Top 10 of 2019: #4 – Tax Hike, Surplus, Refund Debate
Many important stories have been covered by the New Britain Progressive in 2019. It may be difficult to name only a few articles as the top stories of the year, but there are a few the New Britain Progressive would like to share as our Top Ten. Other Top Ten stories can be found at “Top Ten Stories of 2019.”
In 2019, the tax increase in the city budget that took effect in 2018 returned as an issue when it was disclosed that the budget had ended in a surplus.
In 2018, City Council Democrats had criticized Republican Mayor Erin Stewart’s proposed budget for fiscal year 2019, the budget year that went from July 1, 2018 to June 30, 2019. Stewart’s proposed budget was criticized for being, a “huge tax increase,” despite her claim that it had no tax increase. While her proposed 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 in 2018 by approving a budget that cut $1,745,844 from the City Hall budget and lowered the mill rate of 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 that year.
But Stewart vetoed 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.
After the fiscal 2019 budget year ended, however, it was disclosed that it had a $1.9 million surplus, a number remarkably similar to the $1.7 million amount that Council Democrats had wanted to cut.
Council Democrats proposed and the City Council approved refunding $1.8 million to taxpayers in October of 2019. (Council Votes to Refund $1,807,753 to Taxpayers.)
Council Democrats, expressing concern that Stewart might veto the refund, called a special Council meeting for November 4th, the first weekday after the apparent deadline for Stewart to either sign or veto, for the Council to consider overriding the potential veto. (Council Democrats Press for Tax Refund Approval.) But that meeting, which was to be held the day before the city elections, was cancelled after Gennaro Bizzarro, city Corporation Council in Stewart’s administration and the Republican 6th District State Senator, issued an opinion, that has been called dubious, denying that the Council meeting had been properly called. Democrats blasted that move. (Democrats Blast Stewart Over Taxes.)
In the end, however, rather than veto the resolution providing for the tax refund, then-Council Majority Leader, Ald. Carlo Carlozzi, Jr. (D-5) announced, Stewart returned it to the Council unsigned, allowing it to be approved by default. “What this means, the tax payers in the City of New Britain WILL GET A TAX CREDIT on the Jan 2020 tax bills,” Carlozzi had said, adding, “The tax credit will amount to approximately $70.00 per $100,000 of assessed property.” He also added, “I want to say THANK YOU to the Democratic Majority caucus for supporting this resolution and providing a little something back to the overburdened taxpayers of our city.” (Tax Refund Resolution Apparently Takes Effect Without Stewart Signature.)
Taxpayers will have to check to see whether the refunds appear, in the form of a reduction of their January 2020 property tax installments. And the larger budget debate on property taxes, education funding and other priorities appear likely to continue. But the debates between the Republican Stewart and the Democratic majority Council over the last two years, which continued right to the end of that term of office, makes the fiscal year 2019 surplus and tax refund debate one of the New Britain Progressive‘s Top Ten Stories of 2019.
Council Votes to Refund $1,807,753 to Taxpayers
October 26, 2019
The City Council approved an amendment proposed by Ald. Carlo Carlozzi, Jr. (D-5) to refund $1,807,753 in surplus to taxpayers.
The amendment, at the October 23, 2019 City Council meeting, arose from discussion on a $1.9 million surplus in the fiscal year 2019 budget year which ended on June 30, 2019.
Democrats, expressing that they had wanted a lower tax rate for taxpayers in that budget, offered the amendment to return $1,807,753 of the surplus left over after that budget year to taxpayers.
Carlozzi, the Council Majority Leader, also said that $100,000 previously allocated to the library from any surplus would remain in place.
The new provision added by Carlozzi’s amendment was, “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.”
While Republicans had initially criticized Carlozzi’s amendment, which was seconded by Ald. Francisco Santiago (D-5), the amendment was ultimately approved unanimously.
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.
“It is high time the taxpayers of New Britain are given a break,” said Carlozzi online, “enough of the spending, over $30 Million more this year than in 2013, 14% increase in property taxes and another $150 Million more added to our debt structure and 10 additional years. We can no longer continue to do the same thing and expect a different result.”
Council Democrats Press for Tax Refund Approval
October 31, 2019
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.
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.”
Democrats Blast Stewart Over Taxes
November 4, 2019
City Council Democrats issued a statement on November 4th blasting Republican Mayor Erin Stewart, saying that she is blocking refunds to taxpayers by illegitimately stopping a special City Council meeting to take up what Democrats anticipate is her veto of the measure.
“It is clear that the Mayor intends to veto the resolution and deny the taxpayers their hard-earned tax credit,” City Council Democrats said in a press statement. “This lack of transparency should be a disappointment to all of the residents of New Britain.”
