Budgetmakers Take On Record Spending Plan

By Steve Bigham

The Legislative Council’s difficult budget season officially kicked off Wednesday night as it was handed a $70.65 million municipal budget for 2000-2001. If left as is, it represents a 4.4 mill increase (1 mill=$1.69 million) over the current budget. The council now begins the arduous process of finalizing a spending plan that addresses the town’s needs, but at the same time does not break the bank.

Extensive cuts are expected.

Once again the grand list is up, showing a growth rate of 4.9 percent. According to Tax Assessor Denise Hames, the total amount of taxable items in Newtown jumped up $81.2 million – from $1.64 billion to $1.72 billion. The grand list has shown an increase of more than four percent for the third straight year – an indication of stable economic growth. However, this growth has not kept up with the town’s ever-growing needs.

Longtime Council member Melissa Pilchard knows a thing or two about tough budget seasons, and she anticipates this being another “damned if you do, damned if you don’t” kind of year.

  “Anything we do is going to cause havoc,” she said, adding that if the council cuts too much, the school supporters will be out in force. However, if it cuts too little, she said, the “silent majority” will surely vote against the plan.

Legislative Council members say there is no way they will approve a 4.4 mill increase. However, keeping the increase to one mill – an area the council usually prefers – will also be impossible.

Mrs Pilchard said everyone has a breaking point, and if the taxes start going up $1,000 a year, the poll results may start changing, even among the school supporters.

“No matter how much you love your children, there is a limit to what you can afford,” she said.

On Wednesday, First Selectman Herb Rosenthal presented a general government budget of $30.69 million, saying he was not pleased to hand over a package that had increased by $3.38 million. Much of this increase is a result of a debt service budget that was up $1.9 million. Much of that increase is due to the inclusion of funding for a 5/6 school, Fairfield Hills, athletic fields, municipal space needs and building improvements – all of which would be paid off through a two-year bond. The selectmen also added a new line item of $1 million for maintenance and security at Fairfield Hills, should the town choose to purchase the property. The operating part of the budget is up $480,000 after the selectmen cut $2.27 million in agency requests.

The Board of Education’s $39.9 million budget (up 14.4 percent over last year) represents the bulk of the town’s increase. On Wednesday, the council met with school officials to discuss the significant increase in the school’s self-funded insurance plan, which is up $1.4 million over the current budget year. This is one area that the school board stated it could not cut.

Mitigating A 4.4 Mill Impact

The selectmen’s budget provides the Legislative Council with alternatives to alleviate the 4.4 mill impact on taxes. For example, Mr Rosenthal said, if the council opts for five $10 million bond issues instead of two “cash flow borrowings” now being proposed, a $1.3 million reduction in debt service can be achieved. This would reduce the overall increase by 0.8 mills, Mr Rosenthal said.

The first selectman also suggested some larger items in the operating budget be funded over two years or funded through the town’s Capital Reserve Fund. If this occurs, an additional $1 million or 0.6 mills in savings could still be achieved.

The council is expected to take these two savings measures into consideration in the coming weeks.

The council’s finance committee is expected to meet early next week to take a closer look at the proposed budget. It plans to provide guidance to the other council subcommittees who will be studying the individual sections of the budget.

    Newtown’s Top Ten Taxpayers      Net Assessment

1. Connecticut Light & Power                      $21,312,260

2. DD Newtown Partners Ltd Ptrshp              $13,938,710

3. Taunton Press                                      $7,675,920

4. Harvey Hubbell Inc                   $7,592,430

5. Sorvall Products PL Ptrshp                      $6,718,680

6. Barnabas Realty Group Gen Ptrshp            $6,038,840

7. Newtown Shopping Village                       $5,852,980

8. Iroquois Gas Transmission System             $5,771,020

9. Homesteads of Newtown, LLC      $5,423,600

10. Arbar Properties Ltd Partnership             $5,216,320