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DERBY -– Only one person from the public shared an opinion Tuesday on a proposed city budget that will increase the mill rate by 11.9 percent.
The tax board (the Derby Board of Apportionment and Taxation) hosted the budget public hearing, which was held in person in Derby City Hall and carried online.
“I’ve been watching the tax board for many years, so I understand the dilemma you are experiencing right now,” said resident Karen Kemmesies. “It’s unfortunate. I don’t want to see my taxes raised either, but hopefully going forward we’ll be on a positive step,” she said.
Kemmesies urged the tax board to pay attention to capital planning expenses – that is, big ticket items in the city such as purchasing new vehicles for the fire and police departments. She noted new equipment and vehicles are needed.
Fast Facts
Kemmesies was commenting on a $53.1 million preliminary budget that adds 4.6 mills to the Derby mill rate, bringing it to 43.2 mills.
A single-family house on Hawthorne Avenue assessed at $112,000 would pay an additional $515 in property taxes next year if the budget is adopted as is.
A house on Sentinel Hill Road assessed at $220,150 would pay $1,000 more in taxes next year.
The current Derby mill rate is 38.6.
Tax bills are calculated by multiplying the assessed value (click this link to look up your address) by the mill rate and then dividing by 1,000. Use the assessed value (not appraised value) when calculating tax bills.
The budget allocates an additional $673,983 for Derby Public Schools, a 3.4 percent spending increase but well below the $1.2 million requested by the Derby Board of Education. However, school board chairman Jim Gildea said the school district plans to use $235,000 from a ‘non-lapsing fund’ established in 2019 to address the difference. That’s essentially a reserve fund of school money previously allocated by the city but not used by the schools.
Reaction
The others who spoke during Tuesday’s 12-minute public hearing included elected officials Mayor Joseph DiMartino and Alderwoman Sarah Widomski, along with interim finance director Brian Hall.
Alderwoman Widomski thanked the board members for their work.
“This isn’t easy but I know you will make the right choices for the citizens of Derby,” Widomski said.
The DiMartino administration has placed the blame for this year’s tax increase on prior Mayor Richard Dziekan’s administration. DiMartino noted he inherited a budget that under-funded employee health benefits by $1 million, didn’t budget for a $648,000 increase in trash collection costs, and over-estimated tax collection rates.
At the same time, the city took money from its fund balance – or reserves – to bolster the budget, a practice that is not sustainable, the mayor said.
Mayor DiMartino called his budget honest, and noted its chief architect was Hall, a finance professional hired from outside Derby.
The mayor told the tax board he wasn’t happy raising taxes, “but it’s something that needs to be done.”
“We are in a hole. We need to get out of this hole. This is the only way to do it right now, is to have this unfortunate increase,” Mayor DiMartino said.
The mayor noted that because of Derby’s past budgeting mistakes they meet regularly with the Municipal Finance Advisory Committee (MFAC), a state entity. Mayor DiMartino said he fears a state takeover of Derby finances if the city doesn’t address the issues. Derby is scheduled to meet with MFAC again on April 17. Click here to read the agenda.
Hall credited the elected officials for opting to get the city back on solid financial ground, though it might not be politically expedient.
FYI
Click here to read every Valley Indy story since January about Derby’s finances.
The tax board has until the end of this month to adopt a budget for the new fiscal year starting on July 1.
The next tax board meeting is scheduled for 6 p.m. Tuesday, April 16, according to the Derby website.
The public hearing video is posted below.
