1. Your Town, Your Budget, Your Future: Tolland at a Crossroads General Government Presentation September 18, 2007

2. Municipal Government Quiz True or False? 1.Every employee in the Public Works Department drives a new truck. False; not every employee is assigned a vehicle. Of the total number of vehicles we own, 46% are older than 7 years. Normally we purchase one to two large vehicles per year so that we have a rotation within our fleet. Last year two trucks were purchased in the Parks & Facilities Department primarily to service the road network and parking lots and fields at the new Tolland High School. 50% of the cost for the vehicles came from the school project. 2.Town employees do not contribute toward the cost of health insurance. False; on average Town employees are paying $2,844 toward the cost of a family plan. This is between 13% and 18% of the cost of the plan.

3. Municipal Government Quiz True or False? 3.A large box store is being considered for the site behind the Big Y. False; there are no development plans for the parcel behind Big Y at this time. Currently, Planning & Zoning Regulations limit the size of a building in that location to no more than 60,000 square feet. Typically a retail box store requires double that size. 4.The athletic fields at the new high school are maintained by the Parks & Facilities Department of the Town. True; by agreement between the Town and the Board of Education, the Town’s Parks & Facilities Department maintains all Town and Board of Education athletic fields. We do not maintain the medians or grounds immediately surrounding the school buildings. Based on the size of the high school grounds it requires two additional Parks employees to properly service the area. At this time one additional employee has been added with the second employee deferred until such time as the old high school comes back on line. It should be noted that the Town did look to private contractors to perform the summer and winter activities and the cost far exceeded that of the two additional employees. 1.The average salary for a Town employee is $65,000 or more. 2.The population of the Town in 1997 was 13,000. 3.The current population of the Town is 14,500. 4.School enrollment is not impacted by population growth in the community. 5.The Town can dictate the types of retail stores that lease space from private developers.

4. Municipal Government Quiz True or False? 5.The average salary for a Town employee is $65,000 or more. False; the average salary for a clerical worker is $33,034; Public Works employee $41,932; and non-union employees $53,862. 6.The population of the Town in 1997 was 13,000. False; the population of the Town in 1997 was 12,601. Since that time the Town has grown by 1,999 people. 7.The current population of the Town is 14,600. True; the current population of the Town is 14,600. 8.School enrollment is not impacted by population growth in the community. False; school enrollment increases as population increases. Since 1997 we have added 737 students to the school system.

5. Municipal Government Quiz True or False? 9. The Town can dictate the types of retail stores that lease space from private developers. False; we cannot dictate the types of retail outlets that rent space in commercial facilities. This is a market-driven decision. 10. The Town or one of its commissions is responsible for ensuring that vacancies in commercial establishments are filled. False; the Town does not get involved with leasing decisions of commercial facilities. While we like to be kept informed of lease opportunities, the marketing and renting of properties is the sole function of the owners of the property. It should be noted that properties whether vacant or full are still required to pay their full value property taxes.

6. Municipal Government Quiz True or False? 11. The Town’s budget process including dates for referenda is mandated in the Town Charter. True; the entire budget process is specified in the Town Charter. The referendum process begins the first Tuesday in May and continues every two weeks until a budget is passed. There is no ability for the Town Council to stop or delay the process and the Council must present a budget proposal for the voters’ consideration every two weeks. The Town Charter allows the Town Council to increase, decrease or keep the same one budget proposal to the next. 12.In the last five years the number of Town (non-BOE) employees has increased by more than ten. False; in the last five years the number of Town (non-BOE) employees has grown by two employees – one Public Safety Officer this year and the Parks & Facilities employee last year.

7. Municipal Government Quiz True or False? 13.During the course of the past year less than 50,000 people have used library services and have checked out fewer than 50,000 books, DVDs, etc. False; during the past year, 112,792 people utilized the Library services and 143,136 items were circulated. 14.On a yearly basis less than 1,500 youth participate in our various recreation programs. False; over 3,360 youth participate in our programs on a yearly basis. 15.The Town as a whole generates less than 2,000 tons of garbage. False; the residents of the Town generate 6,554 tons of garbage for which we spend over $700,000 per year to collect and $500,000 in tipping fees to dispose of.

