The overtaxing of Wallingford

Taxing considerations was printed today in the Record Journal – in it Mike Brodinsky outlined many points regarding our budgeting processes. It is a comprehensive read and I recommend it to everyone.  

Our current budget (from this past May) already included $4.3 million dollars from the rainy day fund; when the end of year audit was completed, the budget balance for the fiscal year 2013 was $7,388,000 to the positive. This is because the town took in $3,587,000 more than planned (as I stated during the budget cycle we are TOO conservative with our income projection numbers) and we spent $3,801,000 less than planned (and that is simply credit where credit is due - it doesn't make sense to spend more than you need to).

In May of 2013 I pressed that “TOO conservative with our income projection numbers” issue - MY TAKE - Wallingford budget passes with additional cuts 

We could have fully funded EVERYTHING and STILL had money left over because we sandbag our revenue numbers to make an excessive cushion. We over estimate expenses as shown above (and agreeably, that is a harder target to hit).

Yes - it is better than running into the red but when these monies are only shuffled around it is bad for the taxpayer.

That $4.3 million dollars moved into this current budget will be slid back into the general fund and not spent and then it will be infused into the new budget and likely not spent as well.

The current budget was adopted at $147.4 million dollars – an increase of 4.3 percent on the full budget this upcoming May totals a new budget of $153.4 million; an increase of $6,000,000. The total tax bill for the town CAN go up by that amount and there SHOULD be no tax increases for that to the taxpayers because we are sitting on $7,388,000 to the positive from this year (with about $900,000 or so being held back for future revaluations.)

What is more likely is the scenario that was laid out in the paper in the Wallingford audit shows healthy revenue article - $2.16 million will be added to the town’s general fund, which grows to $24,804,000. Of that balance, $6,471,000 remains unappropriated. $11,794,000 — is retained to show creditors the town is well-off financially.

 

From the City and towns differ in how to handle audits article:

Cheshire - Total Budget: $98.7 million Surplus: $1 million Unassigned Fund Balance: $9.4 million Credit Rating: AAA (Fitch) Aa1 (Moody’s)

Wallingford - Total Budget: $145.1 million Surplus: $2.1 million Unassigned Fund Balance: $18.1 million Credit Rating: Aaa (Moody’s)

Aaa - An obligor has EXTREMELY STRONG capacity to meet its financial commitments. – Wallingford

Aa1, - An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree.- Cheshire

Aa2 and Aa3 also fall into that “An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree” bucket – SOURCE.

I will remind our taxpayers of just one additional thing – when your tax situation changes, you sell your business (and no longer pay those taxes), downsize your home or move away you are never going to get a refund on these excess taxes you are paying right now. You will never see an increase or added service for the dollars you paid to the town.

It is impossible to hit the budget target on the nose but as I pointed out last year, as a freshman councilor versus as 30 year sitting mayor, we fudge the numbers way too much.

This is nothing short of being over taxed year after year.

There are a lot of numbers in this article – let me summarize for you.

If Wallingford’s total tax bill this budget season goes up less than 4.3 percent on the full budget for a new budget of $153.4 million AND our tax bills go up then the shell game is getting played again and you are being overtaxed.

See you in April at the budget hearings.

More explanation on Wallingford taxes: myth and reality – as offered by one Republican in a Facebook discussion

This is an independent conversation from my prior blog post Wallingford Taxes – MYTH and REALITY (which is what generated Steve Knight’s article in the Record Journal) but as far as I am concerned it only further proves my point

 

Wallingford Taxes – MYTH and REALITY

From the “Contrast in candidates and campaigns: Dickinson-Zandri” article as published in the Record Journal on Sunday July 28, 2013.

“I think if you compare Wallingford with the surrounding area, we’re comparable,” Dickinson said. “We provide a full range of services. I don’t believe taxes have gone up beyond what they’ve gone up in many surrounding communities.”

There’s your first myth “I don’t believe taxes have gone up beyond what they’ve gone up in many surrounding communities”.

Below is your reality.

These are all comparable homes - Bedrooms: 3/4 beds / Bathrooms: 2 baths / Single Family: ABOUT 1,350 SQ FT / Lot: ABOUT 25,000 SQ FT

 

There’s actually a second myth here - “We provide a full range of services”. North Haven’s comparable home that pays about $40.00 more a year in taxes; they have regular curbside trash removal all included in the cost of their taxes and this includes a couple of bulky pick ups during the year. Wallingford residents pay for that out of their pocket.

They also have full day Kindergarten.

Both of those added cost burdens are managed by North Haven at the cost of an additional $40.00 in taxes against this cross section of homes.

For Wallingford to offer those two additional services taxes would need to go up approximately an additional 10%.

 

For a better cross comparison of the Wallingford average let’s take homes of all shapes and sizes – the present addresses of the Town Councilors and the Mayor and the taxes as taken from the Wallingford Tax office:

 

You do not have to take my word for it – call the tax office yourself and get your own taxes from the prior revaluation (pre 2005) and then compare them with your current taxes.

Knowledge – it’s a wonderful thing.

Wallingford budget passes with additional cuts

As published in the Record Journal Thursday May 16, 2013
By Andrew Ragali
Record-Journal staff aragali@record-journal.com
(203) 317-2224
Twitter:@AndyRagz

WALLINGFORD — In adopting Mayor William W. Dickinson Jr.’s $147.4 million budget Tuesday night, the Town Council approved additional cuts to an already tight Board of Education budget.

