The Register Citizen (Torrington, CT)
Officials struggle to mind tax rate
Uncertainty from state, vehicle mill cap causing problems
TORRINGTON >>> The public was mute Monday evening as officials discussed efforts to keep the tax rate in check while providing for the community, during a joint meeting of the City Council and Board of Finance.
The proposed city budget currently stands at $54.8 million, a $1.6 million increase — or approximately 3 percent — over the current fiscal year.
City officials considered this proposal Monday, and held a public hearing to discuss it.
No residents stepped forward to speak.
The potential rise in the city budget, Mayor Elinor Carbone said Monday, is driven in large part by an increase in the cost of pensions and benefits for municipal employees, which is projected to rise by $1.29 million.
“What we were doing through this entire process was controlling what we can control, and that’s the spending side,” said Mayor Elinor Carbone. “Contracts are driving the $1.6 million increase.”
Much of the discussion Monday focused on the challenges of coming to an appropriate budget, as well as the the complications posed by the timeline for the budgeting process at the state level.
A tax rate of “45.75 is an awful big mill rate for this town, and businesses don’t want to stay here anymore. We’ve got offer them to stay here. But to that then, they want safety — they want the fire safety. They also want great schools for their kids to go to school. So, we’re weighing that factor, and it’s (a) very daunting task this year,” said Board of Finance member Frank Rubino. “Out of all of them, this I think, has been one of the more (difficult), because be have no clue what’s coming from Hartford, and I don’t think they do . ... You’ve got to make up your mind by a June date.”
Carbone warned that the legislature could call a special session after the current one adjourns June 7, pushing the date for firm financial projections later in summer.
A tax rate will have to be set, she said, in order to allow tax bills to go out after the turn of the fiscal year July 1.
Carbone again noted the state-imposed cap on the tax rate for motor vehicles as an issue for the city. The cap will decrease potential city revenues by nearly $2 million, she said in April.
“That alone is a gamechanger for the city of Torrington,” said Carbone.
Finance Board member Joshua Ferreira urged his cohort to keep the tax rate level.
“That will be the billboard people will see (as they consider moving businesses to Torrington),” said Ferreira. “We need to make sure that this mill rate does not increase more than it is.”
Council member Gregg Coggswell suggested that a 25 percent reduction for a potential budget be sketched out, given his concerns about budgeting at the state.
“I’m worried we’re going to have to go and find more,” said Coggswell.
Board of Finance member Laurene Pesce suggested asking city unions, both on the municipal and school sides, for concessions.
Carbone told the council and finance board that she would prepare a projection based on the proposal put forward by Gov. Dannel P. Malloy for their next joint meeting, scheduled for May 15.
The projection would be tenative, as the state level is uncertain — which Carbone alluded to Monday.
“We’re looking at how many angels dance on the head of a pin when we look at these things,” said Carbone.
If enough information is not provided by the first week of June, Carbone said after the meeting, officials likely will make their best estimate for revenues, set a tax rate, then issue a supplemental tax to adjust when more concrete figures are made available.
Uncertainty regarding state revenue projections has been a common theme among local elected officials during the budgeting process.
Some, such as Litchfield First Selectman Leo Paul, are building budgets with an assumption of state revenue, then planning to adjust if need be, while others, such as in New Hartford, have based discussions on the proposal by Malloy.