Litchfield Budget Committee Budget Hearing. January 10, 2013

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1 Litchfield Budget Committee Budget Hearing January 10, 2013

2 Overall Tax Rate Impact Town & School Operating Budget Only w/ State & County Taxes $25.00 $20.00 $15.00 $10.00 $5.00 $ /10/13

3 Overall Tax Rate Impact Town & School Operating Budget & Warrants w/ State & County Taxes $25.00 $20.00 $15.00 $10.00 $5.00 $ /10/13

4 Budget Totals Operating Budget Only Town Budget, $5,045,145 $25,000,000 $20,000,000 $15,000,000 $10,000,000 FY2012 FY2013 School Budget, $20,990,591 $5,000,000 $0 Town Budget School Budget 1/10/213 4

5 1/10/2013 School District Budget

6 Overview of Budget Process School budget reviewed by location over a four week period, twice a week, meeting with school administration and business officials Budget Committee member s submitted their recommendations to the committee for consideration and discussion. Working with the School Administration, changes were voted upon at both a line item and bottom line levels. Goal of committee was to present voters with a reasonable budget given an expected revenue deficit and fixed cost increase. 1/10/2013 6

7 School Budget District Drivers Common Core State Standards: Aligning instruction to higher learning expectations for all students along with personalization and performance at the high school Special Education: Moving the district s special education program from a response/compliance approach to a proactive program delivery approach. Education Technology: Rebuilding the district s capacity to support education and administrative functions. Building & Grounds: Moving the district s facilities maintenance program from a reactive repair and maintain approach to a proactive preventive maintenance and asset management approach 1/10/2013 7

8 School Budget - Notables All class sizes remain at or below the district class size policy All salaries with the exception of LEA staff and administrators were budgeted with a 1% cost-of-living adjustment (3% for food service staff). All positions were frozen at current levels with no step, range or longevity movements. The only exception is grade changes for staff which we are required to meet. All district part-time staff in positions, with the exception of the Curriculum Director, scheduled for 6.0 hours per day (30 hours per week) in 2013 have been reduced to 5.5 hours per day in 2014 in order to keep these positions from becoming medical benefits eligible under PPACA in January /10/2013 8

9 School Budget Notables (cont.) Benefit Rate Increases Retirement Teachers (11.3% to 14.16%) 25.31% Retirement Employees (8.8% to 10.77%) 22.39% Blue Choice Two Tier POS (GMR) 4.70% Matthew Thornton HMO (GMR) 5.70% Delta Dental (Actual) 1.20% Workers Compensation (GMR) 8.00% Unemployment 17.89% Life Insurance 0.00% STD & LTD Insurance 0.00% There is $20,000 budgeted to cover potential new taxes as a result of the Patient Protection and Affordable Care Act (PPACA / Obama Care) as these taxes will be effective January 1, 2014 and currently the regulations have not yet been issued to determine our potential liability. There is an expected $953,463 reduction in local/state/federal provided revenues which will have a direct impact the tax rate. 1/10/2013 9

10 School Budget Summary By Location $6,000, $5,000, $4,000, $3,000, $2,000, $1,000, $0.00 Campbell High School District Wide Food Service Griffin Memorial School 10 Grants Fund Litchfield Middle School School Administration School Board

11 District Wide Notables NH Retirement Rate Increases 229,591 Building & Grounds Repairs, Maint. & Equip. 86,293 6 New SPED Para s Needed to Meet IEP Req. 79,076 District Technology Plan 71,349 SPED Transportation (Net of Rate Increase) 70,743 Funding of Common Core State Standards 99,336 1/10/

12 District Wide Notables Salary Increase 30,962 (1% COLA for Non-LEA, Non-Administrator staff, and a $5,000 Salary Increase Pool for Administrators) Partial Funding of 1 Current SPED Teacher Needed for IEP Req. - Funding Previously by Federal Grants 28,396 Patient Protection and Affordable Care Act Tax 20,000 Health Insurance Rate Increase 19,441 Non-Union Course Reimbursement 15,000 Regular Substitute Teacher Salaries 13,000 1/10/