 

Dickinson revised his initial spending proposal last week, cutting expenditures by $531,411 from his initial $147.94 million request in early April. Spending cuts were made by Dickinson to counteract a reduction in state aid by the General Assembly’s Appropriations Committee. Of the cuts made to the budget, the largest was $279,411 in funding to the Board of Education.

 

“Is this something I’d hope we’d be doing right now? Absolutely not,” School Superintendent Salvatore Menzo said on Wednesday. “It’s not going to be easy.”

 

Menzo prefaced comments about his concerns by saying he has the “utmost respect for the mayor and the tough position he’s in.” Menzo said that while his job and that of theBoard of Education is to secure as much funding as possible for the school system, “we have to balance that with the realization we are a member of a community.”

 

If Dickinson needs to reduce funding to the Board of Education to create a balanced budget, “we’re going to make that happen,” Menzo said. “I have to trust his decision is the right decision.”

 

The Town Council passed the 2013-14 budget just before 12:30 a.m. Wednesday after a six-hour meeting. It reflects an increase of $2.27 million over the current fiscal year and will raise the tax rate to 26.22 mills, up 0.24 mills. Dickinson said that the owner of the average residential property, assessed at $191,000, will pay $5,008 in property taxes, compared to $4,962 under the current rate, an increase of $46. A mill equals $1 for every $1,000 in taxable property value.

 

Besides the Board of Education budget, Dickinson, a Republican, also cut seven projects in the Public Works and Engineering Department budgets in order to adjust forreduced state aid. The second largest cut was $110,000 necessary for the comptroller’s office to perform revaluation.

 

“Very little of anything here is not something that is needed,” Dickinson said of the revised cuts made to the budget. “None of these things are easily thrown away. It’s under the pressure of finding $500,000 to balance a budget.”

 

Due to the budget cut and increased expenditures, Menzo said the Board of Education needs to make up about $550,000 in its budget.

 

“My goal is not to stir up alarm,” Menzo told councilors Tuesday night. “There will be most likely some initiativesthat won’t be able to move forward and we will have to reduce the things we’re doing at present.”

 

Menzo said Wednesday that the board may consider reducing the purchase of technology by $400,000 and development of curriculum by $150,000 to balance its budget.

 

Town Councilor John Sullivan, a Democrat, was opposed to cutting the Board of Education budget any further and proposed an amendment to reappropriate money to the board.

 

“What’s important to us in this town? Education,” Sullivan said. “Next to public safety, it’s education.”

 

Sullivan said he would rather see the tax rate increased to offset reductions in state aid than cut money for education. But Sullivan’s amendment failed because a majority of councilors couldn’t support an additional tax increase.

 

“I think the tax increase here is too much as it is,” said Fishbein, a Republican. “I can’t support expenditure without an offset in the revenue.”

 

Fishbein proposed five budget amendments to offset reductions in state aid through different avenues than the mayor, the largest of which would have reduced the library’s budget by $200,000.Fishbein reasoned that the library has accumulated a $500,000 surplus and could afford the cut. None of Fishbein’s amendments passed.

 

“I’m just not comfortable supporting any additions to the budget” due to the fluid situation with state funding, said Town Council Vice Chairman Vincent Cervoni, a Republican.

 

Town Councilor Jason Zandri, who supported Sullivan’s amendment, said increasing the tax rate to balance the budget instead of cutting education money would only mean an additional $5 a month for the average household.

 

“The lesser of the two evils here is to charge a little more in taxes,” said Zandri, a Democrat.

 

Town Councilor John Le-Tourneau, a Republican, suggested the town use reserve funds in order to restore the Board of Education budget, but Bowes said using reserves would not be prudent since the town already used $4.3 million in reserves to balance the mayor’s original budget proposal.

 

“We’ve got to get ourselves off that reliance,” Bowes said.

 

“Now is the time to use it,” LeTourneau responded, referring to the reserve, or “rainy day” fund. “It can’t pour any more than it is right now.”

 

Responding to LeTourneau’s point, Dickinson said “inevitably I’m going to disagree,” reasoning that the state’s tendency to spend is what caused cuts in aid to the town in the first place, and “we shouldn’t repeat it here.”

 

The council took two separate votes to approve the budget. On the revenue side, the budget passed 7-2, with Economopoulos and Zandri voting no. On the expenditure side, the budget passed 5-4, with Economopoulos, Fishbein, Sullivan and Zandri voting no.

 

Dickinson said that he was told by the town’s legislative delegation an additional $1.2 million in state aid to the town “is still under discussion.”

Wallingford Budget to be decided upon at the 5/14 Town Council Meeting

This is your last chance to speak on any items that come up for change on the budget; I will post the full agenda but I can tell you right now it will be a long meeting.

Please see the below information regarding the changes being proposed due to an expected $531,411.00 shortfall from state funding.

The proposal is to make changes to nine general fund expenditures, the largest of which is expected of the Board of Education budget. This is being done to prevent a further increase in taxes.

Before this shortfall of funding from the state, taxes were proposed to go up approximately $46.00 per household on an median assessed home ($191,000.00). If your property is less than this, you could have expected a smaller increase and if it was larger then it would be more.

