Impact of Separation on the Town Memo from Staff March 26, 2021

Memorandum  

To: Town Selectboard; Evan Teich, Unified Manager  

From: Sarah Macy, Finance Director  

Re: Impact of Separation on the Town  

Date: March 26, 2021  

Impact of Separation on Tax Revenue in the Town  

If the Town and Village were to separate, the Town would lose 42% of its grand list. If the Town  wished to maintain the same general tax rate it would be faced with reducing its FY22 tax levy of  $14,265,056 by $6,019,229.  

Unwinding the existing financial arrangements between the Town and Village has a net reduction  of $1,435,094. And sharing the cost of the police department and the police station buildings costs  based on grand list between the two separated entities has a net reduction of $1,888,053. This  would leave $2,696,082 to be addressed through service reductions, sharing of services (either  with the Village or other community), and reductions in staffing or capital expenditures.  

Show the math with the baseline assumptions only:  

FY22 Tax Levy$14,265,056FY21 Actual Grand List:
Adjust for Current Agreements($1,435,094)Town Grand List        26,832,397
Adjust for Police Sharing($1,888,053)TOV Grand List        15,665,029
FY22 Baseline Separation Levy$10,941,909
If Separated…. FY22 projected Tax Rates:
Town General0.6985Town General0.5264
Town Capital0.0200 Town Capital0.0200
Total0.7185Total0.5464
Increase/(Decrease)0.1721                  
% Increase/(Decrease)31.50%

Show the math to get to a 0% tax rate change in the Town:  

FY22 Tax Levy$14,265,056FY21 Actual Grand List:
Adjust for Current Agreements($1,435,094)Town Grand List        26,832,397
Adjust for Police Sharing($1,888,053)TOV Grand List        15,665,029
Additional Adjustments Required($2,696,082)
FY22 Baseline Separation Levy$8,245,827
If Separated…. FY22 projected Tax Rates:
Town General0.5264Town General0.5264
Town Capital0.0200 Town Capital0.0200
Total0.5464Total0.5464
Increase/(Decrease)                        ‐
% Increase/(Decrease)0.00%

A myriad of additional calculations and decisions would be required to get to a final figure for the  Town. These would include a shifting of costs for County & Regional Functions,  Intergovernmental costs, reduction in Health & Human Services as the budget decreases, sharing  of debt, shifting of staff, and costs associated with splitting records and departments already  consolidated.  

This memo does not address the impact to the Village. 

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