13 Special Services Notables Expanded Paraprofessionals in all three schools SPED Teacher Transfer 30% funding from IDEA grant to general fund due to expected reduction in IDEA grant to meet IEP requirements - $28, Expand Special Services Administrative Assistant from 37.5 hours to 40 hours per week (Needed for increased administration of Medicaid billings) - $3, /10/

14 Griffin Memorial Notables Maintain current staffing levels Special Services 2 Additional GMS Paras at 17 hours per week to replace the.5 hours per day cut from the current 6.0 hour staff to meet IEP - $19, New 5 day GMS Para s to meet IEP requirements - $31, New 4 day GMS Para to meet IEP requirements - $ 12, Expand 1 GMS Para position from 4 hours per day to 5.5 hours per day to meet IEP requirements - $4, Expand 2 GMS Para positions by adding a total of 1.5 additional days per week to meet IEP requirements - $4, Funded $33k in textbook replacements, an increase of $31k. Funded $67k in building repairs, an increase of $26k Funded $25k in additional funding of technology leases for 40 new desktops, and 30 new laptops 1/10/

15 Litchfield Middle School Notables Special Services 1 New 5 day LMS Para to meet IEP requirements - $15, Funded Academic Assistance Program (previously funded by grants) Funded $42k in textbook replacements, an increase of $35k. Funded $46k in building repairs, an increase of $16k Funded $10k in additional funding of technology leases for 10 new desktops, and 12 new laptops for classrooms Funded $41k in additional funding of technology leases for 40 new desktops for library services 1/10/

16 Campbell High School Notables Special Services 1 CHS Para Additional 1.5 hours per day to replace the.5 hours per day cut from the current 6.0 hour staff to meet IEP requirements - $3, Funded Athletics Administrative Assistant for additional 60 hours. Funded $62k in building repairs, an increase of $21k Funded Additional 5 days for Guidance Counselor Funded $11k in additional funding of technology leases for 10 new desktops and 12 new laptops for Physics laptop cart. 1/10/

17 School Budget Summary By Object $12,000, $10,000, $8,000, $6,000, $4,000, $2,000, $0.00 Salaries (100) Benefits (200) Professional Services (300) Property Services (400) Other Services (500) Supplies (600) Equipment (700) Other Objects (800) Principal & Cash Reserves (900)

18 Revenue Expectations 1/10/

19 Tax Rate Impact School Operating Budget Only $16.00 $14.00 $12.00 $10.00 $ $6.00 $4.00 $2.00 $0.00 Tax Rate 19

20 Questions 1/10/

21 Warrant Article Review Article 1 - Shall the Litchfield School District vote to raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant or as amended by the vote at the first session of the annual school district meeting, for the purposes set forth herein, totaling Twenty Million, Nine Hundred Ninety Thousand, Five Hundred Ninety One dollars ($20,990,591)? Should this article be defeated, the default budget shall be Twenty-One Million, One Hundred Fifty-Nine Thousand, Twelve dollars ($21,159,012), which is the same as last year, with certain adjustments required by previous action of the Litchfield School District or by law; or the School Board may hold one special meeting, in accordance with RSA 40:13 X and XVI, to take up the issue of a revised operating budget only. Overview Current 2011 Tax Rate is $12.79 per thousand, recommended Tax Rate impact is $14.16 per thousand, which represents a 10.70% increase. Tax Rate Impact $1.36 Not Recommended by the School Board (Vote: 1-4-0) 1/10/2013 Recommended by the Budget Committee (Vote 7-0-0) 21

22 Warrant Article Review Article 2 - Shall the Litchfield School District vote to approve the cost items included in the collective bargaining agreement reached between the Litchfield School District and the Litchfield Education Association which calls for the following increases in salaries and benefits: Year Estimated Increase $ 110, $ 162,856 and further to raise and appropriate the sum of One Hundred Ten Thousand, Three Hundred Twenty Nine dollars ($110,329) for the fiscal year, such sum representing the additional costs attributable to the increase in salaries and benefits required by the new agreement over those that would be paid at current staffing levels in accordance with the most recent collective bargaining agreement. 1/10/2013 Tax Rate Impact $ Overview Teachers currently operating without a contract Moved Health Care from LGC to School Care Year #1 ( ) Salary Cost Increase by $234,403 (3.62%) $193,403 (3%) Increase in Salaries $29,500 (39.76%) Longevity Payments $11,500 for New Stipend program Benefit Cost Increase $48,944 (3.43%) Health Care Savings $ Total Cost to taxpayer is $110,349 (1.4%.) Year 2 ( ) Salary Cost Increase by $131,474 (1.96%) $120,112 (1.85%) Increase in Salaries $11,362 (10.96%) Longevity Payments Benefit Cost Increase $31,382 (2.12%) Health Care Savings continued at $ Total Cost to taxpayer is $162,856 (2.03%.) Recommended by the School Board (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) 22