If these changes are not made or some other changes are not proposed and adopted then the only way to gap the $531,411.00 would be to raise taxes further. To do that the tax increase would need to go up by about an additional $26.00 so the total change for this year would be about $72.00 as listed above rather than the current $46.00

 

To balance Wallingford budget, mayor had to dip into rainy day fund

As published online at MyRecordJournal.com

By Mary Ellen Godin
Record-Journal staff
mgodin@record-journal.com
(203) 317-2255

WALLINGFORD — The mayor’s proposed budget for 2012-2013 includes adding $4.3 million from the rainy day fund to maintain services without costing taxpayers more.

“It helps balance the budget,” said Finance Director James Bowes. “It’s considered a tax savings while helping provide services.”

It’s not unusual for Mayor William W. Dickinson Jr. to use surplus funds to cover shortfalls in other areas. This year those shortfalls are created by a $5.2-million increase in department requests, fewer state and federal grants and unfunded mandates, Dickinson said at a budget presentation Monday.

Had he not dipped into the fund, it would have meant another 1-mill increase for taxpayers or drastic cuts in services. As proposed, the budget comes with a .76-mill increase to 25.98 mills.

The rainy day or surplus fund now has $14.8 million, or $10.5 million if the budget is approved, Bowes said. The town works to keep more than $9.8 million in reserve to maintain its AAA credit rating, Bowes said.

But town councilors are worried about rebuilding the rainy day fund in 2013-2014 when town employees who did not get raises this year have wage increases negotiated for next year. A large concern is teachers, who are set to receive close to $2 million over the next two years. Three other unions representing managers, clerical staff and police and fire department employees are also in negotiations and could be in line for two-percent wage hikes.

“With eight, nine percent unemployment, you have everyone functioning like everything is normal,” Dickinson said. “Wages should be tied to the private sector.”

Town Councilor Jason Zandri said the rainy day fund can be likened to a personal savings account. If mortgages and utilities increase and a person continues to dip into it, it’s going to wither.

”You’re taking more out of the bank and eventually run out of that savings,” said Zandri, a Democrat. “You need to put it in every day.”

Town Councilor Nicholas Economopoulos said the fact that the rainy day fund had to be used to pay for existing services shows that this budget challenged Dickinson, a Republican.

“He’s definitely aware of it,” said Economopoulos, a Democrat. “He has his back against the wall. He has a challenge to make it more efficient and accountable. We may have to turn to fire and say, we can’t do it for you,” he said referring to plans to build a new firehouse.

Town Councilor Craig Fishbein, a Republican, said the rainy day fund is designed to cover shortfalls in the budget and prevent tax increases, but he’s more worried now.

“As I pointed out last year, that money is dwindling,” Fishbein said. “You don’t have that money next year to pad the budget.”

The most effective way to replenish the rainy day fund is through the town’s grand list, Bowes said. This year’s grand list growth generated $900,000 at the current tax rate. A residential and commercial real estate market that’s slowly stirring back to life could boost revenue, he said. But there is no magic bullet.

“It’s a multi-faceted question and there is no one answer,” Bowes said.

The town’s residential and commercial tax burden doesn’t fluctuate wildly even after revaluations, he said. In 2010 commercial property values dropped from 65.1 percent of the town’s tax burden several years earlier to 64.18 percent. In 2011, it was 64.05. Commercial and industrial property owners picked up slightly more of the burden in 2010 and 2011, but personal property or equipment taxes declined due to depreciation.

“Businesses have to replace those assets with newer assets at a faster clip,” Bowes said. “That’s a large component.”

Businesses moving in and moving up also help that number grow. The town also has to see some return of state and federal grants, instead of one- or two-year programs that evaporate leaving the town to support new hires, or new programs, Dickinson said Monday.

Fishbein said the town needs to take another look at agencies and programs it’s sending checks to and stop paying the state $70,000 a year for bus service, among other changes.

Economopolous said it might be time to say no to large projects such as the fire station, while Zandri said it’s time to review agreements with local non-profits for payments in lieu of taxes.

Keeping jobs unfilled yields town surplus

As published in the Record Journal, Thursday January 26, 2012

By Russell Blair
Record-Journal staff
rblair@record-journal.com
(203) 317-2225

WALLINGFORD — The town ended the 2010-11 fiscal year with a surplus largely due to town employee positions’ remaining unfilled, a practice that has become more common in tough fiscal times. According to an audit of Wallingford’s finances released in December, the town ended the fiscal year $671,000 in the black. But a large amount of the surplus can be attributed to the retirement of 10 town employees who weren’t replaced.

“No amounts were budgeted for 10 open positions in the General Government: three in Public Works, three in the Comptroller’s office and four police officers,” the audit said. “These positions were vacated by retired employees and will probably remain unfilled until the economy recovers.”

In the current fiscal year, the Police Department’s salaries budget was cut by $170,106. Police Chief Douglas Dortenzio said Wednesday he wouldn’t be asking for additional officers in next year’s budget. The request has been denied in the past. The department has 71 sworn officers, including Dortenzio, and a total of 91 positions including clerical staff.

Dortenzio said that when a position remains vacant for a year, it is generally eliminated from the budget. Staffing is down about 6 percent from a couple of years ago, he said.

The department has had to shift officers around and make changes, including reducing the size of the detective bureau, to get more uniformed officers on the street.

