ANSONIA – Mayor Frank Tyszka presented a revised budget proposal Thursday (May 14) that includes about $4.5 million in new state aid.

The proposed budget now totals $69,146,155. 

It carries a mill rate increase of 1.8 mills – from 28.55 currently to 30.35. 

That is a 6.3 percent mill rate increase, but lower than the 30.82 mill rate Tyszka proposed in March.

Tyszka’s budget in its current form would have to go to voters for approval.

However, before that happens, it has to be reviewed by the Ansonia Board of Aldermen. They have the power to make further alterations to the budget.

The Aldermen could approve a budget at a meeting scheduled for May 26.

This story contains a breakdown of the state aid money Ansonia is set to receive, as well as how finance officials hope to use it.

Potential Tax Bills

If the budget were adopted without changes, a single-family home on Holbrook Street assessed at $180,000 would pay $324 more per year in taxes.

A house on Gardners Lane assessed at $248,000 would pay $446.40 more per year.

A house on High Acres Road assessed at $366,000 would pay $658.80 more per year.

State Aid

A budget recently adopted by the state legislature allocates $4,467,106 to Ansonia which was not previously budgeted. Of that money:

  • $939,494 is being sent directly to Ansonia Public Schools. Click here for a story about that money.
  • $3,527,612 is being sent to the city through three different grants. That includes a $3.25 million “Ansonia Rescue Fund” specific to the city.

Thomas Hamilton, a financial consultant hired by Tyszka’s administration, said the city also expects some money that used to belong to the city’s WPCA.

The budget proposal would use less money from the city’s fund balance, using the new money from the state in its place. Tyszka’s original proposal contained $3 million in reserve funding. However, the proposal would now use $500,000 from the fund balance instead.

The remaining new money would be used to soften the proposed mill rate increase from 30.82 mills to 30.35 mills, Hamilton said.

He said the new state aid money will help Ansonia make more balanced budgets.

“What we’re trying to do with this budget is build a sustainable path forward for the city. And with the additional state aid, we think, we believe that the city does have a sustainable way forward,” Hamilton said during the May 14 budget presentation at the Ansonia Senior Center.

Administration Makes Pitch To Voters Ahead Of Referendum

Tyszka’s administration is attempting to win public support for its budget proposal since it is probably going to a referendum. About 40 members of the public attended the meeting.

New Ansonia CFO Michael Iodice said a tax increase is needed in order to fill budget holes created under Tyszka’s predecessor, Mayor David Cassetti.

He said the city used money from the $41 million sale of its WPCA in 2024 to keep taxes lower than they should have been.

“The use of one-time WPCA proceeds artificially lowered mill rates. So the proper thing to do over the past couple of years is to gradually increase the mill rate, to meet the demands of the rising expenses. But instead, those taxes were kept artificially low,” Iodice said.

Hamilton said that if the city doesn’t increase taxes, it will find itself in a worse position during the next budget cycle.

Tyszka said his administration was dealt a bad hand after the city booked for revenue from a fuel cell project which hasn’t been built. 

The fuel cell “was falsely put in as revenue to balance the prior mayor’s budget, even after spending millions of dollars from the sale of the (WPCA) to do so,” Tyszka said.

Tyszka said he’s been working with state officials to chart a “path forward” and that he’ll have more information in June. 

Another meeting to present the proposed budget is scheduled for 7 p.m. Tuesday (May 19) at the senior center.