Ed. Note: The following is the budget address given by Mayor Nancy Rossi on March 15.
In accordance with the City Charter, I am here to present my recommended budget for fiscal year 2019, which commences on July 1, 2018 and ends on June 30, 2019.
The budget process this year was very difficult. 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. 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).
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.
The budget process began several months ago with each department being asked to submit a zero increase budget, along with one which included a 10 percent budget reduction. The budget process was challenging, and required difficult decisions, but the end result is an honest and balanced budget proposal for fiscal year 2019. The recommended budget will cut spending on the city side by $311,042 and increase Board of Education spending by $396,265.
This budget does not raise taxes to fund city operations or education.
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.
The budget that is before you contains conservative revenue estimates and includes $9 million from the Municipal Accountability Review Board. This temporary state funding will allow us to retire the deficit from fiscal year 2017 and fill the revenue gap created in last year’s approved budget.
My recommended budget eliminates 12 positions and reduces the hours of several other positions across city departments for a savings in wages and benefits of over $1,000,000.
There are no newly created positions, or any promotions requested in this spending package.
With government reorganization, economic development, and budget reform, West Haven will reduce its reliance on state funding.
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.
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.
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.
In the coming months, my team and I will continue to focus on identifying and implementing efficiencies. This includes combining services and sharing equipment with the Board of Education and exploring regionalization opportunities with neighboring communities.
In conclusion, I would like to thank the Board of Finance for their time and contributions. The finance director, department of finance, and the city’s department heads deserve thanks for compiling the information and data that were necessary to put this document together.
I look forward to working with the Municipal Accountability Review Board and the City Council to pass a responsible and balanced budget that will allow the city to maintain critical services while strengthening West Haven’s future financial outlook.
Nancy R. Rossi
Mayor