NORWICH – The City of Norwich Common Council Tuesday night unanimously approved the 2010 budget, which totals $11,919,675.
Due to a $384,402 general fund increase – from $7,416,546 in 2009 to $7,800,948 in 2010 – the city will see a general fund tax rate of $17.89, an increase of 47 cents, or 2.7 percent. The average city tax bill will go up about $25.85 per year, on a home assessed at $55,000.
Combined effects of the general fund property taxes and water system costs, based on averages for assessed values and water usage, reflect an annual tax increase of $59.53, or 3.92 percent, which is effectively equal to $4.96 per month for a typical home.
“Considerable time has been spent on the many complex details weighing in on this budget in an effort to hold the line on taxes,” said Director of Finance William Roberts. “The result is a sixth straight year of declining increases – from 9.85 percent in 2004 to 2.7 percent in 2010.”
“This budget takes care of many unknowns,” said Mayor Joe Maiurano. “We’re not exactly where we want to be, but there’s been a constant trend downwards as we continue to reduce increases and move toward a decrease.”
On the revenue side, according to Roberts, the projected 2009 sales taxes, at $1,336,087, are down about 7 percent from 2008 and 4 percent below budget.
“The 2010 budget of $1,350,000 reflects a relatively flat economy going forward,” stated Roberts.
Roberts also said state revenue sharing flattened out in 2009, as anticipated, and is accordingly budgeted with no increase in 2010. 2005 legislation had set this item to increase by 7 percent each year through 2010, and had that happened, there would have been $166,172 more in this revenue item.
“Even though the state did make some progress from 2005 to 2008, in partially restoring revenue sharing to municipalities, the present level of $1,146,807 is $191,403 less than 22 years ago, adjusting for inflation to current year dollars,” said Roberts.
On the positive side, ambulance recovery fees are projected to exceed $708,000 this year, after allowing for billing service commissions. “This represents a net increase of approximately $132,000 over 2008 and $115,000 over the 2009 budget,” stated Roberts. “This revenue is projected to continue into 2010 at $718,000.”
The Norwich City Police Department was successful in securing a federal stimulus grant of $288,188 for the creation of a detective position, and the necessary equipment which will focus on the prevention of narcotics and firearm related crimes. About $136,200 of this is budgeted for use in 2010. Also, $24,500 in donated funds was provided to establish the K-9 operation in the department, which, according to Chief of Police Joseph Angelino, has “already paid for itself.”
“This critically important initiative to preempt drug infiltration into the community will now be accomplished at no added cost to taxpayers,” said Roberts. “Taking these grant revenue funds into account, the net departmental budgeted costs are actually slightly lower for 2010.”
The mayor said he felt this year’s budget puts the city in a good position for 2011. “We’re moving forward, putting more money into upgrades and getting the things done that need to be done.”
The Common Council unanimously approved the 2010 general fund, waste water fund, water fund, special grants fund and debt service fund budgets Tuesday.
“Even with extremely challenging economic times ahead of us, we have a positive outlook in moving forward toward the city’s long term prosperity, while striving to hold the line on taxes,” said Roberts.