Budget Referendum June 26—

Voters Called Back To Polls For Round 4

By John Voket

Newtown taxpayers will return to a fourth budget referendum Tuesday, June 26, to reject or endorse a spending proposal that will, if approved, increase overall taxation next year by 0.9 percent. Polls at the Newtown Middle School on Queen Street will be open from 6 am to 8 pm that day.

Town Clerk Debbie Aurelia has also been offering absentee ballots, and is planning a Saturday voting session June 23 from 9 am to noon for voters who may not be available to cast their votes in person on referendum day.

Following the third-round budget failure June 5, the Legislative Council voted to use $200,000 in undesignated funds in the town’s capital nonrecurring account to infuse the school district budget request. Those funds would supplant money in the district budget allocated to capital projects, in effect, freeing up that amount to use for programs or other operating costs.

The only caveat would be that the school district would have to go through a charter stipulated appropriations process to tap that added $200,000 or any part of it, and it would have to be used for one or more capital projects.

An additional $40,000 from that undesignated capital fund was provided to the town-side of the budget by the council, while at the same time, reducing the selectmen’s budget by another $119,685. Subsequent action June 11 by the Board of Selectmen affected additional cuts totaling $159,685 — which factored the council’s net reduction plus the $40,000 now relegated to capital projects.

As a result of that action, the town-side budget request now falls below the current fiscal year, and is less than the town-side spending plan of 2008, according to First Selectman Pat Llodra. The added selectmen’s reductions included reducing the town police force by one officer, reducing personnel from the Parks & Rec camp and lifeguard programs, as well as reducing town contributions to the library and Edmond Town Hall operating funds.

In a special public workshop June 14, the Board of Education discussed reductions to its proposed budget that would allow it to meet its now-$68.5 million spending plan.

Board of Education Chair Debbie Leidlein said she called the special meeting to identify the gap in funding between the latest 2012-13 budget proposal and what would be considered a “same services” budget, when compared to the 2011-12 school spending package.

As promised, two documents were prepared and offered for the public in attendance on Thursday, listing a shortfall of $517,868 if full-day kindergarten is implemented in the 2012-13 school year, and a shortfall of $120,177 if full-day kindergarten is not implemented.

Selectmen Speak Out

A pair of interviews with Selectmen James Gaston and Will Rodgers, which were filmed for a Newtown Bee YouTube broadcast, both reiterated that the funds that were identified to infuse the two budgets for capital projects did not represent “found money.”

Finance Director Robert Tait further explained that while the undesignated funds had been evident in all town financial documentation going back several years to before Newtown was able to manage its fund balance, the reallocation of the $240,000 leaves the town without money in the event an emergency capital need develops.

“If we have a sudden need for something like replacing a fire truck, or we get hit with another major unanticipated capital expense, those undesignated funds are gone,” Mr Tait said.

In his interview, Mr Gaston pointed out that “as we look at the present budget being offered, we are at a point where we are affecting services.”

And in his interview, Selectman Rodgers appealed to nonvoters, saying, “You have to get involved here. Basically, less than one-third of the town is deciding the town’s future. You’ll be doing the town a great service.”

Mr Gaston said despite the reductions facing the town and school, “I think we’ll be okay. I think [the current proposal] is a sound budget and a sound plan. But we are at a critical stage.”

Saying the latest action by the council and selectmen provide “a fair compromise,” Mr Gaston nonetheless said, “It’s very important that this budget pass. The budget is something that effects every family and every individual. We’re hoping that instead of a 20 or 28 percent turnout, it would be very refreshing to see a 50 to 75 percent turnout. I believe it’s that important.”

Mr Rodgers called for the minority of No voters who hope to see more funds added to the school budget, as well as those voting No until the overall budget is flat or less than the current year, to accept the current plan in the spirit of compromise.

To those who want to see further reductions, Mr Rodgers said that “the referenda process is not designed for fine tuning a budget — it’s designed for trending. We have, for some time, been in concert with what you desire for trending, which is lowering budgets. The danger is you’re going to bite off your nose to spite your face.”

Mr Rodgers said any slight additional tax savings that might be affected by a failed fourth-round vote will be offset in the near term by added borrowing costs for capital projects, and possibly a lowering of the town’s bond rating, which can happen when a community fails to pass its annual budget expeditiously.

To help guide the council beginning with the 2013-14 budget vote, a move to seat and move a Charter revision that would consider adding budget questions to the budget ballot, and to consider splitting or bifurcating the budget vote between the town and school proposals is underway.

The council seated a committee that is looking for members of a new Charter Revision Commission, and a separate committee that will recommend a formal charge to charter revision commissioners, once they are seated.

The selection committee met June 13 along with Legislative Council Chairman Jeff Capeci, and has requested that any registered voter who wishes to be considered for the next Charter Revision Commission contact selection committee Chairman Paul Lundquist via e-mail, lundquist.paul@gmail.com, by July 1.

They may also send a letter of interest to: Paul Lundquist – Chair, Newtown Charter Appointment Committee, 3 Primrose Street, Newtown CT 06470.

During the appointment committee meeting, Mr Lundquist and Mr Capeci both said they want to get the revision questions on the November general election ballot. To meet that goal, the committee must be seated and complete its work by late August, so the council can meet its deadline of submitting the revision questions for the ballot by September 7.

“We’re looking for at least five rational, open-minded free thinkers who are willing to listen and weigh all considerations,” Mr Lundquist said.

The selection committee already has at least a half-dozen interested candidates who submitted letters of intent to serve. The selection committee began its interview process in closed session June 20, according to Mr Capeci.

Tax Collection Details

Mrs Llodra told The Bee that she is being asked about tax collection dates and process given the lateness of the town’s budget actions.  So she developed the following scenario along with Mr Tait and Tax Collector Carol Mahoney.

If the budget referendum on June 26 is successful, the Mill rate will be set by the council on Wednesday, June 27.

Tax data will be sent to the town’s tax bill processing service by Thursday, June 28, and tax bills will be processed and mailed by July 12. Tax payment will be due on August 1. 

In this case, money from the town’s Fund Balance will be used to pay bills and meet payroll until taxes are collected. 

According to Mr Tait, there is money in the Fund Balance to cover town and school operations costs for 5- 6 weeks.

“If the referendum on June 26 is successful, then taxes will begin to come in and we will be able to meet all accountabilities without a problem,” Mrs Llodra said. “And if the referendum on June 26 is not successful, we will develop a different approach, maybe borrowing for operational costs and/or issuing bills with current mill rate and then re-issuing modified bills once the budget is set.”

There would be some financial losses to the Town in issuing supplemental bills, Mrs Llodra said. And according to the tax collector much confusion erupts with accounts that are paid out of escrow.

“So, whatever optional plan we create must take those issues into consideration,” Mrs Llodra said.

(See the video of Selectman Will Rodgers interview this week at Newtownbee.com)