8. Municipal Government Quiz True or False? 16.The Town has less than 5,000 registered voters. False; the Town has 9,400 registered voters. 17.The Town maintains less than five Town-owned buildings. False; the Town maintains 21 different buildings, not including school buildings. 18.The Town maintains in combination 26 schools and municipal ball fields. True; the Town is responsible for maintaining - which includes fertilizing, grass cutting, and preparing fields - 26 athletic fields at Town-owned parks as well as at school facilities. 19.The Town maintains and is responsible for snow and ice control for more than 100 miles of paved and unimproved roads. True; the Town is responsible for snow and ice control for more than 100 miles of paved and unimproved roads.

9. Municipal Government Quiz True or False? 20.The Town has sufficient available land to construct a large shopping complex similar to Evergreen Walk in South Windsor. False; the topography of the land available in Town, along with any wetlands on the property, limits the size of many of the available parcels for development. 21. The Town Council can dictate types of programs offered by the school system. False; the Town Council can only act on the bottom line budget figure for the Board of Education and cannot dictate staff size or program offerings. That is the function of the Board of Education. 22. The Departments of Education, Public Works and Public Safety account for 86% of all Town expenditures. True; the vast amount of Town dollars go to three departments – Education, Public Works and Public Safety.

10. Municipal Government Quiz True or False? 23.The Town is continuing to see residential growth and growth in its Grand List of at least 3% a year. False; last year we started to see a slow down in the construction of new residential units. The Grand List grew by less than 2% and is projected to be in that range again for the next fiscal year. Growth in the Grand List at these rates provides less than $400,000 in new revenue for the Town. 24.The Town, being a governmental entity, is exempt from cost increases associated with gasoline, oil, electricity, gas and water. False; the Town is impacted by cost increases in these items the same as a residential household. Increases have ranged from 10% to 30% over the last year.

11. Municipal Government Quiz True or False? 25.The cost for materials such as sand, salt, asphalt and drainage pipe has increased less than 10% per year. False; we have witnessed increases of 30% or more in these commodities which are essential to our Public Works operation. 26.Auditors hired by the Town, financial advisors, bond rating agencies, bond attorneys and state governmental agencies have all expressed concern over the way the Town is managed and its finances maintained. False; comments received by all entities charged with reviewing Town operations have been extremely positive. Last year the Town’s bond rating was upgraded due in large part to its strong managerial approach toward running the Town. 27.The Town’s general fund contribution towards capital projects is more than 5% (of operating costs) per year. False; the investment over the last six years has been less than 1%.

12. Municipal Government Quiz True or False? 28.Based on State standards, the current Tolland Library square footage is big enough for Tolland’s population. False; State standards would suggest that Tolland’s library should be double its current size. 29.There is no cost associated with the Town’s budget referendum process. False; each budget referendum vote costs the Town $4,000 for supplies and the salaries of poll workers. 30.Town government could receive no additional dollars in next year’s budget and there would be no impact on existing service levels. False; the Town has certain contractual obligations which it must fund. Anticipated cost increases for health insurance and salaries are approximately $200,000. Increases associated with fuel, commodities and contracts are estimated at $100,000. Assuming all other accounts could remain flat, these increased amounts would have to be absorbed through reductions in existing accounts.

13. Organization of General Government at a Glance

20. General Government Shown as a Percentage of Overall Expenditures

21. General Gov’t as Percentage of Overall Town Expenditures

22. Total: Town Expenditures $10,488,584 - 1,373,087 $ 9,115,497 - 4,550,868 $ 4,564,629 - 1,055,472 $ 3,509,157 ← Public Safety ← Public Works: Streets Parks Refuse Sewage ← Finance: Accounting Assessment Audit Registrars of Voters Revenue Collection Town Clerk

