Wednesday night, the Board of Finance’s subcommittee on financial planning voted 4-1 to recommend a 5.53 percent tax increase for the next fiscal year.
While the recommendation must be acted on by the Board of Finance and the Representative Town Meeting, and the budget can be cut or added to later, the subcommittee’s recommendation is usually accurate. For example, last year, the subcommittee recommended roughly a 4.2 percent tax increase for this year, and taxes increased .
“I don’t feel very good about it, but I recognize the reality of the situation,” Chairman George Peteros said. “But the alternative is to cut services. And I think the view you heard expressed today is I don’t think the town is ready at this point to accept any further reductions.”
A 5.53 percent increase would equal $78.2 million for the next fiscal year, which begins on July 1, 2012. The current budget is $74.3 million. The average taxpayer would pay an additional $196 per year in property taxes, according to projections by Finance Director Rudie Beers.
Subcommittee members Peteros, Tom Dembek, Ron Fedor and David Cattanach voted for the recommendation, while member George Kee felt it was too high. Superintendent Jerome Belair, School Business Manager Ron Melnik, First Selectman Dan Steward and Beers were also at the meeting.
Services Might Be Cut
The budget increase is partly from a $2 million increase in debt services for , according to town documents. Additionally, the subcommittee recommended a 3 percent increase for the Board of Education’s budget, bringing the total for education to $44.2 million, and a 2 percent increase for the general government’s budget, bringing that total to $28.2 million.
Still, despite the increase, Belair and especially Steward were worried they would not be able to come in at those numbers. Health insurance costs continue to increase, and that alone will take up most of the allowable budget increases, Beers said.
The town is self-insured, meaning it pays claims directly, Beers said. Currently, claims are coming in at more than $1 million a month, a pace of more than $12 million for an entire year, while the town only budgeted $9.5 million, she said.
Claims have increased dramatically every year for the last three years, Beers said. Most of it is because of serious injuries and illnesses, she said.
“Generally, you’ll see a trend like this for a couple of years or so,” Belair said. “But it's very unusual to see these numbers just continue to escalate.”
Town-Side Budget
Overall, after taking away the increases for health insurance costs, a 2 percent increase to the municipal budget gives Steward $53,000 more than last year, Peteros said. Labor costs alone are expected to increase around $250,000, Steward said.
“That $53,000 goes pretty quickly,” Steward said. “I wouldn’t say it’s going to be impossible (to hit that guideline), but it’s going to be very difficult.”
If East Lyme decides to use Waterford’s new , the town could receive $100,000 in grants, Steward said. Beers also suggested fees on town services, like charging for trash pick-up.
But most likely, it will mean more attrition of town employees, Steward said. Last year, six retirements were not filled. This year there might be more of that, he said.
“It probably means I’m going to find two more (positions) that won’t be here anymore,” he said. “Or three.”
School Side
Meanwhile, Belair was not sure if he could hit a $44.2 million budget for next year. The district has to negotiate contracts with four unions along with a new transportation contract, and utility costs continue to rise, he said.
As David says (below) there is plenty of OBVIOUS waste that NEEDS to STOP. I am dumbfounded that the taxpayers sat by and watched you clowns spend $200 million on 5 schools that were so over the top as to be criminal. The waste notwithstanding, the government is nothing more than a welfare program for people who want to feel good about themselves by deluding themselves that they have a “real” job. The inefficiencies are so obvious that I cannot believe that you do not see them. The unnecessary rules, regulations, and “systems” would be laughable if it was not crushing all of us under its weight. WAKE UP people, the government we have today is just a symptom of your apathy or lack of understanding; it is time to wake up and say NO MORE SPENDING, NO MORE REGULATION, AND YES TO FREEDOM AND YES TO PERSONAL RESPONSIBILITY.
I don't get around town as much as I used to. But from what I have seen in the past, there are many such buildings that could have cost far less. I can't imagine that those we elect can't see this. Labor contracts are yet another issue. It seems that our officials could take a stronger stand and get more concessions than we have seen. The few that have been obtained are good. But there are far too many generous packages that grant benefits that most can only dream of.
Mr. Rheaume - The East Lyme mill rate for the current fiscal year is 19.472 and the Waterford mill rate is 18.79. An equivalent property tax would be higher in East Lyme than in Waterford. Only Stonington with a 15.63 mill rate is lower in SE CT. However, Stonington does not pay for fire services, they are separately taxed.
John, you are playing the scare tactic game just like any other politician in town with the "services will be cut!" "You'll have to pay for trash pick up", Roads won't be plowed in Winter"! Every department head should be required to give back or cut 5% from their budgets. I be almost willing to bet budgets have 5% waste or are even bloated by that much every year.
Although, since I have often stated how studies are such a waste of taxpayer monies, I will agree with you that we should ask for that money back on the TOW study.
Candidates?
Regarding union negotiations - They are in the hand of the First Selectman and who ever is on his negotiating team. the BOF and the RTM are not invited. The BOF is authorized to have a representative on the negotiating team for the certified teachers and administrators contracts. The RTM, who votes to reject the contract or not, does not. That is the way the legislation is written. You may note that the negotiations with the teacher's union were lengthy. Eventually an agreement was reached that is helpful to the administration in the long run by sunsetting some benefits that were negotiated some fifteen or twenty years ago and making changes to the health care provisions but help the teachers in the short term by providing a small pay raise. It is my hope that the rest of the unions adopt the teacher's health care terms.
As for the changes to any insurance costs to public employees, I want to see the comparison to what private citizens pay, not to those of other union plans. Union benefits must be brought more in line with those of the every day citizen who is tasked with paying for those benefits.
Cutting costs means someone has to make tough, unpopular decisions. Some of these decisions will adversely affect some at the benefit of most. Government doesn’t have an income problem, it has a spending problem.
Why can't they cut their pay and all their luxuries? We the people are not being heard at all that is why we have protesters all over the STATE.....
Rather than beat yourself to death to find some small budget cuts (such as not building schools every 3 months) just continue to follow the Messiah leadership philosophy down the yellow brick road, and continue to feel good about a future of uncontrolled spending and death spiraling debt the "Waterford Way"