FTA's Taxpayer-Friendly Recommendations For Upcoming Budget Season

March 3, 2010 (originally sent as Email)

Dear fellow Farmington Taxpayers Association supporters:

It's town budget time again!  This week, we expect the Town Manager to present to the Town Council and the public a proposed budget that, if approved, would increase our property taxes by over 5% (we think closer to 6%). Can you imagine that, a 5+% increase in these lousy economic times! We know that the Board of Education wants a 5.2% increase (over $2.5 million in additional spending) even with student enrollment declining for the 6th year in a row!

The Farmington Taxpayers' Association Board of Director's unanimously agreed 2 weeks ago that we would strenuously fight any proposed tax increase that's over 1%, never mind 5 or 6%!

On February 23, we presented to the Council the attached letter and budget exhibit (both also pasted below) that stated we could accept a 0.6% increase in the mill rate - and that increase is to be used only to repair some town roads that are in disrepair.

We see no reason to increase spending for either town government or the Board of Education, particularly during these very difficult economic times!

Assuming you agree with us, we ask you to do the following:

 (1) attend the town council meeting on Tuesday March 9 and tell them what you think of the town managers' and the Board of Education's proposed increase in spending

 (2) if you cannot attend on March 9, attend on March 23, when the Council will formally adopt their proposed budget

 (3) attend the Annual Town meeting on April 26 and let your feelings be known on the proposed budget

 (4) vote on May 6

 (5) let us know if you are willing to help us - either with signs on your lawn, helping us distribute signs, a financial contribution, or working on voting day to help spread our message. We do need your help!

We will keep you as up-to-date as possible during the next 2 1/2 months as events unfold. Thanks again for your continued support.

The Board of Directors

Farmington Taxpayers Association

PS: To help FTA, to join us, to contribute, or to discuss other matters,

please contact us at: 

Email:     info@FarmingtonTaxpayersAssoc.org

Snail:      PO Box 1575, Farmington CT 06034-1575 (1575 is the corrected Box Number)

Phone:   Contact an FTA Board Member

(FTA Board:

Sam Iritano, Harry Kraiza, Bob Greger, Deborah Netto, Ron Faibusch, Ron Harrison)

Letter to Mike Clark and Town Council 

February 23, 2010

Mr. Mike Clark
Council Chairman
Town of Farmington
I Monteith Drive
Farmington, CT 06032

Dear Mr. Clark and member of the Town Council:

As we approach the upcoming budget season, I believe it is appropriate to recognize some very important facts facing most Farmington taxpayers.  Our economy is lousy at best.  Those of us that receive either social security and/or a qualified pension received no increase in 2009 – and most likely will receive no increase in 2010.
With the exception of energy prices, inflation is effectively flat! The costs of goods and materials faced by the town are not going up.

State and local unemployment and underemployment remain at record high levels.
Both residential and commercial real estate values in our area are not even close to starting to rise.

It is this “reality of our economy” that the Farmington Taxpayers Association has taken into consideration when we prepared both an “FTA” budget and a possible Town manager budget for 2010-2011.

First, the possible Town manager budget:

(1) It will include a 5.2% increase in Board of Education spending – they have again totally ignored your financial targets and the economic realities of today’s times-not withstanding the fact that student enrollment will decline for the 6th year in a row!
(2) It most likely will include a 2% increase in spending for town government-in line with you targets.
(3) It will include a 350% increase in capital spending-an increase of approx. $1.5 million.

(4) It most likely will include the $300,000 less in State grants that is in the Governor’s proposed budget, less interest income due to lower interest rates and less fund balance dollars due to our 8% target.

If we are even close in these estimates, the resulting property tax increase is almost 6% - a totally unacceptably high number!

Now, the Farmington Taxpayers Association Budget. It includes:

(1) 0% increase in both the Board of Education and Town spending! The Town manager, and particularly the BOE, must find ways of providing services to the taxpayers at a lower cost! Reducing the workforce, combining services with other communities, outsourcing and privatizing some services and paring down the Board of Education staff to reflect the lower student enrollment levels are absolute cost reductions that must be included in the budget!
(2) 50% of the proposed increase in capital spending ($782,500) – and spend all of the increase on improving town roads that are in bad shape!
(3) The reduced State grants, lower interest income and lower fund balance available that reflect our current economic time.

If FTA's budget was to be adopted, it would result in a 0.6% increase in property taxes –much more of a palatable increase!

Most taxpayers are afraid – their home and business values have continued to decline, their retirement accounts have been dramatically reduced, their jobs are tenuous and businesses are not hiring. Town government must do its part – this is the “reality of the economy”!

Thank for your consideration of our proposal.

Harry Kraiza, Jr.

Vice-President

On behalf of the Board of Directors of the Farmington Taxpayers Association

Spreadsheet showing The Town Manager’s actual budget:

(More recent than is implied by the above letter.)

3/5/2010
	2010-2011 Farmington Budget Scenarios
				TOWN
	2009/2010 APPROVED	FTA BUDGET		MANAGER'S BUDGET
	BUDGET
		$782,500 Increase in Capital		$765,000 increase in capital
		0$ Increase in BOE		5.2% Increase in BOE
		0$ Increase in Town		2.88% Increase in Town
Board of Ed	$49,510,800	$49,510,800	0.0%	$52,086,490	5.2%
Town	22,893,700	22,893,700	0.0%	23,551,331	2.9%
Debt	9,142,000	8,842,000	-3.3%	8,943,305	-2.2%
Capital	635,000	1,417,500	123.2%	1,400,000	120.5%
Total	82,181,500	82,664,000	0.6%	85,981,126	4.6%
Grand List
Real Estate	3,280,722,000	3,313,919,000	1.0%	3,313,919,000	1.0%
Personal Prop.	196,223,000	196,706,000	0.2%	196,706,000	0.2%
Motor Vehicles	196,079,000	194,464,000	-0.8%	194,464,000	-0.8%
Total	3,673,024,000	3,705,089,000	0.9%	3,705,089,000	0.9%
Revenue
State Grants	6,629,000	6,329,000	-4.5%	6,466,514	-2.5%
Interest	275,000	200,000	-27.3%	210,000	-23.6%
Other	2,809,000	2,809,000	0.0%	2,826,200	0.6%
Fund Balance	950,000	750,000	-21.1%	500,000	-47.4%
Total	10,663,000	10,088,000	-5.4%	10,002,714	-6.2%
Property Taxes	72,569,800	73,643,836	1.5%	77,096,308	6.2%
Mill Rate	19.8	19.9	0.6%	20.8	5.3%
% Increase
of Mill Rate		0.6%		5.3%
Over 2009-2010