The 2011-12 Proposed Town Budget - 5% Increase

To hear We the People of Fairfield, a taxpayers advocacy group, and other fiscally-minded residents, the Board of Education's proposed $146.5 million budget for the 2011-12 fiscal year needs some cutting by the Representative Town Meeting.

But the townside of the proposed budget rises more on a percentage basis than the Board of Education's proposed budget - 5 percent vs. 3.5 percent. And, if retiree benefits are included in the proposed townside budget - as they were until only two years ago - the proposed increase is higher in dollars as well.

The Representative Town Meeting will begin its review of the proposed $264 million town budget for 2011-12 at 8 p.m. Monday in Osborn Hill School. RTM members will make any planned cuts known at that meeting, and the legislative body will then adopt a town budget for 2011-12 at a meeting that begins at 8 p.m. May 2 in Osborn Hill School. The RTM can only cut from the proposed budget; it can't increase it.

The final budgetary action by town officials will be taken by the town's Board of Finance on May 3 when the board sets the tax rate for the fiscal year that begins July 1. The current projected tax rate for the $264 million town budget is 22.51 mills, or $22.51 for every $1,000 of assessed property value. Residents can determine their projected tax bill in the next fiscal year by dividing their property assessment by 1,000 and multiplying the resulting figure by 22.51.

As a guide, here is the projected tax bill in the 2011-12 fiscal year for residents with homes assessed at varying amounts:

* $400,000 assessment - $9,004 tax bill.

* $500,000 assessment - $11,255 tax bill.

* $600,000 assessment - $13,506 tax bill.

* $700,000 assessment - $15,757 tax bill.

* $800,000 assessment - $18,008 tax bill.

* $900,000 assessment - $20,259 tax bill.

* $1 million assessment - $22,510 tax bill.

The projected tax increase, on a percentage basis, isn't the same for every resident, as it normally is, because of the recent townwide revaluation. Residents who saw their property values decline significantly will see a lower tax bill next year, while residents whose properties maintained their value or increased in value will see a much higher tax bill next year.

But the increase in the overall town budget is uniform at 5 percent - from the current $251.6 million budget to the proposed $264 million budget, which is an increase of $12.5 million (numbers aren't exact due to rounding.)

Of that proposed $12.5 million increase, $6.5 million is due to the townside budget ($3.9 million for townside operations and $2.6 million for retiree benefits), $1 million is due to annual debt service, and $4.9 million is due to the Board of Education.

Here is the breakdown, with a comparison to the current budget.

* Townside operations: From $77.9 million to $81.8 million, an increase of 5 percent or $3.9 million.

* Retiree benefits (used to be included in the townside operating budget, instead of being listed by itself): From $8.3 million to $10.9 million, an increase of 31.7 percent, or $2.6 million.

* Board of Education: From $141.6 million to $146.5 million, an increase of 3.5 percent, or $4.9 million.

* Annual debt service: From $23.8 million to $24.9 million, an increase of 4.3 percent, or $1 million.

The proposed $264 million town budget is nearly identical to what First Selectman Ken Flatto recommended in terms of its overall amount. Flatto had proposed a town budget of $264,041,108, while the Board of Finance voted to approve a town budget of $264,034,123 - a reduction of $6,985, or .000026 percent.

Additional cuts made to Flatto's proposed budget by the Board of Selectmen and Board of Finance were transferred to the Internal Service Fund to shore up reserve accounts for workers' compensation claims and medical expenses for town and Board of Education employees.

Before the proposed town budget reached the Board of Selectmen, Flatto had cut $1.63 million from the $148.5 million budget adopted by the Board of Education in January. The selectmen cut another $400,000, a decision backed by the Board of Finance, so the overall cut to the school board's adopted budget is currently $2.03 million.