DERBY – Members of a state finance committee said the city should start working on a five-year financial plan for submission to the state.
The five-year plan is required for “tier 1” communities meeting with the state’s Municipal Advisory Finance Commission (MFAC). Derby has been meeting with MFAC since September 2020. MFAC declared Derby a “tier 1” community in August 2023, about three months before Mayor Joseph DiMartino was elected.
Derby officials regularly meet with MFAC because of late audits, audits that showed a series of bookkeeping problems in the city and the school district, and audits that uncovered budget deficits. Members of the commission review Derby’s audits and budgets, and ask questions of city officials during each meeting.
Click here for a report on what MFAC is and how it works.
The five-year plan will attempt to make budget forecasts, including of revenue and spending, over five years. The plan must be approved by MFAC. Click here to see a five-year financial plan the City of Bridgeport submitted.
DiMartino and Derby Finance Director Brian Hall met with MFAC on Nov. 25. Click here to watch the video. Two MFAC members praised the DiMartino administration for addressing Derby’s financial issues and for making progress.
“This commission has certainly noted the progress that has been made with some of the great efforts that Brian has put in over the period of time,” said MFAC chairman Michael LeBlanc.
DiMartino, reading from a prepared statement, noted that he and his Democratic running mates were re-elected in Derby Nov. 4 by a wide margin.
“The recent election sent a clear message that Derby residents want realistic budgets,” DiMartino said.
Hall and the mayor said work is progressing on the fiscal year 2025 audit with a new auditing firm. They said work will start soon on the 2026-2027 fiscal year budget.
It will be the third budget under DiMartino’s watch.
His first budget, approved in April 2024 by the Derby Board of Apportionment and Taxation, added 4.6 mills to the mill rate. DiMartino said the tax hike was needed to dig the city out of a financial hole.
His second budget, approved in April 2025, did not raise the mill rate.
His third budget will be proposed with new property values thanks to a state-mandated revaluation of properties. The revaluation was supposed to happen in 2024, but Derby was allowed to push it out one year.
Click here for a primer on revaluation and why they are equated to root canals.
If the mill rate stays the same, but property assessments increase, people could pay more in property taxes. It’s a concern that was raised by Derby Republicans in 2024 and during this year’s mayoral campaign.
But, if the city adjusts the mill rate in the property tax calculation, an increase isn’t guaranteed.
Hall, during the Nov. 25 MFAC meeting, acknowledged the challenge revaluation brings to the table. He noted residents should start receiving letters soon with their new property assessments. Note: click here to read about how to appeal your new assessment.
He said city officials are looking at tax exemptions that could help in Derby, such as a new “homestead exemption.” It allows municipalities to grant tax breaks on certain properties.
Hall said the city will start working on a five-year financial plan as it readies the 2026-2027 budget. The mayor has until March 1 to present a budget to BOAT.