Council Democrats Press for Tax Refund Approval
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Council Democrats Press for Tax Refund Approval

City Council Democrats are calling a special Council meeting to consider overriding “any potential veto” by Republican Mayor Erin Stewart of a resolution to refund $1,807,753 in surplus to taxpayers.

Council Democrats Press for Tax Refund Approval

On October 23, 2019, Ald. Carlo Carlozzi, Jr. (D-5), the Council’s Majority Leader proposed an amendment, “that $1,807,753 of the fiscal year 19 surplus be refunded to the taxpayers in the form of a credit of the second installment that is due January, 2020.” Carlozzi had also said that $100,000 previously allocated to the library from any surplus would remain in place.

The amendment arose from discussion on a $1.9 million surplus in the fiscal year 2019 budget year which ended on June 30, 2019. The resolution including Carlozzi’s amendment was sent to Stewart for her signature or veto.

“The amendment refunded the surplus funds to taxpayers within the City in the form of a tax credit on their upcoming tax bill,” says a City Council press release issued by Carlozzi. “The resolution, as amended, passed the Common Council unanimously and was submitted to the Mayor for her signature.”

While Republicans had initially criticized Carlozzi’s amendment, which was seconded by Ald. Francisco Santiago (D-5), the amendment was ultimately approved unanimously at the Council meeting.

But, Carlozzi’s statement says, “The Mayor of the City of New Britain has withheld signing Resolution No. 34879, which would release the tax credit funds to residents. Due to this lack of action, the Common Council has called a special meeting.”

The City Council’s President, Ald. Eva Magnuszewski (D-AL) has called a special meeting of the Council for Monday, November 4, 2019. The warrant issued by Magnuszewski calling the meeting says that it will be held at 7:00pm. Under the City Charter, the Council President, along with the Mayor has the authority to call special meetings of the City Council.

While Carlozzi’s statement calls for Stewart to sign the resolution with the tax refund, it also says that the purpose of the special Council meeting is, “in order to override any potential veto the Mayor may submit in trying to withhold taxpayer refunds.”

Under the City Charter, Stewart has ten days to act on a resolution approved by the Council. That would make Saturday, November 2nd the last day she could either approve or veto the tax refund before it take effect without her signature. The November 4th Council meeting would, then, be the first weekday after that deadline.

Carlozzi’s amendment takes up an issue that Council Democrats have been pressing since 2018.

The budget year that the city is presently in is fiscal year 2020, which goes from July 1, 2019 to June 30, 2020. The surplus Carlozzi’s amendment would return to taxpayers was for the budget year before that, 2019, which began on July 1, 2018 and ended this past June 30, 2019.

The tax rate in Stewart’s proposed budget for the 2019 budget year was criticized for being, a “huge tax increase.” While the mill rate remained the same, the budget was coming after a property tax revaluation that, Stewart had announced, had resulted in an overall 6.27% increase in the taxable valuation of property in the city. Overall, the valuation of single family homes went up by 6.32% and apartment buildings of nine or more units increased overall by 17.88%, while condominiums’ valuations went down by 6.73%.

Keeping the mill rate the same would translate property valuation increases into tax increases.

Democrats on the City Council had responded by approving a budget that cut $1,745,844 from the City Hall budget and lowered the mill rate 50.50 proposed by Stewart to 49.97.

The Democrats’ budget also increased education funding by $429,171. Stewart had proposed no increase in school funding.

But Stewart vetoed the the Democrats’ budget which, under New Britain’s City Charter, resulted in Stewart’s proposed budget taking effect as the approved city budget, including any tax increases taxpayers faced.

“All members of the public are encouraged to attend,” the Council meeting Carlozzi’s statement says. “Public participation will take place at 7:00 pm.”