“We do the best we can with what we have,” Dortenzio said. But, he noted, “the town has grown, and we have not kept pace.”

Mayor William W. Dickinson Jr. said that, in tough economic times, the town has had to cut back to avoid increases in taxes, and he doesn’t expect many new hires.

“Chances are, some, if not all of these positions will remain unfilled,” Dickinson said. “The police no longer has a DARE program; Public Works has lost positions that handled landscaping duties.” But John Sullivan, a Democratic town councilor, said he doesn’t think a surplus matters if it comes at the expense of public safety officers.

“I always have concerns about police, fire and emergency response,” he said.

According to the audit, public safety expenditures in 2010-11 were $708,000 below budget due to $412,000 less in police wages, “due to the time lag in replacing employees who retired or resigned and less overtime.”

Dickinson said that the town isn’t getting any new money, and that, short of a large increase in the grand list, services have to be trimmed.

He said the departments have been continuing to provide services but that they’ve had to “get back to core missions.”

“Just the essentials,” Dickinson said.

Sullivan said that other budgets have ended in a surplus for similar reasons, and the extra money isn’t always a good sign. “This is typical every budget year,” he said. “And who is the big loser? The people in Wallingford.”

Dickinson countered by saying that the $671,000 surplus didn’t tell the whole story, and that $4 million to $5 million of the town’s general fund was used to cover expenses and stave off a tax increase.

Wallingford 2012-2013 Initial Proposed Education Budget 01/09/12

http://www.wallingford.k12.ct.us/cf_news/view.cfm?newsid=89

Posted 01/10/2012 07:02AM

2012-2013 Initial Proposed Budget 01/09/12 Presented at the BOE Operations Committee Meeting (PDF)

WORKSHOPS FOR THE 2012-2013 EDUCATIONAL BUDGET

http://www.wallingford.k12.ct.us/cf_news/view.cfm?newsid=85

Meetings for the purpose of holding workshops for the 2012-2013 Educational Budget have been scheduled. The public is cordially invited to attend.

Schedule of Special Operations Committee Meetings for Budget Workshops

• Saturday         January 21, 2012 
  8:00 a.m. – Budget Review for all Departments
• Wednesday    January 25, 2012                  
  6:00 p.m. – Budget Review (if needed)

All workshops will be held in the Community room at the Vo-Ag Department at Lyman Hall High school unless noted otherwise.

$671G surplus up in Wallingford, but mayor still cautious

As published online at NHRegister.com on Wednesday, January 04, 2012

By Luther Turmelle
North Bureau Chief
lturmelle@nhregister.com
Twitter: @lutherturmelle

WALLINGFORD — The town finished fiscal 2011 with a $671,000 surplus, compared to $406,000 during the previous fiscal year, according to the annual municipal audit.

Usually, even a modest surplus is reason for some cheer among town officials. But Mayor William Dickinson Jr. said Tuesday that without significant new revenue coming in, the surplus doesn’t tell the whole story.

“I think the town is in sound fiscal health,” Dickinson said. “But our fiscal decisions are dependent upon the local taxpayer footing the bill and the worry is there is not an indication of new revenue coming in. So, we’ve got to be very cautious about how we spend.”

Dickinson acknowledged he won’t know for certain whether the town’s tax revenue will increase until the end of this month, when Wallingford files its grand list with the state. Last year, for the first time since Dickinson took office in 1986, the town’s overall value of taxable property went down.

The audit also revealed that the town’s net assets — which represents the combined dollar value of government and business activity — increased by $3.43 million to $353.48 million in fiscal 2011, which ended last June 30, said James Bowes, Wallingford’s comptroller.

“The fact that out assets are still growing, given the difficult nature of the economy, is good news,” Bowes said.

The town’s debt load decreased by nearly $2.74 million in fiscal 2011.

Call Luther Turmelle at 203-789-5706 or follow him on Twitter @LutherTurmelle. To receive breaking news first, text the word NHNEWS to 22700. *Msg+data rates may apply. Text HELP for help. Text STOP to cancel.

The Federal Budget in simple terms

Not much more to say here; either you understand this or you do not.

If you click on the image it will enlarge for you.

For more information please see:

National Debt Clock

Debt Clock for Connecticut

Debt Clocks from around the world

Wallingford council OKs tax deal for Leigus Road office building

As published in the Record Journal, Wednesday September 28, 2011

By Robert Cyr
Record-Journal staff
rcyr@record-journal.com
(203) 317-2224

WALLINGFORD

— Workstage Connecticut LLC, the developer working to complete the building that will be the future headquarters of Anthem Blue Cross, will be exempt from 20 percent of its property taxes for the next seven years after being accepted into a tax abatement program by the Town Council Tuesday night.

Workstage is the seventh-highest taxpayer in town, with property assessed at $20,151,880. The annual break on Workstage’s tax bill will be $55,467.

The company, owned by New York-based Gale International, resumed construction this year at 110 Leigus Road. Anthem was originally slated to move into the space this month but has not done so due to incomplete work, said Donald Roe, town program planner.

The 305,000-square-foot building, which was partly completed in 2007, was originally built for Mortgage Lenders Network USA Inc., but that company went bankrupt shortly after the subprime mortgage industry imploded the same year.

“I think there’s been some slippage in their schedule,” Roe said before Tuesday night’s council meeting. The move-in date is a moving target.”

