No Tax Increase In Derby

The Derby tax board approved a budget Tuesday that won’t raise taxes even though it provides an additional $45,000 to the Derby Storm Ambulance and Rescue Corps.

The debate over how much to give the Storms was basically the only controversial item in this year’s budget process in Derby.

The Storms, which once received between $80,000 to $100,000 annually from the city, had seen its annual contribution from the city drop to $55,000 in recent years.

Storms Chief Louis Oliwa said his agency — which exists as a nonprofit group separate from the city — needed the city to bring its annual contribution back up because the Storms are running a deficit.

The ambulance-rescue service doesn’t just take people to the hospital. Members respond to hazmat incidents, river rescues and trench collapses — all of which require specialized training and more than justify a $100,000 contribution from the city, proponents said.

Oliwa said that without additional money the Storms would be forced to consider billing the city for items members currently provide for free, such as ambulance coverage for all Derby football home games.

Tax board chairman Jim Butler has been the Storms’ chief antagonist, saying the service is expanding unchecked. Tax board member Larry Bussell has also been critical, saying Tuesday Mayor Anita Dugatto has unanswered questions about the Storms’ finances — but neither Bussell nor the mayor ever detailed those questions, at least not in public.

The full Derby meeting can be viewed by clicking the play button below (a discussion of Storm Ambulance begins 16 minutes and 59 seconds in):

Tax board member Richard Dziekan said under-funding the city’s ambulance corps just didn’t make sense — especially considering all the money the Storms save the city.

But the big question for tax board members Tuesday — if we give an additional $45,000 to the Storms on top of the $55,000 we’ve already promised them, where do we get that extra cash?

It’s an election year. Not surprisingly, the board members were hesitant to raise taxes, even though an $45,000 allocation would have done next to nothing to the mill rate.

Tax board members were also worried about hitting up residents for more money because the residents are already facing steep increases in sewer bills to pay for infrastructure repairs.

The tax board considered taking money from either Derby Public Schools or the town clerk’s office, where the city is funding a new assistant town clerk (which means the office will have a town clerk and two assistant town clerks).

Eventually, after two long breaks during which Mayor Anita Dugatto, her assistant Henry Domurad and Butler crunched numbers, the elected officials found a way to offset the additional $45,000 for Storms.

In the end, the tax board budgeted for an increase in permit fees coming from the city’s building department. Building permits are already being purchased at a rate higher than expected, so elected officials are counting on that trend to continue into next year.

In addition, the Aldermen just raised permit fees in the building department, which will also bring in more cash to cover the additional $45,000 given to Derby Storm Ambulance.

The tax board also allocated about $17.2 million for Derby Public Schools.

The budget approved Tuesday totaled $39 million, a roughly 2 percent increase over the current budget.

Derby is saving money by refinancing debt at a lower interest rate. The result is about $300,000 in savings compared to last year, City Treasurer Keith McLiverty told members of the tax board during budget meetings last month.

The budget approved Tuesday becomes effective July 1.

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