TOWN OF FAIRFIELD · •Meets the challenges facing our town today •Meets our Long Term...
Transcript of TOWN OF FAIRFIELD · •Meets the challenges facing our town today •Meets our Long Term...
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TOWNOFFAIRFIELDBudgetRecommendation
ByFirstSelectmanMikeTetreau
FiscalYear2020
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Presentation Outline
1. Introduction2. Budget Overview3. History and Trends4. Comparison to Other Towns
FY2020 Budget Presentation 2
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INTRODUCTION
FY2020 Budget Presentation 3
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Opening Remarks
• Thank you to Department Managers, CFO Bob Mayer and our Finance Department
• Thank you to Dr. Jones and the School Administration
• Thank you to all our volunteers who contribute their time to make our Town special
FY2020 Budget Presentation 4
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Budget Objectives
• Manage our expenses and still provide high quality services to our residents
• Fund all our essential services• Fund our long term obligations – Pension, OPEB (Retiree Medical), Surplus, Sr Tax Relief
• Provide support and funding for our top quality School System
• Continue to Strengthen our Financial Foundation
FY2020 Budget Presentation 5
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BUDGET OVERVIEW
FY2020 Budget Presentation 6
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Town‐side Budget Recommendation
• Town‐side Budget Recommendation is $136.1 Million
• 3.54 Percent Budget Increase over prior year• This a total dollar increase of $4.65 Million
FY2020 Budget Presentation 7
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Town‐side Expense Drivers
• Primary Expense Drivers for the Town‐side Budget– Salaries and Wages– Paving– Supplemental Contribution to Surplus– Capital Replacement– Debt Service
FY2020 Budget Presentation 8
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Positive Expense Drivers
• Lower Expense increases include: – Health Insurance– Pension–Workers Comp expense
FY2020 Budget Presentation 9
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BOE Recommendation
• BOE Budget Recommendation is $181.7 Million
• Represents a 4.59 percent increase in expenses
• Reduces the Superintendent’s request by $700,000
• This is a total dollar increase of $7.97 Million
FY2020 Budget Presentation 10
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BOE Expenses in Town‐side Budget
• Certain BOE costs are included in Town‐side Expenses– Debt Service– Workers Compensation– Insurance – Liability, Errors & Omissions– Health/Nurses – Police/Crossing Guards, School Security Officers– Purchasing– Unemployment Insurance– Finance, DPW, Other
• Total Additional BOE Costs of $24.4 million
FY2020 Budget Presentation 11
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Total BOE Expenses
• Total BOE Expenses in the Budget is $206.1 Million
• Number is Reported to the State every year• Represents 65% of the Overall Budget
– 65 cents of every tax dollar goes to Education• Continues to make a strong statement about Fairfield’s commitment to Education especially with continued uncertainty in education funding from the State
FY2020 Budget Presentation 12
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Revenue Driver Highlights
• Negative – ongoing issues– Loss of Tax Revenue from GE Property– Loss of Municipal Aid from State
• Positive– Grand List Growth – almost 1%– Investment Income– Increase in PILOT fees– Tax Sale and use of Reserves
FY2020 Budget Presentation 13
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Overall Budget Recommendation
• Overall Budget Recommendation is $317.8 Million
• This is a total dollar increase of $12.6 Million
• The recommended Mill Rate is 26.95
• This represents a 2.24% increase
FY2020 Budget Presentation 14
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Five Year Average Summary
• Town Expense Budget increase – 1.05%
• BOE Expense Budget increase – 3.14%
• Combined Expense Budget increase – 2.21%
• Mill Rate increase – 2.01%
FY2020 Budget Presentation 15
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Five Year Average Summary
This is the lowest 5 year average tax increase in the last 25 years.
This Five Year accomplishment is even more significant when considering the following:
FY2020 Budget Presentation 16
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Five Year Average Summary• CT has not recovered from the worst recession since the
Great Depression. This has limited our Grand List growth.
• Loss of several million dollars in State Aid including a reduction to Education Cost Sharing from $3.5 million to $1.2 million
• Loss of almost $2 million in property tax revenue with the purchase of the GE property by SHU
• The Town has continued to invest in major capital projects including Riverfield, Ludlowe HS, Holland Hill, Sherman, etc
FY2020 Budget Presentation 17
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SUMMARY
FY2020 Budget Presentation 18
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Summary
• Meets the challenges facing our town today• Meets our Long Term Obligations – Pension, OPEB, Senior Tax Relief and protects our AAA Rating
• Continues support for High Quality Education and our School System
• Recognizes the need to keep Fairfield affordable while maintaining valuable services for all
FY2020 Budget Presentation 19
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HISTORY AND TRENDS
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Mill Rate Increase Trend
FY2020 Budget Presentation 21
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Ten Year History Comparison2018 2008
Population 61,160 57,548
Total Expense (General Fund) $295,508K $229,341K
Expenses Per Capita $4,832 $3,985
Pension Contribution (Employer) $9,170K $0
OPEB Contribution $9,550K $1,761K
Full Time Employees (Town) 457.6 474.0
Total BOE Expenses $168,124K $131,356K
Property Tax Revenue $277,956K $202,652K
Tax Rev Per Capita $4,545 $3,521
Avg Salary Per Employee (Town) $75,883 $61,771
Health Insurance/Empl (Town) $21,379 $15,671
Debt Service General Fund $22,066K $20,060K
FY2020 Budget Presentation 22
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Ten Year Expense Growth2008‐2018 $66.2 Million
Board of Education $36.8 Million
Debt Service $2.0 Million
OPEB $7.8Million
Health Insurance $2.4 Million
Pension $9.2 Million
Employee Salaries $5.4 Million
Other $2.6 Million
FY2020 Budget Presentation 23
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COMPARISON TO OTHER TOWNS
FY2020 Budget Presentation 24
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Town Comparison June 2018
Town Population Spending per Capita Taxes per Capita
Fairfield 61,160 $4,832 $4,545
Greenwich 62,418 $6,589 $5,969
Westport 28,042 $7,239 $6,665
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Town Tax Increase FY 2019
Town Tax Increase Pension ARC OPEB ARC Use Surplus
Fairfield 2.09% Yes Yes No ‐ Added to Surplus
Greenwich 0% Yes Yes Yes – 2.69%
Westport 0% Yes Yes Yes – 1.73%
FY2020 Budget Presentation 26
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Spending per Capita2012
FY2020 Budget Presentation
Town Spending Per Capita Rank in CT Increasesince 1996
Westport $7,333 1 136%
Weston $6,618 2 135%
New Canaan $6,389 3 157%
Wilton $6,338 4 136%
Darien $5,837 5 143%
Greenwich $5,535 6 92%
Easton $5,478 7 122%
Ridgefield $5,248 8 118%
Fairfield $4,558 11 113%
Source: ‘Taxes at Home’ by the Yankee Institute – August 2015
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