New Haven Independent

Mayor Proposes $466M Budget

by Melissa Bailey | February 29, 2008 7:17 AM | Permalink | Comments (13)

Dixwell showed up in force to make sure the Stetson Library didn’t get the axe as Mayor John DeStefano proposed to raise spending 4.6 percent in the next city budget.

Mae Gibson-Brown (pictured at right) joined a slew of fired-up Dixwell residents who slapped on Stetson stickers to save their branch library, which DeStefano had talked about closing.

“We are going to continue to operate all libraries,” DeStefano promised, drawing applause from a crowd of 100 at the library’s main branch on Elm Street Thursday night, where he presented his FY08-09 budget for the first time. The budget takes effect July 1.

The mayor’s $466.0 million budget proposal represents a roughly 4.61 percent increase ($20.6 million) over the budget for the current fiscal year. The latest projection of that budget came in at $445.4 million — an overrun from the approved $443.0 million, and also from DeStefano’s proposal of $445.2 million.

Pursuing the goal of giving the city the biggest municipal police force in the state in effort to revive community policing, the budget includes plans to hire 45 police officers, as well as to 27 new firefighters.

The budget includes $174 million for the Board of Education, a 2.65 percent increase over FY07-08.

The proposal would keep the tax rate even at 42.21 mills (a mill is the amount of tax per $1,000 in assessed property). But taxes would still go up for most homeowners because of recent property revaluations that are being phased in over five years.

The city’s 2007 grand list, the list of all taxable properties, sits at $4.9 billion, up from $4.5 billion the previous year.

Full details will be made available when the actual budget proposal is released publicly on Friday. Thursday night, the mayor gave a selected sneak preview.

What’s driving the budget up?

• Utilities were the fastest growing cost, shooting up 10.9 percent to end at $23 million.
• Health care costs jumped by 5.85 percent, landing at $49.2 million.
• Pensions ballooned by 8.45 percent to $31.2 million.

The mayor was happy to report that the city is over the peak of the mountain, so to speak, in paying off debt service to fund its largest-in-the-state $1.5 billion school construction program. The project passed its half-way point about a year ago. (Click here for the schools’ latest report on that program).

In his final proposal, DeStefano said “no” to quite a few departments’ requests, according to the mayor’s office. The total budget is $15 million lower than what all departments asked for. The biggest “no” was said to the Board of Education, which was refused $4.8 million of its request.

Some budget highlights:
• Rebidding the city’s health care contracts to save a projected $1.5 million.
• An expected $10 million increase in aid from the state.
• Selling the city transfer station for a $6 million one-time windfall.

Returning to what has become a mantra in the last few months, DeStefano pounded home the importance of lobbying Hartford to for more state aid.

He advocated a state law that would let urban areas levy an extra 1 cent sales tax within city limits. The measure would earn the city an expected $15 million, the mayor said, thanks in a large part to IKEA.

Your Bill

How much will your tax bill go up?

Seniors qualify for the ongoing senior tax freeze, which froze senior tax bills at their FY06-07 amounts.

For the rest of homeowners, looking at the tax levy gives a good guide. The tax levy — the amount of revenue the city aims to generate through property tax — grew by $21.1 million, an 11.4 percent increase.

Here are some examples the mayor gave of how the new budget would affect few sample homes:

• On Ella Grasso Boulevard: Paid $4,807 in taxes last year; that bill would jump to $5,386.
• Quinnipiac Avenue: $940 bill would now be $1,115.
• On Elm Street: $4,130 bill grows to $4,836.

The mayor’s brief Q &A session ended with a note of skepticism. Mae Gibson-Brown (pictured at top) was not convinced her library wouldn’t be slashed. She handed the mayor a stack of over 700 signatures, collected over four days, from Dixwell folks defending their community space.

“I don’t trust it,” said Gibson-Brown of the mayor’s pledge to keep Stetson open. “I didn’t fall off the turnip truck last week.” She and other Stetson activist said they’d be keeping an eye on the city budget as it passes through aldermen’s hands.

Meanwhile, the mayor plans to release the full budget in printed form Friday, as well as present his Power Point version at several community meetings.

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Comments

Posted by: robn | February 29, 2008 9:16 AM

So the "big no" to the Board of Ed was witholding $4.8M from a $174M proposal ? That only denies them 2.5% of what they asked for and they STILL have a total increase of 2.6% from last year. This is the biggest portion of the city budget by far and the lack of agressive budget cutting is indicative of City Hall's lack of empathy for homeowners and the egregious tax increases they're facing. I'm not surprised though, since only 1/5th of elegible voters turned out for the last election. You get what you ask for New Haveners.

Posted by: Harry David | February 29, 2008 9:31 AM

I am not at my desk to do my research but several points to note from my memory base.

1. Property taxes will rise by 11+%.
2. Not clear how much the new budget sets aside to fund the newly estimated GASB 45 retiree health care benefit which is expected tocost $430 million. Money has to be set aside to fund this. Some of the funds will come from the "windfall" $60 million from the transfer of the transfer station!!!
3. The transfer station scheme seems at casual reading to be an Enron style attempt at off balance sheet financing -- City transfers assets to new Authority, new Authority pays theCity $60 million, then new Authority goes offand borrows this money on the bond .market. Any savings to the taxpayer are illusory -- I saw a figure of $18(?) per household which won't last as the Authority will have to pay interest on their new debt. Why not just sell the facility to a private facility or send the work out for competitive bidding under long term contracts? Why is the City in this business at all??
4. I believe I read that about 85% of Fire calls are for EMS. I dont have my data base here but someone should calculate this cost in terms of cost per call responded to. Include all Fire costs including pensions and health care benefits. I will hazard a guess -- how about $1,500 per call??
5. What is the plan to tackle the 64% of the budget that personnel represents??

