AGENDA MEETING OF THE COUNCIL OF THE CITY OF NORWICH June 12, 2017 7:00 PM PRAYER PLEDGE OF ALLEGIANCE PETITION AND COMMUNICATION 1. Communication from the Comptroller Recapping the 2017-18 Budget. OLD BUSINESS-RESOLUTION 1. Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 for the increase in funding for Norwich Public Schools. CITIZENS COMMENT ON RESOLUTIONS NEW BUSINESS-RESOLUTIONS 1. Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for two Police Officers in the Police Department. 2. Relative to delaying the hiring of certain positions and postponing the layoff of employees funded by the general fund until September 1, 2017 and amending the 2017-18 budget tentatively adopted on May 1, 2017 accordingly. 3. Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for a Civil Engineer in the Public Works Department and to reduce funding for Norwich Community Development Corporation. 4. Relative to the adoption of the budget for Fiscal Year 2017-18. 5. Relative to the adoption of the appropriations ordinance for Fiscal Year 2017-18. 6. Relative to the adoption of the tax levy ordinance for Fiscal Year 2017-18. City Clerk
JOSHUA A. POTHIER, C.P.A. 100 Broadway Room 105 COMPTROLLER Norwich, CT 06360-4431 Phone: (860) 823-3720 www.norwichct.org/finance Fax: (860) 823-3812 jpothier@cityofnorwich.org June 8, 2017 To: Mayor and Members of Norwich City Council Recap of 2017-18 Budget There have been many changes during the course of the budget adoption process for fiscal year 2017-18 and I thought it would be helpful to present the end result of those changes as of the June 5, 2017 meeting. I will present all of this information in terms of how it compares to the current budget (fiscal year 2016-17). State of Connecticut Budget Impact on City s Budget The Connecticut General Assembly ended its regular session without passing a budget for the 2017-2019 biennium. The information presented below describes what assumptions are in the City s 2017-18 budget and what proposals the House and Senate Republicans, Appropriations Committee, and Governor have released. Please note that the Appropriations Committee never released town-by-town grant estimates, so their numbers are based on the level that they are funding the formula grants statewide and what information they gave about the formulas. I have attached a table of State funding scenarios. Education Grant Funding The Education Cost Sharing Grant (ECS) is a General Fund revenue source and the Special Education Grants are netted against the expenditures of the General Fund budget for Norwich Public Schools. The City s 2017-18 budget is currently estimating the same level of ECS and Special Education funding as previous years. The Governor s budget proposal and the budget proposal from the House and Senate Republicans both include large net increases for Norwich for education grant funding (between $10 - $13 million). However, the Appropriations Committee includes the same level of funding as previous years for these grants. The State of Connecticut administers and funds the pensions for the certified staff (Teachers and Administrators) of the Connecticut boards of education. The City s 2017-18 budget uses the assumption that the City will not have to contribute to the Teachers Retirement Board (TRB). The Governor s
budget proposal is the only proposal which would require the City to contribute to the TRB in 2017-18 (over $3 million). Colleges & Hospital PILOT/ Hospital Real Property Taxes The State of Connecticut exempts private colleges and hospitals from real estate taxation and gives towns and cities a payment in lieu of taxes (PILOT) for a portion of these foregone taxes. The City s 2017-18 budget is currently estimating the same level of Colleges & Hospital PILOT funding as previous years. The Governor s budget proposal is the only proposal which would eliminate this PILOT and allow the City to tax hospital real estate. His proposal would provide a net increase of over $3 million in revenue for the City. The budget proposals from the House and Senate Republicans and the Appropriations Committee include the same level of funding as previous years for this grant. Mashantucket Pequot/Mohegan Grant The City s 2017-18 budget is currently estimating approximately the same level of Mashantucket Pequot/Mohegan Grant funding as previous years. The Governor s budget proposal is the only proposal which would eliminate this grant. The budget proposals from the House and Senate Republicans