Mayor Proposes Mill Rate Increase
By Robin Vinci | Editor at April 13, 2024 | 8:08 pm | Print
Calling it a SMART budget, Mayor Erin Stewart proposed a one and one half mill tax increase for 2016-17, putting the budget at $239.2 million, to the Common Council Wednesday evening.
The 2015-16 budget is $226.4 million with a mill rate of 49 mills. The new budget increases 5.64 percent to 50.50 mills. One mill is $2.48 million.
The original budget presented to the Mayor had a 15 percent increase and the Board of Finance proposed budget had an increase of 8.6 percent.
The biggest increase in the Mayor’s budget is $2.5 million that will go towards the board of education.
“We want our children to have the best education. They are our future. There are no layoffs. No disruption of services. We will still pick up trash, pave roads and remove snow. No one is losing their jobs,” said Stewart. “A SMART budget is one that is Specific, Measurable, Attainable, Realistic and Timely.”
Although the mill rate increases, according to the Mayor, the average New Britain homeowner, who has two cars will see their taxes decrease around $130 because car taxes are going down to 32 mills.
“We were able to get there due to a lot of different factors. We achieved more savings through structural changes,” said Stewart. “Over the last month, my budget team and I have worked hard to create a proposal that is honest, both now and in the future.”
Stewart said given the unpredictable situation at the State level, New Britain needs to take action immediately.
Major increases in the 2016-17 budget includes costs associating with maintaining aging infrastructure and an increase in health insurance and pension costs. Many of the new labor contracts that have been negotiated include a switch to high-deductable health plans.
“Even though we are saving now (on those plans), we know they will rise in the future,” said Stewart. “The budget is good, realistic and smart. It’s not easy to ask people for a little more. The reality is we are looking 2 and 3 years down the line. I could have tapped into the rainy day fund, but next year we may need to dip into that.”
The State Budget has not been approved leaving the City not sure if it will receive the funding it was promised.
“We just have lump numbers. We know a certain amount is cut across the board, but we have not seen how much for each town yet,” said Stewart. “We don’t know when we will see that.”
The City is expected to get $92 million from the State.
Stewart said if it is cut, the City could go to the rainy day fund or the City may cut each department by 5 percent. Another option is for taxes to go up to residents.
“We would do a mix of everything. We would cut from City services and take some from rhe rainy day fund. We would have to restructure,” Stewart said. “The unknown is scary. What I do know is this budget is good. There are no gimmicks and we are not inflating revenues to pretend we are in a situation we are not.”
Over the last two years the Grand List has shown growth adding more than $2 million in new tax revenues because of new businesses. About 48 percent of the real estate property in New Britain is tax exempt.
The amount of taxable property the City does not receive taxes on is more than $1 billion or about one-third of the City’s total Grand List. The State provides a ‘payment in lieu of taxes’ grant at a fraction of what the property is valued at by the City.
Alderman Carlo Carlozzi asked for the Common Council and Board of Education to put the Blue Ribbon Committee back together to streamline budgets.
“I still believe in my gut that we can do better,” said Carlozzi.
The Common Council will pass a budget no later than June 8. A public hearing is scheduled for April 19 at 6 p.m. at Gaffney Elementary School.
“This is the best proposal I could put forward to prepare the City and the residents,” said Stewart. “We are monitoring everything we can.”
