Town of Berlin FY2022 Board of Finance Budget Review
The Town of Berlin's FY2022 Board of Finance Budget Review on March 3, 2021 outlines a comprehensive budget strategy focusing on structural balance, fiscal restraint, and investment priorities. The proposal includes a total budget of $98.02 million, a mill rate of 35.53 mills, and a breakdown of budget allocations between Education and General Government. Revenue sources, including local taxes and grants, are detailed to support essential services and programs while addressing long-term liabilities and capital needs.
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Town of Berlin FY2022 Board of Finance Budget Review March 3, 2021
Agenda Overall Budget Revenue Long-term Liabilities Capital Transfers Board of Education Operating Budget General Government (incl BWC) Operating Budget
Budget Strategy STRUCTURAL BALANCE: Operating costs covered by recurring revenues. 1. Exercise fiscal restraint to keep taxes down during ongoing pandemic 2. Continue strengthening the balance sheet fully fund ADC to deal with unfunded pension liability & no new money borrowing to prepare for impending large projects 3. Structurally balanced budget while maintaining a high-quality educational system & important town services/programs 4. Focus limited capital requests on Public Safety & ADA investments
Fiscal Year 2022 Overall Budget Proposal Fiscal Year 2022 Overall Budget Proposal Total Proposal: $98.02 million (+$6.5 million or +7.2%) Mill Rate: 35.53 mills (+1.60 mills) State Funds: based on Governor Lamont s budget proposal ECS grant flat to FY21 Budget does not include local Teacher s Retirement funding Budgeted Grand List: +1.35% - worth $1,068,437 incremental tax revenue (@ 33.93 mill rate)
Breakdown of total FY20 actual Education (includes dept. 61, private schools & school debt) 60% General Government 40%
Breakdown of total FY22 budget Education (includes dept. 61, private schools & school debt) 59% General Government 41%
Revenue Revenue Local taxes largest funding source - collection rate remains at 99.3% State Education Grants, 6.0% Fees, 3.7% State Non- Education Grants, 0.4% User fees increase: Golf course +$175k Building +$125k VNA -$212k Svc Fees & Inv Earnings, 0.3% Transfers In, 0.0% Service fees decrease: Investment earnings -$445k Bond premium -$250k Use of Fund Balance, 2.8% Fund balance used to fund ADC (pension) & contingency Taxes, 86.8%
Revenue(cont.) Revenue (cont.) State funding assumptions Governor s proposal ECS: $5,870,600 (flat vs. FY21 Berlin budget) SUBJECT TO CHANGE! Municipal Stabilization Grant: $258,989 (flat VS. FY21 Berlin budget) SUBJECT TO CHANGE! Two expenses have no mill rate impact: ADC pension funding is covered with assigned fund balance Personal property audit fee is covered with increased back tax revenue
Unassigned Fund Balance Projection $17,437,703 from audited CAFR 6/30/2020 GF Unassigned Fund Balance ($7,969,571) net of non-budgeted appropriation ($2 million) ($200,000) increase over FY21 contingency assignment Net DB Pension Liability FY22 Contingency Refunding Grants: Boulevard Main Street Fa ade Senior/Community Center School Security Vestibules Kensington Sidewalks III LoCIP - roofs @ PW Complex DEEP Athletic Facilities Improvements Grant ($125,306) spent - seeking reimbursement ($423,651) spent - seeking reimbursement ($188,904) active projects ($750,000) 50% under contract - 25% spent - seeking reimbursement ($270,088) spent - seeking reimbursement ($130,000) TBD ($300,000) TBD ($2,774,254) TBD $0 current proj. between -$300k and +$500k Projected FY21 Year-end GF surplus/(deficit) $4,305,929 4.4% of Proposed FY22 Budget Available GF Unassigned Fund Balance ($6,476,258) Excess/(Deficiency) to 11% Floor $98,019,882 $10,782,187 Proposed FY22 Budget 11% GF Unassigned Fund Balance Floor Potential future demands on fund balance: fire vehicles, school air quality short-term solutions, school vans, Timberlin clubhouse and/or maintenance building, and backstop for: Berlin Water Control, insurance funds and special education costs
