11-005 Code Vt. R. 11-020-005-X
These rules establish the means by which municipal planning funds will be allocated and distributed to Vermont municipalities for the purposes authorized by 24 VSA Section 4306(b)(4).
To qualify for funds under these rules, a municipality must meet both of the following conditions:
The source of funds for these purposes is the sum appropriated to the Department for assistance to municipal planning from the Municipal and Regional Planning Fund as described in 32 VSA Section 9610(c) and 24 VSA Section 4306.
The funds appropriated for municipal planning shall be allocated to Vermont municipalities in the following manner (The methodology for the allocation of funds can be found in Appendix A to these rules):
The funds may be used to:
On or about January 15 of each year the Department will prepare an estimate, based on the Governor's proposed budget, of the next state fiscal year's allocation for all municipalities. The Department will at that time inform all municipalities of their estimated allocation.
On or about May 1 of each year, the Department will mail a questionnaire to each municipality receiving planning funds. The questionnaire shall ask the municipality to describe how the funds have been expended. If the funds have not been expended, the municipality will explain for what purpose(s) the funds are being carried over.
The Commissioner may withhold funding if the municipality has not expended the prior fiscal year's funds for one or more of the eligible uses set out in Section 1.6 of these rules or has not carried over the funds for future expenditure on one or more of the eligible uses. In making a determination to withhold funding, the Commissioner may request the municipality to produce documentation showing how the planning funds have been expended. Before the Commissioner makes any final determination to withhold funding, the Commissioner or his or her designee shall meet with officials from the involved municipality, if the municipality so requests, to review the matter.
All funds remaining undistributed by the end of any state fiscal year shall revert to the Municipal and Regional Planning Fund.
Appendix A. Methodology for the Allocation of Funds.
In order to demonstrate how the municipal allocation formula is applied, a hypothetical example, using the Town and Village of "Deerfield", is shown below. The numbers in this example are therefore not real, and any resemblance to an actual municipality is purely coincidental. These calculations are based on an assumed allocation of $ 1.5 million for municipal planning.
NOTE: For the purposes of this example, year "A" represents the most recent year for which there is data. Year "B" is the year before "A"; year "C", the year before "B"; and year "D" is the year before "C".
FACTOR 1 - Population
Based on $ 1,000,000 available for Factor 1 (representing 2/3 of the $ 1,500,000 allocation for municipal planning) and year "A" estimated statewide population of 548,000.
Per capita allocation = $ 1,000,000/548,000 = $ 1.82
Town of Deerfield year "A" estimated population = 3,553
Town of Deerfield Factor 1 allocation = 3,553 x $ 1.82 = $ 6,466.46 (Factor 1)
Because the Town of Deerfield is associated with an incorporated village meeting the definition of "municipality", the $ 6,466 allocation will be divided between the two. This is done by population.
Village POP "A" = 1810
Town (including village) POP "A" = 3553
Village of Deerfield allocation = Total town alloc. x Village POP "A"/Town POP "A" = $ 6466 x 1810/3553
Village of Deerfield allocation = $ 3,294
Subtract the Village allocation from the total allocation to determine the Town's share.
Town of Deerfield allocation = $ 6466 - $ 3294 = $ 3,172
Both the Town's and the Village's allocation are above the minimum base of $ 1,000 and therefore do not need to be adjusted upward.
FACTOR 2 - Indicators of Growth --- 33.33% (1/3) of remaining funds
POP = POP A + POP B + POP C/3 - POP B + POP C + POP D/3
= 3553 + 3490 + 3445/3 - 3490 + 3445 + 3357/3
= 3496 - 3431
= 65
Compare Deerfield's absolute population increase of 65 to the average of all the calculated town, city, unorganized town and gore absolute population increases (in this case the average is, say, 53) to get a normalized factor:
N( POP) = 65/53 = 1.23
This means that Deerfield's absolute population increase is about 1 and 1/4 times the average absolute population increase.
Apply the 8.33% weight:
W( POP) = 1.23 x 8.33 = 10.25 (Factor 2. A.1)
NOTE: Where there is a negative factor (i.e., if there is a loss of population), the value of zero will be used.
POP% = POP A + POP B + POP C/3 - POP B + POP C + POP D/3/POP B + POP C + POP D/3 x 100
= 3,496 - 3,431/3,431 x 100
= 1.89%
Compare to the state average by dividing Deerfield's POP% by the average of the other town, city, unorganized town, and gore POP% (which happens to be 3%), resulting in a normalized factor.
N( POP%) = 1.89/3 = .63 (This means that Deerfield's percent population increase is roughly 2/3 that of the average percent increase.)
Since this factor is worth 8.33% of remaining funds, multiply it by 8.33 to get the weighted factor:
W( POP%) = .63 x 8.33 = 5.25 (Factor 2.A.2) Again, if there were a negative factor, the value of zero would be used.
