Calls Mayor's Budget Round Table Discussions a "Sham"
Serra said he had attended the Budget Round Table discussion by the Mayor at the Chamber of Commerce and was "extremely irritated" by it, "These [Round Table discussions] are really just a campaign trail battering of the Democratic Common Council, a way to thrust his opinion on the residents." He called for cooperation between the mayor and the Democrats, "The Mayor hasn't communicated with Council one iota."
Serra said he found it ironic that a Republican Mayor was less fiscally conservative than a Democratically controlled Council, claiming that since Giuliano took office he had raised taxes by 5.3%, which is more than the previous 10 years, when Democrats controlled the executive branch. Serra said that the initial offer made by Giuliano to the police unions was a 32.5% raise over 5 years. The raise that was ultimately approved through arbitration was for much less: 22% over 5 years. Including the arbitration costs, this difference saved the city almost $3 million over the 5 year contract. Serra expressed his commitment to providing raises that match the increase in the Consumer Price Index.
The police raises were not budgeted by the Common Council, but instead paid for through the City's Fund Balance. Serra minimized the impact of those withdrawals, saying the fund balance is not a city "savings account", as characterized by the Mayor. Instead, it serves two purposes: it provides funds for unexpected expenses and it signifies to the bond rating agencies that the city is in solid financial health. He said that the unreserved Fund Balance of $13.8 million was ample to give the city a top credit rating by the Moody's rating agency. He said it was "smoke and mirrors" for the mayor to claim at the Budget Roundtable discussions that the Democrats "raided your savings".
Balancing the Budget This Year
Serra called for three approaches to producing a balanced budget.
Serra anticipates that there will be additional revenue in next year's budget compared to last year, including $750,000 from the NRG power plant, and possibly $1.2 million from the Kleen Energy power plant.
We also discussed the possible revenue that might come to the city if the Army decides to purchase Cucia Park for their military training facility. He indicated that the Democrats would consider using money from the sale of Cucia Park to the Army for operating expenses if the budget situation was dire enough. He said that the money should be used first to replace the loss of open space, second for Parks and Recreation, and "If necessary some perhaps will be used for operating expenses."
Public Broadcasting of Council Meetings to be Restored in the Budget
One item that Serra specifically vowed to restore in the budget is the money for broadcasting of Common Council Meetings, which he initiated as mayor in 1994. "Since the demise of print media, it is definitely important to people ...... Cititizens out there need to see what elected officials are doing." Responding to the mayor's concern that broadcasting of meetings leads to longer meetings, Serra pointed out that the Mayor, as chair of Council meetings, has control over the length of meetings. He called on the Mayor to utilize Roberts Rules of Order effectively, to run more efficient meetings.
Agreement with the Mayor on the Board of Education Budget Process
Councilman Serra said that in years past the Board functioned well in establishing a budget. He felt that the budgeting process last year was not as functional as it should have been, sharing the frustration of the mayor.
Serra explained that the autonomy of the Board of Ed (by state statute) means that the city has minimal control over spending on education. However, in years past he has advocated with the Board for an increase which simply matches the Consumer Price Index. In November of 2007 he met with board members Raczka, Keiser, and Boyd, Superintendent Frechette, Finance Director Erlacher, and Councilman Klattenberg to discuss the education budget. He was frustrated when the Board came to the city with a 12% increase in their budget, far more than the 5% he felt was justified.
His frustration increased last year when the Board threatened to close Macdonough School if their budget was not met, generating extensive public protest directed at the Common Council.
The Budget Process Going Forward
The Council will begin analyzing the Mayor's budget as soon as he submits it on April 1st. Common Council will hold a series budget meetings in April to discuss with City department directors the budget implications for each department. Those meetings will take place on April 14th and 15th at 6PM, April 20th at 7PM, and April 21st at 6PM; they will be open to the public but there will be no public comment period. On April 28th at 7PM there will be a public hearing on the budget.
Council is required by statute to approve the budget by May 15th. Councilman Serra was confident about Council's ability to balance the budget without substantial tax increases. "There may be very slight increase in the mill rate, we're talking about tenths of a mill, not several mill."
Serra said he had attended the Budget Round Table discussion by the Mayor at the Chamber of Commerce and was "extremely irritated" by it, "These [Round Table discussions] are really just a campaign trail battering of the Democratic Common Council, a way to thrust his opinion on the residents." He called for cooperation between the mayor and the Democrats, "The Mayor hasn't communicated with Council one iota."
Serra said he found it ironic that a Republican Mayor was less fiscally conservative than a Democratically controlled Council, claiming that since Giuliano took office he had raised taxes by 5.3%, which is more than the previous 10 years, when Democrats controlled the executive branch. Serra said that the initial offer made by Giuliano to the police unions was a 32.5% raise over 5 years. The raise that was ultimately approved through arbitration was for much less: 22% over 5 years. Including the arbitration costs, this difference saved the city almost $3 million over the 5 year contract. Serra expressed his commitment to providing raises that match the increase in the Consumer Price Index.
The police raises were not budgeted by the Common Council, but instead paid for through the City's Fund Balance. Serra minimized the impact of those withdrawals, saying the fund balance is not a city "savings account", as characterized by the Mayor. Instead, it serves two purposes: it provides funds for unexpected expenses and it signifies to the bond rating agencies that the city is in solid financial health. He said that the unreserved Fund Balance of $13.8 million was ample to give the city a top credit rating by the Moody's rating agency. He said it was "smoke and mirrors" for the mayor to claim at the Budget Roundtable discussions that the Democrats "raided your savings".
