Calling the budget process “very difficult,” Mayor Nancy Rossi presented her first spending plan to the City Council last week in the charter-mandated special session. When it was over the pain she had been describing in the weeks leading up to the presentation became all too clear to the council members and the packed house in the Harriet North Meeting Room.
The public will have its only opportunity to comment on the entire plan in a hearing scheduled for Tuesday evening in the auditorium at Bailey Middle School at 6:30.
The $162.86 million budget is just $11,000 more than last year’s proposed budget by former Mayor Edward O’Brien, which came in at $162.77 million. More than $1,000,000 in spending was excised from the plan as well as 12 positions cut, while many city employees will see their hours pared. According to Rossi the cause of the city’s financial problems are many.
“The city is dealing with a deficit for fiscal year 2017, a revenue shortfall in the current year of approximately $8 million, a grand list that is stagnant, a bond rating just above junk status, and a serious spending problem,” she told the council. “My promise to the citizens of West Haven was to make fiscal responsibility and accountability the first priority; the budget presented to you this evening begins that process reflecting that commitment. The proposed budget includes painful cuts, but does properly fund the healthcare line item as well as other post-employment benefits (OPEB).”
While spending was cut, the objective was to make the taxpayer not bear the brunt of loss of services and higher taxes.
“This budget makes cuts to programs and requires sacrifice from many—but it does protect the taxpayers by not requiring higher taxes for city services or education,” she said.
The city side of the budget cut spending $311,042, while the Board of Education will see an increase of $396,265.
Staying on the no tax increase message, Rossi said despite a flat grand list the city used all allowable options in order to keep levies down.
“This budget maintains a rate of 37 mills on the city side for motor vehicles, and allows the fire districts to claim 8 mills, bringing the total to 45 mills which is the state allowed cap for motor vehicle taxes. City of West Haven Fire Department, Allingtown will have a .41 mill increase,” she said..
Included is a $9 million grant from the Municipal Accountability Review Board. This was part of the agreement to bond to retire the city’s longstanding deficit, and recoup money that was put into last year’s budget, but never came through when the state’s own fiscal problem held up funding.
While saying she cut 12 positions and made other alterations to save $1 million, she said no new positions are in the page, nor are there any promotions requested.
“With government reorganization, economic development, and budget reform, West Haven will reduce its reliance on state funding,” she said.
Rossi said the decisions made during the budget-making process are ones the city has faced in the past, but never took steps to alleviate.
“Obviously, I am not happy to stand in front of you tonight and deliver such a difficult budget, but the changes are badly needed and long overdue. My recommended budget will stabilize the city’s finances and create the foundation for fiscal responsibility,” she said.
One program that was established in the 1970s was eliminated because of deficits. The Adult Day Center, originally at the old Forest School and now at the Noble Community Center will be discontinued.
“One of the most difficult budget cuts will eliminate the Adult Day Care program, which has run a deficit for several years. I understand that this cut will cause significant disruption to the clients who participate in the program. Please know that my office will work to find placements in similar programs in the area for these individuals,” she said.
She said the city’s financial health depends on moving the city toward a more stable and lucrative tax base.
“My top priorities in fiscal year 2019 will include moving our stalled economic development projects forward. Business leaders need to know that West Haven is serious about creating a culture of fiscal responsibility and partnership with the commercial sector. Our grand list will grow only if we are business friendly and attractive to development,” she said.
The council now moves into a six-week review process that ends with a budget ordinance to be made by the first Thursday in May. Under the charter, the council may make alterations in the budget, but only by passing the change with a supermajority of nine votes. That has made changes a difficult task in past years.
The new wrinkle is the MARB, which gave its approval to the budget before it was presented to the council. Any and all changes made will have to be approved by the review board.
Once the budget ordinance is proposed, the council has only two options, approving an altered budget or passing the proposed budget by simple majority. A negative vote rejecting the plan means the mayor’s proposed budget will automatically go into effect.