bof budget hearing 4.4.2011

www.town.avon.ct.us 1

Town of Avon

Board of FinancePublic Budget Hearing

Proposed FY 11/12 BudgetApril 4, 2011

www.town.avon.ct.us 2

Requested Budgets

Adopted FY 10/11

Requested

FY 11/12$ Inc/(Dec) % Inc/-Dec

Town

Operating$19,085,060 $19,614,213 $529,153 2.77%

Board of Education

$45,921,022 $47,945,180 $2,024,158 4.41%

Sewers $1,689,479 $1,709,207 $19,728 1.17%

Debt Service $5,010,181 $4,808,189 ($201,992) -4.03%

Capital Imp. $1,167,396 $1,566,857 399,461 34.22%

TOTAL: $72,873,138 $75,643,646 $2,770,508 3.80%

Mill Rate Needed 24.44 25.44 --- 4.09%

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Board of Finance’s Role is to Balance:

Spending for

Services

Taxes to Pay for Them

and

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Questions that may be on your mind….

I. What is the role of the Board of Finance?

II. How do CT Towns raise revenue?

III. How will Avon raise the revenue to support the requested budgets?

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Connecticut Supreme Court

“Boards of finance are charged with the duty of providing the necessary funds and, at the same time, of seeing to

it that expenditures for an education program

are kept within reasonable bounds in view of the overall financial resources of the

town.”

Fowler vs. Enfield, 138 Conn. 521, 532 (1952)

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Avon Town Charter

Section 9.4.1 (b)

The Board “shall make those revisions in the budget as the Board of Finance deems desirable and shall recommend the budget so revised to the voters at the Referendum.”

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How Do CT Towns Raise Revenue?

State law is very restrictive:

No Taxes on Tobacco, Alcohol, Gasoline, or Hotel Rooms

...but…

No Sales Tax

No Income Tax

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The Governor has proposed a wide array of

new or increased state taxes: income tax gasoline tax sales tax property tax on boat

and aircraft many others…

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SO…What’s LEFT for Towns?

1) Non-Property Tax Sources (such as Licenses, Fees, Permits, Grants, etc.)

2) Property Taxes & Assessments

NOT MUCH:

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How Avon Relies On These Sources

Current Budget Requested Budget

Non-Property Tax Sources: $8,798,353 $8,515,089

12.07%

of revenues

11.25%

of revenues

Property Taxes & Assessments: $64,074,785 $67,128,557

87.93%

of revenues

88.75%

of revenues

TOTAL: $72,873,138 $75,643,646

www.town.avon.ct.us 11

Revenues needed to fund theRequested Budgets

ALL FUNDS REVENUECLASSIFICATION

2010-2011BUDGETED

2011-2012REQUESTED

Property Tax & Assessments $64,074,785 $67,128,557

Intergovernmental 3,656,267 3,454,515

Licenses, Fees & Permits 940,480 864,480

Charges for Current Services 3,210,371 3,159,655

Other Local Revenues 489,088 452,466

Other Financing Sources 502,147 583,973

TOTAL REVENUE $72,873,138 $75,643,646

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Property Tax Breakdown for Requested FY 11/12

(88.75% of Revenue) All these items below constitute the “Levy”

a) Single Family Homes: 66.42 %b) Condos: 12.72%c) Commercial: 10.75 %d) Motor Vehicles: 6.12%e) Personal Property: 2.89 %f) Industrial: 1.08 %g) Other: 0.02%

(Note that the “Single Family Homes” category pays about 58.94% of Avon’s Total Revenue.)[From October 1, 2010 Grand List]

www.town.avon.ct.us 13

Non-Property Tax Breakdown for Requested FY 11/12

(11.25% of Revenue)

a) Intergovernmental (State/Federal Grants): 4.60 %

b) Licenses, Fees, & Permits: 1.14%

c) Charges for Current Services: 4.18%

d) Other Local Revenue & Financing Sources: 1.37 %

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Revenue Graph Comparison

Budgeted FY 10/11

Requested FY 11/12

$0

$10

$20

$30

$40

$50

$60

$70

$80

In M

illio

ns

Non-Tax Revenue

Tax Revenue

12.07% 11.25%

87.93%

88.75%

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How will these Revenues be used?

$0

$10

$20

$30

$40

$50

$60

FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Requested FY11/12

In M

illio

ns Town Operating Budget

School Operating Budget

Sewer Operating Budget

Debt Service

Capital Budget

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How will these Revenues be used?

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Requested FY11/12

Total Board of Education = BOE Operating, BOECIP, BOE Debt

Total Town of Avon = Town Operating, Town CIP,Town Debt

30.20% 29.66%

69.80%

70.34%

29.18%

70.82%

69.96%

30.04%

71.46% 71.43%

28.54% 28.57%

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5 Year Grand List History

FY 07/08FY 08/09

FY 09/10FY 10/11

FY11/12

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

1.56%Growth

1.80%Growth

0.475% Growth 0.783% Growth Estimated

15.21%Growth

Re-Eval Year

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Consumer Price Index 5 – Year History

Calendar Year CPI * % Change

2006 201.6 3.2%

2007 207.3 2.8%

2008 215.3 3.8%

2009

2010

214.5

218.1

-0.4%

1.6%

* Source: Bureau of Labor Statistics, CPI-U, US City Annual Average

www.town.avon.ct.us 19

Social Security (COLA) 5-Year History

Year COLA

2007 - 3.3%

2008 - 2.3%

2009 - 5.8%

2010

2011

-

-

0.0%

0.0%

www.town.avon.ct.us 20

Avon Unemployment Rate 5 – Year History

Year Annual Average

2006 2.9%

2007 3.0%

2008 3.6%

2009

2010

5.5%

6.0%

Feb. 2011

(most recent)

6.1%

* Source: Department of Labor, State of Connecticut

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Multi-Town Comparative Data

Town

2009 Equalized

Mill Rate

2009 Adjusted

Tax Levy Per Capita

Avon 15.17 $3,473

Canton 16.13 $2,825

East Granby 17.28 $2,758

Farmington 13.47 $2,819

Glastonbury 19.83 $3,466

Granby 20.40 $2,720

Simsbury 20.71 $3,254

West Hartford 24.79 $2,987

* Source: Office of Policy and Management – Municipal Fiscal Indicators FY 2005 - 2009

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Tax Impact Requested Expenditures

Assessed House & Vehicle Values in Avon (Single Family Homes & Condos)

Assessment Distribution

Assessed

House & Vehicle Values

Current

Property Tax

(24.44 mills)

Property Tax

If Budget is approved

(25.44 mills)

25% $205,510 $5,023 $5,229

50% $267,180 $6,530 $6,797

75% $374,660 $9,157 $9,532

For your specific real estate & motor vehicle taxes, please visit: www.avonassessor.com

www.town.avon.ct.us 23

Next Steps

Next Steps in Process

•Public Hearing – Monday, April 4th, 7:00 p.m. @ Avon Senior Center

•Workshops (at the Senior Center) Both the workshops listed below are not public hearings:

•Wednesday, April 6th – 7:00 p.m.•Monday, April 11th – 7:00 p.m. (if necessary)

•Town Meeting – Monday, May 2rd – 7:00 p.m. at the Avon Senior Center

•Referendum – Wednesday, May 11th at the Avon Senior Center

(Polls are open from 6:00 a.m. – 8:00 p.m.)