Budget cuts taxes

Budget cuts taxes

April 05, 2007

Mayor John M. Fabrizi has proposed a $461.5 million budget for upcoming fiscal year 2007-08 that would lower the tax rate by 1.2 percent.

"Yes, a decrease in our mill rate," Fabrizi told City Council members Monday night when releasing his budget proposal.

The current mill rate is 42.28, which means someone with a house assessed at $200,000 pays $8,456 in taxes annually. Homes are assessed at 70 percent of market value in Connecticut, so that house theoretically would sell for $285,725.

If the City Council enacts Fabrizi's budget plan, the taxes of the person with the $200,000 assessment would drop by $100 to $8,356 on July 1. Someone with a house assessed at $100,000 would see a $50 tax decrease.

"A half-mill decrease is movement in the right direction," Fabrizi said. "We're starting to bear the fruits of our labor the last couple of years."

The city's tax rate went up by 4.9 percent at the beginning of the current fiscal year, in July 2006.

Fabrizi has proposed increasing the education budget by about $2 million to $198.4 million, well below the school board's requested $213.6 million. However, he said he supports passing any increase in state school aid directly to the Board of Education.

Fabrizi did not include any additional state education money in his proposal for now because it's uncertain how much more funding Bridgeport might receive. However, it is expected to be substantial, which should provide a boost to the school system.

The Democratic-controlled state Legislature's Education Committee has approved a budget with a $12.5 million increase in the main school aid grant to Bridgeport, while Republican M. Jodi Rell has proposed an even larger $17.1 million increase for the city.

"Whatever more is appropriated they will get," Fabrizi said of the school.

Rising healthcare costs

The mayor's proposal represents a 3.26 increase in spending for the city, with the biggest rise in allotments for employee fringe benefits such as healthcare costs and worker's compensation.

Other escalating costs include electricity and water bills (most of the water is used for fire operations). The proposed budget also has about $1 million for the upcoming revaluation process, scheduled to take effect in fiscal year 2008-09.

Fabrizi has included a 7.16 percent increase in public safety to $65.1 million for the recruitment, testing and hiring of 30 police officers and 10 firefighters, new firefighter gear and a higher police overtime allotment. The current police overtime budget has a large deficit.

Fabrizi said a growing tax base, aggressive tax assessments and collection efforts, and the sale of unneeded city property have boosted revenues. "It's all coming home to roost," he said.

The mayor's proposal does rely on some non-guaranteed revenues, including $4.5 million from a land disposition agreement with the Steel Point developer and $3.1 million from the sale of American Fabrics property in the East End. The city acquired the factory site through foreclosure.

The budget also anticipates a 96 percent property tax collection rate compared to the current 95 percent. Fabrizi said the rise is justified due to aggressive enforcement efforts such as delinquent tax warrants, foreclosures and the motor vehicle Bootfinder program.

The proposed budget is the product of a new process that Fabrizi called "revolutionary." He said it incorporates performance measures "to determine the efficiency and effectiveness of service and program delivery."

Additionally, the budget was compiled by zero-based budgeting, which means the department heads don't presume they will receive at least the same level of funding in the new budget as in the current one.

"Zero-based budgeting requires departments to develop budget requests from scratch, as if there were no existing programs," said Fabrizi, a Democrat.

City Council's role

Council members had not had time to study the proposed budget comprehensively earlier this week.

The 2007-08 budget book was presented in a new format that includes goals and previous achievements for individual departments. It also has text explanations not included in the past.

Fabrizi said the budget will be available online at the city website soon.

Donna M. Curran, the council's only Republican, said she wants to monitor how zero-based budgeting techniques were used and also supports the implementation of three-year budgets.

Curran said the city charter requires three-year budgets, but only two-year budget projections now are produced. "Because we have such constraints, we really need more planning," she said, referring to mandatory expenditures such as labor contracts.

The council will spend the next month studying and altering the budget. It must approve its budget by May 8, after which Fabrizi will be able to veto all or part of that budget if he disagrees with it. The new mill rate will be set by early June.

The council voted Monday to hire a consultant to help it during the budget process. The firm will receive a maximum of $7,500 for up to 60 hours of work. The council plans to hire the same company that now does the city's annual audit.

The expense is less than the amount required to go through the bid process, which council leaders said would take too long and would not be finished by the time the budget must be approved.

Robert P. Curwen Sr., budget committee co-chairman, emphasized the firm will be working "solely for the City Council" and not the administration.

The other budget co-chairman, Rafael Mojica, said the process could have been handled better but the outside guidance is necessary. "If we can get a second opinion for under $7,5000, it's well worth it," Mojica said.

Council member Robert S. Walsh complained the council often berates other city officials for wanting to skip the normal procurement process due to tight deadlines.

Walsh also questioned why the city would hire the same firm that does the city's annual audit. "We need independence," he said.

Council member Keith Rodgerson asked why the council was being rushed to hire its own budget consultant. "Something about this thing doesn't smell right," Rodgerson said.

Council members agreed the consultant-hiring process should be raised sooner with the next budget so bids could be solicited.