WHITE RIVER JUNCTION — Property taxes will go up if Hartford voters approve proposed town and school budget proposals and a $21 million school renovation package.

Exactly how much remains unclear.

This week, both the Selectboard and School Board finalized spending plans for residents to consider at Town Meeting in March. Tax increases are projected in both budgets, but the spike is higher on the school side. School officials are hopeful that a new state education finance law will help lessen the blow for taxpayers.

On Wednesday, the School Board finalized a budget proposal of $52.4 million for the 2024-2025 school year.

School district administrators made $1.2 million in cuts to arrive at the $52.4 million figure approved by the board. The trims eliminated three positions, including a teacher position that was funded last year with federal pandemic aid, a paraprofessional and one of the new custodial hires requested by the maintenance department.

The board, however, retained funding for a second superintendent to work alongside current Superintendent Tom DeBalsi for a year in order to facilitate the district’s transition in leadership. DeBalsi is retiring at the end of next school year.

The board is continuing as planned with the superintendent search in spite of opposition from some, including the teachers’ union. 

The Hartford Education Association, in a letter to the School Board, said it felt having two overlapping administrators was an unnecessary expense that could create confusion in the district regarding its leadership.

“The salary of a second superintendent could potentially pay for up to seven support staff positions or several teaching positions, all of which would have an immediate positive effect on day-to-day operations,” the letter states.

Even with the $1.2 million in cuts, the board’s budget proposal would result in a 42% increase in the homestead tax rate, or an additional $2,250 on a $300,000 home. This increase is largely due to a drop in the town’s Common Level of Appraisal, or CLA, which is part of a formula used to ensure that each Vermont town is paying its fair share to the state education fund.

Surging property values in recent years have caused Hartford’s CLA to fall to 66%, which means that the town’s grand list — or total assessed values of all properties — reflects only 66% of the actual market value of those properties.

The School Board anticipates this tax impact being significantly reduced by Act 127, a 2022 law designed to help send more dollars to higher-need schools.

Under the law, the state will cap a district’s 2024 homestead tax increase at 5% and make up for the shortfall in revenue — provided that the district’s budget keeps its increase in per pupil spending under 10%.

After cutting $1.2 million from the budget proposal, Hartford’s per-pupil spending increase next school year is 8.9%.

However, the state Legislature still needs to create a plan to fund this additional assistance, which will also depend on how many school districts plan to seek this funding, according to Jacob Vezina, Hartford’s school finance director.

In addition, the offer of state money to schools is also in question. In a recent letter to school districts, state Rep. Emilie Kornheiser, D-Brattleboro, chairperson of the Ways and Means Committee, and Sen. Ann Cummings, D-Montpelier, chairperson of the Finance Committee, said that the additional state assistance is only intended for schools whose funding is affected by the changes created by Act 127 — not to help school districts manage the costs of inflation or skyrocketing home values.

Jonathan Garthwaite, Hartford’s building and grounds director, said the $21 million school renovation bond would fund district-wide repairs and improvements over the next several years, as well the development of a long-term facilities plan to help the district anticipate future building needs based on student enrollment trends.

The district has many projects that will have to be completed eventually regardless of whether the bond passes, including heating and ventilation system upgrades, roof replacements, stormwater improvements and fire safety compliance, Garthwaite explained at Wednesday’s meeting.

Hartford resident Tim Fariel warned against borrowing a large lump sum now, when some of the projects would be completed for several years.

“If I had a car, I’m not going to put a new radio in or fix the carpet if I’m going to trade it in and get something better,” Fariel said.

“You’re presenting to voters this full menu of things that you need to do while also saying that you need to do a study of where you’re going.”

School Board member Sara Campbell said that a large lump sum would give the district more flexibility rather than coming back to get voter approval for multiple smaller amounts.

“Our thought to go for the bigger number was not to go back (to the voters) every two years, which at some point becomes exhausting,” Campbell said.

The district will draw $715,000 from its capital reserves to make the first year repayment on the $21 million infrastructure bond if it is approved. If voters reject the bond, this money will be spent on building repairs that the bond would have funded.

On the municipal side, the Selectboard voted 6-1 to approve a budget proposal of $21.6 million for fiscal year 2025, with $16.5 million to be raised by taxes.

The proposal represents a 7% tax increase, resulting in a new estimated tax rate of $1.15 per $100 of assessed property value, or $3,450 on a $300,000 home.

New positions funded in the proposal include a public information officer, a crime data analyst in the Police Department, a housing specialist in the Planning Department and a part-time community nurse.

The budget increase also was driven by a contracted 4% wage increase for town employees and a 14% increase in employee health insurance premiums, according to Town Manager John Haverstock in a written budget summary.

“To soften the impact of the wage and benefit cost increases and the addition of several positions, the Selectboard has authorized the use of $2 million of the unassigned fund balance to tax relief,” Haverstock said.

Selectboard member Lannie Collins, who cast the minority vote against the budget proposal, said he opposed adding the new positions at this time.

“We gave no thought to the average taxpayer’s ability to pay (for these increases),” Collins said in a phone interview on Thursday.

Selectboard Clerk Kim Souza said in a phone interview that the board worked arduously to make this budget “as lean as possible” while still being able to provide needed town services and livable wages for the employees.

The Selectboard and School Board will present their budgets at an informational meeting on Monday, Feb. 26, in the Hartford High School auditorium at 7 p.m. The in-person Town Meeting will take place on Saturday, March 2, at 10 a.m. in the high school gymnasium. Ballot voting will take place on Tuesday, March 5, in the high sch ool gym from 7 a.m. to 7 p.m.

Patrick Adrian may be reached at padrian@vnews.com or 603-727-3216.

CORRECTION: The Hartford School   District's final budget proposal for the 2024-2025 school year includes funding for a second superintendent position. A previous version of this story was incorrect about that position's funding status.