New Haven Budget Presentation Final
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Transcript of New Haven Budget Presentation Final
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8/2/2019 New Haven Budget Presentation Final
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City Priorities
Advancing the academic success of our public school children throughNew Haven School Change.
Transforming our City Center into a Strong Job and Tax Generator.
Connecting New Haven residents to employment opportunities. Assuring the safety and strength of our neighborhoods.
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Fiscal Year 2012-13 Budget Headlines
Budget up 2.4 percent, from $475.4 million to $486.8 million. Mill Rate drops from 43.9 to 40.56
Introduces Homeowner Fairness Initiative, 75 percent of owner-occupantssee taxes drop
Taxes on all personal property and motor vehicles drop Increases Yale-New Haven Hospital PILOT from $1.8 million to $3.5 milliondue to merger with St. Raphaels; Yale voluntary payment at $8.1 million
Funds sworn staffing in Police Department at 467, supports two classes (67recruits) to increase the department to its existing authorized strength
Advances School Change. Increases Education funding by $1.2 million afterthree years of level funding Sustains valued City services such as senior centers, parks, and libraries No fee increases
No City layoffs; 119 education position reductions No wage increases without negotiations
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Expenditure Decreases
Public SafetyCommunications
-9.5%, -$331,167 CMED payment shifted tofinancial support tovarious orgs line item
Labor Savings -21.8%, -$941,622 Budgets $3.4 million$870,970 in attrition cuts
$2.5 million contract negotiations
Engineering -2.9%, -$93,950 Street light utility savings
Unemployment -48.5%, -$270,233 No layoffs
Public Works -2.0%, -$235,999 Curbside recycling
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Expenditure Increases
Health Care 4.9 %, $3 million Persistent cost driver
Pensions 2.6 %, $1.15
million
Persistent cost driver
Debt Service 3.8 %, $2.4 million Investments in public infrastructure,schools, self-insurance liabilityResponsibly addresses $17.4 million deficit in the
self insurance liability fund.Budgets $6 million in Capital for bonding of deficit.
Budgets for FY13-14, FY 14-15, and FY 15-16 toinclude additional $2 million appropriations.
Police 7.7 %, $2.7 million Grant expired, officer salaries shift to
general fund
Transportation, Traffic,and Parking
7.8 %, $170,327 New part time parking enforcementofficers for late shift. Salaries to beoffset by meter revenue.
Education 0.7 %, $1.2 million First increase after three years of levelfunding
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Budget Priorities: Youth
Sustains School Change momentum by giving Board of Education first increase infour years.
Maintains popular and effective school programs such as the Talented and GiftedProgram, Reading and Math Coaches, Library Media Support, Guidance Counselors,summer programs, arts programs, athletics.
Continues nationally-recognized Teacher Evaluation model.
Every school will be individually supported and expected to improve.
College-going curriculum in every preK-8 school.
Coordinated support for student social, emotional, and physical well-being.
Supports School Choice, early learning, and athletics by identifying Capital fundingfor New Haven Academy, Helene Grant, Bowen Field, and a new Hyde buildingadjacent to Hillhouse.
Recognizes public desire for a Community Youth Center by committing capitalfunding for youth center study.
Supports healthy neighborhoods: $240,000 for playgrounds
Supports athletics: $100,000 field lighting improvements at East Shore Park Supports community learning and literacy: $889,000 for library improvements
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Budget Priorities: Public Safety
Community Policing- Funds sworn staffing in Police Department at 467, supports two classes(67 recruits) to increased the department to its existing authorized strength
- Filling of staff will enable full staffing of all car beats, doubling ofwalking beats from 20 to 40, restoration of School ResourceOfficers to 12, restoration of 2 policing districts in the Hill, doublingof Internal Affairs
- Capital funding for police vehicles, body armor, computers, andradios. Fire Department- Funds new fire class of approximately 43 recruits
- Capital funding for fire apparatus, protective equipment,emergency medical equipment
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Budget Priorities: Strong Neighborhoods
$3 million in capital funds for West Rock redevelopment $240,000 for playgrounds
$500,000 (supplemented by $87,500 state and $855,700 federal) for QuinnipiacAve, Ramsdell Rd, and Howard Ave Complete Streets $1.8 million for sidewalks
$280,000 for business faade improvement program
$100,000 for anti-blight efforts such as graffiti removal, abandoned car removal,removal of illegally dumped refuse
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Revenue
Property taxes- $225 million, up $7.5 million, from net new growth- Does not require any additional taxes from current tax base- 75 percent of owner occupants see tax decrease, taxes on all motor vehicles and
personal property drop
State Aid- $153 million BOE (up $2.3 million, transportation and school construction)- ECS increase of $3.8 million direct to BoE (but includes $2.0 million payment tocharters.)