23. Total: Town Expenditures, continued $ 3,509,157 - 2,249,488 $ 1,259,669 - 416,600 $ 843,069 ← Administration: Town Council Town Manager Employee Benefits Information Technology Insurance Legal Services ← Planning & Community Development: Building Inspection Planning & Zoning Environmental Health Library: $376,437 Human Services: $181,113 Elderly Services: $ 78,561 Youth Services: $ 58,058 Recreation: $148,900

24. Revenues for 06/07, 07/08, 08/09 Other Than Property Taxes – Major Sources: Category 06/07 07/08 08/09 Tuition 10,000 31,445 30,000 Transportation Grant 263,068 277,515 278,502 Adult Education 8,422 8,621 9,327 ECS Grant8,881,453 10,305,985 10,759,283 Aid to the Blind 0 30,519 30,000 Other Education Grants 0 13,144 - Interest Income 280,000 550,000 500,000 Other 13,606 19,025 - Licenses, Permits & Fees 312,550 259,749 259,750 Charges for Current Services 520,000 553,295 553,295 State & Federal Grants 844,939 791,933 741,933 Contribution from Fund Balance 17,200 65,000 _________ _________ _________ TOTAL REVENUES: 11,151,238 12,906,231 13,162,090 $1,754,993 $255,859

25. Estimated Cost for Expenses 08/09 07/08: 08/09: $46,813,492$50,015,079 $3,201,587 - 255,859 $2,945,728 - 600,000 $2,345,728 ← Available new revenue other than property tax increases ← Gap This funds: Town - $524,429 increase * BOE - $2,181,354 increase Debt Service - $174,690 increase Capital Improvements - $321,114 increase Grand List growth → * Town estimate: BOE increases the same as 07/08 in addition to the cost of OPEB liability and the cost of opening the old high school. Each 1% tax increase generates approximately $336,000 in revenue. Growth in the Grand List at same % as this year = $600,000.

26. Factors that Cause a Municipal Budget to Increase: Increased cost to educate and operate Rising debt and debt service to pay for past obligations Rising costs for utilities, health care, salaries and commodities Rising costs associated with State mandates or other oversight entities Obsolete State and Federal revenue mechanisms

27. Thoughts on Budgeting in a Different Way to Save More on Activities Provided to Residents Achieve a budget that is built around desired results, not just departments Have less focus on looking where to cut and more focus on reviewing activities as they relate to desired results A review and possible ranking of programs offered within each category based on their value to citizens An early identification of available resources which are to be allocated to prioritized activities What we are looking to accomplish in the next budget process:

28. What Are We Going to Do Differently? We are going to break out to the extent possible the major activities performed by each department We are going to provide a program activity description with as much detail as possible We are going to provide the full cost for the activity

29. Budget Process Fact Sheet → Budget process is specified in Chapter IX of the Town Charter. → Fiscal year begins on July 1 st and ends on June 30 th. By February 21 st each department of the Town including the Board of Education must present to the Town Manager a detailed estimate of expenditures and revenue for the ensuing fiscal year. Town Manager must present a budget to the Town Council by March 27 th. Town Manager must call and attend a Joint Meeting of the Town Council and Board of Education for the purpose of discussing the appropriation request of the Board of Education on or before April 11 th. Town Manager must present to the Town Council a five year capital program at least four months prior to the annual budget referendum.

30. Budget Process Fact Sheet, continued Town Council must hold one or more public hearings on the capital plan prior to the annual budget public hearing. Town Council must hold one or more public hearings regarding appropriations for the ensuing fiscal year. Town Council must hold the annual budget presentation no later than one week prior to the annual budget referendum. Annual budget referendum shall be held on the first Tuesday of May and then each two weeks thereafter.

31. Future Conversation Topics  Town’s financial position; is what occurred during the last budget process a trend?  Economic Development: what is acceptable and where; impacts vs. benefits  Education goals/objectives  Town’s future capital investment in facilities and infrastructure  Priorities of government from the taxpayer’s perspective (results desired)  What should Tolland look like in the future?  How do you provide the same, or more, at a reduced cost?  Will the Town continue to grow and demand additional services?

32. Your Town, Your Budget, Your Future: Tolland at a Crossroads