23 Warrant Article Review Article 3 - Shall the Litchfield School District vote to authorize, indefinitely until rescinded, the retention of year-end unassigned general funds in an amount not to exceed, in any fiscal year, 2.5 percent of the current fiscal year s net assessment, in accordance with RSA 198:4-b, II? Such fund balance retained can only be used to reduce the tax rate or for emergency expenditures and over-expenditures under RSA 32:11, which are approved by the Department of Education. Article 4 - Shall the Litchfield School District vote to have the School Board include a statement of the estimated tax impact in future warrant articles concerning the annual budget and all special warrant articles? 1/10/2013 Recommended by the School Board (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) Recommended by the School Board (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) 23

24 Tax Rate Schedule 1/10/

25 Tax Rate Impact School Operating Budget & Warrant Articles $16.00 $14.00 $12.00 $10.00 $ $6.00 $4.00 $2.00 $0.00 Tax Rate 25

26 Questions 1/10/

27 Intermission 10 minutes 27 1/10/2013

28 1/10/2013 Town Budget

29 Overview of Budget Process Town Budget reviewed by departments over an eight week period, once a week, meeting with department heads each week, and voting on each budget at future meetings. Goal of committee was to present voters with a reasonable budget. BOS provided second round adjustments, leveraging fund balance, for additional reductions 1/10/

30 Town Budget By Major Categories $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Approved 2013 Proposed 1/10/

31 Public Safety Overview $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400, Approved 2013 Proposed $200,000 $0 Police Department Fire Department Code Enforcement Ambulance Emergency Management 1/10/

32 Public Safety Notables Police Maintains current force staffing levels Funded $34,000 in additional hours in Special Officers Maintains 2012 overtime & training levels Funds for the lease of three new vehicles No adjustments In salary schedules Contains a $20k detail vehicle reimbursement with offsetting revenues Fire Maintains current force staffing levels Funds Ambulance Bad Debt Account with $24k with offsetting revenues Funds EMT recertification & continuing education Funds 5 new Fire Fighter Level 1 training hours Funds 5 Fire Fighter Level 1 and three Fire Fighter 2 certifications. Contains a $20k bottom line reduction, allocation to be determined 1/10/

33 General Government Overview $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Approved 2013 Proposed 1/10/

34 General Government Notables Maintains current staffing levels Funded step increases, but no COLA increases for non-bargaining employees in 2013 operating budget, as a separate warrant article has been created for this purpose. Funded Information Technology increases for maintenance agreements to support current infrastructure, and upgrades/expansion of existing computing services. Funded $35k (15%) increase in retirement costs Funded a $2,705 increase in cemeteries for additional grounds keeping 1/10/

35 Highway and Parks Overview $700,000 $600,000 $500,000 $400,000 $300, Approved 2013 Recommended $200,000 $100,000 $0 Highway Administration Highway And Streets Street Lighting Parks And Recreation 1/10/

36 Highway And Parks Notables Highway & Streets Maintains current level of normal road maintenance Contains $169,833 in Highway Block Grant Fund allocation as approved by voters in 2011 Funded $10k for a new town front-line truck which was delivered in 2012, but the first payment due in Culture & Recreation Maintains current level of service. Parks & Recreation realized an increase of $3,000 in field supplies to support the new fields. 1/10/

37 Other Notables Sanitation Contains $5,591k increase in part-time worker hours to cover the additional hours needed. Funds $7,500 for a new skid steer to be used at the facility, which will be used along with an $8k trade-in of existing equipment and a $5,000 NH grant. Mosquito Control District realized a $3,200 increase due to filing costs, and increase in cost of materials. Library budget has no significant changes Patriotic Purposes budget has no significant changes 1/10/

