

Municipal Services Breakdown CATEGORY

ITEM COST SUBTOTALS

General Government (Operations) — Administration

5,297,689

— Personal and Property Protection

3,161,846

— Public Works and Environment

3,573,423

13,104,913

— Libraries, Recreation and Social Services 1,071,955 Board of Selectmen/Board of Education Capital Equipment/Improvement Allotment

2,150,000

Debt Service

1,695,078

TOTAL 16,949,991

Total is 4.68% increase

Special Budget Issue April 2022

The Granby Drummer

Page 3

Education Services Education Services Breakdown CATEGORY

ITEM COST

Regular Education Salaries & Benefits Administration 1,828,252 Regular Education Teachers 11,546,140 Subs/Tutor/Tech Support Salaries 317,859 Teaching Assistant Salaries 415,079 Administrative Assistant/Clerical 1,324,032 Custodian/Maintenance 1,441,472 Salary Contingency 38,206 Bus Monitors 5,441 Benefits 4,787,452

SUBTOTALS

21,703,933

Special Education Salaries & Benefits 5,029,264 Special Education Teachers 2,023,752 Sp. Ed. Support - P.T./O.T. 471,674 Tutors - Special Education 39,649 Sp. Ed. Teaching Assistants 1,336,188 Salary Contingency 48,646 Benefits 1,109,355

Other Special Education Costs 3,301,414 Out-of-District Tuition 2,131,185 Out-of-District Transportation 1,132,279 General Supplies 37,950

Utilities 720,498 Electricity 491,867 Fuel Oil/Natural Gas 228,631 Buses 1,160,202

Bldg. Maint., Legal, Insurance & Misc.

Building Repairs & Maintenance 704,203 Legal 55,000 Insurance - Property & Liability 109,200 Communications 96,240 Adult Education 10,967 Conference & Travel 75,344

Supplies, Purchased Services & Activities Instructional 1,060,276 Administrative 598,589 Textbooks & Workbooks 117,948 Library/Media Center 67,971 Software 426,051 Dues & Fees 50,621 Student Activities 867,570

1,160,202

TOTAL

$36,155,291

1,050,954

3,189,026

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.

Board of Education Expenditures: $36,155,291 Other Special Education Costs 9.13% Supplies, Purchased Services & Activities 8.82% Regular Salaries & Benefits 60.03%

Bldg. Maintenance, Legal, Insurance & Misc. 2.91% Buses 3.21% Utilities 1.99% Please consult the table above for exact figures.

Special Education Salaries & Benefits

13.91%

-94 Projected change in student population FY23-FY28

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The Granby Drummer

3.2

%

Debt Service as a percentage of Granby’s FY24 budget

Special Budget Issue April 2022

A look at Granby’s Debt Service 2021 - 2030

(The lowest percentage in 20 years)

Mill rate drops cont’d. from page 1

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

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.

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

GRANBY

BY THE NUMBERS

41

Square miles in area

874

25

Est. absentee ballots issued FY22-23

Est. new homes FY22-23

Granby’s Elected Boards with Budgetary Responsibilities

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 FY22-23

142

Est. game and fishing licenses FY22-23

1,725

Enrolled in Granby schools 2022-2023

10,500 Est. calls for police service FY22-23

PUBLIC TESTING of the Optical Scanner Voting Machines

Tuesday, April 18, 2023 1 p.m.

Granby Town Hall

15 North Granby Road, Granby, CT for the Budget Referendum on April 24, 2023