Hartford Mayor Eddie Perez will present a $552 million budget for fiscal year 2008-2009 at a public meeting tonight, Tuesday April 29, starting at 6:00 pm, in the auditorium of Bulkeley High School, 300 Wethersfield Avenue. The public is invited to attend and share comments. The meeting will also be broadcast live on the city’s government access cable channel 21, as well as online at hartford.gov.

Last week, Mayor Perez released a budget message to highlight areas he believes are significant for the coming year, including public safety, education, school construction and what he called neighborhood economic development. He proposes hiring 50 more firefighters and 30 more police officers. Perez also suggests a ten percent property tax increase in the coming year, in contrast to the current fiscal year when there was no increase.

In a blog post today, Kyle Bergquist said this tax increase issue is only going to worsen in coming years while municipalities see revenue stagnate while expenses swell. He points to a recent Wall Street Journal editorial highlighting the widespread challenge of falling home prices and and mounting expenses.

Perez is also urging payments in lieu of taxes, or PILOT, for otherwise tax-exempt properties, most significantly those occupied by state agencies. In the spring 2008 Mayor’s Update (PDF), one in a series of relentlessly positive promotional material pushing forward the mayor’s agenda, Perez noted the city could have reaped an additional $21 million from the state for the current fiscal year if PILOT were fully implemented.

An attempt to make the idea easily grasped, Perez related the dollar amount to the mill rate, asserting that the lower rate that would have been generated from the increase in revenue would have saved the average city homeowner $250, as well as lowering motor vehicle taxes. What would Perez do differently this year to motivate the state to offer PILOT? What else can we can come up with for tax reform, if anything?

Below is Perez’s budget message in anticipation of today’s presentation.

HARTFORD MAYOR EDDIE PEREZ’S BUDGET MESSAGE

Mayor Eddie A. Perez has released his recommended budget for fiscal year 2008-2009, which calls for investments in public safety, education, school construction, and neighborhood economic development. Mayor Perez says, “We must continue to grow Hartford by increasing homeownership, creating jobs, reducing blight, and having a safe and vibrant city. We have made so much progress in the last six years, we cannot afford to lose ground now.”

The Mayor goes on to say, “Just like families sitting down at the kitchen table or at their computer, the City too must prioritize expenditures and balance the check book. Our priorities are public safety and education, but we must also take into account increased construction costs, increased energy costs, and increased health care costs.”

“Governing for Results” is how the Mayor articulates the investments being made in the city. The 2008-2009 Recommended General Fund Budget of $552,000,000 reflects a five percent increase over the current year revised budget. This increase translates to 50 more firefighters and 30 more police officers; more programs for young people and seniors; and maintaining city services at current levels. A ten percent property tax increase will be needed to maintain this progress. It is important to point out that there was no increase in taxes last year.

The City has already instituted a hiring freeze, created energy saving programs, is better utilizing technology, and has grown the Grand List. To put things in perspective by putting all the numbers in today’s dollars, adjusting for inflation:

1. In 1990, the property tax burden on Hartford residents and businesses was more than $338 million.
2. In 2007, it was about $228 million.
3. That means the tax burden has actually been reduced by almost $110 million.

The Capital City has maintained a strong bond rating by growing the fund balance, investing in critical infrastructure like roads, schools, and libraries, and funding pensions at over 100 percent.

Of course, if the State fully funds PILOT, Payment in Lieu of Taxes, that money will go a long way to providing property tax relief for residents, small, and large businesses.

Mayor Perez says, “Hartford is not unique to this balancing act situation. Every town and every city in this state is facing tough financial choices. Hartford chooses to grow, but we need to do it prudently. I look forward to working with City Council to finalize a budget that will invest in the City’s future as well as spend today’s dollars wisely.”

The mayor will make his formal budget presentation to Council on Tuesday, April 29th.

This entry was posted on Tuesday, April 29th, 2008 at 11:08 am and is filed under City Council, Development, Events, Finance, Hartford, Public spaces, Urban Compass.