Solving Old Problems,

Or Creating New Ones?

Before it approved a final draft of its proposed recommendations for changes to the town’s governing document late last month, the Charter Revision Commission concluded that the town should rechristen Newtown’s Board of Finance as the Finance Advisory Board. The move would remove the board from aegis of the Connecticut General Statutes, governing boards of finance. The action appeared to be the last echo of a previous Charter Revision Commission’s work six years ago, when a split town vote enacted two of five proposed charter revisions that set up a partially realized municipal finance apparatus that created uncertainty and a legally nebulous relationship between the previous town sole financial authority, the Legislative Council, and the newly created Board of Finance. The charter panel evidently believes it is clearing up the last of the problems that arose from that 2001 split decision.

However, five years ago, with the help of the town’s attorney, who clarified the relationship in the eventual language of the charter, both the council and the finance board quickly adapted, despite the false start. They have in the intervening years established and maintained an effective working relationship that has repeatedly raised the town’s bond rating, which will save the town millions of dollars over time. The town has also won special notice from Moody’s Investment Services, praising its financial oversight and management. So now the question arises: Will the charter panel’s tinkering actually solve old problems (if they actually exist) or will it simply create new problems for a financial process that seems to be working to the town’s advantage?

Currently, the Board of Finance operates under guidelines set forth in both the town charter and the general state statutes. The charter specifies its role in the budget-making process and generally ascribes to it financial review and reporting duties in conjunction with the Legislative Council and the Board of Selectmen. Except where its powers and duties are prescribed or limited by charter, the state statues define the rest of the board’s responsibilities and authority. We aren’t sure what purpose is served by stripping away this statutory backup to the charter. It won’t enhance the functioning of the board, and it will significantly weaken the legal fabric that supports the important work of the board.

We trust the Legislative Council, which has been such a close partner with the Board of Finance in the successful financial management of Newtown, will see the peril in this particular proposed revision to the charter and will remove it from the list of recommended charter changes to be submitted for a town vote next year.