1. THE BUDGET PROCESS COMMUNITY PARTICIPATION FORUM 7 PM, OCTOBER 10, 2012 WMS CAFETERIA

2. DEFINITIONS

3. THE GRAND LIST THE GRAND LIST IS PRODUCED BY THE ASSESSOR. IT IS A DOCUMENT THAT LISTS AND VALUES ALL TAXABLE AND NON- TAXABLE REAL PROPERTY, BUSINESS PERSONAL PROPERTY AND MOTOR VEHICLES, ANNUALLY, WITHIN THE TOWN.

4. GRAND LIST IS COMPRISED OF REAL ESTATE VALUES— PROPERTY IS REVALUATED EVERY 5 YEARS PER STATE STATUTE. OUR LAST REVAL WAS APPLIED TO THE 2011 GRAND LIST (CURRENT TAX YEAR) PERSONAL PROPERTY VALUES— PERSONAL PROPERTY DECLARATIONS ARE SUBMITTED TO THE ASSESSOR’S OFFICE ON DEADLINES REGULATED BY STATE STATUTE (Personal property includes office equipment, trailers, horses, unregistered motor vehicles, etc.) MOTOR VEHICLE VALUES— AS DETERMINED BY THE DMV’S RECORD OF REGISTERED MOTOR VEHICLES; VALUE IS ESTABLISHED ACCORDING TO THE NADA (yellow) BOOK BY THE DMV. ALL CT CITIES AND TOWNS USE THE SAME SYSTEM TO DETERMINE MOTOR VEHICLE VALUES.

5. MILL RATE THE TAX PER DOLLAR OF ASSESSED VALUE. THE RATE IS EXPRESSED IN “MILLS” WHERE ONE MILL IS 1/10 OF A CENT ($0.001) FOR EXAMPLE A PERSON WHOSE HOME HAS BEEN APPRAISED AT $250,000 (fair market value) IS TAXED AT 70% OF THAT VALUE = $175,000 (THE ASSESSED VALUE). BASED ON OUR CURRENT MILL RATE OF 21.78, THAT PERSON’S TOTAL TAX BILL FOR THE YEAR WOULD BE $3,811.50. 250,000 X.70 = 175,000 175,000 X 21.78 = 3,811,500 3,811,500 / 1,000 = 3,811.50 WANT TO PLAY THE “What If The Mill Rate Was X Game?” CLICK ON “CALCULATE YOUR ESTIMATED TAXES” FROM THE HOME PAGE OF THE TOWN WEBSITE AT www.woodstockct.gov.

6. BOARD ROLES IN THE BUDGET PROCESS BOARD OF FINANCE— BASES DECISIONS ON WHAT IT BELIEVES THE TOWN CAN AFFORD; ALLOCATES THE AMOUNT TO BE SPENT BY THE GENL. GOVT. AND BOE BOARD OF SELECTMEN— REVIEWS INDIVIDUAL DEPT. BUDGETS THEN CREATES AND MANAGES THE GENL. GOVT. BUDGET ONCE VOTERS APPROVE IT BOARD OF EDUCATION— CREATES THE BOE BUDGET BASED ON THE BUDGET INITIALLY SUBMITTED BY THE SUPERINTENDENT; MANAGES THE EDUCATION BUDGET ONCE VOTERS APPROVE IT

7. PROP 46

9. BUDGET FUN! CALENDAR OF EVENTS

10. JULY THIS IS THE BEGINNING OF THE TOWN’S FISCAL YEAR. TAXES ARE DUE. TAX COLLECTOR COLLECTS TAX PAYMENTS TO FUND THE BUDGET THAT (HOPEFULLY) PASSED IN MAY. TOWN AUDITORS BEGIN THE ANNUAL AUDIT OF GENL. GOVT. AND BOE BOOKS FROM THE PRIOR FISCAL YEAR.

11. AUGUST THE STATE’S FINAL BUDGET NUMBERS FINALLY ARRIVE, EVEN THOUGH THE BUDGET THEY WILL IMPACT HAS ALREADY BEEN APPROVED BY WOODSTOCK’S VOTERS AND THE NEW FISCAL YEAR IS WELL UNDERWAY. (TYPICALLY, THE NUMBERS MATCH UP CLOSELY, BECAUSE THE BUDGETARY NUMBERS HAVE BEEN CONSERVATIVELY ESTIMATED TO AVOID A POTENTIAL SHORTFALL. THE GENL. GOVT. AND BOE CANNOT OVERSPEND THE BUDGET THAT VOTERS HAVE ALREADY APPROVED EVEN IF STATE FUNDING EXCEEDS ANTICIPATED NUMBERS.)