At issue is a special meeting called by the Council President Pro Tempore, Ald. Eva Magnuszewski (D-AL) to take up what Council Democrats anticipated was a forthcoming Stewart veto of a resolution to refund $1,807,753 in surplus to taxpayers.
Democrats said in a press release that,
Mayor Erin E. Stewart’s Corporation Counsel Appointee Gennaro Bizzarro has erroneously declared the November 4, 2019 special meeting of the Common Council illegal in order to prevent refunding money to the hard working taxpayers of the City of New Britain. Corporation Counsel Gennaro Bizzarro, within hours of a meeting that was noticed on Thursday, October 31, 2019, falsely stated that despite the Charter stating otherwise, Democratic President Pro Tempore Eva Magnuszewski does not have the authority to call a meeting.
Section 4-5 of the New Britain City Charter says that the,
Common Council may be specially convened at any time by the Mayor or the President Pro Tempore of the Common Council
Council Democrats added that Magnuszewski, “has previously called two special meetings, and prior to her term, Republican President Pro Tempore Jamie Giantonio called two special meetings, all of which have never been declared illegal.”
Democrats are accusing Stewart and other City Hall Republicans of attempting to delay Stewart’s veto of the tax refund resolution, saying that, “Town Clerk Mark Bernacki, today declared the Mayor has until November 7th to veto the resolution despite the Town Clerk’s previous declaration that November 4th was the deadline.”
The City Charter gives the mayor ten days to approve or veto items approved by the Council. The tenth day after the tax refund resolution was approved was November 2nd.
Democrats said that the planned November 4th Council meeting was cancelled.
Bizzarro, a Republican, is the State Senator for the 6th Senatorial District, which includes New Britain, in addition to being the Corporation Counsel for the city.
Ald. Carlo Carlozzi, Jr. (D-5), the Council’s Majority Leader proposed the tax refund plan on October 23, 2019 as an amendment saying, “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.
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 said last week that, “The Mayor of the City of New Britain has withheld signing Resolution No. 34879, which would release the tax credit funds to residents.”
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 that year 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.
Tax Refund Resolution Apparently Takes Effect Without Stewart Signature
November 9, 2019
A City Council resolution with a provision to refund $1,807,753 in surplus to taxpayers appears to have taken effect without Republican Mayor Erin Stewart’s signature, according to Ald. Carlo Carlozzi (D-5).
The resolution includes an amendment proposed by Carlozzi, on October 23, 2019, “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.”
While Republicans had initially criticized Carlozzi’s amendment, which was seconded by Ald. Francisco Santiago (D-5), the amendment was ultimately approved unanimously.
Yet, after that, Carlozzi said the, “The Mayor’s supporters skewered me with criticism on FB despite the unanimous voice vote of the council.”
Under the City Charter, the mayor has ten days to approve or veto items approved by the Council before they take effect without her signature. The tenth day after the tax refund resolution was approved was November 2nd.
But, according to Council Democrats, Stewart withheld signing the measure, prompting the City Council’s President, Ald. Eva Magnuszewski (D-AL), to call a special Council meeting for November 4, 2019, to, “in order to override any potential veto the Mayor may submit in trying to withhold taxpayer refunds.”
That meeting was cancelled after city Corporation Counsel Gennaro Bizzarro, a Stewart appointee, issued an opinion, that has been heavilly derided, that called into question whether the meeting had been properly called.
Bizzarro, a Republican, is the State Senator for the 6th Senatorial District, which includes New Britain, in addition to being the Corporation Counsel for the city.
On November 5th, Carlozzi missed re-election by a small margin.
But, Carlozzi has now announced,
The Mayor held onto the resolution for a very long time and finally returned it on Wednesday Nov 6th, the day after the election without her signature and without a VETO. What this means, the tax payers in the City of New Britain WILL GET A TAX CREDIT on the Jan 2020 tax bills. I want to say THANK YOU to the Democratic Majority caucus for supporting this resolution and providing a little something back to the overburdened taxpayers of our city.
Carlozzi says that, “The tax credit will amount to approximately $70.00 per $100,000 of assessed property.”
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 in 2018 by approving a budget that cut $1,745,844 from the City Hall budget and lowered the mill rate of 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.
Carlozzi’s amendment took up the budget debate from 2018, returning to taxpayers money that Democrats say the city should not have taxed.
“I am very proud of my very last act on the 2017 to 2019 session of the Common Council,” Carlozzi said.
To his critics on the tax refund issue he added, “By the way, to those who do not want their tax credits, please go ahead and pay your full tax installment in January 2020. I am sure the city will be happy to keep your tax credits and return it to the general fund to spend on something else.”
Carlozzi says he, “will not be able to vote on these financial matters for the next two years. But after 10 years on the council, I will not stop my push to control spending, bonding and call for the elimination of duplication in personnel and services from city hall.”
