Where Do Budgets Come From?

With the budget hearing tonight and the May 11 referendum approaching, it's easy to get lost in all the numbers. What exactly are taxpayers voting on in a budget and what components make up a budget?

Avon Patch spoke with Board of Finance Chairman Thomas Harrison to learn more about the making of a budget.

Avon’s budget is composed of five categories.

Board of Education Operating Budget: This year, the Board of Education requested $47.9 million, which is a 4.41 percent increase over the current operating budget. This figure represents the total budget the Board of Education requests, and comprises 60 percent of the overall budget for the town, Harrison said.

Town of Avon Operating Budget: The Town Council is requesting $19.6 million, which is a 2.77 percent increase over the current operating budget. This includes funding for the departments that operate in Avon, such as salary for public employees and costs for the town departments, offices and buildings.

Debt Services Budget: Think of a mortgage. “When we borrow money it’s like taking out home mortgage and we have to pay it off,” Harrison said. The debt services figure tends to decrease because, in theory, the town owes less for bonds as the town pays off the principal and interest on bonds year by year. This year, the Town Council has requested $4.8 million, which is a 4 percent decrease from last year. Both school and town bonds are included.

Sewers Budget: Avon does not have a sewage treatment plant, so sanitary sewage waste is sent to Simsbury. The cost to use Simsbury sewage treatment services is not funded by Avon property taxes, but rather reimbursed by payments from the people connected to the sewer system. This year, the Town Council requested $1.7 million for sewer services.

Capital Improvement Program Budget: Projects funded by Capital Improvement money usually are as highly expensive to the point that bonding is needed to cover them, Harrison said. This could include new fire trucks or patrol cars for the police department, roof repairs, or fixing the high school boiler.  The Town Council has requested $1.5 million. Both school and town capital improvement projects requests are considered when determining the request.

What Total Budget Are Taxpayers Voting On in May?

When taxpayers go to the referendum, they will vote on the total budget number, which is a combined spending request of $75.6 million, or a spending increase of 3.8 percent above the current budget. That number will not detail the breakdown of each of the five categories, but the budget details are available on the town website. There is no separate vote for the town’s operating budget and school board’s operating budget.

The annual town meeting will take place on May 2 at 7 p.m. in the Avon Senior Center. The referendum is scheduled for May 11 from 6 a.m. to 8 p.m. at the senior center.

How does Avon get its revenue?

Property Tax and Assessments: The largest percentage of revenue comes from property taxes, and this is one of the last things that the Board of Finance determines.  Based on current calculations, Robertson predicted that the property tax rate may increase by 4.1 percent if no changes are made in the requested budget. The Board of Finance reviews the budget and calculates what the taxes would be based on that budget.  Based on the current budget proposal, Harrison said that about 88 percent of revenue will come from property tax.

Non-Property Tax Sources: This includes state reimbursement and grants, and money collected from building and parking permits, pool passes for the town’s public pool, recording fees, donations to the town, sewer fees and other fees that the town collects that are not property taxes. The Town Council anticipates non-property tax revenue in fiscal year 2011-12 to be about $8.5 million.

The Board of Finance public budget hearing will be at the Avon Senior Center at 7 p.m. on Monday. If the Community Room is overcapacity, the meeting will be moved to the Avon High School auditorium.