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Responding to a question from Mr. Lynch, Ms. Beauregard said that the decrease <br />in personal property tax revenue this year is due to Blue Book changes. <br /> <br /> Mr. O'Connell asked for an explanation of State changes and their impacts on <br />personal property tax, and Ms. Jennifer Brown, Treasurer, said that the General Assembly <br />enacted changes in the way they reimburse the car tax, and instead of pay as you go, they <br />will not be reimbursing until July 2006 for that fiscal year. She said this will save the <br />State $250 million. She said it is not clear at this time how localities will be reimbursed. <br /> <br /> Responding to a question from Mr. Caravati about the guidelines, Mr. O'Connell <br />said the difference is that departments are being asked to present base budgets as well as <br />a 5% and 10% reduction and impacts. <br /> <br /> Mr. Caravati said he has received calls from agencies who are concerned because <br />they have mandated programs. <br /> <br />Mr. O'Connell said there are a variety of issues with agencies. <br /> <br /> Mr. Caravati said he is interested in knowing how the reduction in new revenues <br />will affect the schools, and said education is his number one concern. He asked how staff <br />envisions replacing funds. <br /> <br />Mr. O'Connell said the implications are not yet known. <br /> <br />Mr. Caravati asked if staff has considered proposing a decrease in the tax rate. <br /> <br /> Mr. O'Connell said that a cap on the tax rate was looked at, but said that would be <br />going from $750,000 to schools to a loss of $186,000, and he is suggesting a budget that <br />does not do that. <br /> <br /> Mr. Lynch asked for a breakdown of revenues, and Ms. Beauregard said she can <br />provide a better breakdown. She noted that estimates are conservative and more <br />information will be available in January. <br /> <br /> Mr. Lynch said that the increase in the sales tax increased SOL funding and the <br />schools got money back from the State last year. <br /> <br />Ms. Beauregard said that the schools got $1.2 million back from the State. <br /> <br /> Mr. Lynch asked how much of a real tax increase comes from new construction <br />versus increases in existing properties, and Mr. O'Connell said that information will not <br />be available until the end of December. <br /> <br /> Ms. Hamilton said that the guidelines refer to identifying areas where <br />privatization might be pursued, and asked if we have saved money in the areas where we <br />have privatized. <br /> <br /> Mr. O'Connell said that the largest area privatized is trash collection and he can <br />get a report to Council on the cost and savings. <br /> <br /> Ms. Hamilton said she has received complaints from citizens about the budget <br />format and that it is hard to understand. <br /> <br /> Dr. Brown agreed, noting that including a wide range of things under "contractual <br />services" gives no sense of what is meant. <br /> <br /> Ms. Beauregard said she hopes to make changes in the budget document and <br />asked for suggestions from Council. <br /> <br /> Mr. O'Connell said that a narrative of what is being cut will also be included in <br />the budget. <br /> <br /> <br />