Borer writes open letter to taxpayers

Dear Residents,

Thank you for the opportunity to present the Fiscal Year 2026 Budget and 5-Year Capital Plan. As your Chief Elected Official, I am responsible for developing and managing the City and Allingtown Fire Department budgets, which the City Council reviews, adjusts, and approves. The West Shore and Center District budgets are managed separately by elected Commissioners, with residents voting on their recommendations in May.

2024: A Year in Review

When I took office, the City was behind on its 2022 and 2023 audits. In 2024, we caught up on both and completed the 2024 audit on time. Thanks to improved internal controls and government restructuring, we eliminated all material weaknesses, built a strong fund balance, and made strides in debt repayment. These efforts earned the City three investment-grade rating upgrades from Moody’s and Standard & Poor’s.

Key accomplishments in 2024 included:

~~ Finalizing Beach Street road improvements.

~~ Securing a lease to attract a top restaurant to the Savin Rock Conference Center.

~~ Helped to fast track the construction of the soon to be opened Beach Street destination, Riva.

~~ Facilitating the sale of the dilapidated Debonair Hotel and attracting a developer for the Stiles School property.

~~ Negotiating the sale of North End Field to UNH for $500,000.

We secured significant grants, including:

~~ $250K for a downtown plan.

~~ $2M to upgrade the boardwalk and beaches.

~~ $1.7M to transform Molloy School into a Community Center.

~~ Repurposing an old grant to finally launch the Masonic renovation.

~~ $1.8M for beautification and safety improvements around the VA Hospital.

Revenue from all of these projects will be realized in Fiscal Year 2026.

Operational improvements included updated zoning regulations, streamlined hiring processes, mandatory ethics and OSHA training, and the modernization of the Building Department to attract better commercial investments.

Public safety enhancements included:

~~ $1M investment in security cameras across the City

~~ Upgrades to police communications, technology, and resources as well as fire department equipment.

~~ FREE tuition at UNH for public safety personnel starting in fall 2025.

We also hired a social worker to support seniors and youth and opened our first warming center for the unhoused.

2025 Budget

The state-mandated revaluation of all properties in West Haven has significantly increased home values. This process, based on recent neighborhood sales and home improvements, could not be phased in. While my budget increased, due to rising costs, by only 2.6%, the reassessment led to an average 56% increase in property values as compared to the last revaluation four years ago.

An equivalent percentage cut to the budget in comparison to rising home values is unattainable without impacting critical services. To mitigate the impact, we lowered the mill rate from 36.57 to 25.76 and reduced the Allingtown mill rate from 11 to 8. These adjustments will be reviewed and possibly further reduced by the City Council, veteran exemptions or senior tax freezes.

We also implemented cost-saving measures, such as negotiating better energy contracts, reducing City staff, modernizing operations (such as installing GPS on City vehicles, updating snow removal strategies) and reorganizing compost operations and leaf bag pickups.

Education remains a priority. Last year, we increased funding for the Board of Education for the first time in seven years. This year, we reduced their budget increase by $1.7M through careful reviews, without impact to essential staff or services. This still leaves a $1.8M increase requested by the Board of Education. This, in partnership with the rising costs of healthcare, and needing to catch up on long-ignored road and flood infrastructure projects, are the main drivers in the increase of this year’s budget.

Looking Ahead

By City Charter, the budget is due to the City Council by a certain date, and since then we have continued to assess and look for opportunities for savings. Through finalized contract negotiations, reassessment of annual costs, and a variety of other factors, we have identified an additional $1.7 million in potential savings within the budget that we will provide to City Council for consideration.

Using the updated grand list and responsible budgeting, we’ve significantly reduced mill rates while maintaining critical services like education, public safety, and infrastructure. Our financial stability is within reach, and I’m confident that, together, we’ll achieve this goal.

West Haven has one of the largest percentages of non-taxable properties in the state. It is my hope that our State Delegation will support the City by advocating for a more favorable budget that increases state funding for non-taxable properties.

Whether MARB will provide further input depends on our status when the budget is finalized.

Thank you for reviewing the City and Allingtown budgets and for your continued support.

Sincerely,

Dorinda Borer

Mayor