mayor maturo's budget powerpoint

7/28/2019 Mayor Maturo's Budget Powerpoint

1/32

. ,

thedepartmentheadsthatsatwiththeBoardof

Financeandreviewedmyinitialrecommendations.

IdalsoliketothankourFinanceDirector PaulRizza. Mr.

Rizza workedincrediblyhardonthisbudgetandhe

deservestoberecognizedforthatwork.


2/32

. ,

cappingtheTownsfinancialpositionattheendofthe

20112012fiscalyear.


3/32

.

shows,theTownendedthe20112012FiscalYearwitha

surplusof$237,043dollars.

Thatmone wasaddedtotheTownsrain da fund

doublingtheTownsfundbalance.

Attheendofthe20112012fiscalyear,theTownhada

totalrunningsurplusof$437,843.00.


4/32

4. You ma be askin How does this com are withpreviousyears?

Between

2002

and

2007

during

my

first

10

years

in

office,

theTownbalanced10straightbudgetsandmaintainedarunn ngsurp uso no ess an m on o ars.Between2007and2011,theTownranthreestraightdeficitswhich,atonepoint,causedtheTownsfundbalancetodroptonegative$5.1milliondollars.

However,Iamhappytoreportthatinthelast18months,

Iand

my

team

have

quickly

reversed

this

trend

and

producedapositiverunningsurplus. Thegoalistoendthecurrentfiscalyearwith nolessthan$1milliondollars

.


5/32

. ,

neighboringTowns?

Ourfund

balance

over

the

last

4years,

in

comparison

to

otherTowns wasrathersmall. However thankstobetter

budgeting,wearebeginningtostabilizeandcatchupto

ourneighbors.

Incomparison,between2002and2007,ourfund

balancewasonparand,insomecases,inexcessofour

neighbors.


6/32

. , ,

Standards&Poor,stronglyrecommendthattheTown

haveasavingsaccountequalto5%ofitsoperating

budget.

Fivepercent

of

our

proposed

budget

is

about

4.3milliondollars.

Inthepastyear,wehavecommittedtoaplanof

incrementalcontributionstothefundbalancetobring

theTowninlinewiththerecommendedfigure.


7/32

7. In addition to the Towns fund balance debt is anotherkeyeconomicmeasure. LikeyouandI,theTownhaslongtermdebt.

IampleasedtoreportthatthechangeintheTownslongerm e pos on n ca es a wecon nue omove

forwardontherighttrack.

TheTownbeganthe20112012fiscalyearwithjustover$48milliondollarsinlongtermdebt. Inthelastbudgetyear,wepaidoffnearly$3.6millionofthatdebt,or7.4%

percent,reducing

our

total

long

term

debt

to

$44.5

milliondollars.

,progressinthe18shortmonthswevebeenhere.


8/32

.

madeinthelast18months,Iwanttospeakbrieflyabout

whatfactorsinfluenceamunicipalbudget. Putsimply,

thebudget

is

composed

of

two

parts:

expenses

and

revenues.


9/32

. , ,

severalareconstant. Theyareexpenseswhichregularly

occur,mayberequiredbycontract,orareessentialto

runningthe

Town.

Forexample,employeebenefits,insurance,anddebt

servicearerequiredexpenses. Legalservicesare

essentialtothedefenseoftheTown. Utilitieslikewater,

sewer,heat,andelectricityareconstant. Andfinally,

education,police,fire,andpublicworksservicesare

essentialto

ensure

the

day

to

day

safety

of

our

Community.


10/32

. ,

incomefortheTownarefromtaxes,stateandfederal

funding,andmiscellaneousfees(suchasfeesfor

recordingdocuments

on

the

land

records).


11/32

. ,

particularattentiontotheexpensesideofthebudget.

However,certainexpensescontinuedtopresent

challenges.

Policeovertime,

resulting

from

ashortage

of

man ower continuestobeachallen e. Wehavetaken

steps,includinghiringnewofficers,tosolvethisissue,

butthesavingsfromthosestepsisstillmonthsaway.

Additionally,expensesrelatedtoHurricaneIrene,

Superstorm Sandy, andtherecentwinterstormareonly

partiallyreimbursed

to

the

Town,

requiring

the

Town

to

absorbtheunreimbursableportions.


12/32

.

andexpenses,Iandmyteamcarefullyputtogethera

budgetforthe20132014fiscalyearwhichIwouldnow

liketo

share

with

you

now.


13/32

. ,

expensesof.55%and$44.3million dollarsineducation

funding.


14/32

. , .

milliondollarsinrevenueand$86.1milliondollarsin

expenses. Whenweaddinthe$1milliondollar

contributionto

our

Town

savings

account

(or

fund

balance oucanseeIm ro osin atotalbud etof

$87.1milliondollars.


15/32

. ,

considerationswhensettingtheincomeandexpense

numbersyoujustsaw.

Ontheex enseside theTownex eriencedamillion

dollarincreaseinemployeemedicalexpensescausedby

thenewObamacareregulations. Thisincreasewas

unavoidable,andrequiredtheTowntogetcreativeabout

absorbingtheincrease.

Onthe

revenue

side,

the

elimination

of

several

grants,

includingthePequotandMohegangrants,andthe

proposedrestructuringofotherStategrantsmade

revenuecalculationsdifficulttopindown.


16/32

.

thisbudgetwasthechangeinthevalueofthegrandlist

thelistofalltaxablepropertyinTown. Asyoucansee,

theTown

experienced

very

slight

growth

in

the

grand

list

tothetuneofabout 9milliondollars whichwillleadto

averyslightincreaseinrevenuefortheTowninthenext

year.


