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2017-2018 RECOMMENDED OPERATING BUDGET City Of

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2017-2018 RECOMMENDED OPERATING BUDGET City Of 2017-2018 RECOMMENDED OPERATING BUDGET South Norwalk (SoNo) at Night Photograph by Jeff Klein City of Norwalk, Connecticut CITY OF NORWALK RECOMMENDED OPERATING BUDGET FISCAL YEAR 2017-18 The seal of the City of Norwalk was adopted in 1913 to represent the political entities that merged to form the new consolidation. The bridge symbolizes the end of the navigation of Wall St. in the old City of Norwalk, now known as the First Taxing District. The well stands for the former City of South Norwalk, which was called Old Well, a place where ships could replenish their water, and is now the Second Taxing District. The monument, which is dedicated to Roger Ludlow, is the emblem for East Norwalk, site of the original settlement now known as the Third Taxing District. CONTENTS PAGE Elected and Appointed Officials and Staff City Organization Chart Introduction I. Budget Message i II. City Profile 1 III. Budget Overview 9 IV. Financial Summaries and Statistics 23 V. General Fund Revenue 31 VI. General Fund Expenditures 43 VII. General Government Mayor 49 Legislative 57 Corporation Counsel 59 City Clerk 64 Town Clerk 69 Information Technology 75 Personnel & Labor Relations 86 Human Relations & Fair Rent 91 Youth Services 99 Registrar of Voters 104 VIII. Finance Department 111 IX. Health and Welfare 141 X. Protection of Persons and Property Police 155 Fire 192 Planning and Zoning 220 Code Enforcement 232 Combined Dispatch 237 -- continued on next page PAGE XI. Public Works 245 XII. Education 269 XIII. Recreation, Arts & Culture Parks & Recreation 275 Library 298 Historical Commission 307 XIV. Grants 313 XV. Operating Charges Debt Service 319 Organizational Membership 321 Employee Benefits 323 Pensions 326 Contingency 328 XVI. Capital Fund 331 XVII. Other Funds 335 XVIII. Appendix Glossary 341 CITY OF NORWALK ELECTED and APPOINTED OFFICIALS and BUDGET STAFF MAYOR: Harry W. Rilling COMMON COUNCIL: Bruce Kimmel Michelle Maggio, Minority Leader Douglas Hempstead John Igneri, Council President Richard Bonenfant Nicholas Sacchinelli Michael DePalma Eloisa Melendez Michael Corsello Steven Serasis John Kydes, Majority Leader Travis Simms Thomas Livingston Phaedrel Bowman Shannon O’Toole-Giandurco BOARD OF ESTIMATE & TAXATION: Greg Burnett, Chairman Edwin Camacho James Feigenbaum Anne Yang-Dwyer James Page BUDGET STAFF: Robert Barron, Director of Finance Lunda Asmani, Director of Management & Budgets Simona Maddox, Assistant Director of Management & Budgets Lola Phillips, Executive Secretary City of Norwalk Government Organization VOTERS Board of Registrar of Common Town Board of Constables Education Treasurer Voters Council Mayor Clerk Selectmen Sheriff Superintendent SOLELY APPOINTS SOLELY APPOINTS of Schools Maritime Aquarium Board of Housing Code Enforcement Building Board Western CT Council of Authority Ethics Authority Administration of Appeals Governments Water Quality Housing Norwalk Advisory Commission Committee Partnership on Arts & Culture Board of Alarm Tree Fair Housing Norwalk Facilities Oak Hills Harbor Mgmt. Board of Zoning Estimate & Appeals Advisory Advisory Contruction Park Commission Assessment Board of Taxation Board Committe Committee Commission Authority Appeals Appeals Parking Board of Pension Land Use & Transit Fair Rent Planning Historical Shellfish Conservation Water Pollution Authority Health Board Building Mgmt District Commission Commission Commission Commission* Commission Control Authority Corporation Public City Information Youth Finance Health Code Recreation & Personnel & Counsel* Works* Clerk Technology Services Director* Department Enforcement Parks Labor Relations* Police Fire Human Relations and Library Zoning Redevelopment Combined Commission* Commission* Fair Rent Commissions Board Commission Agency Dispatch Police Fire Director of Human Library Director of Planning Executive Chief Chief Relations & Fair Rent Director & Zoning Director All Boards, Commissions and Department Heads are chosen by the Mayor and require Common Council approval unless otherwise noted * These Department Heads, Boards and Commissions are solely appointed by the Mayor INTRODUCTION This 2017-18 Recommended Operating Budget presents the annual operating expenditures and revenues for the City of Norwalk. The book is divided into nine sections. The Budget Message provides an overview of the 2017-18 operating budget. This section describes the major revenue and expenditure assumptions that guided the budget process; the important issues and priorities for the budget year; and key accomplishments over the course of the past fiscal year, as well as goals for the coming year. City Profile gives readers basic information about the City, including a history and a summary of services the City provides to residents. Budget Overview describes the budget process and the City’s financial structure and accounting system. Also contained in this section are general fund summary schedules and information about the City’s taxing districts, tax