Cavo’s $267M budget keeps tax rate flat
DANBURY — The city would go another year without a tax rate increase under the $267 million budget the mayor proposed Tuesday night.
The proposal would increase overall spending by $5 million and provide $137 million for the schools, about $12 million less than the education board had requested. But the school budget would total $145.5 million when other funding sources, including federal grants are included.
This would be Danbury’s third year in a row without a tax rate increase, something Mayor Joe Cavo said is critical as residents and businesses struggle financially during the pandemic.
“Fiscal year 2021-22 budget demonstrates a heightened sensitivity and awareness during this COVID-19 pandemic and the resulting national economic crisis and takes into serious consideration the potential tax burden on those who own property in the city of Danbury,” he said.
Sewer and water rates would stay level, too.
Cavo proposed continuing the tax freeze for seniors adversely affected by the 2017 revaluation and borrowing $3 million for capital improvement projects.
“Fiscal year 2021-22 budget plan illustrates that we are
preparing for future growth and progress of the city, while not burdening the taxpayers with a tax increase,” Cavo said.
City Council will meet throughout April to discuss the budget before voting on the proposal in May. A workshop will be held next Tuesday over Zoom.
The proposal comes amid declining revenue in the city, with the finance director estimating a roughly $2 million fall in revenue by the end of this fiscal year.
The city would contribute $1.25 million more to education next fiscal year, with 51.4 percent of the budget going to the schools.
The city gave the schools about $136 million in 202021, although the education budget was around $146 million due to funding from other sources, including grants and money left over from the previous year’s budget.
School board Chairwoman Gladys Cooper urged the city to fully fund the education budget.
“The students are already here, more are coming,” she said in a comment submitted to the council.
Danbury is expected to receive at least $38 million in federal COVID-19 relief funds, but this money may only cover costs or issues related to the pandemic, not regular operating expenses. Administrators have said they want to avoid creating holes in future budgets.
A proposal to restructure the state’s education grant could help with next year’s education budget, too, with Danbury schools projected to receive $15.5 million more from the state if the bill passes.
Contributions to pension and other benefits would rise 7.11 percent from the previous year to $41.9 million, but other parts of the proposal saw relatively small increases.
Spending for public safety would be $39.1 million, an increase of 1.79 percent and would include replacing police vehicles, police communication equipment, fire tools and fire apparatuses. The city would continue to implement the police department’s new body cameras.
The emergency operation’s center would be renovated, too, after the city realized during the pandemic that it was lacking, Cavo said.
“Our EOC (emergency operations center) is not as modern as it needs to be,” he said.
The proposal calls for increasing general government spending by 0.87 percent to $10.9 million. Health and welfare would get $2.4 million, which is
0.44 percent more, and public works would see a
0.21 percent increase to
$10.8 million.
“The city remains steadfast on preserving the quality of life of our citizens by first and foremost keeping Danbury affordable,” said Cavo, adding the city will continue road, bridge, sewer, water, school, technology and other projects.
Just like last fiscal year, the Charles Ives Authority for the Performing Arts received no funding. The authority has been unable to hold concerts and festivals during the pandemic and requested that the city disband it. A City Council committee voted to keep the authority around for another year.
An additional $150,000 would go toward the ambulance fund, which has seen revenues decline during the coronavirus pandemic due to fewer people being transported to the hospital, the finance director has said.
Among the proposed $3 million in capital projects is a $1.25 million expenditure for paving, drainage and road improvements. Also included are $500,000 for fire department facilities improvements and planning, $450,000 for public services equipment, $450,000 for underground storage tanks, and $350,000 to replace generators across the city.