TOWN OF CHESTER PROPOSED BUDGET PUBLIC HEARING MAY 1,2013 TOWN MEETING MAY 21,2013

S UMMARY PROPOSED EXPENDITURES TOWN GENERAL GOVERNMENT $3,515, % Increase of + $103,811 CAPITAL BUDGET $373,620 3% Decrease of - $55,341* CHESTER ELEMENTARY SCHOOL $4,182,373 34% Decrease of - $41,527 REGION #4 SCHOOL DISTRICT $4,257, % Decrease of - $ 426, % TOTAL EXPENDITURE: $12,328,940 NET DECREASE - $419,141 *Refer to Pre-fund & Reallocate Strategy

ANTICIPATED REVENUE SOURCES STATE OF CONNECTICUT 8% Education $ 688,638 General $277,919 TOWN TAXES & FEES 92% Property Taxes $ 10,956,913 General $ 405,470 FUND BALANCE 0% General Fund $0 100% TOTAL INCOME: $12,328,940

PROPERTY TAX CALCULATION ADJUSTED GRAND LIST $501,227,432 Decrease of - $ 85,292 PROPOSED MIL RATE Decrease of % ANTICIPATED COLLECTION RATE $ 501,227,432 x x 98.5% = $10,836,913 ( 1 Mil equals $493,700) PRIOR TAXES and INTEREST $ 120,000 Prior Year Tax Collection + $ 75,000 Interest and Fees + $ 45,000 TOTAL TAX INCOME = $10,956,913

GENERAL GOVERNMENT BUDGET INCREASES EQUAL 3% $103,811 Payroll ……………………………………………. $42,064 Employee Benefits ……………………………. $48,925 Pension Fund ……………………………………. $22,955 Decreases: Electricity ……………………………………………. -$4,800 East Hampton Septic Contract ……………… -$16,400 Bond Expense ………………………………………. -$5,548

PROPOSED CAPITAL IMPROVEMENT BUDGET The 5 year Capital Budget is used to reserve funds for major purchases and maintenance. Under-funding the Capital Budget means maintenance is deferred and unscheduled expenditures could “spike” future fiscal year budgets. The Board of Finance is recommending a two part strategy: (1) pre-fund $85,000 of capital items from anticipated 2013 general fund surplus, (2) reallocate $188,580 within capital budget to new projects This strategy adds $273,580 to the Capital Budget without increasing fiscal year taxes and mil rate..

Proposed Capital Budget Capital Budget request : $373,620 Pre-funded from 2013 surplus: $85,000 Reallocate within project funds: $188,580 TOTAL Capital Budget : $647,200 FY Proposed Capital Improvement Items: Highway Trucks $42,000 Revaluation $20,000 Main Street $75,000 Roads /Sidewalks $275,000 Firehouse Roof $25,000 Information Technology $30,000 Fire Truck $ 50,000 CES Roof $54,000 Police Vehicle $20,000 Building Repairs & Generators $56,200

SUMMARY : FY PROPOSED BUDGET The $12,328,940 budget is $419,141 lower than the current budget. This is an decrease of -3.29% in expenditures This budget takes $0 dollars from the fund balance to reduce the mil rate. The reduction in education expenditures, -$467,611, is an opportunity to reduce taxes by one-half mil, to Projected June 30,2014 fund balance is $1,571,748 or $338,854 over the recommended 10% unassigned fund balance. This slightly higher unassigned fund balance can be used in FY to reduce the impact of revaluation and possible reductions in State revenues. At mil a home with an assessed value of $300,000, the property taxes will decrease by -$150 next fiscal year.

BOARDS OF EDUCATION PRESENTATION PUBLIC QUESTIONS & COMMENTS NEXT STEPS: 1.BOARD OF FINANCE MEETS and REVIEWS PUBLIC HEARING COMMENTS 2. BOARD OF FINANCE FINALIZE PROPOSED BUDGET for TOWN MEETING VOTE MAY 21TH 3. REGION #4 REFERENDUM VOTE MAY 7 TH 4. TOWN MEETING VOTE ON PROPOSED BUDGET, MAY 21th 7:30PM, TOWN HALL 5. BOARD OF FINANCE VOTES TO SET MIL RATE