new haven budget presentation final

8/2/2019 New Haven Budget Presentation Final

1/21

1

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.

1


2/21

2

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


3/21

3

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


4/21

4

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


5/21

5

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


6/21

6

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


7/21

7

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


8/21

8

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


9/21

9

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.


10/21

10

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.


11/21

11

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.


12/21

12

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


13/21

13

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


14/21

1414

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.


2006 369,600

2010 314,496

2011 Full 455,080




15/21

1515

Homeowner Fairness Initiative: Ward 19

Sheldon Terrace, NewhallvilleSingle family, 2 bedroom, 1,003 sq.ft





What this means

In either scenario, this house will pay less taxes than it didlast year as a result of its value decreasing.


2006 86,590

2010 61,264

2011 Full 51,030



Ogden St, Prospect HillSingle family, 2 bedroom, 3,348 sq. ft.


Next Years Tax with Full implementation

$18,799



What this means

In either scenario, this house will pay more taxes than it did last yearas a result of its value increasing.


2006 360,080

2010 303,884

2011 Full 482,510




16/21

1616

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.


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




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.


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


17/21

17

Long Term Challenges

17

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


18/21

18

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.


19/21

19

Expenditure Options: Uniform Health Care andPension Plans

19

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.


20/21

20

Check Your Property Taxes Online

http://cityofnewhaven.com/lookup/proptax.asp


21/21

21

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

new haven budget presentation final

Documents