Harry

Posted by: cedarhillresident | February 29, 2008 10:42 AM

booyah Robn!!!!
They need to cut the fluff jobs, the consultant jobs the ones with no real purpose jobs! These are not people that will be jobless jobs these are the PT jobs of people who already have a day job jobs

Posted by: on whalley | February 29, 2008 10:43 AM

Holy 11+%??

So when people start losing their homes because they can't pay the tax bill will all these politicians spring into action with their socialist solutions to ensure these sad homeowners don't lose their homes?

If you lose the house because you ARM jumped up or because your taxes jump what's the difference?

Oh, I know, government making money by kicking the working man and stomping on him is just and righteous. The private sector making money off of people who don't bother to understand the documents they're signing is evil and wrong.

Exploiting stupidity = evil.
Forcefully extorting the population = righteous.

Posted by: Esbe | February 29, 2008 11:05 AM

I'm quite confused. Inflation to city governments is probably running in the 4.5% percent range -- any nominal increase less than that is actually a "cut" in real terms. Cities have to pay utilities and health care costs that are rising much faster than general inflation.

That's the bad news. But there seems to be so much good news, particularly in the announced 8.8% increase in the city's Grand List. And, the proposed 4.6% spending increase is just about the rate of government inflation, it is not crazy large.

So, why doesn't that big increase in the Grand List pay for the increase in operating costs? Since the revaluation is being phased in, why doesn't the mill rate drop somewhat to offset the increased valuations (as has frequently happened in the past.) How does a 4.6% increase in overall spending require a much larger percentage jump in property taxes?

The math just seems all wrong to me, so something is being left out.

Posted by: Webblogger 1 | February 29, 2008 12:21 PM

In just 10 years dating 1998- 2008, New Haven's general fund budget has increased approximately $145.685.810M. At the same time the debt service increased approximately $30.858.485 (source:2007-2008 general fund debt service report).
The net budget increase for 07-08 is $29.5M or 7.10%.
The Mayor now reports a $17M deficit between the 07/08 and the 08/09 budgets. He blames the shortage is due to under funding by the state of $6M in the current year.

If so, he continues to over budget state allocations by claiming as above, that the state will increase the 08/09 contribution by $10M. Should the state fund any thing less, as he claims for the current year, we are looking at a new deficit for the 09/10 budget cycle.
Clearly, the Mayor's budget practices are based on futuristic hopes, crystal ball gazing and voodoo economics.

Skillfully, the Mayor forwards a message of intent to close the Stetson library, creates a community furor, allows his arm to be twisted, gives in to the community, then maneuvers the community into accepting and supporting an overall 20.6M spending increase in order to keep the library open, without the community folks even being aware what just hit them.

The Mayor has a spending addiction, the board of aldermen are his enablers, and the public continues to hope against hope for rehabilitation of his addiction.

Posted by: John | February 29, 2008 1:12 PM

Honestly, Why does anyone think the Mayor cares? When he's done screwing the City, he will collect his pension check in South Carolina or Florida like the rest....Just keep spending till it's time to go.

Posted by: cedarhillresident | February 29, 2008 1:15 PM

Here is a bill that we in New Haven should be calling hartford and our reps about
http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05807&which_year=2008

Posted by: Esbe | February 29, 2008 5:38 PM

Cedar Hill -- you are so right about that bill; this is very much needed. The PILOT program is supposed to help cities make up the lost revenue from non-profits, but in fact the State adjusts the numbers at their whim. This should be at the top of our state delegations list. Summary of the bill, from Cedarhill's link:

AN ACT INCREASING GRANTS TO MUNICIPALITIES FOR COLLEGES AND HOSPITALS THAT ARE EXEMPT FROM PROPERTY TAXES.

To ensure that municipalities receive full payment of state grants in lieu of taxes for private nonprofit institutions of higher learning and nonprofit hospitals located in such municipalities by removing the provision that permits the state to proportionately reduce grants in the event that total amount of grants exceeds amounts appropriated to effectuate the provisions of this section.

Posted by: Fedupwithliberals | February 29, 2008 6:56 PM

I wonder if Brian McGrath gets to keep his job?

Posted by: Edward_H | March 2, 2008 4:03 PM

Fedupwithliberals

I wonder if Brian McGrath gets to keep his job?

Of course not. He will probably get a promotion.

Posted by: Bill Saunders | March 3, 2008 12:41 PM

His salary is getting paid by the new parking meters installed on Howe Street.

Posted by: cedarhillresident | March 3, 2008 1:33 PM

Every day there are ones coming though todays is the Hotel Bed tax that should be shared with citys.
here this one can be a little cash for us if it passes
http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05844&which_year=2008

maybe this one, not sure I understand it right but we do have alot of low income housing here
http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB00597&which_year=2008

Mayor Proposes $466M Budget

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