Budget level, but taxes rise

Preliminary expenses are projected at $11.1 million for the fiscal year that starts next July 1, almost identical to current spending. Of that total, $8.4 million would come from taxes.

“The big story, if there is one, is a reduction in surplus carryover,” Town Manager Charles Safford told the select board Monday.

For the current budget year, the surplus carryover was $612,000; for the next year, it’s expected to be only $228,000.

On Monday, the select board held the first of three planned discussions on the next town budget. Board members discovered that, while it’s nice to run large budget surpluses, it isn’t a good idea to get used to them.

In fact, Safford says he wants to tighten the town budget, which would leave less wiggle room for midyear changes in direction, but would be more fiscally responsible.

“We ought to eventually not see surplus carryover as a revenue source,” Safford said Monday.

He suggested letting the surplus shrink year after year — the sharp drop-off being discussed now is a big step in that direction — and figure out ways to create a rainy-day fund, and other ways to spend future surpluses. Some towns, for instance, spend unexpected surplus money on town improvements.

Selectman Neil Van Dyke agreed: “Sometimes you’ve got to wean yourself off” the surplus money.

Inside the budget

The budget talks are in very early stages, all projected figures are subject to change, and residents can weigh in Jan. 12 and Jan. 25 on town spending decisions. Only then will the select board firm up the budget proposal that voters will consider on Town Meeting Day March 3.

Safford has presented his budget proposal, drawn from requests and discussions from town department heads. Among spending decisions that affect all town departments:

• No new jobs will be created. Though the police department has hired two new officers, that just brings the department up to its regular staffing level.

• Electricity costs are expected to go up 1 percent, even though Stowe Electric is keeping its rates the same next year.

• Unionized town employees will get an across-the-board 1.5 percent pay raise, as called for in their contracts. Safford said that’s in line with the consumer price index, which tracks costs of a market basket of consumer goods and services purchased by households.

• Health insurance costs will rise between 2.5 and 2.8 percent in the first six months of the next fiscal year, and 3.8 to 5.6 percent starting in 2016, when the town is required to move to Vermont Health Connect.

• Fuel prices have been estimated by using a three-year average and the percentage change in the past year.

Other cost variables include keeping Stowe’s roads clear and safe during the snowy months, with winter sand costs going up $25,000. Town officials worry there’s not enough sand in the town-owned gravel pit to meet the need. And, road salt prices are expected go up nearly 9 percent, as costs increase nationwide.

“Road salt is a real sleeper in this budget,” Safford said.