12. SEPTEMBER THE BOS SEEKS PERMISSION FROM THE BOF TO CONDUCT TRANSFERS FROM LINE ITEM TO LINE ITEM IN THE GENL. GOVT. BUDGET. THIS STEP TYPICALLY “WRAPS UP” THE LAST FISCAL YEAR. AUDITORS CONTINUE WORK ON THE GENL. GOVT. AND BOE BOOKS.

13. OCTOBER THE SUPERINTENDENT’S OFFICE SUBMITS ENROLLMENT NUMBERS TO THE ACADEMY AND THE STATE ON OCTOBER 1 ST. THIS WILL DRIVE ACADEMY TUITION AND STATE GRANTS / ENTITLEMENTS. INFORMAL PLANNING MEETINGS MAY BEGIN BETWEEN THE BOF, BOS, AND BOE CHAIRS IN ORDER TO PLAN FOR LONG-TERM CAPITAL PROJECTS AS SPECIFIED IN THE BOE AND GENL. GOVT. BUDGETS. OCTOBER 1 ST IS THE DATE MARKER FROM WHICH THE GRAND LIST IS CREATED. WHATEVER REAL ESTATE, PERSONAL PROPERTY, AND MOTOR VEHICLES THAT PEOPLE OWN AND/OR HAVE REGISTERED AS OF THAT DATE IS THE BASIS FROM WHICH NEXT YEAR’S TAX BILLS ARE CREATED.

14. NOVEMBER PERSONAL PROPERTY DECLARATIONS ARE DUE TO THE ASSESSOR’S OFFICE. REQUESTS FOR AGRICULTURAL EXEMPTIONS (LAND, BUILDINGS/BARNS, EQUIPMENT) ARE DUE TO THE ASSESSOR’S OFFICE, REDUCING THE NET GRAND LIST. DEPARTMENT BUDGET REQUESTS ARE DUE IN THE SUPERINTENDENT’S OFFICE PRIOR TO THANKSGIVING.

15. DECEMBER THE BOE BUDGET IS COMPILED BY THE DISTRICT OFFICE. AUDITOR’S REPORT IS PRESENTED TO THE BOF. THIS ANNUAL REPORT TYPICALLY EVALUATES THE OVERALL FISCAL HEALTH OF THE TOWN AND THE AUDITORS MAY MAKE SPECIFIC RECOMMENDATIONS. GENL. GOVT. BUDGETARY REQUEST LETTERS ARE DUE TO THE BOS BY MONTH’S END.

16. JANUARY THE SECOND INSTALLMENT OF TAXES ARE DUE ON JANUARY 1 ST. THE ASSESSOR BEGINS TO COMPILE PRELIMINARY NUMBERS FOR THE GRAND LIST. THESE PRELIMINARY NUMBERS ARE USED TO ESTIMATE REVENUE BASED ON THE CURRENT MILL RATE AND PROP 46 LIMITATIONS. THE BOF INFORMS THE BOE AND BOS CHAIRS AS TO LIKELY FINANCIAL PROJECTIONS FOR THE COMING BUDGET YEAR DURING INFORMAL DISCUSSIONS NOW AND IN FEBRUARY. THE BOE FINANCE SUBCOMMITTEE MEETS TO REVIEW THE DRAFT BUDGET.

17. JANUARY, CONTINUED THE SUPERINTENDENT PRESENTS THE FIRST DRAFT OF THE BUDGET FOR THE COMING YEAR TO THE BOE. (THIS IS A WONDERFUL TIME FOR THE COMMUNITY TO EVALUATE BOE SPENDING PRIORITIES AND OFFER SUGGESTIONS TO THE BOE REGARDING PROPOSED SPENDING.) THE BOS BEGINS BUDGET MEETINGS WITH VARIOUS DEPARTMENTS AND DEPARTMENT HEADS AT THE TOWN HALL. (THIS IS ALSO A PRIME TIME FOR THE COMMUNITY TO EVALUATE GENL. GOVT. SPENDING PRIORITIES AND OFFER SUGGESTIONS TO THE BOS REGARDING PROPOSED SPENDING.) THE GRAND LIST IS FILED WITH THE STATE BY THE ASSESSOR AT MONTH’S END.

18. FEBRUARY THE TREASURER TYPICALLY GETS ESTIMATES FROM THE STATE REGARDING LIKELY FUNDING PROJECTIONS DESPITE THE FACT THE STATE WILL CONTINUE BUDGET TALKS WELL INTO APRIL AND MAY. THE TREASURER IS GENERALLY INFORMED ABOUT POSSIBLE LEGISLATION THAT MAY IMPACT OUR BUDGET, SO FURTHER ADJUSTMENTS MAY BE MADE TO PROJECTED NUMBERS. BOS AND BOE BUDGET MEETINGS CONTINUE. (THESE MEETINGS ARE GREAT TIMES TO OFFER SUGGESTIONS TO THE BOARDS.)

