Proposed Budget Asks for One Mill Increase

Town Manager Michael Milone’s proposed budget calls for a four percent spending increase for a total budget of $99.5 million or $3.9 million more than the current year’s spending plan.

Milone, who released the 172-page document at a news conference on Thursday, said the proposal would raise the mill rate by one mill to 27.5 mills. That increase, for an average family of four, would increase property taxes in the next fiscal year by about $250.

 “In the past years we’ve been able to develop expenditure plans that were very meager,” Milone said. His summary of budget increases shows the budget increased an average of 1.87 percent for the past three years.

 This year’s increases were due, in part, to medical insurance claims, Milone said, which exceeded the funds budgeted. “Over the past two years, about $1 million more was paid that budgeted on insurance,” he said.

 A majority of the budget increases are found in five categories, Milone wrote in the budget summary. An unusual occurrence of one additional bi-weekly payroll (27 rather than 26 paydays) accounts for 22 percent of the increase, or an additional $431,000.

 Other increases are 19 percent, or $364,000 for pensions; a 21 percent increase in medical benefits at a cost of $403,730; a $288,000 increase in wages which amounts to a 15 percent increase and an increase in social security costs of $44,650 or 2.3 percent.

 Those five categories account for 62 percent of the total budget increase, Milone stated in the summary.

 The town’s general fund balance, also called the “rainy day fund” is well financed with a total of $8.9 million in the account. Milone said the Town Council might choose to use some of those funds to reduce the proposed mill rate increase.

 “We’ll take a long hard look at redirecting the fund balance,” Milone said.  “We could eliminate or modify some services,” he added.

 Those services, however, would not affect residents’ access to social services or other assistance programs. Rather, the savings could be found, Milone said, if changes are made in how town collects and disposes of solid waste. A reduction in the use of some streetlights could also produce some savings, he said.

 Milone said the only change he made to the Board of Education budget is a decrease of $700,000 that stems from savings in medical benefit costs that were less than budgeted.

 “I would never make a recommendation on changes that would impact the programs of the Board of Education,” Milone said.

 The council began its budget deliberations Thursday night and will hold two sessions next week, on Tuesday and Wednesday at 6:30 p.m. in Town Hall. Other budget meetings are scheduled on March 21 and 22 and March 24 also at 6:30 p.m.

 The public hearing on the budget will be held April 5 at 7 p.m. in the Town Council Chambers. The council is expected to approve the budget on April 12.