EGL = AFMV/100, where AFMV = aggregate fair market value for Town of Deerfield
EGL D = AFMV D/100 = $ 57,567,625/100 = $ 575,676
EGL C = $ 616,571
EGL B = $ 671,253
EGL A = $ 763,655
Percent Change:
EGL% = EGL A + EGL B + EGL C/3 - EGL B + EGL C + EGL D/3/EGL B + EGL C + EGL D/3 x 100
EGL% = 683, 826 - 621,167/621,167 x 100
= 10.09%
Normalize EGL% by dividing by state average of 21.99% (again, the state average here is the average of all the town, city, unorganized town, and gore EGL%)
N( EGL%) = 10.09%/21.99%
N( EGL%) = .46 The percent change in Deerfield EGL is therefore almost 1/2 of the average percent change in the state.
Apply the 16.67% weight:
W( EGL%) = .46 x 16.67
W( EGL%) = 7.67 (Factor 2B) Again, if there were a negative factor, the value of zero would be used.
FACTOR 3 - Level of Development in Nearby Municipalities -- 33.33% (1/3) of remaining funds
Nearby is defined here as adjacent and connected through the mutual boundaries by a class 2 or better Highway.
Deerfield's nearby municipalities, along with their own Growth Indicators, are as follows:
TOWN | W(POP%) | W(POP) | W(EGL%) | SUM GROWTH INDICATORS |
Town of Abbot | 0.00 | 0.50 | 11.84 | 12.34 |
Town of Barrington | 0.00 | 0.00 | 15.50 | 15.50 |
Town of Foxboro | 18.74 | 22.24 | 12.50 | 53.48 |
Town of Eastport | 0.67 | 2.75 | 16.34 | 19.76 |
Town of Hamlin | 3.00 | 5.58 | 14.67 | 23.25 |
Town of Harmony | 0.00 | 0.00 | 0.00 | 0.00 |
Town of Southbury | 39.48 | 8.33 | 10.50 | 58.31 |
SUM | 182.64 |
TOWN
W(POP%)
W(POP)
W(EGL%)
SUM GROWTH INDICATORS
Town of Abbot
0.00
0.50
11.84
12.34
Town of Barrington
0.00
0.00
15.50
15.50
Town of Foxboro
8.74
22.24
12.50
53.48
Town of Eastport
0.67
2.75
16.34
19.76
Town of Hamlin
3.00
5.58
14.67
23.25
Town of Harmony
0.00
0.00
0.00
0.00
Town of Southbury
39.48
8.33
10.50
58.31
SUM
182.64
Average of the sum of growth indicators (182.64 divided by 7) . . 26.09
Because this figure has already been normalized and weighted, we don't do it again.
26.09 (Factor 3)
FACTOR 4 - Community need --- 33.33% (1/3) of remaining funds based on "local tax effort index" (TE)
A tax effort index is used to measure each community's need. A community's ability to raise revenue through the assessment of property taxes is measured relative to the ability of its residents to pay taxes. This index incorporates municipal aggregate fair market value, the municipal tax assessment, and the municipal per capita income as compared to the statewide average per capita income. Wealthier municipalities will have a lower tax effort index than poorer municipalities. Please note that for the calculations in factor 4, "municipal" means town, city, unorganized town or gore. The formula is as follows:
TE = 100 x municipal taxes assessed/municipal aggregate fair market value x state per capita income/municipal per capita income
for the Town of Deerfield:
TE = 100 x $ 1,054,292/$ 76,365,476 x $ 9,485/$ 9,939
TE = 1.32
Each community's tax effort is then compared to the average of all the calculated community tax efforts in the state (say the average is 1.10) to obtain the tax effort factor:
TE factor = 1.32 / 1.10 = 1.20
The weighted tax effort factor is found by multiplying the TE factor by 33.33.
Wtd. TE factor = 1.20 x 33.33 = 40.00 (Factor 4)
TOTALS
Step 1: Add all of the Town of Deerfield's Factors 2, 3 and 4
Total Factor = 10.25 + 5.25 + 7.67 + 26.09 + 40.00
Total Factor = 89.26 points
Step 2: A per point allocation is determined by dividing the remaining funds, after the minimum base adjustments from Factor 1 have been made to all municipalities, by the statewide number of points.
Per point allocation = Remaining funds/Statewide points
= $ 495,575.25/24,046.83
= $ 20.61/point
Step 3: Multiply Deerfield's point total by the Dollar value per point. Deerfield allocation factors 2, 3, 4 = $ 20.61/pt x 89.26 = $ 1,840
Step 4: Allocate Village and Town shares for factors 2,3, and 4.
Village of Deerfield allocation = Alloc. (Village POP A)/Town POP A
= $ 1840 (1810)/3553
Village of Deerfield Allocation = $ 937
Town of Deerfield Allocation = $ 1840 - $ 937
Town of Deerfield Alloc. = $ 903
Step 5: The total allocations for the town and the village are calculated by adding the allocation from Factor 1 to the allocation from Factors 2,3 and 4.
Total Village allocation = $ 3294 + $ 937 = $ 4,231
Total Town allocation = $ 3172 + $ 903 = $ 4,075
11-005 Code Vt. R. 11-020-005-X
EFFECTIVE DATE: July 1, 1989 Secretary of State Rule Log #89-25)
AMENDED: July 1, 1992 Secretary of State Rule Log #92-29; July 2009 [The Department of Housing and Community Affairs and the Department of Economic Development were merged into the new Department of Economic, Housing and Community Development]