19. MARCH THE BOE PRESENTS ITS ANNUAL BUDGET AND CAPITAL PLAN TO THE BOF. PER STATE STATUTE, THIS MUST BE PRESENTED 60 DAYS BEFORE THE ANNUAL TOWN MEETING. THE BOS PRESENTS THE ANNUAL TOWN BUDGET AND CAPITAL PLAN TO THE BOF.

20. MARCH, CONTINUED THE COMBINED BUDGET MEETING MARRIES THE BUDGET REQUESTS AGAINST WHAT IS ALLOWABLE (UNDER PROP 46) WITH WHAT FUNDS WILL LIKELY BE AVAILABLE. THE BOF SETS THE BUDGETARY NUMBERS FOR THE GENL. GOVT. AND BOE. THE BOF MAY SUGGEST SPECIFIC LINE ITEM CUTS TO THE GENL. GOVT. BUDGET, BUT THE BOF IS ONLY ABLE TO SET A BOTTOM LINE DOLLAR FIGURE TO THE BOE BUDGET. (IT IS UP TO THE BOE TO MAKE SPECIFIC LINE ITEM CHANGES.) THIS IS ANOTHER OPPORTUNITY FOR CITIZENS TO OFFER SUGGESTIONS TO THE BOS AND BOE ABOUT CHANGES TO LINE ITEMS WITHIN THEIR BUDGETS.

21. APRIL THE PUBLIC HEARING ON THE UPCOMING BUDGET IS HELD BY THE BOF. (THROUGH A MODERATOR, CITIZENS ARE ABLE TO MAKE SPECIFIC COMMENTARY ABOUT GENERAL FUNDING LEVELS, PROPOSED SPENDING OR CUTS IN EITHER THE BOE OR GENL. GOVT. BUDGETS, AND PROP 46.) THE BOF HOLDS A FINAL MEETING TO SET THE FINAL BUDGET NUMBERS THAT WILL BE VOTED ON AT THE ANNUAL TOWN MEETING, TAKING INTO CONSIDERATION COMMENTS FROM THE PUBLIC HEARING. THE BOS WARNS THE ANNUAL TOWN MEETING USING THOSE NUMBERS. THE BOE AND BOS MEET, IF NECESSARY, TO REVISE THEIR BUDGETS BASED ON DIRECTION FROM THE BOF.

22. MAY THE ANNUAL TOWN MEETING (ATM) IS HELD ON THE SECOND TUESDAY OF MAY. SINCE THE BUDGET WILL BE VOTED ON AT REFERENDUM, THE ATM IS MAINLY AN INFORMATIONAL MEETING. CITIZENS MAY ASK QUESTIONS, HOWEVER NO CHANGES CAN BE MADE TO THE BUDGET. THE ANNUAL TOWN MEETING ADJOURNS TO THE BUDGET REFERENDUM, USUALLY HELD ONE WEEK LATER.

23. MAY, CONTINUED THE ANNUAL BUDGET REFERENDUM IS HELD, AND THE TOWNSPEOPLE VOTE ON THE BUDGET. IF THE BUDGET PASSES, THE NEW MILL RATE IS IMMEDIATELY SET BY THE BOF. SHOULD THE BUDGET NOT PASS, THE BOF SETS A NEW BUDGET FIGURE AND INFORMS THE BOS AND BOE WHAT THEIR NEW BUDGETARY LIMITS WILL BE. ANOTHER PUBLIC HEARING, TOWN MEETING, AND REFERENDUM VOTE SOON FOLLOW.

24. JUNE ASSUMING THE BUDGET HAS PASSED, TAX BILLS ARE GENERATED AND MAILED OUT IN TIME FOR JULY 1 ST COLLECTIONS TO BEGIN.

25. OTHER COMMON QUESTIONS

26. HOW IS THE BOARD OF EDUCATION’S NONLAPSING ACCOUNT HANDLED?

27. WOODSTOCK PUBLIC SCHOOLS Code: DBIA Woodstock, CT 06281 Budget Implementation NONLAPSING EDUCATION FUND Any funds expended from the Nonlapsing Education Fund established by the Woodstock Board of Finance, under Public Act 10-108 Section 32, shall be authorized by the Woodstock Board of Education. The Woodstock Board of Education will utilize these funds on a priority basis, with emphasis on its Five Year Capital Plan and/or emergency needs. The fund balance will be jointly reviewed by the Board of Finance and the Board of Education every three fiscal years. Approved: January 27, 2011 Revised: March 24, 2011

28. WHAT ARE SPECIAL REVENUE ACCOUNTS, CAPITAL PROJECT FUNDS, AND TRUST AND AGENCY FUNDS? HOW DO THEY OPERATE IN RELATION TO THE BUDGET THAT VOTERS PASS?

29. WHY DOES SPENDING TYPICALLY INCREASE AT THE END OF THE BUDGET YEAR?

30. ADDITIONAL QUESTIONS OR COMMENTS?