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1. Town of Avon
Board of Finance
Public Budget Hearing
Proposed FY 11/12 Budget
April 4, 2011
www.town.avon.ct.us 1

2. Requested Budgets
Adopted Requested
$ Inc/(Dec) % Inc/-Dec
FY 10/11 FY 11/12
Town
$19,085,060 $19,614,213 $529,153 2.77%
Operating
Board of
$45,921,022 $47,945,180 $2,024,158 4.41%
Education
Sewers $1,689,479 $1,709,207 $19,728 1.17%
Debt Service $5,010,181 $4,808,189 ($201,992) -4.03%
Capital Imp. $1,167,396 $1,566,857 399,461 34.22%
TOTAL: $72,873,138 $75,643,646 $2,770,508 3.80%
Mill Rate Needed 24.44 25.44 --- 4.09%
www.town.avon.ct.us 2

3. Board of Finance’s Role is to Balance:
and
www.town.avon.ct.us 3

4. Questions that
may be on your mind….
I. What is the role of the Board of Finance?
II. How do CT Towns raise revenue?
III. How will Avon raise the revenue to support
the requested budgets?
www.town.avon.ct.us 4

5. Connecticut
Supreme Court
“Boards of finance are charged
with the duty of providing the necessary funds
and, at the same time, of seeing to it that
expenditures for an education program
are kept within reasonable bounds in view of
the overall financial resources of the town.”
Fowler vs. Enfield, 138 Conn. 521, 532 (1952)
www.town.avon.ct.us 5

6. Avon Town Charter
Section 9.4.1 (b)
The Board “shall make those revisions in
the budget as the Board of Finance
deems desirable and shall recommend
the budget so revised to the voters at the
Referendum.”
www.town.avon.ct.us 6

7. How Do CT Towns Raise Revenue?
State law is very restrictive:
 No Income Tax
 No Sales Tax
 No Taxes on Tobacco, Alcohol, Gasoline, or Hotel Rooms
...but…
www.town.avon.ct.us 7

8. The Governor has proposed
a wide array of
new or increased state taxes:
 income tax
 gasoline tax
 sales tax
 property tax on boat
and aircraft
many others…
www.town.avon.ct.us 8

9. SO…What’s LEFT for Towns?
NOT MUCH:
1) Non-Property Tax Sources
(such as Licenses, Fees, Permits, Grants, etc.)
2) Property Taxes & Assessments
www.town.avon.ct.us 9

10. How Avon Relies On These Sources
Current Budget Requested Budget
Non-Property Tax
Sources: $8,798,353 $8,515,089
12.07% 11.25%
of revenues of revenues
Property Taxes &
Assessments: $64,074,785 $67,128,557
87.93% 88.75%
of revenues of revenues
TOTAL: $72,873,138 $75,643,646
www.town.avon.ct.us 10

11. Revenues needed to fund the
Requested Budgets
ALL FUNDS REVENUE 2010-2011 2011-2012
CLASSIFICATION BUDGETED REQUESTED
Property Tax & Assessments $64,074,785 $67,128,557
Intergovernmental 3,656,267 3,454,515
Licenses, Fees & Permits 940,480 864,480
Charges for Current Services 3,210,371 3,159,655
Other Local Revenues 489,088 452,466
Other Financing Sources 502,147 583,973
TOTAL REVENUE $72,873,138 $75,643,646
www.town.avon.ct.us 11

12. Property Tax Breakdown
for Requested FY 11/12
(88.75% of Revenue)
All these items below constitute the “Levy”
a) Single Family Homes: 66.42 %
b) Condos: 12.72%
c) Commercial: 10.75 %
d) Motor Vehicles: 6.12%
e) Personal Property: 2.89 %
f) Industrial: 1.08 %
g) Other: 0.02%
(Note that the “Single Family Homes” category pays about 58.94% of Avon’s Total Revenue.)
[From October 1, 2010 Grand List]
www.town.avon.ct.us 12

13. Non-Property Tax Breakdown
for Requested FY 11/12
(11.25% of Revenue)
a) Intergovernmental (State/Federal Grants): 4.60 %
b) Licenses, Fees, & Permits: 1.14%
c) Charges for Current Services: 4.18%
d) Other Local Revenue & Financing Sources: 1.37 %
www.town.avon.ct.us 13