levy and mill rates for the upcoming fiscal year. The Financial Summaries and Statistics Section contains data on revenues, expenditures, and personnel for all funds contained in this book. The Operating Revenue Section explains each type of revenue source for the City as well as any significant revenue changes for the budget year. The Operating Expenditures Section includes detailed expenditure information for the departments in the general fund. Each tab contains information on the mission, highlights, goals, performance measures and personnel for the City departments. This section is grouped into service categories – general government, finance, health & welfare, protection of persons & property, public works, education, recreational arts & culture, grants, and other operating charges. The Capital Fund Section describes the capital budget process. The Other Funds Section includes descriptions and financial information on the City’s two enterprise funds – the Water Pollution Control Authority and the Parking Authority, as well as the Fleet Services fund. The Appendix includes a glossary of key terms, and a City and Board of Education fund summary sheet. This budget was prepared by the City’s Office of Management and Budgets. If you need further information or have suggestions for improving this document please contact: City of Norwalk, Office of Management and Budgets, P.O. Box 5125, Norwalk, CT. 06856. The 2017-18 recommended budget as well as a listing of City Offices can be found on the City’s website: www.norwalkct.org February 13, 2017 Harry W. Rilling, Mayor Members of the Board of Estimate and Taxation Members of the Common Council Citizens of the City of Norwalk: In accordance with Section 1-239 of the City Code, I am pleased to transmit the requested budget from each department of the city, together with my recommendations relative thereto. The recommended FY 2017-18 budget has been developed as the nation and State of Connecticut continues a tentative economic recovery from a historic recession. In a February 1, 2017, press release, the Federal Reserve reported that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Also, that job gains remained solid and the unemployment rate stayed near its recent low. This trend is also reflected in Connecticut and Norwalk’s unemployment figures shown in the below Economic & Fiscal Environment section. The Great Recession caused a myriad of financial difficulties for the city, but primarily a loss in the value of its grand list. The city’s 2016 grand list has yet to return to its pre-recession value of $12.7 billion in 2008, coming in at only $12.2 billion. This $12.2 billion does; however, represent a 1.1% growth over the previous year, which is the second year of greater than 1% growth in the city’s grand list. The uncertainty of funding from the State of Connecticut, which is dealing with its own budget challenges, places the majority of the increase of costs to run the city on the mill rate charged to its taxpayers. Therefore, I recommend that the city draw down $2.0 million of its fund balance yet again next year, to partially offset the mill rate increases caused by rising expenses. This draw on fund balance is consistent with the city’s fund balance policy that allows for any excess reserve over the target established to be used for tax relief. Currently the target or median fund balance as a percent of GAAP revenues for all Aaa rated communities in Connecticut is 12.2%. This year’s draw of $2.0 million along with the recommended draw of $2.0 million for next year’s budget will result in a 12.2% figure for Norwalk’s unreserved fund balance. The recommended budget represents a spending plan that limits overall spending to an increase of $10.6 million or 3.1% and an average mill rate increase of only 2%. Reducing expenditures to this level has been a major challenge, given the fact that the city faces structural expenses which are rising in certain key areas: Wages and Salaries, Contingency for contract settlements, Pension and Employee Benefits. No new positions have been included in my recommendation for the city. With respect to the Board of Education (BOE) budget, I have recommended a $6.6 million or 3.8% expenditure increase over the adopted FY 2016-17 budget. This represents an increase equal to the amount the BOE provided last year in its three-year projection, but is well short of the $17.7 million it requested this year. Funding at this requested level should be determined by the Common Council and Board of Estimate and Taxation after considering the significant tax impact that it will have on the taxpayers of the City of Norwalk. I. ECONOMIC & FISCAL ENVIRONMENT The development of the city’s budget occurs within the larger context of the economic and fiscal climate. This climate affects both the revenues available to support the city budget, and the expenditure pressures faced by the city. The national economy is showing real signs of recovery; however, its positive impact on the city’s grand list is expected to take some time. Connecticut’s economy is beginning to show signs of modest progress.
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