North Haven to Propose No-Tax-Increase Budge
First Selectman Michael Freda has said previously that his goal with the proposed 2017-’18 budget is to not increase the mill rate, and because of some new developments, that goal could become a reality.
The overall proposed town budget is now $96,568,811, a $2,093,934 or 2.2 percent increase from current spending. This is down from the earlier proposed budget of $97,518,811, which was a $3,043,934 or 3.2 percent increase.
As a result of lowering the health insurance line item and by using surplus funds, the mill rate won’t increase, which means taxes won’t go up, if the budget is approved at the Thursday, May 11 town referendum.
At the previous budget presentation in April, Freda said that the town’s health insurance renewal rate had a 10 percent increase of roughly $1.2 million. He had wanted to decrease that line item as much as possible, and said he found a way to make that happen.
“I’m happy to report we’ve decreased the insurance line by $1,228,000,” Freda said.
Freda said the reduction happened because the town switched to a self-insured model as part of an outside coalition that includes other municipalities and other educational institutions.
“[I]t’s the power of aggregate purchasing,” said Freda, “We can have a better chance to negotiate the administrative costs associated with insurance, and the taxes as part of a fully insured model moving to a self-insured, and that has allowed us to decrease the line item.”
Superintendent of Schools Dr. Robert Cronin said that it sounded like the Board of Education’s budget request would also be reduced because of the change in health insurance. His biggest concern was that there would be changes in the services they are receiving, but said he was repeatedly assured that services would stay the same.
Cronin was unsure if there would be any other changes to the education budget due to the decrease in insurance costs.
“That will be a conversation at the Board of Education meeting in May,” Cronin said.
Freda also said that because the town has accumulated surplus funds over the past eight years, it will be rolling those surplus funds into next year’s proposed budget. He said that the proposed budget will still be higher than current spending, but it will not affect taxpayers.
“Because we’re rolling previous surpluses over through savings we achieved in the past, we’re giving that money back to the taxpayers in the form of reducing this budget to a zero increase in the mill rate,” Freda said.
Another change made was the return of $250,000 into the budget toward the purchase of a new fire truck. Fire Commission Chairman Pat Nuzzolillo stated that the fire department’s main ladder truck was at risk of being deemed inoperable by next year at the budget hearing in April.
Freda said that the truck will be leased for four to five years with an option to buy it outright at the end.
Nuzzolillo said he was thrilled that the Board of Finance and Freda were able to get the money back into the budget to a facilitate a lease agreement for a new ladder truck, and also said he was pleased that town residents voiced their support for a new ladder truck when he made the announcement at the April meeting.
According to Nuzzolillo, it is important for the town to have a ladder truck for a number of reasons.
“One is to be able to reach buildings that are two stories or higher,” said Nuzzolillo, “And two is that there’s significant insurance savings for residents when towns have a ladder truck in its fleet.”
He said it was a wonderful opportunity in terms of public safety, and that residents, business owners, and visitors to the town will benefit from this new truck for years to come.
One thing that Freda said he is waiting for is the deal for the old Pratt & Whitney site to come through. Freda said the town has built in $1 million in building permit fees for the project into the proposed budget, which would have to be taken out if the deal falls through.
“We’re almost there,” said Freda, “I just hope they sign a deal, it’s between the two parties right now.”
Freda said he was hopeful to have a definitive answer on the deal by the budget meeting on Monday, May 8.
The May 8 Annual Town Budget Meeting takes place at North Haven High School at 7 p.m., followed by referendum on Tuesday, May 16. The May Board of Education Meeting, at which potential budget changes would be discussed, takes place on Thursday, May 11.
All registered voters in town can vote at referendum, as well as anyone who owns property in town with an assessed value of more than $1,000.