and the Appropriations Committee include the same level of funding as previous years for this grant. Motor Vehicle Taxes and Municipal Revenue Sharing Account Grant Reimbursement The City s 2017-18 budget is currently estimating the same motor vehicle property tax cap of 37 mills and the same level of MRSA Grant reimbursement related to motor vehicles as 2016-17. Without any further action by the State of Connecticut, the motor vehicle cap is slated to decrease to 32 mills, however, the proposals from the Governor, the House and Senate Republicans, and the Appropriations Committee point to a tax cap of 37 or higher. Expenditure Factors Norwich Public Schools Norwich Public Schools requested an increase of $2,329,574, or 3.09% over its 2016-17 budget which would give them a 2017-18 budget of $77,759,574. The Manager s proposed 2017-18 budget included the $2,329,574 increase. The City s 2017-18 budget currently includes flat funding for Norwich Public Schools at the 2016-17 amount of $75,430,000. Capital Budget The Manager s proposed 2017-18 budget included a capital budget of $4,220,136. The City s 2017-18 budget currently includes the Charter-required minimum appropriation of $2,459,120. General City Staffing Here are the staffing changes included thus far in the 2017-18 budget compared to the staffing in the 2016-17 budget:
Finance/ City Clerk Share a Revenue Collection Clerk position with the City Clerk s office. Police o Add one Lieutenant position and reduce one Sergeant position o Eliminate two Police Officer positions Fire/Emergency Management 25% of the Fire Chief s salary will be allocated to Emergency Management. Human Services o Eliminate General Fund portion of funding for Employment Case Manager wages o Add a part-time Recreation Director o Eliminate Seasonal Recreation Maintenance Public Works o Eliminate a Civil Engineer in the Engineering & Administration division o Eliminate the Weighmaster Clerk, Laborer, and Recycling Coordinator positions in the Transfer Station, Recycling & Refuse division o Add a Heavy Equipment Operator and Light Equipment Operator and eliminate two Laborers and a Foreman in the Street Maintenance division. Planning & Neighborhood Services o Eliminate the Director of Planning & Community Development position Property Taxes These are the mill rates with the changes made so far for the 2017-18 budget. General Fund (GF) Town Consolidation District (TCD) Fire Districts City Consolidation District (CCD) GF + TCD Combined Tentatively Adopted 2017-18 (as of June 5, 2017) 40.09 0.47 8.83 40.56 48.92 Adopted 2016-17 41.22 0.47 7.84 41.69 49.06 Change (1.13) 0.00 0.99 (1.13) (0.14) Percent Change -2.74% 0.00% 12.63% -2.71% -0.29% GF + CCD
This is what the average homeowner with two vehicles would see in his/her total property tax liability in the Town and City consolidation districts. Town Consolidation District 2016-17 2017-18 $ Change % Change Median Assessed Value of Home 93,800 93,800 Median Assessed Value of Two Cars 9,880 9,880 Combined Mill Rate-Home 41.69 40.56 Combined Mill Rate-Cars 37.00 37.00 Tax on Home $ 3,910.52 $ 3,804.53 $ (105.99) -2.71% Tax on Cars $ 365.56 $ 365.56 $ - 0.00% Total Tax $ 4,276.08 $ 4,170.09 $ (105.99) -2.48% City Consolidation District 2016-17 2017-18 $ Change % Change Median Assessed Value of Home 93,800 93,800 Median Assessed Value of Two Cars 9,880 9,880 Combined Mill Rate-Home 49.06 48.92 Combined Mill Rate-Cars 37.00 37.00 Tax on Home $ 4,601.83 $ 4,588.70 $ (13.13) -0.29% Tax on Cars $ 365.56 $ 365.56 $ - 0.00% Total Tax $ 4,967.39 $ 4,954.26 $ (13.13) -0.26% Resolutions to Amend the 2017-18 Budget on the June 12, 2017 Council Meeting Old Business Resolution 1 - Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 for the increase in funding for Norwich Public Schools. This resolution would increase funding to Norwich Public Schools by of $1,508,600, or 2.00% over its 2016-17 budget which would give them a 2017-18 budget of $76,938,600. This would increase the General Fund mill rate by 0.95 mills, which would translate into an $89.11 increase in taxes to the average homeowner. New Business Resolution 1- Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for two Police Officers in the Police Department. This resolution would restore $143,638 of funding for the wages and fringe benefits for two Police Officers. This would increase the General Fund mill rate by 0.09 mills, which would translate into an $8.44 increase in taxes to the average homeowner.
