Date: Fri 28-May-1999

Publication: Bee

Author: STEVEB

Quick Words:

CPEC-statistics-Newtown-rank

Full Text:

Newtown Is One Of The State's Most Indebted Towns

BY STEVE BIGHAM

The average Newtown taxpayer spent $325 to pay off the town's debt in the

1997-98 fiscal year. That ranked Newtown fourth in the state, according to a

recently released report by the Connecticut Policy and Economic Council

(CPEC).

The town's debt service was 14.07 percent of its entire budget, ranking it

sixth overall. Debt service expenditures are the payments of principal and

interest on both municipal and school bonds.

These are numbers that concern John Kortze and the finance committee of the

Legislative Council, especially with several more expensive capital projects,

totaling nearly $50 million, in the offing.

"It is of serious concern to us and it speaks to the heart of the matter of

what we can and can't do," noted Mr Kortze, the finance committee's chair.

Some fear Newtown's per capita debt service could go through the roof if it

does everything that has been proposed. Those proposals include the purchase

of the 186-acre core campus of Fairfield Hills, the construction of a 5/6

school, the addition to Edmond Town Hall, the renovation to Town Hall South,

and the building of a new Hook & Ladder firehouse.

Mr Kortze believes there is a way the town may be able to do all these

projects and still avoid dragging the town into further debt. It will take a

serious plan of action, however.

The approach is threefold. First, town officials are meeting with bankers to

determine the severity of Newtown's financial situation. This will help them

set a "threshold" for spending.

Second, the town plans to refinance some of its debt to improve its current

financial standing. Thirdly, it will create different scenarios to determine

what things will cost.

Mr Kortze warns people not to get caught up in statistics. Newtown's high rank

in terms of debt service per capita stems from Newtown's small business base.

In 1996, business property values made up just 13.4 percent of the entire

grand list, ranking Newtown 106th.

It makes up for this with high property values and annual tax collection rates

of 97 or 98 percent.

Ranking Newtown

The CPEC report also ranks Newtown against the other 168 towns in a number of

different categories, including individual department expenditures, state aid,

school enrollments, and property values, among other divisions.

For example, in 1997-98, Newtown ranked 39th in per capita municipal

expenditures at $2,336. It also ranked 48th in per capita current taxes at

$1,687. Weston was first at $3,125.

Newtown has never received much financial assistance from Hartford and in

1997-98 it ranked 109th in state aid with only 15.85 percent of its revenue

coming from the state.

Newtown's grand list was $1,496,251,365 in 1996 -- the 42nd highest in the

state. Greenwich ranked first with a grand list of $9,811,102,860.

Last year, Newtown's mill rate of 25.90 was 59th highest. Its tax collection

rate ranked 48th at 97.9 percent.

Department Spending

In 1997-98, Newtown was 57th in per capita health and social services

expenditures -- $36.18.

As for per capita library expenditures, Newtown ranked 117th at $16.49.

Westport was highest at $95.24. A portion of Newtown's library expenses are

paid for through fund-raisers and an endowment left by Mary Hawley.

Per capita parks and recreation expenditures were 62nd at $30.58.

Per capita spending for education was 84th at $1,322.20. Weston ranks highest

by far at $2,431. The Board of Education often points out that Newtown ranks

148th in per pupil education expenditures at $6,706. However, that figure

excludes certain widely variable expenditures such as transportation, capital

equipment and debt service. Newtown's debt service (as reported above) is the

fourth highest in Connecticut.

In 1997-98 Newtown's school enrollment stood at 4,277 -- 37th in the state. It

has since grown to 4,513 (as of October 1998), as the local building boom

continues. It is expected to rise to 4,705 by next September.

Last year, Newtown was 71st in per capita police expenditures at $122.88. The

department will be pleased to tell you that the town ranked 136th in crimes

per 1,000 population, with just 12. New Haven had the most crimes committed

per 1,000 at 112.3, while Sherman had the least at 6.1.

In 1997, Newtown ranked 25th in per capita public works expenditures

($262.47), while ranking 10th highest in road miles at 215.71.

Newtown ranks fifth behind New Milford, Woodstock, Sharon and Stafford in

total square miles at 57.8. It ranks 86th in density (population per square

mile) with 389 people per square mile.

Last year, Newtown's population of 22,504 ranked it 41st. Between 1990 to

1997, Newtown was the 15th fastest growing town in the state with a growth

rate of 8.4 percent. However, of those 15 towns it was by far the largest.

In 1997, the median sales price of a residential property in Newtown was

$226,000 -- ranking it 17th. New Canaan was tops at $599,000. Greenwich and

Weston were each over a half million, while Darien, Westport and Wilton were

between $400,000 and $485,000.

Newtown ranked 47th in per capita personal income at $38,242. New Canaan was

tops at $91,777.