Gale and Anthem representatives did not return calls Tuesday.
Workstage spent about $20 million on the project and is finishing up construction for Anthem’s move after years of inactivity, scheduled for completion in September 2012. Anthem will occupy 217,764 square feet of the campus.

A certificate of occupancy from the building department will trigger the first year of the program for Workstage, said Town Attorney Janis Small. If Anthem were to leave the location, Workstage would be held to the same standards to stay in the tax program by seeking another tenant.

Councilor Craig Fishbein said Workstage also owns property at 1427 Barnes Road and is negligent on its taxes there, making the company ineligible for the program.

Joan Malloy, a lawyer from local law firm Loughlin Fitzgerald representing Workstage, told the council that the taxes have been paid and appeared negligent due to a clerical error that had been recently corrected.

“Anthem will definitely see the benefit of this incentive program, and it was a significant influence on what got them to come here,” she said.

According to the tax collector’s office, Workstage paid $483,654 in taxes last year and will pay $277,339 in 2011. The property’s assessed value was cut in half during this year’s revaluation, dropping from $20 million to $10 million.

“We are thrilled with this project — it has been a long time in the making,” said Richard Nunn, chairman of the Economic Development Commission.

To be eligible for the program created in 2005, a business must make at least a $12 million investment in its property, and employ a minimum of 1,200 people in a space of no less than 60,000 square feet. The property will be revaluated again in 2016.

As stipulated in the agreement, Workstage must repay its tax abatement savings if there is a reduction in the workforce size that puts it below 1,200 jobs, Roe said.

Decision on tax program coming Tuesday

As published in the Record Journal, Saturday September 24, 2011

By Robert Cyr
Record-Journal staff
rcyr@record-journal.com
(203) 317-2224

WALLINGFORD — The Town Council will decide Tuesday whether to allow developer Workstage Connecticut LLC to enter into a seven-year tax abatement program after resuming improvements to the future headquarters of Anthem Blue Cross.

The 305,000-square-foot building at 110 Leigus Road, which was mostly completed in 2007, was originally built for Mortgage Lenders Network USA Inc., but that company went bankrupt shortly after the subprime mortgage industry imploded the same year.

Workstage spent about $20 million on the project and is finishing up construction for Anthem’s move after years of inactivity, scheduled for completion in September 2012. Anthem will occupy 217,764 square feet of the campus.

“Seeing the facility come into play is a really positive step on so many different fronts,” said Donald W. Roe, economic development coordinator. “It was just sort of sitting there for years as an empty shell.”

Under the tax incentive program created in 2005, Workstage will not have to pay 20 percent of the property’s taxes for seven years. Workstage is the seventh-highest taxpayer in town with property assessed at $20,151,880. The annual break on Workstage’s tax bill would be $55,467.

According to the tax collector’s office, Workstage paid $483,654 in taxes last year and will pay $277,339 in 2011. The property’s assessed value was cut in half during this year’s revaluation, dropping from $20 million to $10 million.

To be eligible for the program, a business must make at least a $12 million investment in its property, and employ a minimum of 1,200 people in a space of no less than 60,000 square feet. The property will be revaluated again in 2016, Roe said.

The program, extended for three years in early 2010, is a payoff for the town in the long run and helps attract businesses that may stay in the area for a long time, said Mayor William W. Dickinson Jr.

The town’s grand list, which declined for the first time in more than 20 years, caused a revenue loss of $4 million at the current tax rate. Dickinson recommended using $4.6 million from the town’s reserve funds and $750,000 in Connecticut Resources Recovery Authority revenue to close the gap and fund operating expenses.

“The effort is in economic development and it helps to keep taxes lower and utilities under control,” he said. “Most towns have a program of one form or another to encourage businesses to stay in Connecticut and provide employment. We’re very interested in having businesses move to Wallingford, especially where they make that kind of investment.”

FROM WALLINGFORD - Speaks volumes for Wallingford

This FROM WALLINGFORD column was written by my counterpart on the column – Stephen Knight.

It was originally published in the Record Journal on Sunday July 10, 2011

Topics for this column can be elusive during the summer, but not this week. There is no way that I was not going to write about an article in the July 1st Record-Journal about the Town of Wallingford having attained the highest possible bond rating with Moody’s Investor Services.

The Mayor and the Comptroller may play this achievement down with characteristic modesty, but I am under no such compunction. This is a big deal, and it speaks volumes, and not only about how well the two aforementioned executives have managed the town’s finances. This is not just about money and how we stack up after being extruded through the Wall Street statistics machine.

If a person is known by the company he/she keeps, take a look at whom some of the other 17 Connecticut towns are that share the distinction of this Aaa credit rating: Greenwich, Darien, Westport, New Canaan, West Hartford, Simsbury, Madison and Woodbridge. How did li’l ol’ Wallingford find itself in company with these towns, some of whose residents are the most affluent in the entire nation?

So how did we find ourselves in such company? Apparently it is a complicated mix of factors that are compared, but three mentioned in the Moody’s Investors Service review are 1) a “sound financial position bolstered by non-General Fund reserves”; 2) “low debt position” (our debt per capita is a very low $930); and 3) the policy of funding pension liabilities at the actuarially recommended levels.

1) Our non-allocated cash balances have been the topic of considerable discussion and debate for years. The Town’s financial position has borne fruit yet again, and the rating agency also noted our “ongoing pay-as-you-go capital spending.” Significant reserves allow us to do that.