Resolution 2 - Relative to delaying the hiring of certain positions and postponing the layoff of employees funded by the general fund until September 1, 2017 and amending the 2017-18 budget tentatively adopted on May 1, 2017 accordingly. This resolution would reduce funding for the wages and fringe benefits a net amount of $12,700 by delaying the hiring of certain positions and postponing the layoff of certain positions. This would decrease the General Fund mill rate by less than 0.01 mills, which would translate into a $0.75 decrease in taxes to the average homeowner. Resolution 3 - Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for a Civil Engineer in the Public Works Department and to reduce funding for Norwich Community Development Corporation. This resolution would restore $87,000 of funding for the wages and fringe benefits for one Civil Engineer and reduce $87,000 of funding for NCDC; which would leave NCDC with $13,000 funding for 2017-18. This resolution has no net tax impact. Please note that if the Council is in favor of both Resolutions 2 and 3, one of them would need to be amended because, together, they would restore too much funding for the Civil Engineer. Resolution 4 - Relative to the adoption of the budget for Fiscal Year 2017-18. Self-explanatory. Resolution 5 - Relative to the adoption of the appropriations ordinance for Fiscal Year 2017-18. Self-explanatory. Resolution 6 - Relative to the adoption of the tax levy ordinance for Fiscal Year 2017-18. The language for motor vehicle taxes is modified from last year to allow for the uncertainty about the motor vehicle tax cap. We believe that the best course of action is to delay the date that motor vehicle taxes are due and payable to October 1, 2017. By that time, we should know whether the correct rate will be 32 mills, 37 mills, some other tax cap amount, or no cap at all. We would like to avoid sending out motor vehicle tax bills that are ultimately at the incorrect rate because of the costs of issuing a second round of bills or refunds and the confusion it would cause for taxpayers.
City of Norwich State of Connecticut Funding Comparison 6/6/2017 2/8/2017 4/25/2017 4/27/2017 5/1/2017 5/15/2017 6/5/2017 FY2016 FY2017 FY2017 FY2018 FY2018 FY2018 FY2018 FY2018 FY2018 State of Connecticut Actual Adopted Budget After Mid-term cuts and adjustments Governor's Original Budget Appropriations Committee CT House & Senate Republicans' Proposal Governor's Revised Budget City of Norwich Actual Adopted Budget Projected City Manager's Proposed Budget Council's Tentatively Adopted Budget Tentatively Adopted Budget, as Amended by Resolution 1 Motor Vehicle Tax Cap None 37 mills 37 mills 32 mills 37 mills None 32 mills 37 mills 37 mills Municipal Spending Cap None None None None?? None None None None General Fund # PILOT: State-Owned Real Property 910,659 612,634 612,634 815,738 815,738 815,738 815,738 815,738 815,738 PILOT: Colleges & Hospitals 1,087,553 758,666 758,666-758,666 798,163 758,666-758,666 Mashantucket Pequot/ Mohegan Grant 2,023,985 1,912,306 1,912,306 1,965,986 1,965,986 1,965,986 1,965,986-1,965,986 Town Aid Road Grant 499,259 499,260 497,815 497,815 248,908 497,815 497,815 497,815 497,815 Public School Pupil Transportation 504,769 - - - - - - - - Non-Public School Pupil Transportation 72,982 - - - - - - - - Education Cost Sharing (excluding Alliance) 32,347,243 32,314,676 32,060,320 29,707,957 32,316,543 32,501,958 32,316,543 31,816,138 32,316,543 School Health Services 121,778 121,000 62,475 62,475 62,475 62,475 62,475 62,475 62,475 Special Education (netted against NPS expenditures) 1,617,000 1,617,000 1,674,086 12,179,222 1,617,000 12,179,222 1,617,000 15,194,844 1,617,000 MRSA: Grants for Municipal Projects 187,132 187,132 187,132 - - 187,132 - - - MRSA: