FARMINGTON — Selectmen were given an overview  of the draft budget for 2024, initially up $762,719 or 5.3% over current spending at their meeting on Tuesday evening, Jan. 23.

Voters at annual Town Meeting last year approved an $8.48 million budget which did not include county and school taxes. It was a little over $14.39 million with those taxes, according to information Town Manager Erica LaCroix provided. The proposed budget with county and school taxes is about $15.15 million.

Some members of the Budget Committee, which was to start review of the budget on Thursday attended the meeting.

“This is a preliminary, draft budget, our first shot,” Selectman Stephan Bunker noted. “The Select Board and Budget Committee have not had a chance to discuss things. This is a work in progress, but I like what I see in here.”

According to LaCroix, increases in the budget are due to:

• $307,000 for personnel costs, including 3% cost of living adjustment, contractual increases, wage adjustments due to completion of probationary period, the new town manager’s salary and a 4.25% rise in health insurance premiums.

• $270,570 for Public Works: $115,606 for operating costs – primarily in motor fuel, summer and winter road maintenance and vehicle and equipment maintenance costs – with the remainder for personnel increases.

• $328,742 for county taxes due both to an estimated 6% increase in the assessment [per the County Administrator] as well as having significantly under budgeted in 2023. The appropriation was $680,458, but the assessment came in at $830,126 – an overage of 22% beyond the budget.

• $393,136 or 5% for school funding which was also under budgeted last year.

The budget as proposed consists of 8.5% allotted to the county, education takes up 43.6% and the remaining 47.9% goes towards municipal operations, LaCroix stated. The county and Regional School Unit 9 use the fiscal year timeline for budgeting – a July 1 to June 30 calendar – and exact numbers aren’t known yet, she noted.

Bunker said it was worth having a discussion on Farmington changing to fiscal year budgeting.

The increase for Public Works was almost completely offset by decreases in capital expenditure, which overall decreased $230,081, LaCroix noted. While there are some significant increases to individual line items in capital, there was a decrease of $440,000 in Public Works Facilities and Equipment, which far surpassed the other increases, she said.

The expenditure increase is also offset by increased revenue estimates of $418,866, LaCroix noted. Most is due to the 2023 tax commitment [the budgeted amount is always based on the prior year], with $100,000 from increased state revenue sharing, she added.

Workers compensation insurance is dropping across all lines, there was a huge adjustment in March, LaCroix noted.

Outside organizations in the amount of $17,998 was removed as the county has agreed to pay those, she stated.

Farmington’s net appropriation request is just north of $11.8 million, LaCroix said. The estimated tax commitment, using the April 1 property valuations required by the state, would see a mil rate of 0.73 – up from $19.91 per thousand to $20.64 per thousand of property value, she noted. It is an estimate because the assessor has to complete all required work, which doesn’t happen until August, she said.

The average home valuation in Farmington is $153,354, LaCroix stated. “It takes quite a bit of movement in either direction to make significant differences,” she said. “If we change our budget in $50,000 increments either way, you are looking at $13.35 on the tax bill.”

The proposed budget is more than $800,000 below the LD1 tax limit set by the state and which requires voter approval for going over, she stated.

Selectmen will meet 6:30 p.m. Tuesday, Jan. 30, in the Municipal Building downstairs conference room to review the budget in more detail.

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