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

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

3. 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.

4. SUMMARY OF PROPOSED EXPENDITURES 2017-2018
TOWN GENERAL GOVERNMENT $3,905, $3,980,018
INCREASE 75,003 (1.92%)
CAPITAL BUDGET $498, $458,000
DECREASE 40,096 (8.05%)
CHESTER ELEMENTARY SCHOOL $4,379, $4,550,958
INCREASE 171,626 (3.92%)
REGION 4 SCHOOL DISTRICT $4,347, $4,260,762
DECREASE 86,463 (1.99%)* $13,129, $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.

5. 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

6. 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

7. 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

8. Capital Budget Updated 4/12/2017
Balance
4/12/2017
Proposed
Fiscal
Department
Capital Project Title
Authorized
Transfers
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

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

10. 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 is (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.

12. 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

13. 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.