Select PILOT - 248,588 248,588 259,862 248,588-259,862-259,862 MRSA: Additional Sales Tax Fund - 973,869 973,869 1,362,971 1,362,971-1,362,971-1,362,971 MRSA: Motor Vehicle Property Tax Grants * - 336,074 336,074 918,941 - - 918,941-336,074 MRSA: Urban Stabilization Grants - - - - - - - 1,926,794 - Teachers Retirement Board Contribution (added to Education Expenditures) - - - (3,331,735) - - - (3,269,265) - Hospital Real Property Taxes - - - 3,846,382 - - - 3,846,382-39,372,360 39,581,205 39,323,965 48,285,614 39,396,875 49,008,489 40,575,997 50,890,921 39,993,130 City Consolidation District MRSA: Motor Vehicle Property Tax Grants * - 552,565 552,565 552,565 - - 552,565-552,565-552,565 552,565 552,565 - - 552,565-552,565 Town Consolidation District MRSA: Motor Vehicle Property Tax Grants * - 62,849 62,849 62,849 - - 62,849-62,849-62,849 62,849 62,849 - - 62,849-62,849 Capital Improvement Budget Local Capital Improvement (LOCIP) 322,978 322,978-592,126 592,126 592,126 592,126 592,126 592,126 322,978 322,978-592,126 592,126 592,126 592,126 592,126 592,126 Other Education Grants Adult Education 323,371 323,371 323,371 319,352 319,352 319,352 319,352 319,352 319,352 Education Cost Sharing (Alliance Portion) 4,261,426 4,261,426 3,893,121 3,893,121 3,893,121 3,893,121 3,893,121 3,893,121 3,893,121 4,584,797 4,584,797 4,216,492 4,212,473 4,212,473 4,212,473 4,212,473 4,212,473 4,212,473 * Offsets revenue loss from the cap on motor vehicle taxes # These are estimates. I was not able to acquire town-by-town breakdowns of grants
OLD BUSINESS RESOLUTION #1 Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 for the increase in funding for Norwich Public Schools. RESOLVED, that the budget for Fiscal Year 2017-18, as amended and tentatively adopted on May 1, 2017 be further amended as follows: Description Page ORG OBJ Change in Expenditures Increase NPS to 2% increase in expenditures over fiscal year 2016-17 113 01070 80700 1,508,600 Mayor Deberey Hinchey Alderman H. Tucker Braddock
RESOLUTION #1 Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for two Police Officers in the Police Department RESOLVED, that the budget for Fiscal Year 2017-18, as amended and tentatively adopted on May 1, 2017, and as further amended on June 5, 2017, be further amended as follows: Description Page ORG OBJ Change in Expenditures Restore two Police Officers for the Police Department Restore two Police Officers for the Police Department 73 01021 80012 108,672 73 01021 89999 34,966 Net Increase in General Fund Expenditures 143,638 Mayor Deberey Hinchey
RESOLUTION #2 Relative to delaying the hiring of certain positions and postponing the layoff of employees funded by the general fund until September 1, 2017 and amending the 2017-18 budget tentatively adopted on May 1, 2017 accordingly. WHEREAS, the budget for Fiscal Year 2017-18, as amended and tentatively adopted on May 1, 2017, and as further amended on June 5, 2017 includes the elimination of positions; and, WHEREAS, the City of Norwich has positions which are funded and currently vacant or will be vacant as of July 1, 2017; and, WHEREAS, the City of Norwich receives over 30% of its general fund operating revenue from municipal aid from the State of Connecticut; and, WHEREAS, the Connecticut General Assembly has not yet adopted the State of Connecticut s 2017-2019 biennial budget; and, WHEREAS, Connecticut House Bill 7294, if adopted, would allow a municipality to amend its budget for the fiscal year ending June 30, 2018 if it adopted its budget prior to the adoption of the state budget and such municipality receives, pursuant to such adopted state budget, a different amount of state aid than that projected in the municipality s adopted budget; and, WHEREAS, the Council of the City of Norwich recognizes it is desirable to maintain continuity in the staffing of the departments of the City of Norwich by avoiding the implementation of layoffs in the event that municipal aid from the State of Connecticut exceeds the amounts estimated in the budget adopted by the City of Norwich on June 12, 2017. