Milford Budget 2017-18 Details: What You Need to Know

MILFORD, CT — The budget process in Milford was shaping up to be a bore for the second straight year as the Board of Education was seeking a less than 1 percent spending increase and the overall schools and city budget request for next year would have likely resulted in a no tax increase for residents.

"This year's budget recommendation proposes a 0 percent tax increase and positions the City for a second consecutive tax cut," Milford Mayor Benjamin G. Blake said earlier this month when he outlined the budget request.

And then last week came word that Gov. Dannel P. Malloy was proposing to cut Milford's state aid by $11 million in an effort to move state money to major cities in Connecticut. Malloy's proposal is just that, a proposal, and doesn't go into effect unless it's approved by the General Assembly.

But as long as Malloy's budget plan isn't approved, city residents are looking at a potential tax decrease for the second straight year.

Here are the major details as of right now: Blake's city budget increases spending from $112.85 million currently to $115.84 million next year and the Board of Education approved budget is for $92.3 million and includes a historically low 0.8 percent spending hike, the Milford Mirror reports. Overall, the budget increases spending from $204.46 million to $208.18 million next year or a 1.8 percent increase.

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Blake said the city is able to put forth another tax decrease because, "Without question, Milford’s success is the result of the tremendous and continuous efforts of our residents, our businesses, our volunteers, and our employees all of whom work so hard to make our community strong and prosperous. "

In a lengthy statement, Blake explains some of the challenges that went into next year's budget request.

Here is the rest of the Mayor's statement:

"Over the past year, we have been able to accomplish much together. Our sound financial decisions and responsible management have been recognized by the nation’s premier rating agency, Fitch Ratings, which upgraded Milford’s bond rating to ‘AAA’ - the highest possible credit grade a city can receive. This credit score demonstrates our City’s fiscal health and reveals how markets view Milford’s creditworthiness. More importantly, this notable evaluation broadcasts the City’s strong and growing economy.

"Milford is in the midst of an economic renaissance with an explosion of new businesses moving into town. Our business development significantly outpaces all other Connecticut towns and our commercial spaces have an impressive 96 percent occupancy rate. Over the past two years, we’ve inspired a 26 percent increase in new business growth above and beyond what Milford has ever experienced," Blake said in a statement.

"As a result of the influx of new businesses and the expansion of existing businesses, our Grand List swells. This growth has translated into a tax cut for all residents and businesses this year. For only the second time in the past 30 years, Milford taxpayers experienced a decrease in the amount of local taxes due. As we start this budget process for fiscal year 2017-2018, our goal is to continue to reduce Milford’s mill rate, which, at 27.84 mills, is already far less than any of our neighboring communities," Blake said.

Even as our City experiences prosperity, Milford nonetheless finds itself facing new challenges as it embarks on next year’s budget. The State recently announced the rescission of over $730,000 in current year funding that Milford had relied upon and budgeted as revenue. To make matters worse, this likely foreshadows additional cuts to municipal aid as part of the State’s strategy to help balance a $1.5 billion deficit in Connecticut.

Moreover, next year’s projections show escalating contribution requirements including contractual wage increases, pension, debt service, stop-loss health care premiums, workers’ compensation and heart and hypertension coverage. Given these realities, we have examined and assessed all aspects of our financial plan, and implemented spending control measures in order to establish a balanced budget for this fiscal year and to reduce the effect for the next cycle.

This 2017-2018 Mayor’s Budget proposal takes into account the impact of anticipated State funding reductions, rising fixed costs driving our expenditures, and other financial forces that confront our spending-conscious operation. These challenges have been largely offset, however, through the growth of our tax base, the establishment of new revenue streams, and the streamlining and modernization of City functions.

On the revenue side of the budget, while the Grand List will not be officially approved until February 28th, the City Assessor’s preliminary analysis confirms continued positive growth. Moreover, we have secured several new income streams to ease the burden on local taxes. For example, a new ambulance system was put into service that allows the Fire Department to transport patients to area hospitals and bill insurance companies for each level of service provided. This will create a substantial revenue stream that flows into the general fund and helps to offset tax increases.

With respect to our expenditures, we’ve taken great efforts to restructure operations to maximize the efficiency and effectiveness of local Milford government. For instance, the City launched an automated garbage collection program which enhances Milford’s continuous effort to control costs while ensuring the very best solid waste collection services. The new system reduces the amount spent on garbage collection, improves employee safety and provides residents with a clean, convenient and attractive way to dispose of household garbage.

These illustrations of thrift-driven improvements and efficiencies have not only saved the City money but enhanced the services we provide our citizens. It is through these types of planning strategies, that I am able to present a 2017-2018 budget which holds the line on taxes and positions the City for the possibility of another tax cut," Blake concluded in his statement to the media on the proposed budget for 2017-18.

The budget won't be adopted until the end of May. The fiscal year begins on July 1, 2017 and ends on June 30, 2018.

Written by Brian McCready

(Editor's Note: This story first ran previously but here it is again in case you missed it.)