Balancing the Budget This Year
Serra called for three approaches to producing a balanced budget.
- Reasonable cuts in services.
- Lower raises for union contracts, across the board. Serra emphasized that the cuts should fall fairly on all bargaining units.
- Tax increase. Serra said that this should be minimal.
Serra anticipates that there will be additional revenue in next year's budget compared to last year, including $750,000 from the NRG power plant, and possibly $1.2 million from the Kleen Energy power plant.
We also discussed the possible revenue that might come to the city if the Army decides to purchase Cucia Park for their military training facility. He indicated that the Democrats would consider using money from the sale of Cucia Park to the Army for operating expenses if the budget situation was dire enough. He said that the money should be used first to replace the loss of open space, second for Parks and Recreation, and "If necessary some perhaps will be used for operating expenses."
Public Broadcasting of Council Meetings to be Restored in the Budget
One item that Serra specifically vowed to restore in the budget is the money for broadcasting of Common Council Meetings, which he initiated as mayor in 1994. "Since the demise of print media, it is definitely important to people ...... Cititizens out there need to see what elected officials are doing." Responding to the mayor's concern that broadcasting of meetings leads to longer meetings, Serra pointed out that the Mayor, as chair of Council meetings, has control over the length of meetings. He called on the Mayor to utilize Roberts Rules of Order effectively, to run more efficient meetings.
Agreement with the Mayor on the Board of Education Budget Process
Councilman Serra said that in years past the Board functioned well in establishing a budget. He felt that the budgeting process last year was not as functional as it should have been, sharing the frustration of the mayor.
Serra explained that the autonomy of the Board of Ed (by state statute) means that the city has minimal control over spending on education. However, in years past he has advocated with the Board for an increase which simply matches the Consumer Price Index. In November of 2007 he met with board members Raczka, Keiser, and Boyd, Superintendent Frechette, Finance Director Erlacher, and Councilman Klattenberg to discuss the education budget. He was frustrated when the Board came to the city with a 12% increase in their budget, far more than the 5% he felt was justified.
His frustration increased last year when the Board threatened to close Macdonough School if their budget was not met, generating extensive public protest directed at the Common Council.
The Budget Process Going Forward
The Council will begin analyzing the Mayor's budget as soon as he submits it on April 1st. Common Council will hold a series budget meetings in April to discuss with City department directors the budget implications for each department. Those meetings will take place on April 14th and 15th at 6PM, April 20th at 7PM, and April 21st at 6PM; they will be open to the public but there will be no public comment period. On April 28th at 7PM there will be a public hearing on the budget.
Council is required by statute to approve the budget by May 15th. Councilman Serra was confident about Council's ability to balance the budget without substantial tax increases. "There may be very slight increase in the mill rate, we're talking about tenths of a mill, not several mill."
5 comments:
When Tom Serra was mayor, the board of directors of Trolley Crossing Condo Association had to have a meeting with him. Why? The city would not upgrade Trolley Crossing Lane which had a serious safety issue over a bridge, and the also the city stopped plowing the street. Serra said it was not a city street! It is, but we all had to take time off from work to meet with him and his brother. His brother confirmed it was a city street!
Mr. Serra is playing Politics like Washington D.C.
The Democrats have been the majority of the City Council for as long as I can remember. They vote to pass legisltation. Before Mr. Guiliano became Mayor, how many years were the Mayors and Council Majoritys Democrats?
The fiscal issues were inhertited by Guiliano, Serra and the council should work with the Mayor as a Middletown Team, not a Democrat Team!
Serra is absolutely outrageous. The Democrats duck and weave at every opportunity. Guiliano has done wonders with the Middletown budget and continues to represent taxpayers wo support this berg. Serra and the rest of the Democrats need to be voted out at the earliest opportunity. No better yet recalled!
It was nice of the mayor to present on the budget. However, I will be more encouraged and informed when the actual numbers are presented to the public so we can compare last years budget with the proposed budget. It will be nice to see that changes are truly being made. As we all know, this is an election year and whatever budget is finally approved will be in place for two years leaving the incoming mayor with little opportunity for change. A lot of weight is placed upon both the mayor and the council to compromise and create a budget that will benefit the town and residents. I hope the budget will be made available to the public and open for discussion soon. As a candidate for mayor I wait anxiously to see what lies in store for the future of our town.
I don't blame the mayor for wanting to stop the televising of the council meetings as he does not often seem either statesmanlike or informed.
Cucia Park purchase by the Federal Government and the Majority Leader wants to use it for open space or for Parks & Recreation? For an education man, this comment reaks of a person who is clueless. If the city of middletown gets 3 or 4 million for the sale of a park, we need to apply that money in a way that reduces the burden to the taxpayers. I like parks, I like open space but I'd really like to see some economic relief in this town! People are struggling Mr. Serra and I think most would agree that it is more important for a senior citizen to be able to purchase prescriptions or a parent being able to put food on the table than to purchase land for leisure purposes. Now is not the time to go beyond the basics of service. Now is not the time to expand what we can't maintain. Now is the time to think clearly, be conservative and look to the future financial well being of this community. If this is due diligence then God help us all.
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