| 02/02/2007 |
| Richetelli proposes 8.1 percent increase for ’07-08 budget |
| Chris Rhatigan , Register Staff |
| MILFORD — Mayor James L. Richetelli Jr.’s proposed budget calls for city expenditures to rise 8.1 percent for fiscal 2007-08, but what that means for taxpayers isn’t clear. Richetelli said how much taxes rise won’t be determined until revaluation is finalized — as property owners are still disputing assessments — and the state determines how much aid the city will get. However, he speculated that a tax rate around 20 mills was possible, which would result in a tax increase for most residents. The current tax rate is 34.36 mills, but revaluation is expected to double the assessed value of the average property. Therefore, the tax rate would have to be cut in half to keep taxes steady for the average property owner. The mayor’s proposed city budget totals $92.6 million. This year it is $85.6 million. The combined city and schools proposed budget is $170.8 million, compared to this year’s $160.1 million, representing a 6.69 percent increase. The proposed budget basically keeps services at the same level. Fixed costs such as health insurance, electricity, contractual wages, pension contributions and workers compensation make up 91.2 percent of the increase. Three new positions — a building inspector, a police officer and an accountant — costing $182,135 are also included in the budget. Richetelli said a fifth staff member in the Building Department is essential. "For economic development reasons we need another person in that office," he said. Richetelli added that commercial growth also affects city services, thereby necessitating an additional police officer. Alderwoman Kerri Rowland, D-4, who is considering a mayoral run, said department heads seeking staff increases will need to explain to the board why those positions are needed. "As soon as I get my hands on this budget, I’m going to go through line by line, and we’re going to squeeze every possible dollar of savings out," she said. The rest, 5.3 percent of the increase, is in discretionary spending. Richetelli said that includes eight new police cruisers, supplies for fire trucks and other miscellaneous costs. In a new budgetary challenge, the General Accounting Standards Board is now requiring all employers including municipalities to show their total liability for guaranteed "other post-employment benefits" like health insurance. Finance Director Judy Doneiko said Milford would have to pay $19 million annually to cover the OPEB of city and school employees. Milford Bureau Chief Brian McCready contributed to this story.
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