Taxes Could Rise to 25.01 Mills

First Selectman Tim Herbst’s proposed 2011-2012 budget shows the town’s tax rate could increase to 25.01 mills or more, depending on how much federal and/or state funding the town gets.

The proposed 2011-2012 budget calls for a $4.2 million, or 3.1 percent, increase over this year’s, including both town and school sides. A mill is a $1 tax per $1,000 of assessed value.

Herbst presented his $140.3 million budget for the fiscal year beginning July 1 to the Board of Finance last week. He called attention to a $93.1 million increase in the Grand List, which documents all the taxable property in town, and he said the town’s tax rate would increase by 1.92 percent, from 24.54 mills.

Herbst recommended a budget of $87 million for schools and $53.3 million for the Town side. For the schools, this is an increase of $2 million – 2.4 percent - over the current year, and a reduction of $2.6 million from the budget recommended by Schools Supt. Ralph Iassogna.

For the town component the recommended increase is $2.2 million – 4.2 percent - over this year’s budget, and a reduction of $6.3 million from the funds sought by department managers. Included are reductions that could have longer term implications.

The first selectman framed the budget in his transmittal message, saying “this town budget maintains vital services, makes necessary investments in our infrastructure, while stabilizing the tax rate at levels our residents can afford.”

The Grand List growth plays a major role in continuing Trumbull’s affordability. The 1.82 percent increase is well above typical rates in this area. This, he said “is proof positive that the Town’s aggressive economic development strategy is working.”

The First Selectman also noted that the mandated property revaluation will begin at the start of the new Fiscal Year to update the 2005 version.

Herbst told the Board that the Town has an unfunded pension liability of $46.1 million, which, he said, will be addressed by “increased levels of contribution.”

The recent independent actuary’s report notes that the Town must contribute $3.3 million annually to reduce the unfunded liability, in addition to its normal payment of $1.2 million. The police pension is also underfunded, by a lesser amount that requires a contribution of $3.5 million to meet both current and future funding needs.

Despite these, the first selectman reduced the Finance Department’s $7.9 million request to fund both pensions at the levels recommended by the actuary to $4.2 million. These were the largest individual cuts made to a department’s requested budget. The net is that instead of reducing the underfunding as recommended, the budget adds $500,000 to the current year’s contribution, documents show.

The first selectman also singled out the school district’s funding cliff, resulting from outside funding that is no longer available. The Board of Education attracted $1.7 million of federal stimulus and state Educational Cost Sharing money to fund “necessary, and in many cases, mandated services,” Iassogna said.

These outside reduced taxpayer costs for this year. Given the weak economy, Iassogna did not factor in these funds for the upcoming year, and so added the programs’ costs into his budget request.

The first selectman, in contrast, called the cliff “a factor that needed to be addressed.”  He reduced it by $434,000, which approximates amounts unspent as originally projected, then used by the district to purchase textbooks, software and other “student consumed” items that had been underfunded elsewhere in their budget. Herbst said the items were “pre-bought” with money from the previous years’ budget.

Herbst recognized the contribution Trumbull’s teachers made by agreeing to a contract that gives them neither annual nor step increases next year.

He then called attention to what he sees as the board making insufficient progress in realizing cost savings. He identified four areas of opportunity: consolidating the Town’s and schools’ facilities management departments; pooling town and education employees’ health insurance; joining the Connecticut Consortium for Cooperative Purchasing to reduce the costs of many day-to-day items; and implementing programs offered by the Connecticut Light & Power and United Illuminating cos. and others to become more energy efficient.

The Board of Education continues to reduce its costs, primarily, as it has for many years, by making its delivery of educational services more efficient. It has either pursued or is prepared to pursue each of the first selectman’s recommendations.

Regarding the First Selectman’s points, the Department of Public Works seeks funding in this budget to reorganize its operations and establish a Building Maintenance group. With approval it should then be able to lead the consolidation of the two groups.

Anthem, the district’s health insurer, recently evaluated the consolidated pool and determined that the larger group would raise costs for both.

The Board of Education has used competitive bidding for a number of years, and it uses the state’s Department of Revenue Services bid list.

Three years ago the district began both energy conservation practices and the retrofitting of its facilities to make them more energy efficiency. These have resulted in annual savings of $100,000 to $150,000, and have led to district Plant Operations staff working with their Town side peers to bring similar savings to their facilities.

The budget document presented to the Board of Finance identified headline items in the budget. Below them are a wide range of spending proposals that form what could be a contentious budget in a strengthening, though still fragile economy.

Additionally, it showed only expenses. The first selectman will introduce the revenue side later in the cycle. Most important will be assumptions that hold the tax increase to less than half a mill. Without the all state and federal funding, for example, the stated increase could rise.

The Board of Finance will take public comment Thursday at 7 p.m. at .