Long Long- -Term Liabilities Term Liabilities Items in this category: Notes Bonds Capital Leases Unfunded Pension Costs Debt Service Costs $514k year-over-year decline in debt service costs $11.2 million or 11.5% of total budget: Down 0.1pp (from 11.6%) vs. FY 21 proposed budget Goal is 4% or less of total budget
Long Long- -Term Liabilities Term Liabilities - - Debt Total Debt Schedule - Existing Debt ONLY Targeted total debt ceiling of $40,000,000 is projected to be attained by June 30, 2026 with no new borrowing in FY22-26 FY2022 Budget Debt Town of Berlin Capital Leases2,3 Outstanding GO Bonds Principal Outstanding BANs CDA Loan1 Total Debt & Debt-Like Balance GO (P&I) Change BAN Change CDA Loan Change Capital Leases Change Total Debt Change June 30, Interest Total Principal Interest Total 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $13,260,000 $28,835,000 $27,215,000 $34,020,000 $49,450,000 $60,905,000 $73,340,000 $73,645,000 $68,300,000 $68,935,000 $66,535,000 $2,122,379 $7,776,263 $6,764,163 $8,311,185 $12,910,677 $17,468,530 $18,937,747 $17,266,598 $14,799,258 $13,495,943 $12,320,382 $15,382,379 $36,611,263 $33,979,163 $42,331,185 $62,360,677 $78,373,530 $92,277,747 $90,911,598 $83,099,258 $82,430,943 $78,855,382 $9,970,000 $6,317,000 $9,426,000 $1,325,000 $1,259,000 $1,180,000 $900,000 $1,455,000 $2,028,000 $931,000 $532,477 $492,423 $450,166 $405,584 $358,550 $308,930 $256,580 $201,352 $143,086 $81,615 $16,763 $0 $0 $25,884,856 $43,816,899 $44,238,230 $44,533,448 $64,464,574 $80,327,331 $107,729,736 $106,107,893 $98,036,871 $95,623,775 $90,449,655 $388,800 $368,238 $457,141 $468,168 $447,429 $10,584,544 $10,234,306 $9,754,432 $9,451,657 $9,123,589 $7,413 $14,663 $14,538 $18,179 $17,442 $3,710,865 $3,305,637 $3,012,095 $2,728,560 $2,453,921 $396,213 $382,901 $471,679 $486,347 $464,871 $14,295,409 $13,539,943 $12,766,527 $12,180,217 $11,577,510 $21,228,884 ($2,632,100) $8,352,022 $20,029,492 $16,012,853 $13,904,217 ($1,366,149) ($7,812,340) ($668,315) ($3,575,561) ($3,653,000) $3,109,000 ($8,101,000) ($66,000) ($79,000) ($280,000) $555,000 $573,000 ($1,097,000) ($931,000) ($40,054) ($42,257) ($44,582) ($47,034) ($49,620) ($52,350) ($55,228) ($58,266) ($61,471) ($64,852) $396,213 ($13,312) $88,778 $14,668 ($21,476) $13,830,538 ($755,466) ($773,416) ($586,310) ($602,707) $17,932,043 $421,331 $295,218 $19,931,126 $15,862,757 $27,402,405 ($1,621,843) ($8,071,022) ($2,413,096) ($5,174,120) $0 Projected (assuming no additional bonding) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 $60,425,000 $54,145,000 $47,825,000 $41,465,000 $35,080,000 $28,970,000 $24,525,000 $20,090,000 $16,135,000 $12,860,000 $9,665,000 $7,005,000 $4,350,000 $2,085,000 $685,000 $10,201,207 $8,356,819 $6,774,869 $5,434,944 $4,297,082 $3,357,016 $2,579,413 $1,924,944 $1,385,081 $943,575 $594,475 $332,666 $153,547 $52,719 $10,275 $70,626,207 $62,501,819 $54,599,869 $46,899,944 $39,377,082 $32,327,016 $27,104,413 $22,014,944 $17,520,081 $13,803,575 $10,259,475 $7,337,666 $4,503,547 $2,137,719 $695,275 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,774,978 $8,398,463 $7,992,653 $7,555,701 $7,086,452 $6,586,138 $6,052,948 $5,482,870 $4,874,121 $4,224,450 $3,532,279 $2,795,583 $2,011,856 $1,179,259 $376,390 $2,188,934 $1,934,371 $1,691,053 $1,459,856 $1,241,704 $1,037,550 $848,279 $674,908 $518,524 $380,281 $261,392 $163,113 $86,770 $33,756 $5,517 $10,963,912 $10,332,834 $9,683,707 $9,015,558 $8,328,157 $7,623,688 $6,901,227 $6,157,777 $5,392,645 $4,604,731 $3,793,671 $2,958,696 $2,098,626 $1,213,015 $381,907 $81,590,119 $72,834,653 $64,283,576 $55,915,502 $47,705,239 $39,950,704 $34,005,640 $28,172,721 $22,912,726 $18,408,306 $14,053,146 $10,296,362 $6,602,173 $3,350,734 $1,077,182 ($8,229,175) ($8,124,388) ($7,901,950) ($7,699,925) ($7,522,862) ($7,050,066) ($5,222,603) ($5,089,469) ($4,494,863) ($3,716,506) ($3,544,100) ($2,921,809) ($2,834,119) ($2,365,828) ($1,442,444) ($695,275) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($16,763) ($613,598) ($631,078) ($649,128) ($668,149) ($687,401) ($704,469) ($722,461) ($743,450) ($765,132) ($787,914) ($811,059) ($834,975) ($860,070) ($885,610) ($831,108) ($381,907) ($8,859,536) ($8,755,466) ($8,551,078) ($8,368,074) ($8,210,263) ($7,754,535) ($5,945,064) ($5,832,919) ($5,259,995) ($4,504,420) ($4,355,159) ($3,756,784) ($3,694,189) ($3,251,438) ($2,273,552) ($1,077,182) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 1 Pricipal payments only displayed. Proceeds from CDA loan were used to remediate Legions Square property. Final debt payment is due in Fiscal Year 2021. 2 Balance represents the net present value of future minimum lease payments. 3 In February 2016, the Town entered into a 20-year energy lease program. The savings from the program is intended to repay the capital lease obligations. Final payment is due in December 2035. Source: Comprehensive Annual Financial Reports (2020 is unaudited) Propose no bonding in June 2021 - prepare for future bonding Elementary schools HVAC project: $6-$10 million (3 schools) Fire vehicles: $2-$4 million Swimming pools/pool buildings: $500k-$1 million+ New Police station/Renovate locker rooms at existing Police station: TBD New senior/community center: TBD New clubhouse at Timberlin: TBD
Recommend no June 2021 bond issuefinish $17.5 million of outstanding/funded projects Open Capital Projects with Identified Funding Project Department Budgeted Funds* $1,810,882 Project $437,950 FY20 surplus BOE funds (Hubbard Fire Alarm system, McGee Rooftop HVAC unit #1) Source BHS jacketing of ductwork Unexpended Education Funds (2% Fund) BOE BOE Senior/Community Center Study Percival Soccer Field Sage Park Restroom (Scalise Field) Senior Center/P&R P&R/BOE P&R/BOE $721,969 Reimbursable State grant $200,000 Bonding $90,000 Bonding Fire Truck Fire Dept. $400,000 Acquisition (final payment) 4-Bridge Renovation Glen Street Bridge Kensington Rd Bridge (Design) Public Works Public Works Public Works $3,224,668 Bonding (80% federal reimbursement) $500,000 Bonding $450,000 Bonding (Town funds design, CRCOG funds construction) $3,000,000 CRCOG Grant (prefunded) -estimated $91,045 Local funds $550,000 Bonding (Design) $3,600,000 CRCOG Grant (prefunded) - estimated $515,943 BRRFOC refund at dissolution, rollover funds Edgewood Rd Bridge (Design) Masserio/Porters Pass/Deming Rd Reconstruction Public Works Public Works Recycling Center Renovations (State requirement) Public Works Highway Wash Bay Highway Dept $493,925 Bond Premium STEAP Sidewalks Grant (2021) Community Connectivity Grant 889 Brownfield Remediation Economic Development Economic Development Economic Development $145,000 Reimbursable State grant $387,000 Reimbursable State grant $641,888 Reimbursable State grant $197,300 Reimbursable EPA grant $100,000 Local funds $17,557,570 DEEP Athletic Improvements Grant is under development - $2.77 million in additional work that may take place in calendar 2021.
