Politics & Government
City Council Passes First Draft Of 2014 New London Budget
Partial funding restored to departments; Councilor Adam Sprecace stands by budget figures
Divided between two different budget proposals, the City Council voted 4-3 on Monday to proceed with a 2014 fiscal year budget based on figures developed by Finance Director Jeff Smith and Council President Michael Passero.
The $81,979,980 budget includes a $41,565,314 budget for municipal departments and $40,414,666 budget for New London Public Schools. The proposed mill rate—or tax per $1,000 or assessed value—would increase 3.38 percent from 26.6 to 27.5.
The proposal restores funding to several departments that experienced significant cuts in Mayor Daryl Finizio’s budget proposal, but leaves several departments below their 2013 levels. The New London Police Department, which had a $1.4 million cut in Finizio’s budget, remains about $900,000 below its 2013 budget level.
“I’m not in love with the current budget,” said Passero. “I’m not in love with the current fiscal situation that the city’s in.”
The additional revenues and internal savings anticipated in the budget are budgeted at a more conservative rate than a proposal developed by Councilor Adam Sprecace, who anticipated being able to find enough savings within employee expenses to offset other reductions. Sprecace’s proposal was considered in the Finance Committee but not approved for a vote of the full Council.
“We do have three readings of this, so perhaps if I can convince others that this is the better way to go we can do it at that time,” said Sprecace.
Councilors Marie Friess-McSparran and John Maynard joined Sprecace in opposing the budget proposal. Passero, Council President Pro Tempore Wade Hyslop, and Councilors Donald Macrino and Anthony Nolan were in favor.
Finizio’s $81,016,213 budget proposal for 2014 included a 2.5 percent budget increase for the New London Public Schools to $40,814,666 and a 2.6 percent decrease in the municipal budget to $40,201,547. Finizio said anticipated revenue shortfalls necessitated several reductions—including a $1.4 million cut to the New London Police Department, $500,000 cuts to both the New London Fire Department and Department of Public Works, 50 percent reductions to the Recreation Department and Public Library of New London, and defunding of the Senior Center—to offset a local tax increase. The mill rate—or tax per $1,000 of assessed value—increased 3.09 percent, from 26.6 to 27.42, under Finizio’s proposal.
The Council's budget will go before the Finance Board and proceed to a public hearing at 7 p.m. on May 9 at New London High School. The Council must have a third and final reading of the budget approved by May 31.
Budget changes
At the meeting of the Finance Committee prior to the Council vote, Passero and Sprecace presented adjustments to alternate proposals they presented last week. The committee voted 2-1 to move Passero’s proposal up to the full City Council for a first reading.
After changes in the past week, the changes identify $1,735,029 in additional funding by:
- Adding $788,789 in state revenues restored by the Connecticut General
- Assembly Moving $400,000 from the school budget into the municipal budget by reducing the district’s budget increase from 2 percent to 1.5 percent
- Reducing unemployment expenses by $458,640
- Reducing disability costs by $62,600
- Including an additional $50,000 in anticipated revenue from the Water Street Parking Garage
These funds were allocated to Finizio’s budget figures to boost the allocations to several departments, including:
- $325,000 each to the Department of Public Works and New London Fire Department
- $250,000 to the New London Police Department
- $229,400 to the Senior Center
- $176,000 to the Recreation Department
- $88,000 to New London Youth Affairs
- $50,000 to the Office of Development and Planning
The remaining $214,630 to be allocated to the New London Police Department was increased to $500,000 through the following actions:
- Increasing the mill rate increase from .82 mills to .9 mills for a 3.39 percent increase and $125,000 in additional tax revenue
- Reducing disability, health insurance, and workers compensation by $25,000 each for a savings of $75,000
- Transferring $25,000 from both the $375,000 increases initially made to the fire department and Public Works for a total savings of $50,000
- Reducing liability, auto, and property insurance by $8,370
Sprecace budget
At the Finance Committee meeting, Sprecace said he had added in the $788,789 anticipated state revenues to offset reductions he made in employee expenses. The budget also reduced the school increase still further to limit it to a 1 percent increase to cover contractual salary increases to two educators’ union only.
Sprecace said the school administration had not provided him with detailed information on the district’s finances and that the information available omitted several points of detailed information, such as salaries.
“I cannot support any more than what I’ve already agreed to,” said Sprecace. “I think we’re going backwards in terms of transparency between the city and the school district.”
Sprecace said the budget adequately funds the departments while leaving a contingency of $507,031 to cover incorrect assumptions and other potential unexpected costs. Sprecace also said he would be unable to support the other proposal because he did not believe the money restored to the budget would be enough to avoid layoffs, particularly in the police budget.
“I still have a hard time supporting anything that’s going to lay off police officers,”he said.
Passero said he appreciated the work Sprecace has done in looking to identify savings, but that he could not support the proposal due to the major discrepancies in anticipated savings between Smith’s calculations and Sprecace’s numbers. For example, Smith anticipated being able to save $25,000 each in health insurance and workers compensation savings while Sprecace anticipated $350,000 and $213,520 in savings in these accounts, respectively.
“In order to keep the tax increase down, I just don’t see where else there is to give,” said Passero.
Macrino, chair of the Finance Committee, agreed.
“I think a real strong effort has been made to do the best we can in all these accounts,” he said.
At the meeting of the full Council, Maynard said he would support proceeding with Sprecace’s budget. Nolan said he could not support Sprecace’s proposal without Smith’s backing, but that he could be persuaded to if Sprecace is able to present more data on the anticipated savings.
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