2) Debt per capita. How much of a town’s annual budget is spent paying interest and principal on the debt it has accumulated? Ours is at 3.7 percent, a level that the rating agency is very comfortable with despite the fact that we are just above the state median household income level. If we should suffer the loss of a large taxpayer, does our debt obligation endanger our fiscal stability? We can’t hammer our residential taxpayers like Greenwich could in such a case, so over-borrowing could put pressure on the town’s ability to provide services. Moody’s answer: we see no problem because you are a long, long way from maxing out your credit cards.

3) After acknowledging the investment losses suffered in recent years, Moody’s goes on to describe our pension funding as adequate, and added this sentence: “However, the town continues to contribute its full actuarially recommended contribution, which was $3.6 million for fiscal 2010, which Moody’s views favorably ” (emphasis mine).

If your eyes are starting to glaze over reading this financial stuff, trust me, I feel your pain. So let me just explain my exhilaration about our new credit status this way.

First, this has to be recognized as an achievement for Mayor Dickinson, Comptroller Jim Bowes and his predecessor Tom Myers, for the Town Council and the municipal government in general. With the school roofs replacement program looming, and the state economy in the tank, ratings like we have now will not likely last into perpetuity, but we should be proud that we enjoy them now.

But this acknowledgement by the financial experts is also a reflection on the whole town. It is a result of having a mature electorate that understands that municipal government is about making tough choices, about not allowing our reach to exceed our grasp, about preparing for the unexpected, about asking for what we need rather than what we want. We do not look to government to provide everything to everybody, and we support the many non-profit organizations that fill that gap. In other words, it is about knowing who we are as a community, and then going about being that community.

FROM WALLINGFORD - Leave the ‘zero’ offer behind

As published in the Record Journal, Sunday February 27, 2011

The discussion has come around again with respect to union contracts, pay raises and the possibility of binding arbitration.

As we have already seen here in Wallingford, we never win a binding arbitration case. When you take something to arbitration you can say that the outcome is an unknown but not here in Wallingford; we always lose.

This is mainly because arbitrators review the case and consider the union position and the town’s “last, best offer” and compare the two.
Our last, best offer lately has been “zero.”

Salaries are compared with other union contracts in town, and pay rates for similar positions in towns with a comparable financial picture. Wallingford’s finances are assessed and it’s reviewed whether the town is able to afford pay hikes. Because of years of frugal spending habits and tight money management, Wallingford is so fiscally responsible that in this small circumstance success works against us. All of these factors end up making it impossible for the town to win an arbitration case.

This is best addressed by agreeing that the arbitration process is broken. When a negotiation reaches the point at which it goes to arbitration, arbitrators cannot properly consider objectively and simultaneously what is best for both the town and the union. When a town such as Wallingford ends up in this situation, it’s “rainy day fund” is often looked at like a solid resource available to fund the arbiters’ decision. In fact, that rainy day fund is really the fruit of responsible spending set aside for real costs and emergencies.

Wallingford and other towns should be proactive to work with lawmakers to address the arbitration process to make it fairer and more balanced in future situations. In the meantime Wallingford needs to understand what “bargaining in good faith” really means. It does not mean “zero percent raises regardless for the entire X year agreement” or “let’s set this now at zero and possibly re-negotiate it as needed later.” Unions would not be stupid enough to accept this. They know full well that no town would come back to the table merely because conditions have changed for the better. Most municipal employers — or any other kind for that matter — are not set up to respond that way.

We all understand that 16 percent of the workforce is unemployed or underemployed and that 9 percent of them are collecting unemployment. What needs to be understood as well is that the remaining 84 percent are working. We are dealing with rising fuel costs, food costs, insurance costs, local, state and federal taxes, and so forth. These things are not all sitting idly at zero percent inflation. It should not be assumed that pay should remain at the zero point either.

I am keenly aware that pay raises for municipal employees is one catalyst which causes taxes to go up. I am also keenly aware that going to arbitration generally leads to the cost of the arbitration itself and very often more in actual judgments than what was asked / negotiated for in the first place. That raises taxes even higher.

Wallingford needs to find a better understanding of what the actual work climate is for those still working and to obtain a proper understanding of what competing salaries are for given jobs. Then it must work to provide the best and fairest deal for all.

Otherwise the decision gets taken out of Wallingford’s hands and is made by others. Historically that has amounted to a win for the unions only. Good for them for winning those arbitrations, too, if the town is not being smart about playing the game under the current rules.

As I have said before, Wallingford does many smart things and they have worked well for years. I wouldn’t suggest changing anything that still works. But there are clearly some things that no longer work the way they used to. This is another perfect example of where we need to change up our game.

The Citizen Mike Show – A discussion with Democrat Town Councilor, Vincent Testa

The Citizen Mike Show is on each night at 9PM except Sundays on Comcast channel 18 and on U-Verse channel 99.

The February 3rd episode, featuring his discussion with Democrat Town Councilor Vincent Testa, is now available on demand. I have it cross posted here and it is available on the WPAA VideoAlive page.

The episode presents Vincent Testa, Democrat Town Councilor and the topics discussed were Wallingford's Grand List and its decline this year for the first time in over 25 years, the mill rate and taxes here in Wallingford. Also discussed was the recent revaluation and the proposed Board of Education budget among other topics such as planning and zoning and ordinances.