38 Town Budget Summary By Object $2,500,000 $2,000,000 $1,500,000 $1,000, Approved $500, Recommended $0 ($500,000) Salaries (100) Benefits (200) Purchased Services (300) Purchased Property Services (400) Other Purchased Services (500) Supplies (600) Property (700) Other Projects (800) Other Use of Funds (900) 1/10/

39 Town Budget Historical Analysis $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, $0 ($500,000) (100) Salaries (200) Benefits (300) Purchased Services (400) Purchased Property Services (500) Other Purchased Services (600) Supplies (700) Property (800) Other Projects (900) Other Use of Funds 1/10/

40 Town Revenue Expectations 1/10/

41 Tax Rate Impact Town Operating Budget Only $4.00 $3.50 $3.00 $2.50 $2.00 $ $1.00 $0.50 $0.00 Tax Rate 41

42 Questions 1/10/

43 Warrant Article Review Article 4: To see if the Town will vote to raise and appropriate as an operating budget, not including appropriation by special warrant articles and other appropriations voted separately, the amounts set forth in the budget posted with the warrant or as amended by the vote of the first session, for the purposes set forth therein, totaling, $5,045,145. Should this article be defeated, the default budget shall be $4,974,847, which is the same as last year with certain adjustments required by previous action of the Town of Litchfield or by Law; or the governing body may hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget only. Overview Current 2012 Tax Rate is $3.56 per thousand, recommended Tax Rate impact is $3.83 per thousand, which represents a 7.69% increase. Tax Rate Impact $0.27 Recommended by the Board of Selectmen (Vote: x-x-x) Recommended by the Budget Committee (Vote 6-1-0) 1/10/

44 Warrant Article Review Article 5: To see if the Town will vote to raise and appropriate the sum of $70,000 for the replacement of two defibrillator/monitors used on Fire Department trucks. The current defibrillator/ monitors are 10 and 13 years old. Article 6: To see if the Town will vote to raise and appropriate the sum of $12,500 for the purposes of development of engineering, design plans and costs for a sidewalk on Pinecrest Road to connect the bike path on Albuquerque with Litchfield Middle School so that a construction cost can be brought forward to 2014 Annual Meeting. Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: 5-0-0) Not Recommended by the Budget Committee (Vote 2-5-0) 1/10/

45 Warrant Article Review Article 7: To see if the Town will vote to establish a Building Systems Expendable Trust Fund pursuant to RSA 31:19-a. Furthermore, to raise and appropriate the sum of $20,000 for transfer into this fund from the unexpended fund balance as of December 31, 2012 and to appoint the Board of Selectmen as agents to expend from the fund. This Fund can be used for payment of the costs associated with unanticipated system failures of key building systems such as septic and heating and ventilation that require immediate action and cannot be deferred until a Town Meeting can be held. This would have a net cost to 2013 general taxation of $0. Article 8: To see if the Town will vote to raise and appropriate the sum of $10,000, from the unexpended fund balance, for the purpose of replacing the concrete at the entrance to the Town Hall/Police Station building and repairs to damaged siding on entrance columns to the building. This appropriation represents a portion of the approximately $28,000 returned to the fund balance that were unexpended for the roof repair authorized at the 2012 Annual Meeting. This would have a net cost to 2013 general taxation of $0. Tax Rate Impact $0 Recommended by the Board of Selectmen (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) Tax Rate Impact $0 Recommended by the Board of Selectmen (Vote: 5-0-0) Recommended by the Budget Committee (Vote 7-0-0) 1/10/

46 Warrant Article Review Article 9: To see if the Town will vote to raise and appropriate the sum of $20,000 for repainting of the Old Town Hall. This price includes legally required abatement of lead paint. Article 10: To see if the Town will vote to raise and appropriate the sum of $10,000 for the purpose of undertaking a planning and engineering study to determine possible designs for a wastewater (sewer) system in order to encourage further commercial and industrial growth. It is the intention of the Board of Selectmen to use these funds with an additional $16,500 previously appropriated for economic development purposes to undertake such a study to develop detailed analysis of options and associated costs of those options. Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: 4-0-1) Recommended by the Budget Committee (Vote 7-0-0) Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: 5-0-0) Not Recommended by the Budget Committee (Vote 1-6-0) 1/10/

