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    Sunday, May 12, 2024

    Norwich City Council covers 2018-19 deficits

    Norwich — Following some debate and criticism, the City Council on Tuesday approved an ordinance to cover the remaining nearly $1.25 million deficit from the 2018-19 fiscal year that just ended — $828,000 for the school budget and $420,000 for the paid city fire department.

    The council voted 6-0 with Alderman William Nash absent, to approve an ordinance that calls for covering the school budget deficit using the city’s general fund surplus and paying for the excess fire budget costs using the City Consolidated District surplus fund.

    The total school budget deficit was $1.4 million, but the City Council on Aug. 19 approved transfers totaling $572,000 from surpluses in other city agency budgets — such as the $410,000 surplus from the Public Works Department due to last year’s mild winter — to cover part of the school deficit. The final total deficit of $1.4 million was much lower than the initial projection of a $4.5 million hole at the start of last fiscal year. Lower than expected special education costs, a spending freeze and grant funding helped reduce the deficit.

    During the public hearing prior to the vote, resident Linda Theodoru said the City Council underfunded the budgets to start and said that practice makes it difficult for the city departments to operate.

    After covering the school budget deficit, the citywide general fund will be at approximately 11.3 percent of the city’s annual spending, Comptroller Josh Pothier told the City Council in an August report on the deficit, within the city’s goal of 10 to 17 percent, he said.

    The city’s paid fire department is funded through a separate fire tax on CCD properties in the central city, downtown, Greeneville and East Side areas. After paying for the deficit, the CCD general fund could end this fiscal year with a deficit, Pothier reported.

    The ordinance approved Tuesday stated: “if, during the fiscal year 2020-21 budget development process, the City Consolidation District fund is projected to be in a deficit position at the end of fiscal year 2019-20, then an additional amount will be included in the 2020-21 tax levy for the City Consolidation District to restore such deficit.”

    Aldermen debated contentious positions that dominated the spring budget session and continued into the summer. Democratic aldermen argued that the majority Republican council has approved budgets that were known to be short of what the departments needed — especially the school system, police and fire departments. Republicans said they have had to hold the line on spending to keep city taxpayers in mind, who cannot keep paying higher and higher taxes.

    Republican Alderwoman Stacy Gould said the council “works hard to put together a comprehensive budget” to make Norwich more attractive to new businesses and residents. She said department leaders should be reminded they have the responsibility to keep spending within their budgets.

    Democratic Alderman Joseph DeLucia said the council’s actions have not made the city attractive to new businesses, because the council has been ignoring the needs of key city departments. He said it’s embarrassing when the council refuses to acknowledge the needs of the departments, only to find out they correctly estimated their budget needs.

    “It looks like sometimes we don’t know what we’re doing,” DeLucia said. “It looks like the people sitting up here know better than the people running the departments.”

    c.bessette@theday.com

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