The Burlington, Vermont Board of Finance met for the first time Monday since new city councilors were sworn in last week. Among the items the members reviewed was an overview of the city’s 2024 budget.
The Board of Finance is a committee of the Burlington City Council that includes the mayor and four councilors. The city’s Chief Administrative Officer is a non-voting member.
Burlington International Airport Director of Aviation Nic Longo presented a strategic reorganization plan for airport staff.
“The premise of this reorganization is to add four managers, two deputy directors as well as the finance department, the engineering department and a new department called the Innovation and Marketing Department as well as an additional maintenance specialist. So another union position. And reclassification of additional positions to union positions. From a financial perspective this fiscal year requires no budget amendment.”
Independent Ward 7 Councilor Ali Dieng moved to approve the plan and refer it to the full city council.
“The airport is growing and serving this region perfectly and it is about time that we support this reorganization.”
The motion passed unanimously.
The board also reviewed a request to accept a modified lease agreement for a proposed airport hotel. In 2019 the process to build a hotel at the airport began but paused during the pandemic. Real Estate Development Services Principal Jeffrey Glassberg says the resolution seeks to move the project forward with a ground lease that would allow developers to pursue permits.
“Under the proposed agreement, which is in front of you this evening, the stream of revenue to the city would be modified. It would be comprised of a fixed ground lease amount and then a variable revenue stream which would depend on occupancy and use of the garage. In our analysis we think the financial interests of the city come out as well as the prior transaction. The heart of it is trying to put the developers of this property in a place where they’ve got a financeable transaction to be able to proceed. Their goal is to get back into the regulatory process with South Burlington immediately with hope of being able to break ground certainly for next spring.”
Board members unanimously approved sending the request to the full council.
Democratic Mayor Miro Weinberger also placed on the agenda an early overview of the 2024 city budget.
“Looking ahead to FY24 we have known it would be challenging with the continued uncertainty on various revenue lines, with the increased costs that the city is facing as we see throughout the economy with inflation, with the fact that we are not planning any substantial new levy increases. And we wanted to start the discussion with you about how we are going to get, by the end of June, get to a balanced budget.”
Chief Administrative Officer Katherine Schad then detailed the proposal.
“Some but not all of our revenues have recovered from COVID. We see that a bit unevenly. We are level funding our department operating budgets. It appears that we could have as much as a $2.3 million hole. That sounds really like a lot. It is only 2.5 percent of our $94 million total.”
