Town manager releases details of budget proposal

Town Manager Dale Martin presented his proposed 2012-13 town of Winchester budget to the Board of Selectmen this week, along with a letter outlining key components of the budget and his reasoning behind increases in various departments. The $32.9 million budget represents a 7.2 percent increase in spending and an 11.3 percent increase in the mill rate, from 25.43 to 28.3.Martin requested that the entirety of his budget proposal be included in this week’s paper, to explain to residents why he believes this is a good place to begin the discussion of the 2012-13 budget. His letter is as follows:Dear Honorable Selectmen:In accordance with the Town of Winchester Charter, §1106 Duties of the Manager on the Budget, please find enclosed my proposed budget for Fiscal Year 2012-2013. The budget document is the culmination of many hours of consultation with and preparation by the various department supervisors and me. It has been a challenging process given the current economic conditions.In summary, the proposed budget of $32,938,983 includes a $2,206,460 increase (7.18 percent) in expenditures: $1,358,149 to satisfy the state-mandated Minimum Budget Requirement for education that was not included in last year’s adopted budget and $848,311 for town personnel, programs, and projects. When changes in revenues are considered (state revenues, grand list growth, grants, etc.), these expenditures will be funded by an additional $2,293,198 in local property taxes (2.87 mills). This increase represents the first significant increase (more than one mill) in local property taxes since 2005.This increase is proposed to address some of the critical needs of the town that have been neglected, most notably the town’s infrastructure. New equipment, especially in the Police, Fire, and Public Works Departments, is also proposed to be acquired. Other needs have been set aside for the time being, recognizing the fact that all needs cannot be addressed in one budget.Some of the increased expenditures are the result of rising health care costs: the renewal cost for the town’s medical benefits was nearly an 11 percent increase. In order to minimize the cost of that increase, no wage increases (other than current contractual obligations) have been included in the proposed budget. The final impact of the personnel costs will not be realized, however, until several contracts are negotiated later this year.The challenge will continue to be to provide satisfactory (not simply adequate) governmental services to residents, but General Government expenditures (Town Hall departments other than Police) are reduced by over 15 percent. The most significant reduction proposed is actually from the Board of Selectmen. Although the town has been previously cited for maintaining an inadequate Fund Balance (reserve funds necessary for unplanned expenditures and to support any long-term financing initiatives), it is simply not possible to raise the Fund Balance to the desired level (at a minimum, 5 percent of expenditures) in only one year: the 2011-2012 $735,000 appropriation to enhance the Fund Balance has been reduced to $200,000.Other highlights of the proposed operational budget include the following:• $171,000 in revenue from State Municipal Revenue Diversification (replaces Manufacturing, Machinery, and Equipment funding);• $250,000 in revenue from State Local Capital Improvement Program funding; • $125,000 in revenue from State Small Town Economic Assistance Program funding;• $50,000 in revenue from the sale of Town equipment;• $200,000 as a contribution to enhancing the Town’s Fund Balance; • $30,000 for partial salary payment for the Winchester Public Schools Director of Business Services (to address auditor comments regarding support for the Town Finance Director and to attempt to satisfy the 2010 charter change for additional cooperation between the town and the Board of Education);• $50,000 for re-development of the Town’s planning and zoning regulations;• $6,500 for additional water quality testing and monitoring at Highland Lake;• $135,000 for reorganizing the Community Development Department, including contracted planning services, a part-time Inland Wetlands Officer, and a part-time Economic Development Coordinator, all supported by a full-time secretary;• $16,500 to restore test funding to the Town’s Civil Service Commission;• $5,000 in additional funds for Friends of Main Street;• $300,000 for training and staffing to replace retiring patrol officers;• $33,500 for a Deputy Public Works Director salary to reduce outside engineering costs (related Engineering Services funding reduced);• $50,000 to rebuild catch basins and drainage structures throughout the Town;• $200,000 for road maintenance (patching and limited paving) and road improvements (crack and chip sealing);• $4,200 for a new lawn mower to replace the Recreation Department’s current fifteen-year-old mower; and,• $19,575 reduction in debt service costs.Included in the 2012-2013 capital improvements budget are the following expenditures:• $10,000 for exterior brick repair at Town Hall;• $69,807 for Police Department vehicles (two), interior restoration, and