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that all layoffs from positions funded by the general fund be postponed until September 1, 2017. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that the following positions which are currently vacant or expected to be vacant as of July 1, 2017 and funded in the budget for Fiscal Year 2017-18, as amended and tentatively adopted on May 1, 2017, and as further amended on June 5, 2017, shall remain vacant until September 1, 2017: One Police Officer Police Department Recreation Director Recreation Blight Control/Housing Enforcement Officer Planning & Neighborhood Services Department BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that the budget for Fiscal Year 2017-18, as amended and tentatively adopted on
May 1, 2017, and as further amended on June 5, 2017, be further amended as follows: Description Page ORG OBJ Change in Expenditures Reduce wages for one Police Officer for Police Department to be left vacant until 9/1/17 Reduce fringe benefits for one Police Officer for Police Department to be left vacant until 9/1/17 Reduce wages for part-time Recreation Director to be left vacant until 9/1/17 Reduce fringe benefits for part-time Recreation Director to be left vacant until 9/1/17 Reduce wages for a Blight Control/Housing Enforcement Officer in the Planning & Neighborhood Services Department to be left vacant until 9/1/17 Reduce fringe benefits for a Blight Control/Housing Enforcement Officer in the Planning & Neighborhood Services Department to be left vacant until 9/1/17 Increase wages to postpone elimination of a Civil Engineer in the Public Works Department until 9/1/17 Increase fringe benefits to postpone elimination of a Civil Engineer in the Public Works Department until 9/1/17 Increase wages to postpone elimination of a Recycling Coordinator in the Public Works Department until 9/1/17 Increase fringe benefits to postpone elimination of a Recycling Coordinator in the Public Works Department until 9/1/17 73 01021 80012 73 01021 89999 94 01032 80011 94 01032 89999 110 01064 80012 110 01094 89999 (9,056) (2,913) (8,005) (3,392) (10,001) (3,163) 102 01038 80012 13,450 102 01038 89999 1,086 104 01040 80012 8,208 104 01040 89999 1,086 Net Decrease in General Fund Expenditures (12,700) Alderwoman Stacy Gould Alderman Gerald Martin
RESOLUTION #3 Relative to an amendment of the 2017-18 budget tentatively adopted on May 1, 2017 to restore funding for a Civil Engineer in the Public Works Department and to reduce funding for Norwich Community Development Corporation RESOLVED, that the budget for Fiscal Year 2017-18, as amended and tentatively adopted on May 1, 2017, and as further amended on June 5, 2017, be further amended as follows: Description Page ORG OBJ Change in Expenditures Reduce NCDC funding to from $100,000 to $13,000 Restore a Civil Engineer for the Public Works Department Restore a Civil Engineer for the Public Works Department 70 01017 87112 (87,000) 102 01038 80012 80,699 102 01038 89999 6,301 Net Increase in General Fund Expenditures 0 Mayor Deberey Hinchey Alderman H. Tucker Braddock
RESOLUTION #4 Relative to the adoption of the budget for Fiscal Year 2017-18. RESOLVED, that the budget of the City of Norwich; including the General Fund, Capital Budget, Town Consolidation District, City Consolidation District, and Department of Public Utilities; for the Fiscal Year 2017-18 as submitted by the City Manager on April 3, 2017, as amended and tentatively adopted by the Council of the City of Norwich on May 1, 2017 and as further amended by the Council of the City of Norwich on June 5, 2017 and June 12, 2017 be, and the same hereby is, adopted. Mayor Deberey Hinchey