It is a MUST watch for anyone that would like more information on all of the details on these topics.

Again – I HIGHLY recommend the Citizen Mike Show as “must see TV.”

FROM WALLINGFORD - Grand List consequences

As published in the Record Journal, Sunday February 13, 2011

          by Jason Zandri      

Changes in area Grand Lists were recently outlined in a story in the Record Journal. Meriden showed slight growth in 2009 of 0.31 percent which was their best year since 2007. In Cheshire the increase was 0.52 percent. Southington finished up 1.17 percent.

A recent article in the New Haven Register outlined that even the City of New Haven showed a respectable 2.97 percent increase over 2009.
Things may not be back to 2007 levels but they are better than they were last year.

Here in Wallingford the Grand List went down 3.04 percent over 2009, the first decline in 25 years. (2008 to 2009 was effectively a wash at just a slight uptick.) Mayor Dickinson was quoted in the paper saying “This isn’t a rainy day — it’s a rainy decade.”

No it’s not.

2008 and the start of 2009 — sure, I can agree with that. It seemed as if the rain was never going to end. Times were the worst they have been since the Great Depression; “were” being the operative word.

Yes, unemployment is still sitting at 9 percent and that only counts the people collecting. The real number of unemployed / underemployed is 16 percent. These still are high rates but they are improved from the worst of it.

I am not suggesting that everyone go out and do the Snoopy dance. It is not going to be sunshine, rainbows, and dogs and cats living together in harmony forevermore. Certainly not right away.

Just like the winter we’re experiencing currently, it is still here and who knows how long the snow is going to stick around. Even after it’s gone there will be a ton to clean up. Repairs will continue into the summer.

Having said all that, the corner has been turned. To keep looking back is a waste of energy and shows a lack of proper direction. Also, continually having a downbeat outlook often becomes a self-fulfilling prophecy.

So what is our plan? We have great schools, competitive taxes and the lowest electric rates in New England. It’s the same tune we’ve been singing for the past quarter century. So why are we experiencing additional contraction in our Grand List? Can’t the general public hear us singing our siren song anymore?

Take another look at the numbers above. Our downdraft in the Grand List is pretty significant especially when you consider it has occurred AFTER everyone else has clearly begun their respective, slight recoveries.

When you consider that and the fact that we have things to offer that other towns cannot you have to ask yourself “isn’t it time we took another look at our playbook”?

Wallingford does many smart things and they have worked well for years. I wouldn’t suggest changing anything that still works. There are clearly things that no longer work the way they used to and we do need to look at changing up our game.

We are competing with the likes of Cheshire, Meriden and North Haven for new residents and businesses and the tax dollars (and the tax costs) that come with them.

We need to be proactively going after them, courting them if you will.
We can’t rely on old standbys anymore of “our taxes are low and we have the best electric rates.”

Our taxes are lower but the disparity isn’t what it once was and the same is true of our electric rates; they are cheaper but not as much cheaper as they once were.

These things alone are clearly not enough to entice new families and businesses to make Wallingford their home.

If our town is to grow and prosper we must move forward proactively; we will not be able to continue to do it as we have in the past. The game has changed and if we are to keep playing we need to roll with the change and tackle it head on.

Citizen Mike Returns – Episode 6 – Recent Arbitration story

The Citizen Mike Show is on each night at 9PM except Sundays on Comcast channel 18 and on U-Verse channel 99.

Episode 6 is now available on demand. I have it cross posted here and it is available on the WPAA VideoAlive page on demand.

The episode covers, in layman’s terms, the recent arbitration award that has handed down regarding Local 1326 of the International Association of Fire Fighters and Local 1183 of AFSCME and the process by which all of this was handled.

It is a MUST watch for anyone that would like more information on all of the details on how we have arrived to where we are today and the simple way that this award can easily be paid for and handled within the current budget and without raising any immediate taxes.

As far as the future award for next year and years going forward – that will require planning and forethought and we as a town should get started on that now while we are still a year and a half out.

Again – I HIGHLY recommend the Citizen Mike Show as “must see TV”

No Dickinson veto; 2010-11 budget stands at $141.4 million

By Dave Moran
Record-Journal staff
dmoran@record-journal.com
(203) 317-2224

As published in the Record Journal Saturday May 22, 2010

Follow all the news directly on the Record Journal Website for the most up to date information. www.myrecordjournal.com

Write a letter to the editor letters@record-journal.com

WALLINGFORD — Mayor William W. Dickinson Jr.’s 10-day window to veto the Town Council’s approved budget for the coming fiscal year expired Friday without a veto, making the town’s $141,400,488 spending plan for the 2010-11 fiscal year official.

By whittling down a number of items in Dickinson’s initial budget proposal — including eliminating a $25,000 longstanding annual gift to MidState Medical Center, and halving the amount budgeted to the Police Department to buy new police cruisers from $134,000 to $67,000 — the council shaved $109,370 from the total overall budget for the coming year, reducing the tax increase called for in the coming budget by $3.94 for the average residential taxpayer.

The coming budget raises the town’s tax rate from 23.20 mills to 24.08 mills, resulting in a tax hike of about $174 for the average residential assessment of $197,000. A mill equals $1 of tax for each $1,000 of assessed property value.

