City Priorities

Advancing the academic success of our public school children through New 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.

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-occupants see taxes drop Taxes on all personal property and motor vehicles drop Increases Yale-New Haven Hospital PILOT from $1.8 million to $3.5 million due to merger with St. Raphaels; Yale voluntary payment at $8.1 million Funds sworn staffing in Police Department at 467, supports two classes (67 recruits) to increase the department to its existing authorized strength Advances School Change. Increases Education funding by $1.2 million after three 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

Expenditure Decreases
Public Safety Communications Labor Savings -9.5%, -$331,167 CMED payment shifted to financial support to various orgs line item Budgets $3.4 million

-21.8%, -$941,622

$870,970 in attrition cuts $2.5 million contract negotiations

Engineering Unemployment Public Works

-2.9%, -$93,950 -48.5%, -$270,233 -2.0%, -$235,999

Street light utility savings No layoffs Curbside recycling

Expenditure Increases
Health Care Pensions Debt Service

4.9 %, $3 million 2.6 %, $1.15 million 3.8 %, $2.4 million

Persistent cost driver Persistent cost driver Investments in public infrastructure, schools, self-insurance liability

Responsibly 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 to include additional $2 million appropriations.

Police Transportation, Traffic, and Parking Education

7.7 %, $2.7 million 7.8 %, $170,327

Grant expired, officer salaries shift to general fund New part time parking enforcement officers for late shift. Salaries to be offset by meter revenue. First increase after three years of level 4 funding

0.7 %, $1.2 million

Budget Priorities: Youth

Sustains School Change momentum by giving Board of Education first increase in four years.
Maintains popular and effective school programs such as the Talented and Gifted Program, 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 funding for New Haven Academy, Helene Grant, Bowen Field, and a new Hyde building adjacent to Hillhouse. Recognizes public desire for a Community Youth Center by committing capital funding 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

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 of walking beats from 20 to 40, restoration of School Resource Officers to 12, restoration of 2 policing districts in the Hill, doubling of Internal Affairs Capital funding for police vehicles, body armor, computers, and radios. Funds new fire class of approximately 43 recruits Capital funding for fire apparatus, protective equipment, emergency medical equipment

Fire Department

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 Quinnipiac Ave, 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

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 $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 to charters.) $56 million City (down $334,777, -0.59 %) $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 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

State Aid

Licenses, Permits Fees

Other Revenue

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 of Records 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 the contract. 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 last decade, New Haven cut its full time City workforce by 18.5 percent, from 1,821 in FY02 to 1,485 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 10 percent 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.

Controlling Expenditures: Board of Education

Demonstrated solid results in the first year of a nationally-recognized School Change campaign without increasing Board of Education funding 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 threeyear life of the contract. If adopted citywide, the health benefits package would save as much 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 at no 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 by 28%. This was achieved with an additional 250,000 square feet of building space.

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Controlling Expenditures: Board of Education

After three years of flat funding, a 0.7 % increase for FY 12-13 will still result in position eliminations and potential 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 be done through attrition, not layoffs.

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Impact of Grand List Growth

Grand List grew 16.71 percent, or $861 million, largely due to revaluation. 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 of Economic 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 switching station and Union Avenue substation New chiller plant at Science Park Broadway parking lot sold to Yale University

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Homeowner Fairness Initiative

Implements immediately all decreased property values Phases-in property values over five years for owner-occupied residential properties whose values are going up Based on 2010 property values, the values used as the basis for the most recent tax bills 75 percent of owner occupants will see taxes decrease; taxes for all motor vehicles and personal property to decrease Requires state enabling legislation as well as Board of Aldermen approval

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Homeowner Fairness Initiative: Ward 10

Ridge St, Cedar Hill
4 family, 8 bedroom, 4,051 sq-feet

Everit Street, East Rock

Single family, 6 bedroom, 3,552 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

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 it did last year as a result of its value increasing.

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

Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I

Assessment 173,250 123,186 86,030 86,030 86,030

Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I

Assessment 369,600 314,496 455,080 384,296 340,213

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Homeowner Fairness Initiative: Ward 19

Sheldon Terrace, Newhallville
Single family, 2 bedroom, 1,003 sq.ft

Ogden St, Prospect Hill

Single family, 2 bedroom, 3,348 sq. ft.
Current Years Tax $13,341 Next Years Tax with Full implementation $18,799 Next Years Tax with Owner Occupied Phase-in $13,775 Next Years Tax with Citywide Phase-in $15,683 What this means In either scenario, this house will pay more taxes than it did last year as a result of its value increasing.

Current Years Tax $2,689 Next Years Tax with Full implementation $1,988 Next Years Tax with Owner Occupied Phase-in $2,070 Next Years Tax with Citywide Phase-in $2,081 What this means In either scenario, this house will pay less taxes than it did last year as a result of its value decreasing.

Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I

Assessment 86,590 61,264 51,030 51,030 51,030

Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I

Assessment 360,080 303,884 482,510 384,566 339,609

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Homeowner Fairness Initiative: Commercial

300 George St, Commercial Property Professional 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 city tended to increase, the corresponding tax bills showed the same trend. As the 2011 owner occupied phase in applies only to residential property, commercial taxpayers do not reap its benefits and as a result pay a slightly higher tax.
Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I Assessment 42,007,000 38,004,554 53,971,470 48,167,686 53,971,470

265 College St, Commercial Property Mixed Retail/Apartments, 180,364 sq. ft. Current Years Tax
$419,105

Next Years Tax with Full implementation $500,438 Next Years Tax with Owner Occupied Phase-in $520,990 Next Years Tax with Citywide Phase-in $461,854 What this means Because the value of commercial property across the city tended to increase, the corresponding tax bills showed the same trend. As the 2011 owner occupied phase in applies only to residential property, commercial taxpayers do not reap its benefits and as a result pay a slightly higher tax.
Grand List Yr 2006 2010 2011 Full 2011 with Citywide P.I 2011 w/ Owner Occupied P.I Assessment 11,592,210 9,546,810 12,844,930 11,325,510 12,844,930

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Long Term Challenges

LargeshareoftheStatesatriskpopulation,5,000reentry. TheCityisdenselydevelopedandfullybuiltout. Continuedhightaxrateandlowpropertywealthdramaticallyimpairs theCitysabilitytosupportthepublicinterest.

Owneroccupieddwellings Subsidizedhousingunits Taxexemptproperty Developableacres Unemploymentrate

23% 2nd lowestinstate 27% 13%ofstate,2nd highest 45.5% 2nd highestinstate 164 1.4%ofallland 11.7 3rdhighestinstate

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Long Term Directions

If the PILOTS were funded at the 45% for State property and 77% for colleges and hospitals as outlined in statute, it would generate an additional $44,132,764 in annual revenue. If they were both 100% funded it would result in an additional $76,756,367. Reliance on property taxes is problematic. Efforts to secure state enabling legislation to diversify revenue have not succeeded. Employee pension and healthcare costs are major cost drivers in the budget. Pension and healthcare reform in labor agreements will be key to controlling future costs.
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Expenditure Options: Uniform Health Care and Pension Plans

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 - Cost sharing 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 chronic conditions

Pensions

Maintain long term fiscal stability and predictability for taxpayers while maintaining viability of fund for employees Modify current standards of eligibility for full pension by re-examining retirement age, years of service, maximum pension, COLA, medical benefits coverage, and use of base salary instead of total earnings.
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Check Your Property Taxes Online

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

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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

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