nothin New Haven Independent | Town Leaders Cushion Taxpayer’s Bill

Town Leaders Cushion Taxpayer’s Bill

Marcia Chambers Photo

Board of Finance

Faced with an as yet uncertain and unresolved state budget, Branford’s Board of Finance (BOF) this week agreed to take up to $6.4 million in funds from the town’s current $21 million undesignated fund balance in order to give the taxpayer a break.

In doing so the BOF set the mill rate at 28.47, up 1.06 mills over 27.41, which was last year’s mill rate. Taxes for homeowners will go up by 3.85 percent. The mill rate is the factor upon which property taxes are determined.

For the property owner, this means if your tax bill came in at $10,000 last year, you will be paying $385 more in taxes this year — broken down into two installments. The first payment is due by July 1 and is considered delinquent after Aug 1.

It could have been far worse.

The town-school budget came in at $111.8 million, based largely on the governor’s demand that the town fork over $2.7 million toward teachers’ pension costs. Then after the RTM passed the budget $111.8 million budget, the governor sought additional funds, specifically $2.2 million from Branford.

Marcia Chambers Photo

Jim Finch (pictured left in photo), the town’s finance director, said in an interview with the Eagle and then repeated at the BOF meeting that he wanted to put some certainty into an otherwise uncertain process.” Click here to read the story.

His aim was to try to insulate the taxpayer from a tax bill that could increase by 7.64 percent given the governor’s demands.

So he met with First Selectman Jamie Cosgrove and BOF chair Joe Mooney last week to come up with what they agreed was a prudent” plan. Prudent was the word of the week as town officials described their decision-making process.

The state has not arrived at a budget, so it is still unclear as to what will happen to towns across the state, including Branford. Some of Malloy’s proposals may make it, some may not.

At the BOF meeting Tuesday at Fire Headquarters, Finch and Cosgrove both said the plan to draw from the town’s fund balance, thereby reducing the mill rate increase to 3.85 [percent]” would insulate the taxpayer from continued uncertainty as the state budget plays out.”.

Finch told the BOF he had spoken with the town’s financial advisor and he does not see an immediate concern since we are within fund balance parameters for similarly rated communities.” Branford continues to hold a coveted Triple A rating.

Finally I should underscore that we have options available to reduce the drawdown throughout the year,” Finch told the BOF.

The BOF met Tuesday. By yesterday the state’s top legislative leaders announced they would not pass a new state budget by June 7, when the legislative session ends. They may do so by June 30, the end of the fiscal year.

Then again, they may not.
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