Haverhill Mayor Melinda E. Barrett is proposing a $285.2 million budget for the year beginning July 1, representing a 2.9% increase over last year’s $277.1 million, and would raise taxes by $245 for the average home valued at $561,903.
The average tax bill would increase 4.1%, slightly lower than last year’s 4.6%. Of that, $245 average residential property tax increase, employee benefits account for $90; public safety, $67; and schools, $58. She said added expenses include health insurance premiums and the city’s contribution to Whittier Regional Vocational Technical High School.
To balance her budget, Barrett is proposing to use $1.1 million of $1.5 million the city could have previously taxed under the state’s tax limiting law, Proposition 2 1/2, but did not. The state says “excess levy capacity is the difference between the amount of property taxes a community can levy in a fiscal year and what it actually chooses to levy in that year.”
The draft budget will be scrutinized during a series of public hearings beginning Tuesday when city councilors meet to consider 10 department spending plans, including the fire department.
In a letter to councilors, Barrett called continued steep increases in the health insurance premiums a “major driver” of spending increases. Premiums are expected to increase by $1.57 million or 7.35%. She said she did not pursue an alternative to the state Group Insurance Commission because claims in recent years have exceeded premiums. Other challenges are an 8.8% increase in the Whittier Tech assessment and an increase of only 2.34% in state school aid when a 7.1% was expected, a $4.5 million shortfall.
She also noted boat excise taxes are projected to drop 18.8% to $6,900. Earlier in the year, city Auditor and Chief Financial Officer Angel A. Perkins sounded the alarm about dropping excise tax collections. Barrett said she is comfortable projecting a 6.5% increase from $8.5 million to $9 million since receipts rebounded in March.
The mayor anticipates an 3.3% increase in total real estate tax receipts for an additional $4.6 million.
Barrett is budgeting $110,064, or 18.96%, less for the legal department—$472,754 compared to this year’s $582,818. Economic Development would increase 20.6%, from $347,678 to $419,290. She said that while she was able to add in many department requests from, including $115,000 for police body cam video storage and $73,000 for a new police intervention counselor, she did not include $56,000 for a new division head at Haverhill Public Library or $25,000 for apparatus repair and $5,000 in supplies for the fire department.
Her budget also includes $131,233 for salary and cost of living increases for non-union employees to ensure “pay equity” with unionized workers.
Councilors, who generally are only empowered to cut from the budget, meet Tuesday, May 26, at 7 p.m., in the Theodore A. Pelosi Jr. Council Chambers, Haverhill City Hall, 4 Summer St. Three public hearings follow Monday, June 1; Wednesday, June 5; and Monday, June 8, for a final review. Meetings begin at 5 p.m. in Council chambers in City Hall.