Chamber Has Concerns Over Hamden Mayor's Proposed Tax Increase

Hamden CT

22 April, 2022

1:02 AM

Description

HAMDEN, CT — The Governmental Affairs Committee of the Hamden Regional Chamber of Commerce has expressed concern over Hamden Mayor Lauren Garrett's proposed budget that carries a tax increase of 3.68 mills over the town's current mill rate. The committee noted that, 10 years ago, the town's Economic Development Department did an informal survey of local businesses, not including the chain stores. "Of those surveyed, approximately 70 percent were owned by Hamden residents," officials wrote in a news release. "That is likely still the case, which means that a mill rate increase affects local businesses doubly or even triply (if including the automobile tax). Hamden currently has the third highest mill rate in the State of Connecticut; that cannot continue." Read more from the Hamden Regional Chamber of Commerce's news release below: The Committee recognizes, and appreciates, that the Mayor's new budget does not include any imaginary sources of income, that the new budget is realistic, and transparent. However, that doesn't mitigate the ill effects of such a large tax increase. The Committee also recognizes that the reasons for the increase are mainly due to factors outside the control of local officials, among them the mandated increased pension contributions, and a major increase in health insurance costs. There are a few recommendations the Committee would like to make: The Committee encourages the Administration to seek competitive bids for the Town's health insurance plan, both for the broker and the insurance company;The Committee encourages the Administration to explore innovations in the health insurance plan that would incentivize healthier decisions by insureds, and discourage unhealthy decisions. This could include expanded Wellness plans, and surcharges for unhealthy habits (such as use of tobacco).The Committee urges the Administration to consider modifications to the benefits, that would encourage insureds to use lower-cost providers, by lowering insureds' out-of-pocket costs when services are provided in a non-hospital setting.Regarding the Town's pension plan: Although it will not have a direct, current impact on the mill rate, the Committee believes that it would be appropriate for the Administration to perform a full cost analysis and opportunity cost analysis on the pension plan, and consider obtaining local pension management.The Committee encourages the Administration to seek alternatives for workman's compensation insurance for town employees, i.e. competitive bids or the use of a professional consultant, both for the broker and the insurance company.The Committee would like to see a fiscal stability committee created to review, among other areas, the Board of Education's budget, to find cost-saving measures.The Town's Economic Development Department may benefit from working with existing businesses, to ensure that they will chose to remain in Hamden. The Town should consider finding ways to help existing businesses expand, add new locations, and build strong partnerships within the community. While economic development means trying to recruit new businesses, that will be unproductive if existing businesses depart. Incorporating a retention plan for current businesses should be a part of this process.The Committee encourages the Administration to consider, as part of charter revision, the establishment of a Chief Operating Officer for the Town, a position that would oversee all aspects of financial management in Town, including the Board of Education.Finally, the Committee encourages the Administration to open negotiations with Town unions, to review all existing union agreements, to find areas where costs can be reduced. Only with a comprehensive approach to the Town's finances, will the Town gain control over its costs, and begin to reduce the tax burden on businesses and residents. Garrett responded to the Chamber's recommendations with the following statement: "I value the close partnership that my administration has with the Hamden Regional Chamber of Commerce. I appreciate and welcome the suggestions they have made to find ways to increase revenue and decrease costs, and to bring tax relief to our residents and businesses. We are currently implementing some of the suggestions the Chamber has made and we will explore other suggestions. We encourage all residents and businesses of Hamden to offer advice on ways that we can build a stronger economy and community together." The Chamber looks forward to working with the Administration in the future, to ensure that Hamden offers a business-friendly environment, that would benefit Hamden businesses and residents, equally.