Mayor Sebastian Giuliano issued his budget Thursday April 1 in what will likely be the first volley between the mayor and the Democratically-controlled Common Council over the proposed city expenditures for the year.
The $130,410,036 budget assumes a tax increase of 1.8 mills, from 25.5 to 27.3. According to the mayor, this translates to an annual increase of $297 for the average taxpayer with a home assessed at $160,000.
The mayor defends the tax increase as he did last year saying that revenues to the city are down by more than $5.23 million, and the General Fund (a rainy day fund which serves as a resource in difficult financial situations), has been "invaded' by the Common Council over the past two years because of an underfunded budget.
"The Fund Balance has now dipped below 10% of the budget, which is recommended industry standard, thereby placing our credit rating in jeopardy," Giuliano said in a report issued with the budget.
The budget makes significant changes in how the city funds non-educational employees of the Board of Education.
Giuliano proposes reallocating funds to pay those budgets within the city budget and stripping them from the Board of Education budget. He defends this move with charter language, but it is sure to be challenged by the Board of Education.
The budget also proposes the immediate hire of two new Police Officers, a property revaluation study and complete funding of the Capital Non-Recurring Fund. The mayor also recommends the elimination of Fourth of July fireworks until the economy recovers, reduction in landfill hours, and elimination of video broadcast of city meeting until the economy improves.
The budget also proposes increase in municipal employee salaries in a range between 2-4%.
The Middletown Press has published the entire budget online.
5 comments:
I haven't seen a raise in 2 years and am not anticipating one this year and instead consider myself lucky to retain employment. Now it looks like I will be paying for raises for already well compensated municipal employees. Is there any efforts being made at increasing efficiency and reducing waste in Middletown municipal government?
Why can't employee salaries undergo a 'freeze?' Most employers in the private sector are doing this.
I think the video broadcast of city meetings is more important than ever.
To Anonymous of 8:28am,
As a municipal employee and labor leader, I understand the frustration of you comments.
All labor organization have the right to negoitate contracts. Unions follow federal and state laws regarding the process and subsequent approved contract, as do their employers: be it a private or public employer and labor organization. If we worked for a private company without a union, we would follow employment practices of the company too.
Last year, the Mayor invited all City unions to a sit down with him as well as ALL Common Council members. We were asked to assist with the 2009-2010 fiscal budget, due to the then poor economic climate. Our Democratic Common Council members ALL refused to attend and assist in any manner what so ever.
The Coalition, came up with signifiant changes for City govenment to reduce costs, increase productivity, and incease revenue for our City. Many taxpayers have a misconception that we, as employees, do not want our City to be successful. Make no mistake about it,we want our employer, "the City", to succeed. It's a reflection on us. Who in their right mind would hope for an employer to fail, or produce a poor product? Just as the private industry is accountable, so are we. We are under a micrscope at all times, and we must accept critism from the public, whether it is warranted or not.
When the Coalition participated in last years budget recommendations, we produced a budget to make our City independent and self sufficent of outside revenue sources. We came up with what we considered a viable plan for the City and all taxpayers (which most of us are), for immediate and future years of finacial independency.
Unfortunaley, only the Mayor's budget of 2009-2010 believed our recommendations had merit: as the Democratic Common Council rejected all but a couple of minor suggestions.
Middletown now has an upcoming fiscal year budget, 2010-2011, which is going to be in the hole by $5-$7 million dollars because of last years budget.
Last year, the Mayor and the Union Coalition warned everyone that if the 2009-2010 budget was not adopted as proposed, we would be in worse financial trouble for next year (2010-2011 budget). Well, we are!
This problem is due directly to incorrect revenue projections by the Democratic Council members last year. The Democratic Common Council members must then be held accountable for this years mess: not muncipal employees.
The 2009-2010 Democratic fiscal budget projections were not only based on "ghost" revenues, but that an endless well of money existed in the City General Fund balance. Additonally, it was an election year, and if you think for one minute that did not play into their budget calculations, you are 100% wrong.
Those voters who continue to vote a party line and beleive their leaders would not lie to them just for a vote, are very niave. Now, we all have to wait and see what kind of spin these very same Democrats will put on this years budget, or will they for once just tell the public the truth.
Respectfully,
John Milardo, MMPA President
Didn't anyone notice the day of the Mayor's budget announcement?
Let's see what the council makes of Middletown's annual budget joke.
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