software upgrades;• $216,805 for Fire Department vehicle, protective gear, additional equipment, and interior and exterior work at fire halls (funded, in part, through State Local Capital Improvement Program revenues);• $983,412 for Highways, including the reconstruction of Newfield Road and Munro Place, completion of the design work for Holabird Avenue (and bridge; will then qualify for federal/state reconstruction funding), two new snow plows, and a roadside mower (funded, in part, through State Local Capital Improvement Program revenues); and• $125,000 for construction of permanent restroom facilities near Walker and Ryan Fields (funded through State Small Town Economic Assistance Program revenues).At first glance, the proposed millage increase is somewhat daunting: the last such increase was in 2001, when the millage rate increased by 2.67 mills. When considered as part of a four-year cycle, however, the average millage increase over the most recent four years (including the proposed 2.87 mills for this budget) is only 0.9 mills. Those years of limited investment in infrastructure have taken a deep toll, as most noticeably evidenced by the condition of the roads (2009-2010 Road Improvement expenditures totaled $968). Other infrastructure that is not as visible has suffered, too: underground drainage, which leads to accelerated deterioration of the roads; the Police Department facilities are sadly aged and out-of-compliance with many standards and practices; and over half (8 of 15) of the Public Works trucks are twelve-years-old or older (three are seventeen years or older).For comparative purposes as to the financial impact upon the residents of Winchester, please consider the information in Table 1. For a homeowner with a home assessed at $200,000 (the Town median assessment is approximately $120,000), the proposed millage would make a homeowner’s real property tax bill $5,660. I have also included columns for motor vehicle assessments. (See TABLE 1) With the proposed millage rate of 28.30, the homeowner of a $200,000 (assessed) home would pay $88 per year, or approximately twenty-four cents per day for fire protection (similarly, police services would cost the same homeowner $1.78 per day). Compare the cost (and value) of those two town services with the cost of your monthly cable television and internet services, which probably cost you at least $100 per month.Table 2 illustrates how the proposed millage and Town expenditures are apportioned, both by millage rate and dollar amounts. (See TABLE 2) As I have shared with many of you, when I started here last April, I came across a copy of the November, 2009, issue of Connecticut Magazine. The cover screamed, “Rating the Towns: See How Your Town Stacks Up.” On page 54, the ratings showed that every other Connecticut town of 10,000-15,000 residents was stacked on top of Winchester: we were rated dead last of the similarly-sized twenty-three towns. We have to change.I have heard first-hand from you and other residents about the problems of Winchester: the historic animosities, the partisan bickering, and the decaying town. As a new resident, I am not burdened with some of that baggage, but I experience the effect: I see it across the street from Town Hall every day, I feel it on the roads every day, I hear it from you every day. Nonetheless, for some reason, you and the residents of Winchester have come to accept this situation, living with it for decades. If you are satisfied with the status quo, with being Number 23, then you make my job infinitely easier: I simply have to do nothing.I am not satisfied with Number 23, nor will I be satisfied with 20. I see wonderful people in a town wracked with a lack of confidence; beautiful natural resources that are underappreciated; and a downtown just waiting for something good to happen. We have to change. The recent efforts of no increased investment have brought us to where we are today, and I challenge you to show me how it has been successful in enhancing our community and quality of life. I was told by a resident that if I would discard the status quo, demonstrate transparency, institute accountability, and accurately assess the needs of the Town, she would consider paying higher taxes. I present this proposed 2012-2013 budget to you as my effort to change.This proposed budget is the result of the efforts and support of many department supervisors and other Town staff, without whose assistance I would be hopelessly adrift. The Town staff may not necessarily agree with some of my budget decisions, but I believe that they, too, realize that we simply cannot continue to do things in the same manner that we have done them over the past few years. I wish to thank the staff for their expertise and support, especially Ms. Laurie Bessette, who, as my Assistant, has to deal with me pretty much every hour of every day, and Mr. Henry Centrella, whose experience and insight has been of invaluable assistance.I also wish to thank you, the Board of Selectmen, for the opportunity to serve this community and to confront and overcome the challenges before us. I look forward to being a part of the future of Winchester. Dale L. Martin Town Manager