This $2M 'Surprise' Helped Ensure A Tax Decrease In Milford

MILFORD, CT — Earlier this month the city approved a final budget for next year which slightly reduces the tax rate for Milford residents. The average homeowner will save $7, city officials said.

At the Board of Aldermen meeting there was much discussion on how the city got to approve its final tax rate. One of the reasons Milford was able to approve a tax decrease was due to unexpected savings in its health insurance account for town and school employees. The savings totaled $2 million, according to official meeting minutes.

Alderman Anthony Giannattasio at the meeting, according to meeting minutes, asked if the healthcare numbers were better than had been expected. Mayor Ben Blake stated it was a pleasant surprise. He provided a brief summary on how the City acquired a new healthcare consultant through the RFQ process.

Alderman Frank Smith asked if consideration had been given to restore departmental budgets given the savings in healthcare. Blake stated the budget is an 8-10-month process that is vetted several times. He discussed how departments reviewed their budgets and made reductions where possible in order to keep the budget request flat.

Blake stated that it is more important than ever to provide a reasonable budget due to Covid-19 and the economic struggles of taxpayers.

Alderman Raymond Vitali stated based on the Board of Finance recommended budget the mill rate would be 28.46. He asked what the mill rate would be with proposed healthcare reductions. Finance Director Peter Erodici stated with the technical changes the new mill rate would be 27.68.

Giannattasio asked how that would affect property taxes. Erodici stated a home with a market value of $311 ,000 would result in a $7 decrease.

Ald. Anthony Sutton stated he is in favor of the motion presented and commends the Mayor, Board of Finance and departments who took part in preparing the budget. He further stated he believes this is a testament to fiscal responsibility and urges the Board to support the motion.

Vitali asked if a new healthcare consultant had not been hired would the savings have been the
same. Blake stated the prior healthcare consultant would have been requested to take another look. He further stated that the prior consultant was not as sophisticated in the field as key
personnel had left and that is one of the reasons the City sought a new consultant through the RFQ
process.

Vitali stated the savings is great, but he has concerns. He also stated that he believes there are other opportunities for savings within the budget. Giannattasio thanked everyone for their hard work on the budget. He stated he is pleased with the result, but he agrees with Vitali that there is more opportunity for savings within the budget. Ald. Win Smith also stated he believes there is opportunity for savings.

Ald. Ellen Beatty stated the proposed budget maintains the current level of services that would be affected if further cuts are made. Giannattasio disagreed and stated there are reductions that could be made without cutting the level of services.

Vitali state the healthcare savings seems illogical and asked why the savings information was not
provided earlier. Blake stated the consultants looked at a larger period of experience and also
provided an option to increase stop loss coverage saving approximately $2 million.

Erodici echoed the Mayor's comments. He further stated that the consultant was asked to take a second and third look. Erodici stated that based on claims for the past 4 years it made sense to increase the stop loss coverage.

Vitali asked if the approach was too liberal and if it would be better to be conservative. Erodici stated that did cross his mind, but affer studying the numbers and reviewing with the consultant he is comfortable. He further stated he would have concerns with looking to reduce the mill rate too much as sufficient revenue needs to be raised.

Blake stated each department is lean and runs in a lean fashion. He commented on how departments have streamlined to be more efficient and not a lot of room for additional cuts without impacting services.

Win Smith asked if the Mayor was saying that further cuts cannot be found in the budget. Blake stated additional cuts will affect City services that residents have come to expect and deserve.

Ald. James Tranquilli asked if a reduction in the Board of Education budget would affect City services. Blake stated a reduction in the Board of Education budget would affect Milford Public Schools operations. He further commented on the unprecedented times with Covid-10 and it has impacted Milford Public Schools and students.

Tranquilli asked what portion of the Board of Education budget is contractual. Erodici stated the bulk of the Board of Education budget is salaries and benefits. He directed Tranquilli to the Board of Education budget and stated he would not be comfortable providing a dollar amount.

Vitali raised concerns with the increase to the Chief of Staff wage and that over 3 years the wage
will have increased 15% to 18%. He stated the Board of Education budget should have been
revisited. Vitali stated he cannot support the budget as presented. Giannattasio also
expressed concerns with the overall budget and that he cannot support the budget as presented as
he believes there is room for savings.

Frank Smith stated the Board of Education budget is a line item budget that is voted as a whole. He
discussed the reduction of medial aide positions and how he believes they continue to be a vital
resource for students.

James Tranquilli stated he is pleased with the healthcare savings but believes there are other
opportunities for savings that will not affect services. He further stated that, as presented, he cannot support the budget.

Win Smith discussed the Board of Education and the need for a Iong-range plan. He further
discussed the reduction of media aide positions. Ald. W. Smith commented on the reduction to the
police department while increasing salaries in other departments. He stated he cannot support the
budget as presented.

Motion carried 9 in favor (Beatty, Golden, Hardiman, Harla, Parente, F. Smith, Sutton, Vetro and
Willis), 6 against (Gaynor, Giannattasio, Grant, W. Smith, Tranquilli and Vitali).

The final budget approved for next year is $217,678,035.

Blake thanked everyone for their time and energy in preparing the budget. He stated it is
important to look to strike the right balance each year and this year was difficult to find that balance with the understanding of the difficulties taxpayers may be facing.

Ald. Frank Smith stated the budget process is a good example of how the Board can work together although they may have differences.