March 27, 2009
The Honorable Board of Alderman
The Citizens and Taxpayers of Waterbury
Mayor’s Proposed Budget for Fiscal Year ending June 30, 2010
My Fellow Waterburians:
It is my pleasure to submit the proposed budget for the fiscal year commencing July 1, 2009 through June 30, 2010 and I am glad to announce we have been able to keep the mill rate level at 39.9202 next year. This is the eighth, and in many ways, the most challenging budget I have had the honor to develop for the citizens of Waterbury.
Against a backdrop of national economic uncertainty and a growing state deficit that threatened to impact the amount of aid Waterbury receives, I know there has been uncertainty as to the future. Let me set those fears to rest. This budget preserves city services, continues our commitment to capital reinvestment and continues to address the city’s unfunded liabilities without increasing taxes.
This budget would not have been possible without your continuing support for the reforms and modernization efforts this administration instituted and the cooperation of the city’s department heads.
My budget proposal trims department requests by $19.3 million for a total increase in the General Government and Department of Education budgets of .7 percent or $2.6 million.
To bridge the gap between expenses and shortfalls in state aid and other revenue, I have increased the tax collection rate from 95.5 percent to 96 percent. The City Charter allows the collection rate to be set as high as the average of the last three fiscal years which would come to 96.62 percent. The city’s conservative budgeting in this line item over the years will serve us well now that we – like every other government entity – is looking for additional revenue.
Of great concern to all taxpayers should be the ongoing funding on the pension liability. This budget proposal fully funds the actuarially required minimum of $43.975 million to that expense. That ongoing commitment, I am pleased to report, has reduced the city’s liability from a high of $468 million to $459 million. I also am committed to paying down the liability in retiree medical care with a $2 million contribution toward future costs.
The experience of near bankruptcy in 2001 and the changes it required over the last eight years of my administration have combined to serve the city of Waterbury well as the nation faces its worst financial crisis since the Great Depression. Where other municipalities are contemplating massive layoffs, school closures and tax increases, Waterbury’s commitment to honest and conservative budgeting will spare the City of Waterbury the pain other municipalities are facing.
The budget also recognizes that ongoing maintenance and reinvestment are critical. I have committed to $10 million in capital improvements with local, state and federal dollars, including the renovation of the Fulton Park tennis courts, the installation of outdoor basketball courts at the North End Recreation Center and $2 million in street and sidewalk repairs.
Where other communities have had to delay or stop previously approved construction, the Department of Education is moving forward with the construction of three K-8 elementary schools and we are excited to see ongoing progress with the renovation of City Hall.
All four projects are in keeping with the national goal of fostering job growth as a means to work our way out of this current recession. We are pleased to see those costs are coming in far below what had been anticipated.
Thank you all for the continued support. Again, it is my honor to serve the people of the City of Waterbury.
Respectfully submitted,
Michael J. Jarjura
Mayor