Long-term Liabilities Closed DB Pension Plan $3,000,000 Proposed budget assigns fund balance for ADC. $2,500,000 $2,000,000 $1,500,000 $1,000,000 As proposed, NO impact to taxpayers!! $500,000 $0 2018 2019 2020 2021 2022 Normal Cost Past Service Cost 6/30/2020 funding level 28% Census (6/30/2020): Active workers: 10 Inactive, Retirees and Beneficiaries: 19 Since 6/30/2020 2 actives retired current actives: 8 Actuarially Determined Contribution (ADC): $2,395,640 $145k normal cost $2,251k past service cost
Capital Overview Capital Overview Berlin has considerable assets that require maintenance and periodic replacement. 37 bridges (5 replaced since 2012 & 8 more being rehabilitated or replaced) 110 miles of roads (5 mile/year repair/replacement strategy) 5 schools Town Hall Community Center/Library Senior Center Golf Course Animal Control Physical Services Complex (including recycling, salt building and garage) 15 Police patrols 13 Fire apparatus 120,025 item library collection 2,255 parks acreage 2,559 streetlights 2 swimming pools & 2 pool buildings 11 playgrounds 15 baseball/softball fields 11 soccer/football fields
Capital Overview Capital Overview Capital Budget: Departments Requested = $12.5 million Proposing = $1,513,000 (0.5% of major capital assets) Focus: Public Safety: Fire vehicles (final payment on 1st; 50% deposit on 2nd) Fire rescue equipment (split cost over two years) MDTs for Police cruisers Fire alarm upgrade Willard School vans Elevator at Town Hall ADA BOE & Town Exterior repairs to Timberlin maintenance building Diagnostic analyzer
Transfers Transfers Pension, Health Insurance Administration: $65,000 Actuary s fees payout calcs, audit support, liability calc Stirling Fees to administer retiree health insurance & FSA Business Continuity: $50,000 Revaluation Fund: $72,500 Current balance $81,755 Est. cost of 2022 revaluation is $175,000 Plan of Conservation & Development: $25,000 Est. cost of 2023 POCD is $150,000 Current balance: $72,019 Energy lease payments (debt service): $719,500
Board of Education Budget 2021-2022 March 3, 2021
Superintendents Goals for 2021-2022 Continue to provide quality education to all students at the standard that Berlin parents expect. Maintain favorable class size and adequate course offerings Provide all students with an education that prepares them for multiple options and opportunities upon graduation. Ensure that appropriate courses, structures and staff are available for new graduation requirements. Provide adequate safety measures (COVID requirements), equipment and systems that allow all students and staff a safe learning environment. Expand the Berlin Transition Academy in partnership with Cromwell Public Schools.
Board of Education Goals Effectively communicate the level of funding necessary to continue to provide a quality education that the students, parents, and community expect Transparency Fiscal Responsibility
2021 2021- -2022 Superintendent s Superintendent s Proposed Budget Proposed Budget Overview Overview 2022 Administrative Salaries Certified Salaries Non-Certified Salaries Employee Benefits
5 Year FTE Comparisons Teachers/Certified Staff 279.32 267 2016-2017 FTE 2017-2018 FTE 2018-2019 FTE 2019-2020 FTE 2020-2021 FTE Employee Type Teachers/Certified Staff 264 259.4 266.7
2021-2022 New Staff Requests Summary 21.5 Total Requests for New Staff 13.7 Requests Not Funded 7.8 Funded (Operational Budget/Open Choice) 3 Paraprofessionals in 2021-2022 Operational Budget Required to meet the needs of learners 4.8 Positions funded through Open Choice Grant BHS: Intervention Tutor (1.0) BTA: Program Coordinator (0.5) McGee: Office Paraprofessional (1.0) Griswold: Math Intervention Teacher (1.0) Hubbard: FTE Increase for Intervention Teacher (0.3) Willard: Math Intervention Teacher (1.0)
Contracted Services - $129,964 Includes all operational and educational systems which increase annually. The annual increase can range from 3%-5% Software and licensing Zoom Licenses $60,00 Nursing Services $60,000 for two students that require nursing services within their IEP.