RESOLUTION #5 Relative to the adoption of the appropriations ordinance for Fiscal Year 2017-18. RESOLVED, that the appropriations ordinance of the City of Norwich; including the General Fund, Capital Budget, Town Consolidation District, City Consolidation District, and Department of Public Utilities; for the Fiscal Year 2017-18 as submitted by the City Manager on April 3, 2017, as amended and tentatively adopted by the Council of the City of Norwich on May 1, 2017 and as further amended by the Council of the City of Norwich on June 5, 2017 and June 12, 2017 be, and the same hereby is, adopted. Mayor Deberey Hinchey
RESOLUTION #6 Relative to the adoption of the tax levy ordinance for Fiscal Year 2017-18. RESOLVED, that the tax levy ordinance of the City of Norwich for the Fiscal Year 2017-18 as submitted by the City Manager on April 3, 2017, as amended and tentatively adopted by the Council of the City of Norwich on May 1, 2017 and as further amended by the Council of the City of Norwich on June 5, 2017 and June 12, 2017 be, and the same hereby is, adopted. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH: Section 1. On the City Assessment list of 2016 a tax of ( ) mills on the dollar is hereby granted to be levied upon the ratable Real Estate and Personal Property within the City of Norwich of the inhabitants of said City and all others liable to pay taxes therein. Section 2. On the City Assessment list of 2016 a tax is hereby granted to be levied upon the ratable Motor Vehicles within the City of Norwich of the inhabitants of said City and all others liable to pay taxes therein at the maximum mill rate established and allowed by the Connecticut General Statutes applicable on Motor Vehicles for the City Assessment list of 2016 or at the applicable mill rates established in Sections 1, 3, and 4 of this tax levy ordinance, whichever is the lesser. Section 3. On the City Assessment list of 2016, a tax of ( ) mills on the dollar, is hereby granted to be levied for fire services upon the ratable Real Estate and Personal Property within the Town Consolidation District of the inhabitants of said District and of all others liable to pay taxes therein. Section 4. On the City Assessment list of 2016, a tax of ( ) mills on the dollar, is hereby granted to be levied for fire services upon the ratable Real Estate and Personal Property within the City Consolidation District of the inhabitants of said District and of all others liable to pay taxes therein. Section 5. Real Estate and Personal Property taxes shall become due on July 1, 2017, and payable on said date in whole or in equal installments from that date, namely on July 1, 2017 and January 1, 2018 except that any tax of less than one hundred dollars shall be due and payable on July 1, 2017. If the first installment is not paid on or before August 1, 2017 or if the second installment is not paid on or before February 1, 2018, interest will be charged on any such delinquent payment at the rate of one and one-half (1½%) per cent per month from the due date or $2.00 whichever is greater, as provided for in the general statutes. Any person may pay the total amount of such tax for which he is liable at the time when the first installment shall be payable. Section 6. Motor Vehicle taxes shall become due and payable in whole on October 1, 2017. If the payment is not paid on or before November 1, 2017 interest will be charged on the delinquent payment at the rate of one and one-half (1½%) per cent per month from due date or $2.00 whichever is greater, as provided for in the general statutes. Mayor Deberey Hinchey