Council Sets Mill Rate At 26.1

By John Voket

A brief meeting of the Newtown Legislative Council convened Wednesday evening in part to close the 2005-2006 budget process by setting the town’s mill rate. After a short discussion, council members voted unanimously to set the mill rate at 26.1 mills.

A mill represents one dollar in taxes for every $1,000 of assessed property value.

According to documents presented by town Finance Director Ben Spragg, the mill rate will increase 4.8 percent from its current 24.9 rate. The increase is being derived from a formula that takes into account various appropriations and revenues.

The final municipal package of $90,006,226 is the combination of a $33,067,456 town and $56,938,770 education budget that was passed by voters in a recent referendum. The total package represents a 6.6 percent overall increase in spending, primarily derived from imposed labor contract stipulations, raises, and benefit packages.

In a prepared release, First Selectman Herb Rosenthal explained that personnel-related expenditures account for 60 percent of the increase. Of those items, the projected increase in premiums for employee health insurance is $571,250, or one third of the entire budget increase. Personnel wages, including contractual pay increases, anticipated union contract negotiations for three unions, and 3.5 new positions amount to an increase of about $430,000.

Nonsalary expenditures in the highway ($139,950) and winter maintenance ($60,000), parks and recreation ($152,483), public safety ($225,533) and library ($68,000) accounts have increases that amount to $645,966, or 37 percent of the budget increase. Therefore, all of the remaining accounts in the budget have an increase in expenditures of only $99,975 above the current year.

To offset the impact on taxpayers, the Board of Selectmen has anticipated collecting revenues of $11,655,935, while the school district is expected to contribute revenues of $4,274,840, according to the finance director’s report to the council.

After revenues, Mr Spragg reported $74,075,451 is expected to be raised by taxation, a 7.6 percent increase over the current year.

In discussing the measure, Mr Rosenthal told council members who gathered for the meeting that he expected nearly 100 percent of tax collections to be made after uncollectible charge-offs are factored in to the equation.