Special Meeting

News Release Date

09-29-2023

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SPECIAL MEETING – FLOOR VOTE

The following articles will be voted on during a special meeting floor vote:

ARTICLE 1: Shall the votes, pursuant to 24 V.S.A. § 1683(c), approve the Town of Georgia changing the date of its fiscal year end from December 31st to June 30th?

ARTICLE 2: Shall the action taken at the meeting of the Town of Georgia held on March 7th, 2023, in spite of the fact that Article 2 in the Warning erroneously contained an unnecessary item to elect a candidate for Library Trustee for a three-year term, and any act or action of the municipal officers or agents pursuant thereto be readopted, ratified and confirmed?

By default, under Vermont law, the town budget operates on a calendar year of January 1st through December 31st. The law also allows for towns to switch to a fiscal year budget that operates from July 1st through June 30th of the following year.

There are clear advantages to switching to a fiscal year budget:

The school and town will be on the same budget schedule; thus, they should be able to better plan their expenditures concurrently, such as capital projects.
The town voters get to approve the budget in March for the tax year that starts in July. Therefore, no operating expenses are incurred before budget approval. The town currently operates from January 1st until Town Meeting Day with no approved budget in place.
Tax collection may start soon after the beginning of the fiscal year, thus reducing, or eliminating the need to borrow money for operating expenses. (Current interest rates are 8% and up)
Auditors will have more time to perform their statutory duties, as they can audit the town books and accounts in July and August and prepare the town report by December/January.
Winter highway maintenance costs are in a single-year budget cycle and the town's fiscal year will coincide with the state's fiscal year for highway and other funding.

What does this do to my escrow?

From October of 2023 to September of 2024, your escrow financial institution is withholding funds in anticipation of an October 2024 tax bill.
If the change to a fiscal year, July 1 is passed, your banking institution would need to be contacted, explaining the change is ONLY to the municipal tax. NOT the school tax.

What would my potential tax bill look like?

With NO change From the Calendar Year:

Tax Bill Oct 2024

Total Taxable Value $325,000.00
Town (Municipal Tax)   .43 x 3,253= $1,398.79 (This is a 5% increase ESTIMATED ONLY)
Veterans Exemption .0028 x 3,253=   9.11
  _________

$1,407.90

Homestead Education 1.56 x 3,253.00= $5,074.68 (This is a 3% increase ESTIMATED ONLY)

Total Estimated Tax Due $6,482.58 October 15, 2024

Year 2 of No change from Calendar Year:

Tax Bill October 2025

Total Taxable Value $325,000.00
Town (Municipal Tax)   .45 x 3,253= $1,462.50 (This is a 5% increase ESTIMATED ONLY)
Veterans Exemption .0028 x 3,253=   9.11
  _________

$1,471.61

Homestead Education 1.61 x 3,253.00= $5,232.50 (This is a 3% increase ESTIMATED ONLY)

Total Estimated Tax Due $6,704.11 October 15, 2025

With changing the calendar year to a fiscal year:

Year 1 of the proposed change to a fiscal year:

Total Taxable Value $325,000.00
Town (Municipal Tax) $1,398.79 x 1.333= $1,864.59 (The 12 month cost x 1.333)

Veterans Exemption .0028 x 3,253= 9.11
_________

$1,873.70

Homestead Education 1.56 x 3,253.00= $5,074.68 (This is a 3% increase ESTIMATED ONLY)

Total Estimated Tax Due $6,948.38

Two Payments :

August 15, 2024 $3,474.19
February 15, 2025 $3,474.19

Year # 2 of proposed change to a fiscal year:

Total Taxable Value $325,000.00
Town (Municipal Tax) .45 x 3,253= $1,462.50 (This is a 5% increase ESTIMATED ONLY)