Naugatuck Budget Rhetoric v. Reality – 6/5/2014

Please read the following regarding the Naugatuck budget recently adopted.  If you calculate the increase in taxes by 0.26 mills to one’s residential property, and then multiple the depreciated car value for those owning motor vehicles by the new mill rate (multiply 2013 car value by 0.04506), many taxpayers will notice LITTLE SUBSTANTIAL CHANGE OR EVEN A NET DECREASE IN THEIR OVERALL TAX BILL.  This even includes some of those organizing the petition drive to send the adopted budget to referendum.  

Much has been said on various social media sites since the adoption of Naugatuck’s 2014 – 2015 budget.  Once again, a group of individuals similar to the one who solicited signatures last year, are asking residents to sign petitions to force the budget to a public referendum.  While this is a valid process authorized by the Borough charter, it is important to understand the facts about the proposed budget if approached by someone asking for a signature.

The increase in the mill rate in the proposed budget is 0.26 of a mill.  To determine its impact on one’s real estate property tax bill, please link here.  Said link contains an analysis of the tax impact on each owner’s property over the past two years.  An analysis of each owner’s motor vehicle assessment can be accessed through this link.  Said values are provided to the Naugatuck Assessor by the State of Connecticut, and include depreciation of existing vehicles.  To calculate the new, motor vehicle tax, multiple the 2013 assessment by 0.04506 (which represents 45.06 mills), or use the motor vehicle calculator provided here.

The 0.26 mill rate increase is also the lowest  increase, not withstanding revaluation, in all but two of the last fifteen years.

  • 2000 – 2001:   55.60 mills
  • 2001 – 2002:  32.60 mills; REVALUATION – decrease of 23 mills (if no revaluation, decrease of 1.1 mills)
  • 2002 – 2003:  35.50 mills; increase of 2.90 mills
  • 2003 – 2004:  33.00 mills; REVALUATION – decrease of 2.50 mills (if no revaluation, increase of 3.1 mills)
  • 2004 – 2005:  35.40 mills: increase of 2.40 mills
  • 2005 – 2006:  37.10 mills, increase of 1.70 mills
  • 2006 – 2007:  38.80 mills, increase of 1.70 mills
  • 2007 – 2008;  41.30 mills; increase of 2.50 mills
  • 2008 – 2009:  31.52 mills; REVALUATION – decrease of 9.78 mills (if no revaluation, increase of 3.69 mills)
  • 2009 – 2010:  31.52 mills; No Increase
  • 2010 – 2011:  32.02 mills; increase of 0.50 mill
  • 2011 – 2012:  33.20 mills; increase of 1.18 mills
  • 2012 – 2013:  33.55 mills; increase of 0.35 mill
  • 2013 – 2014:  44.80 mills; REVALUATION – increase of 11.25 mills (if no revaluation, increase of 0.93 mill)
  • 2014 – 2015:  45.06 mills; increase of 0.26 mill (adopted, subject to referendum)

While revaluation skews the mill rate, the information above includes what the mill rate adjustment would be on an annual basis if there was no revaluation.  Only the 2009-2010 budget, which was approved with no increase in the mill rate; and the 2001 – 2002 revaluation year budget; contain lower mill rate increases than the adopted budget of this year, without regard for revaluation.

Spending in the adopted 2014 – 2015 budget did increase by 3.9% or $4,333,754.00; but revenue from sources other than taxes collectible increased by 8.3%.  This was largely due to increases in state aid, fund balance revenue (for capital projects) and use of the Borough’s health care reserve to offset increases in health benefits. Approximately $4.4 million of the increase in spending is attributable to the increase in employee health care costs (approximately $3.3 million dollars for both municipal and board of education employees), federally mandated upgrades to Naugatuck sewer treatment facility ($800,000.00) and a repair to an existing sewer line ($345,000.00).

Page 1 of 5 | Next page