
Editor’s Note: in light of this week’s news that Derby’s credit rating was downgraded and a subsequent political letter, I thought it would be useful to repost this story from June 25. The videos below contain public comments made by a variety of Derby elected officials, past and present. In the videos, the officials comment about the budget crisis that engulfed the city this year.
DERBY — Last week the tax board adopted a $44.5 million budget that carries a 2.5 mill tax increase.
A single-family house assessed at $130,000 will pay an additional $325 in taxes next year.
The budget goes into effect July 1 and covers the fiscal year ending June 30, 2020.
It is not the only extra cash Derby residents will have to come up with.
In May, the city’s WPCA voted to raise sewer rates for the average house $30 to $37. That is in addition to the annual $257 capital fee single-family house owners are paying in connection to a 2014 sewer repair referendum voters approved.
The mill rate increase adopted by the tax board last week was caused in part, officials said, by Derby finance folks who mistakenly double counted education grants from the state — meaning revenue that was budgeted for never arrived, creating a multi-million dollar budget hole.
The mistake first happened during the formation of the 2016 – 2017 budget and continued for two years, according to statements from Derby public officials.
In addition to raising taxes, the city will be restructuring debt, decreasing pension contributions, selling properties, and auctioning tax-delinquent properties to close the budget hole and get the city in better financial health.
Ratings agencies will probably downgrade the city’s bond rating due to the budget problems, according to the city city treasurer.
Though the budget raises taxes, none of that money is going toward Derby Public Schools. The school district was flat-funded for the second fiscal year in a row, though it is receiving an increase in “alliance district” funding for being an under-performing school district.
But the school district can only use that money for state-approved school reform programs, not for items such as transportation costs.
At last week’s budget public hearing, parents and others urged the tax board to give more money to the school district, saying doing so would allow the school to continue making improvements.
Several seniors citizens asked the board to think of seniors on fixed incomes who can’t afford to pay extra.
Many speakers wondered how the city could mess up its budget so badly.
Afterward, school supporters complained the tax board voted on the school budget without discussion, failing to acknowledge or answer the concerns raised by the public.
The Valley Indy live-streamed the public hearing for its entirety, which can be viewed by clicking this link.
The videos below are clips from the full video, featuring comments on the budget during the hearing by various public officials and one former mayor.
Please not that the videos for Alderwoman Barbara DeGennaro and Alderman Charles Sampson are incomplete due to The Valley Indy briefly losing cellular connection during the livestream.
ANDREW BAKLIK
Mayor Rich Dziekan’s Chief of Staff
“There’s just a lot of different processes and a lot of different ways that this thing could have, and did, get screwed up. We owe the taxpayers an apology for that.”
BARBARA DEGENNARO
First Ward Alderwoman
”Sometimes you just need to say no. Every department needs to cut monetarily.”
ANITA DUGATTO
Former Derby Mayor
”This is a lesson for everybody in this town. Do their job and stay in their lane. That’s the only way to get through this.”
RICH DZIEKAN
Mayor of Derby
”A lot of things came down. But we found it. And we’re working through it.”
JIM GILDEA
Derby Board of Education Chairman
”We can show you good things are happening in the Derby school system. What I will say, if you continue to give us a zero-percent increase … you’re going to create a school system that no one wants to be in.”
KEITH MCLIVERTY
Derby City Treasurer
”Maybe it’s time we do get in a room with the board of ed and make our list of issues, and we call state reps and state senators in here. I’m not having coffee with them on Route 34 with them for an hour. Get in a room and figure out what the hell the state is doing to us that we can’t afford anymore.”