DERBY – The members of the Board of Aldermen and Alderwomen unanimously voted Aug. 13 to transfer $1.89 million into a capital planning fund.
Capital projects refer to big-ticket expenses such as vehicle replacement or major building repairs.
Cash-strapped Derby hasn’t had a ton of extra money the last few years to set aside for capital projects – yet the city has a “to do” list of some $35 million.
Voters chipped away at that list last when they approved borrowing up to $6.5 million to fix the broken HVAC systems at Derby Middle School, and to replace outdated fire trucks and communication equipment.
At a public meeting July 23, Derby Finance Director Brian Hall said that thanks to responsible budget practices, the city is now in a position where it can start to save money for other big-ticket expenses.
“We’ve been very fortunate this year. We’ve had a lot of things break our way,” Hall said.
The capital planning fund includes $556,097 that was previously dedicated toward capital projects.
Among the new money Mayor Joseph DiMartino’s administration put into the capital planning fund:
$324,519 in ‘outside police work’
It refers to reimbursement the city receives when city police are assigned to things such as road construction jobs that require traffic control. The city fronts the money and then collects reimbursement. Hall said the city has become more aggressive collecting the money it is owed. In previous years the money was left uncollected, and the reimbursement rules have been tweaked to cover the city’s administrative costs.
An increase of $266,067 in motor vehicle taxes collected
This happened because the state passed a law allowing municipalities to assess motor vehicles at a higher value in order to collect more in car taxes. Read more here.
$199,312 in interest earned
$172,143 from the sale of city properties
This usually refers to properties the city acquired through tax foreclosures and sold to the private sector.
$129,744 from the cannabis tax
This is money the city received from the tax on products sold at Hi! People, the city’s lone cannabis dispensary.
$122,667 from the ‘telephone access line tax’
This is a tax telecommunication companies pay on their equipment. The money increased this year, Hall said, probably because of telecom equipment upgrades.
$121,732 in rental income
Derby purchased a property on Factory Street next to the Housatonic River that is home to a scrap yard. The city has been collecting $7,500 a month in rent while working to move the scrap yard out of its current location because it hinders new development.
The $1.89 million transfer received a positive recommendation from the finance and public safety subcommittee, and was then approved by the Derby Board of Aldermen and Alderwomen Aug. 13.