- $56 million City (down $334,777, -0.59 %)
Licenses, Permits Fees
- $17 million, down $203,276, -1.17%- Assumes less in medical services billing based on prior experience- Reduces estimate for bulk trash pick-up fee, based on prior experience- Introduces revenue from concessions at parks and City property
Other Revenue
- Up $1.7 million, up 8 %- Yale-New Haven Hospital PILOT up ($1.7 million)- Sale of surplus MLK School building ($1.5 million)- Reduction in NHPA PILOT from $5 million to $2.5 million
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Controlling Expenditures
Over the past decade, the City has pursued efficiencies wherever possible.
Clean and efficient energy generation technology: Installation of a fuel cell behind the Hall ofRecords projected to save $500,000 to $1 million in energy costs over the next decade.
Multi-year energy purchasing agreements for electric power and natural gas: saves $700,000
and $1.3 million respectively over the next two years.
Single stream recycling initiative: $252,000 in annual cost savings in this proposed budget.
New copy and print management contract: saves $1.5 million over the 60-month life of thecontract.
Grant funding and alternative revenue streams offer valuable services to the public such as
the Prison Re-Entry Initiative and the Office of Sustainability at no cost to tax payers.
While State and Federal governments have increased their fulltime workforce over the lastdecade, New Haven cut its full time City workforce by 18.5 percent, from 1,821 in FY02 to1,485 in the proposed FY13 budget.
Increased medical cost sharing across bargaining units over the past decade.
Executive Management and Confidential employees saw cost shares increase from 10percent in FY02 to 24 percent in FY12.
Local 3144 saw cost shares increase from 7.5 percent in FY02 to 18 percent in FY12.
Teachers saw cost shares increase from 7 percent in FY02 to 20.5 in FY12.
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Controlling Expenditures: Board of Education
Demonstrated solid results in the first year of a nationally-recognizedSchool Change campaign without increasing Board of Educationfunding for three consecutive years.
School custodians contract: saves $4 million annually and improves delivery of school
custodial services.
Trades union contract: 18 months of wage freezes and privatization rights.
School Administrators Association: saves nearly $1 million in medical costs over the three-year life of the contract. If adopted citywide, the health benefits package would save asmuch as $24 million over the next four years.
Non-union Executive Management employees have had 12-36 months of wage freezes,
elimination of longevity, and medical and pension adjustments.
Successfully increased federal reimbursement for free and reduced price lunch.
Proactively sought grant funding and partnerships wherever possible to deliver services atno cost to taxpayers.
Second year of site-based budgeting to increase transparency and accountability.
Avoided consumption of 17.2 million kWh of electricity in three years and cost avoidance
of $5 million since 2008-09. The kWh consumption per square foot has been reduced by28%. This was achieved with an additional 250,000 square feet of building space.
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Controlling Expenditures: Board of Education
After three years of flat funding, a 0.7 % increase forFY 12-13 will still result in position eliminations andpotential school closure and consolidation:
- Reduction of 19 custodial positions- Reduction of 25 paraprofessional positions- Reduction of 5 clerical/security positions
- Reduction of 60 teaching positions- Reduction of 10 administrator/executive positions
It is expected that most position eliminations will bedone through attrition, not layoffs.
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Impact of Grand List Growth
Grand List grew 16.71 percent, or $861 million, largely due torevaluation.
Net new growth of $173.5 million (non-revaluation related
growth) generated $7.5 million in new tax revenue. New growth in the Grand List is a testament to success ofEconomic Development strategies. Impact of new growth on
the budget underscores importance of continuing to grow the
tax base.
Major contributors to new growth include:
PSEG peaking power plant on Waterfront Street
United Illuminating modernization efforts at Grand Avenue switchingstation and Union Avenue substation
New chiller plant at Science Park
Broadway parking lot sold to Yale University
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Homeowner Fairness Initiative
Implements immediately all decreased property values Phases-in property values over five years for owner-occupiedresidential properties whose values are going up Based on 2010 property values, the values used as the basisfor the most recent tax bills
75 percent of owner occupants will see taxes decrease; taxesfor all motor vehicles and personal property to decrease
Requires state enabling legislation as well as Board ofAldermen approval
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Ridge St, Cedar Hill4 family, 8 bedroom, 4,051 sq-feet
Current Years Tax$5,408
Next Years Tax with Full implementation$3,352
Next Years Tax with Owner Occupied Phase-in$3,489
Next Years Tax with Citywide Phase-in$3,508
What this means
In either scenario, this house will pay less taxes than it did lastyear as a result of its value decreasing.
Grand List Yr Assessment
2006 173,250
2010 123,186
2011 Full 86,030
2011 with Citywide P.I 86,030
2011 w/ Owner Occupied P.I 86,030
Homeowner Fairness Initiative: Ward 10
Everit Street, East RockSingle family, 6 bedroom, 3,552 sq-feet
Current Years Tax
$13,806
Next Years Tax with Full implementation
$17,847
Next Years Tax with Owner Occupied Phase-in
$13,921
Next Years Tax with Citywide Phase-in
$15,672
What this means
In either scenario, this house will pay more taxes than itdid last year as a result of its value increasing.