47 Warrant Article Review Article 11: To see if the Town will vote to raise and appropriate the sum of $18,832 which represents salary and benefit costs for a 2% cost of living adjustment for non-union full time and regular part time Town and Library employees not otherwise under contract or part of a bargaining unit. This adjustment to eligible positions would be made April 1, Article 12: To see if the Town will vote to raise and appropriate the sum of $24,655 to hire a Teen/Technical Services Librarian effective April 1, The cost of the period for April 1 through December 31, 2013 will be $24,655 of which $18,533 represents wages and $6,122 represents benefits. The annual cost of this position will be $32,789 of which $24,627 represents wages and $8,162 represents benefits. This position will plan, manage and provide services and programs to tweens and teens, as well as procure and catalog new library materials. Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: 5-0-0) Not Recommended by the Budget Committee (Vote 2-5-0) Tax Rate Impact $ Not Recommended by the Board of Selectmen (Vote: 1-3-1) Not Recommended by the Budget Committee (Vote 1-6-0) 1/10/

48 Warrant Article Review Article 13: To see if the Town will vote to raise and appropriate the sum of $4,952 to support the requests of Human Services agencies including Big Brothers/Big Sisters, Home Health & Hospice, St. Joseph s Community Services, Bridges and Community Council of Nashua. Tax Rate Impact $ Recommended by the Board of Selectmen (Vote: Recommended by the Budget Committee (Vote 6-1-0) Article 14: To see if the Town will vote to establish an Ambulance Revolving Fund pursuant to RSA 31:95-h. The money received from ambulance bills and allocated through the operating budget for the cost of anticipated uncollectible bills shall be allowed to accumulate from year to year, and shall not be considered to be part of the general fund unreserved fund balance. The Treasurer shall have custody of all monies in the fund and shall pay out the same only upon order of the Board of Selectmen (no further legislative body approval required). These funds may be expended only for ambulance services. Tax Rate Impact $0 Recommended by the Board of Selectmen (Vote: 5-0-0) 1/10/

49 Warrant Article Review Article 15: To see if the Town will vote to increase the at-large membership of the Budget Committee from six members, as approved by the Town in 1969, to seven members. Article 16: To see if the Town will authorize the Selectmen to establish or amend fees for Solid Waste Disposal per the authority of RSA 41:9-a. The Solid Waste Facility Ordinances approved in 1989 and 1993 by the Town refer to rates for disposal of certain items but do not clearly authorize the Selectmen to adjust those fees as needed. Prior to the establishment or amendment of any such fees, the Selectmen shall hold a public hearing per the requirements of RSA 41:9-a IV. Tax Rate Impact $0 Recommended by the Board of Selectmen (Vote: 5-0-0) Not Recommended by the Budget Committee (Vote 3-3-1) Tax Rate Impact $0 Recommended by the Board of Selectmen (Vote: 5-0-0) 1/10/

50 Warrant Article Review Article 17: To see if the Town will vote to require that the annual budget and all special warrant articles having a tax impact shall include a notation stating the estimated tax impact of the article pursuant to RSA 32:5, V-b. The determination of whether an article has a tax impact and the estimated amount of the impact is to be made by the governing body. Advisory Warrant Articles Article 18: To see if the Town would like to revert to the traditional town meeting for conducting its annual meeting rather than the official ballot (SB2 form) used now. If this article passes, the Board of Selectmen would propose an article in 2014 rescinding the official ballot form of voting on all questions, but only for election of officers and certain other questions for which the official ballot is required by state law. This article is advisory. Recommended by the Board of Selectmen (Vote: 5-0-0) Article 19: To see if the Town would like to hold the first session of Town Meeting (Deliberative Session) on the same day with the Litchfield School District. This approach was used in This article is advisory. 1/10/

51 Tax Rate Schedule 1/10/

52 Tax Rate Impact Town Operating Budget & Warrant Articles $4.50 $4.00 $3.50 $3.00 $2.50 $ $1.50 $1.00 $0.50 $0.00 Tax Rate 52

53 Questions 1/10/

54 The End Thank you for attending the 2013 Litchfield Budget Hearing 54 1/13/11