17/32

. ,

worst,keepthemthesame.

Asaresult,

my

proposed

budget

calls

for

savings

or

no

increasesto23ofthe48 rimar bud etlineitems.

Withafewnotableexceptions,includinghealthcare

costs,theremaininglineitemsincludeverymodest

increases.


18/32

18. S ecificall de artments like Counselin andCommunityServices,Zoning,andBuildingMaintenance,willallseesavingsduetoreductionsintheirexpenses.

By

percentage,

you

can

see

that

Counseling

and

CommunityServiceswillseethelargestsavings,atnearly, ue opr va z ng emanagemen o e

departmentwhichhasbothsavedcostsandincreasedrevenue.

SavingswillalsoberealizedintheZoningDepartmentandwithBuildingMaintenance.

TheLegalDepartmentseesnoincreasewhatsoever,whileinsuranceseesamodestincreaseof1.47%as

. . .


19/32

19. As education is an issue of critical im ortance to theTown,Ialsowanttoexplainthefundingbeingproposedinthisbudgetforeducation.

Inmyfirst10yearsinoffice,myTeamandIwereveryproac veregar ng un ng ore uca on.

Infactbetweentheperiodof2000and2008,myTeamandIgaveanaverageincreasetotheBoardofEducationof$1.25millioneachschoolyear. In2004,thatincreasewasashighas$1.85milliondollars.

Weunderstoodthattimesweregoodandthatenrollmentwasincreasing. Asaresult,wemadea

systemoverthatperiodoftime.


20/32

. ,

Educationsenrollmentchart,thestudentpopulationhas

beensteadilydecliningoverthepast4years. In2009,we

hadapproximately

3,520

students

in

our

system.

As

of

2012 thatnumberhaddro edb almost400to3 159

students.


21/32

. ,

inrecentyears,theTownwillbecommittingthesame

amountofmoneytoeducationasitdidlastyear. The

resultis

that

the

Town

will

be

allocating

approximately

14 000 erstudentintheu comin bud et afull

$1,500moreperstudentthanwasbudgetedjust4years

ago. Thisisalmost$300dollarsmoreperstudentthan

lastyearalone. Asaresult,whilethetotalfundingfor

educationisstayingthesame,wecontinuetoincrease

thestudentfundingavailabletotheBoardofEducation.


22/32

. , ,

abouttaxes. Everyonewantstoknow,Whatwillthis

budgetmeanfortaxes.


23/32

.

lastbudget. Improudtosayweachievedthatgoalfor

nearly70%ofthehomesinTown. Unfortunately,the

changein

real

property

values

caused

by

the

state

mandatedrevaluationmadeitachallen etoim lement

auniformtaxreduction. However,6,801homessawtax

reductionsbetween1%andashighas39%.

Again,thatsover6,800homeswhichsawataxreduction

inthelastbudget.


24/32

. ,

highlightedinlastyearsbudgetaddress. Itwasahome

whichisreflectiveoftheaveragehomeinEastHaven a

2bedroom,

1bathroom

cape.

It

showed

that

the

taxes

in

2011hadswelledto 3 814dollars. However becauseof

therevaluation,undermytaxplan,thishomeownerpaid

just$3,183dollarsin2012.

Thehomeownersawa$631dollartaxcut. Thistaxcut,

asapercentage,representsa16.5%taxcut.


25/32

. , ,

thehomeofanotherpersonlastyear. Thispersonpaid

$6,088dollarsintaxesin2011. Undermybudget,this

personpaid

$5,410

dollars in

2012.

The$678dollarsavingsrepresentsan11%taxdecrease.


26/32

. ,

intheMomauguin areaofTown. Thishome,whichsawa

taxdecrease,isonHollandRoad. Thispersonpaid

$4,917dollars

in

taxes

in

2011.

Under

my

budget,

this

erson aid 4 159 in2012.

The$756dollarsavingsrepresentsa15%taxdecrease.

Onceagain,duetotherevaluationinstitutedpriortomy

takingoffice,implementingauniversaltaxdecreasewas

impossible.

However,in

just

one

year,

6,800

families

in

Townsawadecreaseintheirrealestatetaxes withno

decreaseinservices.


27/32

27. As a result the bud et that I am turnin over to outheTownCouncil,callsfornoincreaseintaxes. Rather,itcallsfortheTowntoallowthe6,800homeswhichsaw

their

taxes

drop

to

continue

to

keep

those

savings.

e avemany n v ua s n ownon xe ncomes. ormanyyears,EastHavenhadoneofthehigherunemploymentratesintheregion. MyteamandIaresensitivetothefactthatweneedtocontinuetomakeitaffordabletoliveinEastHavenandraiseafamilyhere.Weunderstandweneedtodomore,withless. Asyou

cansee,

we

are

up

to

that

challenge.

Thisbudgetrepresentsarealisticbudget,whichwill.


28/32

. ,

commitmenttonotaxincreaseistheexceptiontothe

rulethisyeararoundtheState. Infact,manyTownsare

lookingat

significant

increases

in

their

taxes

in

the

u comin ear. SeveraloftheseTownsarever close

neighborsofours.


29/32

.

lookingatclosetoa1milltaxincrease.


30/32

. , ,

significanttaxincrease. Finally,TheRegisterhasreported

thatothershorelineTownslikeGuilfordandNorth

Branfordare

also

expecting

increases

in

their

tax

rates.


31/32

. , ,

buckingthistrend. Thankstosoundfiscalmanagement,

myrecommendationandplanistokeeptaxesexactly

wherethey

are.


32/32

mayor maturo's budget powerpoint

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