Grand List Yr Assessment
2006 369,600
2010 314,496
2011 Full 455,080
2011 with Citywide P.I 384,296
2011 w/ Owner Occupied P.I 340,213
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Homeowner Fairness Initiative: Ward 19
Sheldon Terrace, NewhallvilleSingle family, 2 bedroom, 1,003 sq.ft
Current Years Tax$2,689
Next Years Tax with Full implementation$1,988
Next Years Tax with Owner Occupied Phase-in$2,070
Next Years Tax with Citywide Phase-in$2,081
What this means
In either scenario, this house will pay less taxes than it didlast year as a result of its value decreasing.
Grand List Yr Assessment
2006 86,590
2010 61,264
2011 Full 51,030
2011 with Citywide P.I 51,030
2011 w/ Owner Occupied P.I 51,030
Ogden St, Prospect HillSingle family, 2 bedroom, 3,348 sq. ft.
Current Years Tax$13,341
Next Years Tax with Full implementation
$18,799
Next Years Tax with Owner Occupied Phase-in$13,775
Next Years Tax with Citywide Phase-in$15,683
What this means
In either scenario, this house will pay more taxes than it did last yearas a result of its value increasing.
Grand List Yr Assessment
2006 360,080
2010 303,884
2011 Full 482,510
2011 with Citywide P.I 384,566
2011 w/ Owner Occupied P.I 339,609
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Homeowner Fairness Initiative: Commercial
300 George St, Commercial PropertyProfessional Office/Biotech, 489,609 sq. ft.
Current Years Tax$1,668,400
Next Years Tax with Full implementation$2,102,728
Next Years Tax with Owner Occupied Phase-in$2,189,083
Next Years Tax with Citywide Phase-in$1,964,278
What this means
Because the value of commercial property across the citytended to increase, the corresponding tax bills showed thesame trend.
As the 2011 owner occupied phase in applies only toresidential property, commercial taxpayers do not reap its
benefits and as a result pay a slightly higher tax.
Grand List Yr Assessment
2006 42,007,000
2010 38,004,554
2011 Full 53,971,470
2011 with Citywide P.I 48,167,686
2011 w/ Owner Occupied P.I 53,971,470
265 College St, Commercial PropertyMixed Retail/Apartments, 180,364 sq. ft.
Current Years Tax
$419,105
Next Years Tax with Full implementation$500,438
Next Years Tax with Owner Occupied Phase-in$520,990
Next Years Tax with Citywide Phase-in$461,854
What this means
Because the value of commercial property across the citytended to increase, the corresponding tax bills showed thesame trend.
As the 2011 owner occupied phase in applies only toresidential property, commercial taxpayers do not reap itsbenefits and as a result pay a slightly higher tax.
Grand List Yr Assessment
2006 11,592,210
2010 9,546,810
2011 Full 12,844,930
2011 with Citywide P.I 11,325,510
2011 w/ Owner Occupied P.I 12,844,930
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Long Term Challenges
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LargeshareoftheStatesatriskpopulation,5,000reentry.TheCityisdenselydevelopedandfullybuiltout.Continuedhightaxrateandlowpropertywealthdramaticallyimpairs
theCitys
ability
to
support
the
public
interest.
Owneroccupieddwellings 23% 2nd
lowestinstate
Subsidizedhousingunits 27% 13%ofstate,2nd
highest
Taxexemptproperty 45.5% 2nd
highestinstate
Developableacres 164 1.4%
of
all
land
Unemploymentrate 11.7 3rdhighestinstate
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Long Term Directions
If the PILOTS were funded at the 45% for Stateproperty and 77% for colleges and hospitals asoutlined in statute, it would generate an additional
$44,132,764 in annual revenue. If they were both100% funded it would result in an additional$76,756,367.
Reliance on property taxes is problematic. Efforts tosecure state enabling legislation to diversify revenuehave not succeeded.
Employee pension and healthcare costs are major
cost drivers in the budget. Pension and healthcarereform in labor agreements will be key to controllingfuture costs.
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Expenditure Options: Uniform Health Care andPension Plans
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Health Care
Develop a fair and efficient health care plan that reduces health care costs while
increasing member well being.
Consumer Driven Health Care Employees have choice of Four Plans - Costsharing based on Defined Contribution Methodology
Emphasis on preventive care and use of primary care physicians
Vision and dental services
Provides Comprehensive, Integrated Health Programs to members with chronicconditions
Pensions
Maintain long term fiscal stability and predictability for taxpayers while maintainingviability of fund for employees
Modify current standards of eligibility for full pension by re-examining retirementage, years of service, maximum pension, COLA, medical benefits coverage, and
use of base salary instead of total earnings.
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Check Your Property Taxes Online
http://cityofnewhaven.com/lookup/proptax.asp
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Community Input
Saturday, March 3 at 11 a.m. at St. Bernadettes Church Hall Wednesday, March 7 at 6 p.m. at Wilbur Cross High School Thursday, March 8 at 6:30 p.m. at Lincoln/Bassett School
Saturday, March 10 at 10 a.m. at Mitchell Branch Library