Mayor's Proposed Budget 2014-2015

HAMDEN >> Mayor Scott Jackson left a proposed $207 million budget in the hands of members of the Legislative Council Tuesday night.

Jackson presented his 2014-15 fiscal budget — a $7 million increase over the current budget — to the council, citing pension, medical and additional employment needs as having an effect on the proposed tax increase. If approved, the tax rate would increase by 1.25 mills, from 38.94 to 40.19 mills.

“This is an active budget,” Jackson said.

Dedicated funds for the town’s retirement benefit could see an increase from $13.5 to $18.8 million. Incorporated into the $18.8 million is an interest-only payment of $3.4 million for the town’s pension obligation bonds.

The pension crisis is a result of the pension fund never having been properly funded, Curt Leng, chief administrative officer, has said.

“My friends, we have caught the tail of this beast and we will tame it,” Jackson said.

Leng said funding the town’s pension is 81 percent of the budget’s increase.

Medical costs could increase from $33.8 to $34.5 million.

With work left to do, Jackson tipped his hat to the town’s financial accomplishments.

“We’ve turned a $9 million deficit in the medical self-insurance fund into a surplus. We’ve established a plan to repair our broken pension fund over time without massive tax increases to what sometimes feels like an endangered species — the middle class taxpayer,” Jackson said.

Added town jobs could include a blight officer, program specialist and a new Department of Information and Technology.

While not a financial change, Jackson also proposed moving the Board of Education into Government Center at 2750 Dixwell Ave.

“I propose to you that the singular job of the Board’s Central Office is to educate children. Nothing else,” Jackson said.

Leng said the conversation of the school board and the town has been discussed for approximately a decade.

“If the town wasn’t addressing the pension crisis with the comprehensive pension reform plan implemented last year, the mayor’s proposed budget inclusive of important small increases to police and fire could have been increased without raising taxes at all,” Leng said.

Legislative Council President James Pascarella said Jackson’s presentation was “well done.”

“Now we have to do our due diligence and review the budget line by line. Some numbers will mature over the next six weeks. Some projections may change, but we will come up with a fair and balanced budget,” Pascarella said.

Call Ebony Walmsley at 203-789-5734. Have questions, feedback or ideas about our news coverage? Connect directly with the editors of the New Haven Register at AskTheRegister.com.

Hamden Pension Fund Informational Meeting

(Article from NH Register) By Phyllis Swebilius HAMDEN >> An informational meeting on the town's underfunded pension fund Wednesday night drew more than 100 people to Miller Memorial Library, including several in uniform. "The time's come to act," Mayor Scott Jackson told the Legislative Council. The fund is underfunded by $350 million and contains only 14 percent of what is necessary. Town bond counsel David M. Panico echoed the mayor's comment. "There is no more time for delay," he told the council, thogh a decision was not to be made Wednesday night. Details of the plan will be posted on the town's website today. Jackson said the Segal Co., hired to advise the town on its choices, is "comfortable dealing with billions, not millions" of dollars. "This is a 30-year plan," Jackson said. "What I asked for is a plan that will outlive me," he said. "The council will look at the components of the plan and modify it as they see fit. "One way or another the town of Hamden is getting out of this," he said. Chief Administrative Officer Curt Leng said the town's bond counsel has said the most inexpensive, viable option is: o Changing the cost of living adjustment, which this year went from 3 percent to 1.59 percent. o Putting more money into the fund. The town this year increased the contribution from $9.3 million to $12.5 million, the largest one-year increase to date. o Selling pension obligation bonds. Jackson told the council, "A (pension obligation bond) is a potential part of the solution that is in your hands." However, the bond is "not a magic wand," said town financial adviser Barry J. Bernabe. The issue is "black and white," Eric J. Atwater, Segal Co. vice president, said. There are about 500 people in the pension plan, mostly retirees, he said. Inaction now would deplete the fund in five years, according to Atwater. Residents, employees and retirees expressed their own ideas before the advisers spoke. Some were concerned about putting the town into debt and the potential effects on their property values and taxes. "Borrowing is risky," George Levinson said. Of the pension obligation bonding, Anne Sommer said, "I think timing is the key and there are a lot of risks involved. "The experts don't have a crystal ball. Nobody does," Sommer said. "This is a very, very serious decision." Bob Anthony, a Fire Department retiree, asked the council "to bond at the right time." Another resident said the unions have to make concessions. Town workers' pay is better than private employees and the benefits are "extraordinary," he said. Some warned a decision should not be made quickly. "Are we making a decision when we don't have enough information before us?" asked Michael Montgomery. Retired Police Chief John P. Ambrogio pointed out the problem goes back to the 1970s. He told the council, "You can't blame the unions." "The retirees that put in 20, 30, 40 years to the town of Hamden should feel comfortable that they're going to get the check once a month," said retired Police Chief Robert Nolan. The issue has been "kicked down the street for some time," United Public Service Employees Union representative Wayne Gilbert said. Sometimes the town put no money into the fund, he said. "The pension fund is a written contract ... a written promise," he said. Public employees do not earn more than the private sector, he said. "Yes, they get more sick days." At least three sets of concessions have been made by the unions, he said. "Real money was given back to this town by the employees," Gilbert said. "If you do nothing, we all go down." Joseph Cirillo, representing Town Hall workers with Local 2863 AFSCME, said the union has consistently contributed to the pension fund while concessions have been made in 10 years. "We've given up a lot." The union has a contract coming up. "We're nervous and concerned about the future," Cirillo said.

