New London City Council not pleased with tax levy increase, does not pass budget

BY KARYN SPORY

Mt. Pleasant News

NEW LONDON ? There were no citizen comments on the city?s 2016-2017 budget, but there were a few from the council. Namely, why had the tax levy increase for employee health benefits not been part of the budget process.

?Unbeknownst to me as a council member, Mr. Mayor, and I?m sure the general public is unaware of the same, is that we are increasing the tax levy against the citizens of our town,? said Councilman Greg Malott.

On Tuesday night, during the city?s regularly scheduled meeting, the council was presented with a budget that would increase the tax levy from 11.93573 per every $1,000 valuation to 12.45841 per every $1,000 valuation. The levy falls under special revenues and would be for employee?s insurance benefits.

Malott, who is on the finance committee, said the levy increase was not a part of the budget presentation or process. ?I?m just disappointed that we have not discussed further the category in the special revenue levies that increases other employee benefits by $17,685, without other options being considered,? he remarked.

Malott added that some insurance costs went up due to the Waste Water Treatment Plant, but paying increased insurance costs for other city employees was not part of the budget discussions.

Councilman Dan Berner also inquired why this had not been part of the budget presentation.

City Clerk Kasi Howard said for several years, the city?s employees? insurance benefits were not coming in as high as the city had budgeted for, so ?quite a surplus? had built up in that account. ?For several years, I started under budgeting to use up the surplus because I didn?t think it was fair to budget for the full amount and tax the people,? she explained.

After time, the city chipped away at the surplus. ?This year, I felt it was appropriate to budget for what we thought we were going to need,? said Howard.

However, the tricky part, Howard said, is the city will not know until closer to September what insurance costs will be.

?But this isn?t the only option to cover the costs,? said Malott.

Howard agreed other options might be available.

?That should have been presented as part of the budget and what the reasoning and thought process was behind it,? he said. ?It doesn?t necessarily make it right to make a change to a tax levy without some sort of reason to the citizens and the city council.?

Howard defended the budget, stating the numbers she used were figures the council had discussed. ?It?s not like I increased numbers from the time we talked about them,? she said.

Both Malott and Berner proposed taking the tax levy to what it was originally and looking at having employees cover more of their insurance costs. ?I pay for my own insurance and I think if you polled the community, I?m sure a good portion of people would say the same thing,? said Berner.

In the end, the city did not approve the budget, but will have a special meeting to discuss and approve a budget with the previous tax levy.

City budgets must be approved by March 15. In order to discuss the budget again, notice of the special meeting must be published 10 days beforehand.

Howard said a meeting date had not been set yet.

In other business, the council:

? Approved an exception to allow a teacup potbellied pig at 104 Orchard Lane. The pig will be allowed for a three-month trial period. The council has the authority to pull the exception at any time.

? Approved an extension for Ken Simmons to abate the nuisance/dangerous building at 302 W. Washington St.

? Authorized Judy Wiegard and the New London Fire Association to hold a fundraiser that would close off part of the 100 block of W. Main St. The fundraiser will be held during the summer.

? Approved sponsoring the annual Easter egg hunt and giving a $100 donation.

The next regularly scheduled meeting of the New London City Council will be held Tuesday, April 12, 2016, at 5:30 p.m., at the City Office.