The following remarks were submitted by Derby City Treasurer Keith McLiverty to the Derby Aldermen Community Relations Subcommittee on Oct. 10. The subcommittee was deciding whether to make a recommendation to start foreclosure on four blighted properties. Click here for that story.
You, as a sub-committee are acting tonight on what I consider one of the greatest issues facing a board or commission today that has such a direct impact on the quality of life of Derby residents, an issue that has long term impact on taxes, and the budget as a trickle-down effect.
The four (4) properties that you are acting upon this evening are four of the oldest and highest fines currently on the Blight List.
One property has been on the list since July of 2008, another since October of 08, one since October of 09, and the fourth since August of
10.
There are a couple of points that I believe should motivate the decision to foreclose.
First, the inaction of the property owners on the blight list to maintain their property is unfair to, and a blatant disregard for, the neighbors contiguous to the blighted parcel. It’s a disregard for their quality of life and the quality of life we expect as set forth in the Blight Ordinance. Blight brings down the value of the innocent property owners who keep their property up and happen to live near or next to a blighted property.
Secondly, the fines are almost equal to or exceed the property value of the property. They owe the people of the City of Derby in fines more than their property is worth and it is evident that the fines are not a motivating factor in cleaning up their property and meeting the expectations people have for maintaining ones property in Derby.
Thirdly, a benefit that is a trickle-down effect of the blighted property being foreclosed on due to blight, is that once the City owns the property, should we decide to demolish the property, we are reducing density, eliminating blight, and reducing the cost to taxpayers at the end of the day.
Less bedrooms could reduce the potential exposure of $11,000 per child, per year for education costs. IT would also allow the BOE to maximize their return on each budget dollar they currently receive since the dollars available would be spread over less children. Less density has an impact on other services as well such as trash, police fire and ambulance services.
This is about having the necessary discussion on municipal economics and affordability, and working collaboratively amongst boards and offices to take a step that will have positive short and long term benefit to all residents. We need to see a horizon further then one or two years down the road.
Mr. Butler and the Board of Apportionment and Taxation should be commended since they invested $100,000 to be used for this exact effort. Combine that with the Aldermen collecting some of the $1.1 million dollars that are due the City in existing Blight Fines, and we can have a healthy fund to aggressively pursue acquiring property and demolishing property that ignore the blight ordinance of the City.
Right now, given the state of the local, state and national economy, we are encroaching on the road of being unaffordable for many and driving people out. Drive the senior citizens out, and continue with escalating taxes, and we start a vicious cycle that has economic impact on all taxpayers and local businesses.
Once disposable income dwindles, and people stop spending money locally because they don’t have it to spend since taxes and life essentials exhaust what little people have, local businesses close. The net effect is that residential property taxes will only go up if we lose businesses and more people will have to sell and move away.
We must start to contain or eliminate costs, for given the current economy we are not seeing revenue grow in correlation with costs.
People cant keep paying. We don’t have it.
Should the City, if a property is obtained in foreclosure and demolished, decide to sell the parcel with deed restrictions of owner occupied, the neighborhood benefits and the City benefits, we clean up neighborhoods, reduce density, and create a long term winning situation for all.
