Vernon 2019-20 Budget Proposal: No Tax Increase

VERNON, CT — The Vernon Town Council on Monday voted to send a $93 million 2019-20 budget proposal featuring no general tax increase to a town meeting.

The current fiscal year budget totals $92,171,450 and the 2019-20 proposal totals $93,420,910. That reflects a $1,249,460 increase proposed expenditures.

Here is the breakdown:

• General Government - $30,930,304
• Capital Expenses and Debt Service - $8,620,012
• Education - $53,870,594

The council made a total $109,485 in reductions before voting on it Monday — $38,349 for municipal and $71,136 for education.

Despite the increase in expenditures, the budget proposal calls for no increase to the tax rate. Town Adminstrtator Michael Purcaro credited a "collaborative effort" between municipal and education officials and creative account management for the outcome.

If the budget were to be approved at the annual town meeting, slated for 7 p.m. on April 23 at Rockville High School, the current tax rate of 39.63 mills would stand pat.

So how was it done? Purcaro cited several factors:

• A "history of exceptional financial steweardship." Purcaro defined it, in part, as "strong management" of cash reserves and fixed costs like debt service and pensions, coupled with "spending controls to address potential shortfalls caused locally or by the state."
• An AA2 credit rating from Moody's Investor Services that saves "hundreds of thousands in interest."
• "Strong towwide economic growth and development" that allowed the town to increase the anticipated tax collection rate from 98.40 percent to 98.6 percent for real estate and from 92 percent to 93 percent for motor vehicles.
• A zero-based budget goal for each account and a process that began three months earlier.
• $109,000-plus in cuts.
• "Expanded oppportunities for shared services" between the town and school system like data processing, facilities, finance and human resources.
• An extra $45,000 in revenue from cash portfolio management.
• Several "new and inovative policies" like "a new cloud based multi-patform parcel management system" and a pool system for vehicle use.
• Negotiations that led to 1 percent less for health insurance, 5 percent less on premiums for general liability and 1 percent decrease on some other premiums (on top of a 7 percent decrease last year).