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West Haven finance director: quarterly tax billing linked to a rise in delinquencies as interest income falls
Summary
Finance Director Michael Gormani told the council’s finance committee that October revenues and expenditures were "on par," but lower interest income and the new quarterly property-tax billing have driven increased delinquencies; staff will monitor trends, review the payment website and promote Everbridge sign-ups.
West Haven — Finance Director Michael Gormani told the finance committee on Nov. 24 that the city’s October 2025 monthly report showed revenues and expenditures "on par" but flagged a drop in interest revenue and an uptick in delinquencies after the shift to quarterly property-tax billing.
"As of October 2025, we were looking on par between revenues and expenditures, within the October 2025 monthly report," Gormani said as he reviewed the general fund, fire district and sewer fund positions and local revenue trends.
Why it matters: the city budgeted $2,400,000 in interest income for the fiscal year; as of October Gormani said the projection was closer to $2,000,000, creating a revenue gap the administration will monitor. Mayor Dorinda Borer added that the end of federal ARPA funding is reducing interest-derived revenue: "don't forget also as the ARPA funds have gone away, so does our interest diminish," she said, noting the city originally received $22,000,000 in ARPA funds and has drawn that money down over the past two years.
Gormani and council members focused much of the discussion on the city's recent switch to quarterly tax billing. He said delinquencies rose after the second-quarter due date (Nov. 3) and that staff are sampling accounts to understand which taxpayers — particularly nonmortgage payers — are behind. "We're finding that some people that we're sampling are just delinquent," he said, adding that outreach efforts include mailed notices and Everbridge messages when possible.
Council members raised practical concerns. Councilwoman Catherine Tucker asked whether more taxpayers are delinquent than current; Gormani said delinquencies have increased and staff will continue to analyze the pattern. Multiple members said some residents reported difficulty making the new online quarterly payment; Gormani agreed to have the tax manager and the communications director review the tax-payment webpage and the Everbridge sign-up process.
Gormani also described common budget drivers: vacancy savings offset some overtime costs, and building-permit revenue (budgeted at about $2,000,000 across five permit categories) remains subject to project activity. He cautioned that monthly forecasts are estimates and can change with market conditions.
Next steps: the finance director said staff will continue to monitor delinquencies, escalate outreach where possible, meet with the fire districts about collections, and incorporate findings into next year’s budget deliberations. The mayor noted that any decision about continuing quarterly billing will be part of the next budget process.
Sources: presentation and Q&A with Finance Director Michael Gormani and remarks from Mayor Dorinda Borer during the Nov. 24 finance committee meeting.
