NORWICH – There was a good deal of concern among city residents heading into Tuesday’s Common Council meeting that members of the council would have done little to lower the proposed 9.8 percent tax rate increase called for in the city’s tentative annual budget.
The council, however, did unanimously vote on a revised budget that calls for only a 3.97 percent tax rate increase – 5.87 percent less than initially put forward. Regardless of the smaller tax rate increase, the $8.3 million budget still required that the city override the 2 percent tax levy enacted by the State of New York for the second consecutive year, which council members also voted in favor of unanimously.
The new budget requires taxpayers pay $19.65 per $1,000 in property taxes, a 75 cent increase over 2012, but $1.11 less than initially proposed. Overall, the average taxable assessed value for a city property owner amounts to $55,000, which means residents can expect to pay an estimated $41.25 per year, or $3.44 per month, according to the City of Norwich Department of Finance; down from $8.53 per month as indicated in the initial budget.
Rates were lowered by small cuts in several sectors of the budget, and by taking money from the city’s reserves.
An increase in taxes was unavoidable, according to city officials. Pension rates over the years have skyrocketed from $466,939 paid to all city employees in 2009, to a projected $1.138 million to be paid in 2013 – the biggest expense in the city’s budget. At the same time, municipalities, including Norwich, are restricted by the 2 percent tax cap put in place by Governor Andrew Cuomo in 2011.
For most residents, changes in the budget came as a relief, although many taxpayers insisted during an open forum session that local government do more to control finances in the future. Most expressed a need for a financial strategy to be followed over the course of the coming year and in years to follow.
“I think we face a challenge moving forward,” said resident Joseph Biviano, who also spoke against the city’s finance management during a special Common Council meeting last week. He asserted “the city’s financial health must be restored” and that “it must have a good financial plan.”
Similar sentiments were echoed throughout the meeting. “I think we (the city) have done some things pretty well,” said city resident Jason Miller. “but I think it’s not as far as we can go.” Among other things, Miller suggested the city renegotiate labor union contracts with city employees, share services with other surrounding municipalities, and consolidate wherever possible.
Mayor Joseph Maiurano gave an extended response during the forum, saying he is a willing proponent of consolidation. The mayor refered to a consolidation study conducted by an outside agency hired by the city in the early 2000s. According to him, the study highlighted where it would be beneficial for the city to consolidate with surrounding townships.
“This issue (of consolidation) was addressed last January at a county meeting,” Maiurano went on. “It got as far as a committee and then it was dropped ... There have been some excellent points and I think some people are right,” he said. “We’re only a two square mile area and within that two mile square, we can’t grow.” He encouraged community members to advocate for consolidation efforts. “Norwich is a vital part of this county ... What we would like is people to get together for these causes.”
Pay increases for non-unit city employees were also passed during last night’s meeting, although not without opposition from some council members who said raises for city employees should be reconsidered given the current financial climate. Ward Three Alderman John Deierlein spoke against any pay increases, citing conversations he has had with concerned constituents since last week’s public hearing for the proposed budget. His stance against the pay increase was met by applause from those in attendance.
Three councilmen voted in favor of the pay increase; three against it. Ultimately, the proposal was authorized by a tie-breaking vote from the mayor in favor of increasing compensation.
Though the 2013 city budget was passed – ayes all – there was discussion among the council leading up to the vote, including a proposal from Alderman Deierlein to form a “Financial Planning and Efficiency Committee” in 2013. The committee would consist of all council members, various department heads, the mayor and the director of finance, working with a mission to ensure taxpayer value and financial stability for the City of Norwich.
“Earlier this year, I met with the mayor and director of finance to suggest the formation of a finance committee,” said Deierlein. “I haven’t seen any of those suggestions looked at any further ... Based on conversations of last week, I’ve had some suggestions added to that ... My suggestion, my thoughts and hope, is that we can start the (financial) planning process earlier in the year. We need to address the longterm problems we’ve been having and will continue having if nothing is done.”
Mayor Maiurano said that he will establish a new committee beginning in January.
The city does currently have a finance committee that meets each fiscal quarter, but in unison with other established committees for the purpose of collaboration across all city committees. Deierlein’s suggestions are that a new committee administer multi-year financial planning and a strategic plan to deal with the 2 percent property tax cap, implement the city’s comprehensive plan in small steps, follow through with future planning and development, discuss union contracts, and work with all city departments.