Pension Reform a Hamden Priority - Fund Very Low

By Michael Bellmore mbellmore@nhregister.com / Twitter:@bandango HAMDEN — As the days tick down until Mayor Scott Jackson’s budget proposal, a bogeyman looms. The town’s pension fund is at a crisis point. Currently, the pension fund is valued at $56 million. It should be $400 million. If the town did nothing, the fund would be bankrupt in five years, said Curt Leng, who is chief administrative officer. Leng said the town is supposed to pay $28 million into the fund next year. Doing so would require a four mill tax increase. Property owners with a house assessed at $200,000 would pay an additional $800 in taxes next year. Paying as you go annually would lead to tax hikes for the next 30 years, Leng said. Not ideal. So town officials hired The Segal Co., a benefits and human resources consulting company in New York, to develop strategies to address the pension woes. Segal’s plan would still require a four mill increase, but it would be spread over six years. Taxpayers with a $200,000 assessment would pay an additional $150 in taxes annually. Segal presented 15 proposals aimed at addressing the problem. However, only a few would solve the problem within 30 years. The town must accept a cash infusion and reduce the benefits of current municipal employees, according to Segal’s proposal. All options center on the town receiving a $115 million pension obligation bond from the state. This POB will immediately bolster the pension fund. A lot more is needed, including reducing the cost of living increase employees and retirees receive, and exploring the concept of a 401(k) contribution or defined benefit plan. The pension crisis is a result of five past administrations’ failure to pay into the fund the proper amount, Leng said. “The town as far back as we can look, and with certainty to the last two decades, has never put in the actuarial required contribution,” Leng said. Segal in a report said the town has not contributed more than 72 percent of the required annual contributions for any year since 1995. In 2000 and 2001, no pension contributions were made when $12 million was required. From 2002-2004, less than 10 percent of the required contributions were made. The average contribution from 1995-2010 was only about 38 percent of what was needed. A long-time Town Council member said no contributions were made in 2000 and 2001 because the fund was at 70 percent and the stock market was strong, but later bottomed out. Robert Maturo, a retired police officer and president of Hamden Guardian Services Retirees Association, which was established to safeguard retired police and firefighters pensions, said a POB is a good thing. He said the POB will force future administrations into making the required annual contribution. While town officials and employees agree a POB is integral to shoring up the fund, Segal’s report stated reducing benefits is also necessary. Segal suggested the town consider adopting a defined benefit plan. Leng said this plan guarantees the amount of money an employee will retire with after a certain number of years. The defined benefit plan places the investment risk on the town. This plan would lower current and future defined benefit accruals of employees’ pensions to 1.5 percent of their income per year. It would also affect the cost of living adjustment, or COLA, of current and retired employees. Variations of the defined benefit plan were proposed, but only two resulted in solvency. One removed COLA for future and current retirees, and one reduced COLA to 1 percent per year from 3 percent for future and current retirees. The zero percent COLA plan results in a fully funded pension after 2030, with 1 percent COLA reaching 100 percent funding after 2040. Segal proposed the town create a 401(k) plan in which the town matches an employee’s contribution of up to 6 percent of their income per year. This plan is possibly more lucrative for employees, but the amount accrued depends on the markets, placing more risk on workers. If the town adopted a 401(k) plan and reduced the COLA contribution, the pension fund would be in better shape quicker. SEGAL’s final proposal included a hybrid plan. The town would guarantee to fund 1 percent of an employee’s salary into the pension, while also matching up to 3 percent of their salary in a 401(k) plan. This plan spreads risk evenly among town and employee. For the pension fund to reach solvency, the COLA must be reduced to at least 1 percent for current and future retirees. The hybrid plan takes more time to reach solvency by a few more years. But for any of this to work, the unions must accept benefit cuts. While any benefits accrued up until now would remain unchanged, Segal’s proposal ruffled feathers. Police Union President Michael Ambrosino said he knows the town must do something to fix the problem, but it was created by past administrations. “You don’t know what the town really wants to do until the town tells you what they would like,” Ambrosino said. “We’re open to listen, but I don’t know if anybody would drastically change the contract they already have for something that’s really no fault of ours.” Michael Bellmore can be reached at 203-789-5282.