14. Revenue Graph Comparison
$80
$70 12.07% 11.25%
$60
$50
In Millions
88.75%
$40
Non-Tax Revenue
$30 87.93% Tax Revenue
$20
$10
$0
Budgeted FY 10/11
Requested FY 11/12
www.town.avon.ct.us 14

15. How will these Revenues be used?
$60
$50
$40
In Millions
Town Operating Budget
School Operating Budget
$30 Sewer Operating Budget
Debt Service
Capital Budget
$20
$10
$0
FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Requested FY
11/12
www.town.avon.ct.us 15

16. How will these Revenues be used?
$80,000,000
$70,000,000
71.46% 71.43%
$60,000,000
69.96%
70.82%
$50,000,000
70.34% T otal Board of Education = BOE Operating, BOE
CIP, BOE Debt
$40,000,000 69.80%
T otal T own of Avon = T own Operating, T own CIP,
T own Debt
$30,000,000
$20,000,000
30.20% 29.66% 29.18% 30.04% 28.54% 28.57%
$10,000,000
$0
FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Requested FY
11/12
www.town.avon.ct.us 16

17. 5 Year Grand List History
15.21%
16.00 Growth
Re-Eval Year
14.00
% Net Change in Grand List
12.00
10.00
8.00
6.00
4.00 1.80% 1.56%
Growth Growth
2.00
0.475% Growth
0.783% Growth Estimated
0.00
FY 07/08
FY 08/09
FY 09/10
FY 10/11
FY11/12
www.town.avon.ct.us 17

18. Consumer Price Index
5 – Year History
Calendar Year CPI * % Change
2006 201.6 3.2%
2007 207.3 2.8%
2008 215.3 3.8%
2009 214.5 -0.4%
2010 218.1 1.6%
* Source: Bureau of Labor Statistics, CPI-U, US City Annual Average
www.town.avon.ct.us 18

19. Social Security
(COLA)
5-Year History
Year COLA
2007 - 3.3%
2008 - 2.3%
2009 - 5.8%
2010 - 0.0%
2011 - 0.0%
www.town.avon.ct.us 19

20. Avon Unemployment Rate
5 – Year History
Year Annual Average
2006 2.9%
2007 3.0%
2008 3.6%
2009 5.5%
2010 6.0%
Feb. 2011 6.1%
(most recent)
* Source: Department of Labor, State of Connecticut
www.town.avon.ct.us 20

21. Multi-Town Comparative Data
2009 Equalized 2009 Adjusted
Town Mill Rate Tax Levy Per Capita
Avon 15.17 $3,473
Canton 16.13 $2,825
East Granby 17.28 $2,758
Farmington 13.47 $2,819
Glastonbury 19.83 $3,466
Granby 20.40 $2,720
Simsbury 20.71 $3,254
West Hartford 24.79 $2,987
* Source: Office of Policy and Management – Municipal Fiscal Indicators FY 2005 - 2009
www.town.avon.ct.us 21

22. Tax Impact
Requested Expenditures
Assessed House & Vehicle Values in Avon
(Single Family Homes & Condos)
Assessed Current Property Tax
Assessment House & Vehicle Property Tax If Budget is
Distribution Values (24.44 mills) approved
(25.44 mills)
25% $205,510 $5,023 $5,229
50% $267,180 $6,530 $6,797
75% $374,660 $9,157 $9,532
For your specific real estate & motor vehicle taxes, please visit:
www.avonassessor.com
www.town.avon.ct.us 22

23. Next Steps
Next Steps in Process
• Public Hearing – Monday, April 4th, 7:00 p.m. @ Avon Senior Center
• Workshops (at the Senior Center)
Both the workshops listed below are not public hearings:
• Wednesday, April 6th – 7:00 p.m.
• Monday, April 11th – 7:00 p.m. (if necessary)
• Town Meeting – Monday, May 2rd – 7:00 p.m. at the Avon Senior Center
• Referendum – Wednesday, May 11th at the Avon Senior Center
(Polls are open from 6:00 a.m. – 8:00 p.m.)
www.town.avon.ct.us 23