The council approved the budget in an 8-1 vote May 12, and by Town Charter Dickinson had 10 days to veto the council’s budget.

“From what I understand, he’s not going to veto it, but he still has today to do so,” Comptroller James Bowes, the town’s chief financial officer, said Friday afternoon, adding that he was “not expecting a phone call” from Dickinson before the close of the business day Friday.

Late Friday afternoon, Dickinson said that he “absolutely will not veto the budget.”

“I think overall it’s as good as we can do,” Dickinson said. “Certainly there are aspects of it that I wish could be better. Nobody ever wants to increase taxes.”

The budget also includes a more than $2.5 million reduction in the Board of Education’s funding request for the coming year, which the school board plans to bridge through a number of measures, including utilizing the system’s reserve account and reconfiguring the town’s elementary schools. The budget also includes an across-the-board wage freeze for all town employees although the town has contracts with several unions that guarantee their employees wage increases in the coming year.

Dickinson has said that if salary concessions can’t be reached, the town would look to lay off personnel in the coming fiscal year.

Dickinson, a Republican who has served as mayor since 1984, said he could not remember the last time he did veto a council-approved budget, but that “it has happened.”

“I don’t remember the year, but there were several I vetoed in the 1990s,” he said. “Thankfully, it’s not most of the time.” The 2010-11 fiscal year runs from July 1, 2010, to June 30, 2011.

CRRA surplus payment to help reduce Wallingford’s budget

As Published in the Record Journal Sunday April 18, 2010

By Dave Moran
Record-Journal staff
dmoran@record-journal.com
(203) 317-2224

Follow all the news directly on the Record Journal Website for the most up to date information. www.myrecordjournal.com

Write a letter to the editor letters@record-journal.com

WALLINGFORD — Amid sizable cuts to both the Board of Education and general government budgets for 2010-11 and a proposed nearly four percent tax hike, there’s a relatively small item that could lead to big savings in the future.

In an effort to reduce budget costs and tackle some looming capital projects, Mayor William W. Dickinson Jr. has proposed using an estimated $5 million payment the town expects later this year from the Connecticut Resources Recovery Project to fund a number of infrastructure improvements for the town and school system. The items do not count against his $141.5 million budget proposal because they are classified as capital expenses.

Last year, the town received a $7.2 million surplus payment from CRRA, which owns a trash-to-energy facility on South Cherry Street that is used by Wallingford and surrounding towns.

Facing requests that he apply at least some of that money to his budget proposal last year to reduce the tax rate, Dickinson, a Republican, instead reserved it for the purchase of a new fire truck and the construction of a new station for the North Farms Fire Department, a project that still lacks a timetable for completion. This year, Dickinson opted to remove a number of capital item requests from the budget requests of several departments and fund them separately through the surplus payment, thus reducing the town’s overall budget and the amount of taxpayer dollars needed to fund it.

“It’s one-time money, so we certainly didn’t want it to impact the operational budget because it won’t replace itself,” Dickinson said about his decision to use CRRA funds for capital improvements. “It seemed appropriate to spend the money on capital items that are necessary and won’t repeat.”

Comptroller James Bowes said although the expected payment is not being applied directly to the budget, it will still lead to savings in future budget years by eliminating a number of capital projects that would need to be funded through future budgets.

“We aren’t going out and looking for items to spend money on,” Bowes said. “We are addressing needs that are coming in next year’s budget and very shortly thereafter that we’re going to have to attack through taxpayer dollars if we don’t utilize these funds.”

The CRRA distribution will pay for two new snow plow trucks for the Public Works Department, a new ambulance for the Fire Department and roof replacements to both fire and police headquarters.

But the bulk of it, more than $1.2 million, will be used to fund improvements to the school system, including new bleachers for Mark T. Sheehan High School, boiler repairs for several schools and a $600,000 energy efficiency retrofit project that is forecasted to shave almost $500,000 from the system’s annual utilities costs.

Thomas Hennessey, Board of Education chairman, said those capital improvements will not have to be accounted for by the system in future budgets and that the energy savings project will yield immediate savings. Both help to cushion a more than $2.5 million reduction that Dickinson made to the school system’s budget request, he said.

“The energy stuff will save us hard money eventually, because every year we are going to be spending less and less money,” said Hennessey, a Republican. “The capital improvements are things that we would have had to do eventually.”

John Sullivan, a Democratic councilor, said he supported Dickinson’s use of the CRRA funds because even though the money is not being injected directly into the town’s operating budget, it is being used to remove a number of costly capital projects from the upcoming and future budget years.

“We don’t have to use tax dollars to pay for those items,” Sullivan said.

Meriden and Cheshire, which also took part in the CRRA trash disposal project that led to the surplus accounts, don’t plan to use any of the surplus money to fund their general operating budgets either.

Cheshire plans to bolster several of its reserve funds, like pension contributions and debt service, while Meriden wants to add the money to its undesignated reserves in an effort to strengthen the city’s bond rating, which appears set for an upgrade, city officials said Friday.

“Meriden is still in a situation where we believe there is a need to build the reserves a bit higher than where they are presently, so we’re not budgeting the CRRA money,” City Manager Lawrence Kendzior said.

Paul Nonnenmacher, the resource authority’s director of public affairs, said there is no timetable for when the surplus funds might be distributed to the town. Dickinson said that Wallingford will not implement any of the capital improvement projects until it receives the funds.