Blizzard 2013

By Michael Bellmore mbellmore@nhregister.com / Twitter:@bandango Click to enlarge HAMDEN -- This frozen Saturday, residents may have woken up to the most snow they've ever seen -- 40 inches of it in some places. Chief Administrative Officer Curt Leng said the town was hit harder than expected, with Public Works employees recalling the Blizzard of 1978, saying this storm may have been even worse. The National Weather Service reports that Hamden received the most snow in Connecticut. “What we ended up getting was sort of the worst case scenario,” Mayor Scott Jackson said. “So it’s actually gotten to the point that the level of snowfall we got exceeds the ability of the plows to move it effectively.” Leng said Public Works has switched to a scoop and dump method, placing snow in dump trucks and then carting it off to be deposited in local parks and other open pieces of land. “People will have to be patient,” Jackson said. “We will not have all the roads cleared today. It does not look like that is a possibility.” Jackson said the town’s emergency management team, consisting of Public Works Director Craig Cesare, Police Chief Thomas Wydra, and Fire Chief David Berardesca, are in constant contact, coordinating the efforts of guardian services and snow removal. Friday night at 10:30 p.m., during the height of the blizzard, Leng said Public Works resources were reallocated to make assisting guardian services its top priority. Saturday, assisting fire and police remains a priority, but Public Works is pulling double duty to get the roads cleared. Jackson said the town is enlisting the help of private contractors, and assistance from the state should be coming as soon as state roads are cleared. He said state resources and the National Guard could show up as early as late Saturday, or Sunday. Friday night, about 1,200 people lost power, according to Leng. Saturday, all but two homes have had power restored. “I’m very thankful to the folks at UI for working very hard on that restoration,” Jackson said. “Our UI representatives are in our emergency operation center, which is extremely helpful. This storm, at least at this point, the wind has been less than it could have been, so unlike prior storms, it’s not turning into a power disaster, but a weather disaster.” Jackson said because of the severity of the snowfall the 24-hour rule on shoveling sidewalks has been lifted. “There’s too much snow out there. People are going to have to take it easy. Don’t run out there and try to shovel, particularly if your road has not been plowed, because the plow is going to come and it's going to dump a couple feet of snow where you just moved a couple feet of snow,” Jackson said. “So take it slow, take it easy, and don't spend too much time outside -- it’s awfully cold out there.” Jackson said the three feet of snow outside people’s doors speaks for itself, though. Jackson said, “We’re hardy New Englanders, and people say, “Hey, you know what, there’s nothing I can do here except spend a little family time.”” Return to Paging Mode NEXT ARTICLE IN NEWS×Live: Papal conclave as it happens» Continue to article...

Working to Solve Hamden Pension Crisis

By Ann DeMatteo, Register Staff adematteo@nhregister.com / Twitter: @annddematteo HAMDEN — The Legislative Council took initial steps Wednesday night toward finding a solution for the drastically underfunded pension fund, but answers won’t come for another six months. A council committee unanimously agreed to a bid waiver to hire The Segal Co. as a pension plan design consultant for $90,000. The full council will take action Monday. Council members wanting to be sure the information would be available before the 2013-14 budget is final asked how long it would take to get the information. Curt Leng, Mayor Scott D. Jackson’s chief aide, said it would take about six months. In response to another question, Leng said he believes “information will flow” about what the consultant is learning as time goes on. Already, he said, the mayor has had discussions with unions and is looking at working collaboratively with council members. “Without the unions being partners, a comprehensive solution can’t be reached,” Leng said. Leng said the mayor was seeking a bid waiver because Segal, based in Atlanta, already is working for the town on health insurance and pension matters. “They’re very good at this and we want experts with good qualifications to develop a comprehensive solution,” he said.

75% of Hamden Democrats Endorse Scott Jackson for Mayor

Hamden Democratic Elected Officials Overwhelmingly Endorse Scott Jackson for Mayor

Hamden - In an overwhelming sign of support, the Jackson for Hamden campaign is very pleased to announce the endorsement and support of the following Hamden elected officials who are supporting Scott Jackson for Mayor. This list represents a clear majority of elected officials in Hamden.Announcing their support today are the following:

Council-At-Large

Council President Al Gorman
President Pro Tem Carol Noble
Jack Kennelly
Jim Pascarella

District Council Members

Majority Leader, Matt Fitch, 1st District
Ossie Brown, 3rd District
Gretchen Callahan, 4th District
Kathleen Schomaker, 5th District
Curt Balzano Leng, 6th District

Board of Education Members

Chairman, Michael D’Agostino
Secretary, John Keegan
Valarie Stone
Adam Sendroff
Myron Hul

These elected officials joined Mayor Craig Henrici who immediately endorsed Scott at his campaign announcement on May 14th.”I’m very thankful to have the trust and support of so many great public servants,” said Scott Jackson.

“Receiving the endorsement of these 15 elected Democratic leaders is an overwhelming sign of support from,” said Adam Sendroff, Campaign Manager. “It also shows our residents who their elected representatives have confidence in and feel they can best work with on the issues facing our Town.”

“These are challenging times for any municipality and we need a leader who has the experience to effectively and efficiently manage our Town ,” said Councilman Curt Balzano Leng, Finance Committee Chairman. “Without question, Scott Jackson is the most qualified candidate to manage our Town‘s finances in a responsible and fiscally conservative manner.”

For more information about Scott and the Jackson for Hamden campaign, please contact Scott directly at Scott@jacksonforhamden.com or visit www.jacksonforhamden.com or visit Supporters of Scott Jackson on Facebook.###