This is a printer-friendly version of an article from Zip06.com.
05/30/2024 12:36 PMWorking across party lines, the North Haven Board of Finance (BOF) has released its revised $128 million budget for the 2024-'25 fiscal year after electors narrowly rejected a previous budget on May 21.
The new proposed budget totals $128,580,331 in total town expenditures, a decrease of $1,774,820 from the rejected budget. The newly proposed mill rate, while still an increase above the current mill rate, is lower in the newly presented budget at 34.64 mills.
Following the defeat on May 21, town officials warned voters that cuts would have to be made. The new proposal includes cuts of $52,723 to public safety, $160,000 to public works, $39,847 to employee benefits, and $950,000 to the Board of Education (BOE) budget.
First Selectman Mike Freda said the latter cut was "the biggest thing we've done" in the town budget. The $950,000 reduction to the BOE budget was cut specifically from the BOE's reserve fund, also known as a rainy day fund, which "will not have any effect on the school system," including the teachers, curriculum, and programming at all of North Haven's six public schools.
"Even in the event of a catastrophe at the Board of Ed…we think with over $2 million worth of reserves left, we'll be able to get through the fiscal year," said Freda.
Despite the cuts, Freda confirmed that unfunded mandates in public health and safety, infrastructure, and education, projected to cost up to $1.2 million, will still be covered. These mandates include funding an Americans with Disability Act (ADA) assessment plan for sidewalks, adoption of the Right to Read state initiative, and HVAC studies at all public schools.
In regards to public safety, two police officers hired in January have maintained their positions in the department, as the "police chief did a great job in reducing in other areas the equivalent cost of what those two new police officers would be," said Freda.
In sanitation, the BOF was able to find cuts in tipping fees from $1,091,000 to $1,016,000.
"We did that because we're analyzing what's called the waste spot market, and for the time being, we've saved about $12 a ton by shopping the market," said Freda.
However, this cut comes with an additional $85,000 reduction from the equipment rentals line within the streets and roads portion of the budget, which means that the town "may not be able to pick up leaves four times this coming year," said Freda. "We're still going to keep leaf collection."
Freda summarized other parts of the revised budget as "a combination of increasing the revenue projections and cutting back and delaying some purchases for capital," he said.
An increase in revenue projections is visible within the budget with a total of $500,000 allocated from the town's reserve fund balance into its total revenues equal to the budget. This includes an additional $250,000 directly from the fund and $100,000 on short-term investment income, an allocation Freda admitted he was reluctant to see happen.
"Because our interest on short-term investments is continuing to grow, although I'm reluctant to do this, we added another $100,000 on short-term investment income, projected that the rates will not be cut until maybe later in the fiscal year, meaning the interest rates by the Fed[eral Reserve]," said Freda. "Right there, there's $350,000 more in revenue."
In the area of capital, Freda said the BOF reduced the police department's expenses by $70,000, which the "police department was on board with," he said, and that it "wouldn't adversely affect any services with police." This brings police capital expenses down from $250,400 to $180,400, with cuts made to police cruisers.
The BOF also decided to delay a $70,000 lease on a jet vac for public works and the $300,000 lease on a fire engine because "the truck is coming in a little bit later than we had anticipated," said Freda.
"We're still getting the truck; we're still going to pay for it," he added.
The BOF will hold a public meeting on the revised budget on Monday, June 10 at North Haven High School at 7 p.m.
Freda said he hopes the budget passes or else "some very, very difficult decisions will be made" as a result.
"If it doesn't pass, we'd have to borrow $10 million a month starting July 1 to keep the government going," he said. "If it fails, there's no tax money coming in on July 1; we have to do another referendum."
Anticipating a second decision by town electors, Freda said, "Whatever the outcome is, I'm prepared to deal with it, even if it means borrowing $10 million to sustain the government" and its services as an alternative.
A copy of the revised budget can be found on the town's website at www.town.north-haven.ct.us.