Budget Workshops Strive to Achieve Transparency and Civic Engagement

A new year brings a new budget process, and for Windsor residents who may have many complex questions, an explanation is required. As such, Town Manager Peter Souza will hold a series of budget workshops designed to educate residents about the process, and explain the intricacies of paying the town's annual bills.

The first budget workshop is set for Wed., Jan. 12, 2011 from 7 p.m. - 9 p.m. in the Town Hall Council Chambers.

"Our goal is multi-pronged," said Souza, an 11-year veteran of Windsor's budget process. "The objective is both to provide residents [with] information about the town's fiscal landscape for the 2011/12 budget process — where the revenues come from, what services we provide — plus create a common understanding for folks as to what is involved with state aid, and to provide residents with an opportunity for dialogue, and conversations and input as to what services we are going to prioritize if we are going to have to make choices."

Residents should expect to make some tough choices this year. Souza noted that the changes in federal funding and the state budget's process will impact Windsor directly this year. Last year, Windsor received 15-percent of its funding from state aid, and that amount was divided into 14-percent funding for schools and 1-precent in grants. He expects that number to change by "upwards of about $1 million," he added. "There is going to be some shuffling around by the state, but we need to be prepared to receive less aid than in the past."

The Windsor budget for 2010-11 is approximately $96.3 million. The Board of Education is responsible for $60.7 million, with Souza and his management team responsible for about $36 million. "We are responsible for raising the revenue for all of it, however," Souza said.

Souza estimates that 80 percent of current revenue comes from property taxes (both real estate and personal property), 15 percent comes from state aid and grants, and the final 5 percent comes from revenue-generating sources, such as permits, license fees, registrations, rentals and other sources.

Of the 80 percent in property taxes, Souza estimates that about 38 percent to 40 percent comes from owners of commercial property.

"This has been relatively stable in my 11 years," said Souza. "It's been between 35 and 40-percent every year."

The town's largest commercial taxpayer is Walgreens who owns a large distribution center on International Drive.

"Given the changes in the economy and what has happened in other towns, we have done fairly well," he said. Souza did note that the flat growth in business this past year will have an impact on the town's grand list and sources of revenue. Added to the expected reduction in state aid, Windsor's two main sources of revenue will be shrinking. Combine that reduction with an expected increase in costs – Souza noted that personnel costs due to contract agreements, health insurance costs and pension costs are going to rise – and Souza will have his hands full trying to meet the fiscal needs of Windsor this year.

Input from residents is vital to achieving the budget objectives, he concluded.

"For example, I am estimating that health insurance costs will increase by 11-percent, and that might be a conservative estimate," said Souza. The biggest line item on the budget is personnel, both for the town and for the board of education. Souza estimated that the town has 200 employees, and the board of education employs about 700-750 people servicing the six schools in town (high school, middle school, four elementary schools and the preschool program).

Windsor is a community of about 28,500 people. There are about 4,000 children in the school system.

The budget workshops will have two other dates after next week's session. The second meeting will be on Feb. 9, scheduled after the Governor's state-budget presentation so residents can see the impact of any cuts in state aid. The third session is slated for March 30, a few days before the town council is set to meet to approve the budget for referendum.

Residents will then get their opportunity to vote on the budget in a town-wide ballot the second Tuesday of May.

Almost every town in Connecticut is going to be facing some reduction in state aid. The impact could center on education or could be shuffled by the state to other areas, such as roads, infrastructure or other services. The state's ongoing budget crisis will be explained in these sessions with the ultimate goal for Windsor residents and town officials to reach an agreeable solution to the fiscal questions at hand.

"We welcome input from everyone," Souza said. "Working together, we can meet our goals."