One of the mill rate scenarios Derby ran through Tuesday night.
DERBY — The members of the city’s tax board are considering a budget that could raise taxes by about 3.2 mills.
The board met Tuesday night and will meet again Thursday to consider adopting a preliminary budget of roughly $48 million. A public hearing on the budget could be scheduled for Tuesday, June 16.
The tax board could make changes to the budget over the course of the next week or so, and after they hear from the public.
Derby, officially classified as a distressed city by the state, ran into terrible financial problems last year after the government realized it had double counted granted money.
It was part of the reason Derby raised taxes last year by 2.5 mills and create a “recovery plan” to get back on stable financial footing.
The proposed budget looks to put money back into the city’s fund balance, which had been in the negative because of the financial problems.
Meanwhile, the city hasn’t increased the amount of money it gives to the school district in two years.
In addition, the city has yet to realize anticipated savings from an energy project that has been delayed.
The Derby Board of Education, after two years of flat funding from the city, asked for a roughly $1 million increase. School officials said contractual obligations with staff and employees was the lion’s share of the requested increase.
The tax board, after a lengthy discussion, opted Tuesday to trim about $400,000 off that request.
If approved in its current form the mill rate in Derby will increase from 41.8 to 45.1.
Members of the tax board acknowledged a tax increase isn’t going to make anyone happy. There are serious concerns that people will not be able to pay their taxes this year because of the economic fallout of the COVID-19 pandemic.
City Finance Director Keith McLiverty noted commercial development is a key to turning things around. He said the long-planned Route 34 widening project needs to happen so that new businesses will come to the south side of Derby’s Main Street.
Putting together an annual budget in Derby is so difficult, Judy Szewczyk, the long-time chairwoman of the tax board, said it may be time to take the final approval of the budget away from the tax board. She wondered if it was time to put budgets in Derby out for public vote.
Members of the tax board also noted that they’ve never laid off or furloughed city department employees (in fact, the budget contains raises for school and city employees). Given the state of Derby’s economy, those types of conversations may start happening, they indicated.
Last year, during Derby’s budget crisis, teachers took a furlough day to reduce board of education costs.
Clarification: I added a sentence pointing out teachers took a furlough day last year. In last night’s discussion, tax board members were specifically talking about the fact there have been no layoffs or furloughs on the city side of the budget.
