Board of Finance Adopts New Mill Rate

PHILIP THIBODEAU PHOTO

Southington Board of Finance Chair John Leary says the current state of financial affairs is “unprecedented.” Grand List growth, the rising cost of almost everything worldwide, an ever-developing town and the expensive need to keep things running means a tax hike for most people. Due to that Grand List growth, however, the mill rate for Southington payers drops this fiscal year to 23.29 from a previous number of 32.80.

As Leary pointed out during the discussion, the initial budget that came to his Board back in February anticipated a 9.5% tax rate increase. Through long discussions and some difficult decisions by town entities including the Town Manager, the Board of Education and the Town Council, that has been reduced to 3.71%.

Leary reiterated that a mandatory property revaluation saw “more modest” homes jump in assessed value due to market forces such as increased demand locally. This increase happened even as larger properties, including commercial properties, stayed largely the same in value. With an eye towards those property owners who can least afford it, the Board has tried to keep the tax increase to a minimum.

Town of Southington Assessor Erin O’Connell reported that many owners successfully appealed those new home assessments, leading to a small reduction from the initially announced Grand List value. Nine larger owners, with properties assessed at over $1 million, were also seeking to appeal, in what could be a much longer, legal process. However, in her estimate, the current Grand List number was unlikely to change significantly at this point. The Grand List, representing the overall value of real property in town, stands at roughly $6.85 billion. The Town approved budget for the 26-27 fiscal year is just over $196 million.

Each year, Leary explained, the Board looks to have a “cushion” of at least 1.5% over what is needed, tax-wise, in order to cover any revenue shortfalls or other contingencies. Any money left over goes into the Town’s “rainy-day” fund. The Board voted to keep that excess in place. That vote, like the others taken Monday, was unanimous of those present.

The Board had plenty of other business at its May 18 meeting as well. The scandal surrounding Erin Stewart, the former Gubernatorial candidate and New Britain Mayor, prompted Leary to ask for a report on how Southington handles its municipal credit card privileges. Finance Director Kristina Marino offered an overview, saying that there are six people who have Town-issued credit cards, each of which has spending limits under $10,000 and is restricted from being used at certain businesses such as package stores. Department heads approve and review any spending, while she approves the spending of Town Manager Alex Ricciardone. She estimated that around $300 a month gets approved per department. Leary requested those credit card statements for review at the next meeting.

As the Board voted to approve renewing the auditing services of CLA for another year, Leary mentioned that the Board has the right to seek additional audits, such as internal controls, if it chooses to do so.

The Board took over the duties of the Town Council’s Self-Insurance Committee earlier this year and heard from consultant Joe Spurgeon during the meeting. Spurgeon reported some savings he was able to negotiate with insurance provider Anthem. When Jennifer Mellitt, Director of Business and Finance for Southington schools, asked if some of that money could be used to offset the contributions her members pay, the Board and Ricciardone said it was too late to change for this year’s budget. Leary suggested that any self-insurance savings could be reflected in next year’s budget, however.

On the revenue side, Board member Katie Wade reported that $90,000 in past-due sewer bills had finally been paid after the Town took a more aggressive stance in collecting them. Leary pointed out that failure to pay those bills is far from a “victimless crime.”

Work rebuilding Berlin Street was also the subject of discussion after Ricciardone gave an update. The state has mandated a lengthy process for the reconstruction of the street, something he characterized as “better in a month, perfect in a year.” In the meantime, Leary suggested that Southington residents try to support the businesses there that are affected by the ongoing construction.