TOWN OF CHESTER PROPOSED 2017-2018 BUDGET PUBLIC HEARING MAY 4, 2017 TOWN MEETING MAY 25, 2017

ANTICIPATED 2017-2018 REVENUE SOURCES STATE OF CONNECTICUT 2016-2017 2017-2018 EDUCATION $652,069 $536,382 GENERAL $418,419 $394,425 TOWN TAXES AND FEES PROPERTY TAXES $11,222,110 $11,116,303 PRIOR YEAR TAXES/INTEREST/FEES $140,000 $150,000 LICENSES/PERMITS $67,200 $74,400 GENERAL REVENUES $429,870 $437,200 FROM FUND BALANCE $200,000 $200,000 ESTIMATED TOTAL REVENUE $13,129,668 $12,908,710 Decrease of $220,958 or 1.7% ($140,000 state decrease; $80,000 grand list calculation issue)

STATE REVENUE ⇓ Chester anticipated state revenue of $930,807, (down $139,681) which currently represents 7.0% of the budget, is an estimated amount. Careful and conservative budgeting estimates in advance of an approved state budget. State budget approval likely to be delayed until July or August. State revenue not expected to improve over the next few years as the State struggles with reducing its own budget deficit, estimated at 2.2 billion for FY 17/18 and 2.9 billion for FY 18/19. State grant programs such as LOCIP and STEAP currently frozen. No new applications being taken.

SUMMARY OF PROPOSED EXPENDITURES 2017-2018 2016-2017 2017-2018 TOWN GENERAL GOVERNMENT $3,905,015 $3,980,018 INCREASE 75,003 (1.92%) CAPITAL BUDGET $498,096 $458,000 DECREASE 40,096 (8.05%) CHESTER ELEMENTARY SCHOOL $4,379,332 $4,550,958 INCREASE 171,626 (3.92%) REGION 4 SCHOOL DISTRICT $4,347,225 $4,260,762 DECREASE 86,463 (1.99%)* $13,129,668 $13,249,738 SPENDING INCREASE OF 120,070 OR .91% OVER CURRENT YEAR BUDGET. * Region 4 budget up 2.75% overall, decrease to Chester due to ADM.

BUDGET DRIVERS – INCREASES Expenses are growing faster than the grand list, but are in line with overall inflation levels (approximately 2%). The Town is in good shape financially, with no surprises. INCREASED TOWN RESPONSIBILITY FOR COST OF RESIDENT STATE TROOPER PROGRAM. CONTRACTUAL OBLIGATIONS FOR TEACHERS AND UNION EMPLOYEES UNFUNDED STATE MANDATES (Stormwater and Library Internet) INCREASED TREE MAINTENANCE AND FIRE INSPECTION REQUIREMENTS 5. UPDATES IN TECHNOLOGY AT TOWN HALL (Telephone/computer updates) 6. POCD AND STRATEGIC PLAN

BUDGET DRIVERS - DECREASES Decreases in utilities, especially cost of electricity for streetlights and energy efficiency projects Reduction in fuel costs for heating Restructured police staffing One time roads decrease Re-evaluation of vehicle replacement schedule Reduced medical insurance costs

CAPITAL BUDGET: The Capital Budget allows the town to set aside funds for major purchases and maintenance of infrastructure. Underfunding the Capital Budget means deferring this maintenance and can lead to higher and unexpected repair or replacement costs. Based on last years evaluation we have continued to analyze infrastructure needs over the next 10 years, including: Protection and maintenance of the watershed and natural resources Continuing energy and money saving projects – Energy Team Meeting House analysis – Meeting House Committee Possible use of recycled/used boilers and guardrails

Capital Budget Updated 4/12/2017 Balance 4/12/2017 Proposed Fiscal Department Capital Project Title 2016-2017 Authorized Transfers 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 Total Board of Select. Assigned $5,193 $0 -$3,617 $1,576 Cedar Lake/Watershed $6,000 $3,000 $8,000 $49,000 Town Hall - Computer Replacement $16,080 $22,000 $142,160 Assessor Revaluation $30,000 $10,000 $78,000 Public Works Highway Equipment $128,321 $3,653 $35,000 $45,000 $55,000 $356,974 Infrastructure Main Street Project - Phase III $362,886 $43,040 $25,000 $50,000 $630,926 Energy Efficient Projects $5,137 $10,274 Road/Sidewalk Repairs $320,656 $180,657 $200,000 $225,000 $1,601,313 Buildings Firehouse Boiler $29,390 $88,780 Town Buildings - Repairs/Code Compliance $62,719 $5,000 $275,438 Town Building Emergency Generators Fire Ambulance Replacement (2003) $90,007 $15,000 $180,007 Truck Replacement $396,473 $60,000 $661,473 Equipment Replacement $1,336 $40,000 $197,672 Parking Lot Police Cruiser Replacement Mobile Radio Replacement School Oil Tank Replacement HVAC Replacement $1,383 -$1,383 Project Adventure $1,470,581 $346,395 $458,000 $520,000 $505,000 $515,000 $4,334,976

SUMMARY 1 MIL = $431,681.00 Total New Revenue $12,908,710 Total New Expenditures $13,249,738 New dollars needed: $ 341,028 or .79 of a mil CURRENT MIL RATE 25.57 Shortfall .79 PROPOSED NEW MIL RATE 26.36

WHAT IS A MIL? A mil represents $1.00 of tax paid on $1,000 in property assessment. The current mil rate is 25.57, meaning that each property owner is taxed $25.57 on each $1,000 of assessed property. The proposed new mil rate for 2017-2018 is 26.36 (increase of .79 mils) This represents an additional $55.30 per $100,000 of appraised value. Real Property is taxed at 70% of the property value.

ACCOMPLISHMENTS Energy Team Town Garage LED Conversion Streetlight Purchase and Pending Conversion to LED In Process – Solar Expansion Project Chester Elementary Chester Meeting House Safety Upgrade, New Stage Floor and Curtains, Infrastructure Evaluation In Process – Prospect Street Culvert Replacement Cedar Lake Watershed Committee Activated Restructure of Police Staffing Evaluation and Planning to Control Costs for Bulky Waste in Partnership with Town of Deep River

Looking Ahead: GOALS: Grow grand list if possible Awaiting LOTCIP grant approval; prep for Main Street Project III Construction 2018 or 2019. North Quarter Park Revitalization Chester Public Library Repair/Restoration of Meeting House – Infrastructure Improvements Continuing Energy and Money Saving Projects POCD and Strategic Plan GOALS: Grow grand list if possible Reduce/share expenses – sustainable and self sufficient. Keep taxes stable.