Date: Fri 05-Feb-1999

Publication: Bee

Author: STEVEB

Quick Words:

Rosenthal-Spragg-budget

Full Text:

Town's Operating Budget Drops -- For A Change

BY STEVE BIGHAM

At first glance it looks like a mistake. The numbers just do not seem to add

up. A budget decrease?

It's true. At the end of the Board of Selectmen's budget deliberations this

week, the town's operating budget for 1999-2000 was actually $1 million less

than the current $27.3 million budget.

The selectmen were able to keep the budget down without cutting town services.

The public works budget has actually gone up $800,000. Much of the savings,

however, is due to $1.1 million worth of sewer-related debt the town managed

to retire.

First Selectman Herb Rosenthal said he actually views the proposed budget as a

3.3 percent increase in town services.

"I'm certainly pleased. I think it's a good budget," he said. "With the debt

service down it certainly gives us the ability to have an increase in the

highway budget and still have a decrease in the overall budget."

Last year, taxpayers approved a $59.3 million budget -- $32 million of which

was used to fund the Board of Education and $27 million for the town.

The new town budget currently stands at about $26.25 million.

Finance Director Ben Spragg said he does not remember the town budget actually

going down before. "This happens once in a blue moon," he said.

The decrease on the budget side should help to offset the Board of Education's

$35.4 million request which represents a 10.54 percent increase.

On To The Council

The budget package now moves to the Legislative Council, which reacted

cautiously to the apparent savings in the selectmen's budget. The town's

indebtedness persists after borrowing money for numerous capital projects over

the past 4-5 years.

"It is just too early to make any kind of conclusion. [The selectmen's

proposed budget] is really just a small portion of the picture," noted council

chairman Pierre Rochman. "The proposed 5/6 school and the municipal space

needs issue will have an impact on this budget. I'm obviously thrilled that

the Board of Selectmen didn't come in with a 10.54 percent increase in the

budget, but it's too early to lick my chops."

The council's finance committee is concerned about the town's increased

spending and borrowing. Newtown's debt service last year totaled $5.1 million,

nine percent of the entire budget, just below the 10 percent limit for

municipal debt recommended by Moody's Investor Services. Newtown's total

bonded indebtedness as of last month was $52 million, and several large

capital projects are currently under consideration by the town.

"Good things are happening right now, but it reeks of getting out of control

at the drop of a hat," Mr Kortze said. "The town is growing faster than the

revenue we're taking in."

Some council members believe there should be little or no tax increase this

year due to the low inflation rate and the increase in income. The new grand

list of taxable property in Newtown is expected to be released later this

month, according to Tax Assessor Denise Hames.