Transportation - $39,199 3% increase in based on Contract with New Britain Transportation 1.22% budgeted, $39,199 Use of Special Education Excess Cost Grant funds Reduction in repairs and maintenance
Tuition - $114,928 Magnet School rate increase - 4% Private & public annual rate increases - 3% Additional outplacement - $80,000
All Other Expenditures 2020-2021 Requested: $62,186.00 We have exceeded this amount significantly this year 2021-2022 Requests: $122,289.00, 80.57% increase Original requests over $1,000,000 reduced to $50,103 Capital Improvement not accepted in the Capital Plan $949,897 in unfilled requests at all schools, all levels Routine Painting District wide Restoration of Recess Area Window Repairs
ESSER Grant/CRF Grant ESSER I: $134,641 ESSER II: $596,937 (Anticipated) CRF: $285,005 Next Steps: Board of Education members review materials Finance & Operations Committee for Discussion/Agenda Item Board of Education Discussion/Agenda Item
Elementary & Secondary School Emergency Relief Fund (ESSER I) CSDE Approved $144,775 $10,134.00 reimbursed to Saint Paul School $134,641 reimbursed to Berlin Public Schools for the initial purchase of Zoom Rooms & Licenses for secondary level Actual Cost of initial Zoom purchases $506,429
Elementary & Secondary School Emergency Relief Fund (ESSER II) Anticipated Funds $641,868 Authorized Uses for ESSER II Funding Not intended to supplant local funding Assumed 7% allocation to Private Schools Address Learning Loss Provide Mental Health Services Purchase Educational Technology Training & Professional Development Summer Learning Programs School Facilities Improvements & Repairs (HVAC)
Hartford Open Choice Enrollment Projected 2021- 2022 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Choice Students 96 92 131 116 121 120 Total 2792 2781 2787 2735 2688 2564 Enrollment % Choice Students 3.44% 3.31% 4.70% 4.24% 4.50% 4.37% 2020-2021 school year we accepted 16 new seats for Choice students. 9 Kindergarten Students 4 First Grade Students 2 Third Grade and 1 Eighth Grade all siblings of students in district Every effort is being made to accept students at the Kindergarten level with a conscious awareness of maintaining at least 4% Choice Enrollment Choice Funds are tied to additional staff and programs
Hartford Open Choice Budget Potential Alternatives
Berlins adopted budgets in the past two years have compared favorably Adopted 2016-17 Adopted 2017-18 Adopted 2018-19 Adopted 2019-20 Adopted 2020-21 5 Yr. Average Increase District Rocky Hill 5.76% 2.93% 4.54% 2.50% 3.84% 3.91% Farmington 3.80% 2.37% 2.54% 2.90% 3.35% 2.99% Cromwell 1.74% 2.00% 1.53% 3.29% 3.60% 2.43% Berlin 1.09% 1.58% 1.30% 3.21% 3.20% 2.08% Glastonbury 2.11% 0.00% 2.20% 3.16% 2.81% 2.06% Wethersfield 0.42% 0.75% 2.97% 3.50% 2.05% 1.94% Newington 0.49% 0.29% 3.40% 2.70% 2.67% 1.91%
Berlin and State Per Pupil Expenditure In 19-20 school year, state per pupil spending was $19,339, Berlin per pupil spending was $18,024 or $1,315 less than state.
BOE % of Town Budget Compared to Surrounding Districts Berlin has the lowest percentage: 50.74%
