Budgeting In A

Difficult Year

To the Editor:

I urge Newtown voters to vote Yes in support of the annual town budget next Tuesday, May 6. I understand that for many, the increase in taxes will present a hardship this year. In recognition of that and the defeat of the budget, the Legislative Council made a significant reduction of $1 million in the budget appropriation that is now proposed for our approval.

I will support two other actions. For our elderly citizens, I will encourage the Legislative Council to consider increasing and expanding our senior tax credit program, as well as to explore other options such as tax deferral or freeze type programs that some other towns offer to help ease their tax burdens.

Secondly, the Legislative Council unanimously indicated that they will support an aggressive program of purchasing land for open space to keep it from being developed into subdivisions that cause increases in our education and general government budgets. While this will not help with this year’s taxes, it should have a long-term effect of curtailing future tax increases.

The new proposed budget represents an increase of about 3.2 percent over current spending. The general government or Board of Selectmen’s appropriations, however, will be almost four percent or $1.2 million less than current year spending and $400,000 less than the 2001 approved budget. It is our responsibility to do the best we can with whatever funds the taxpayers approve, but I am worried that if this budget is not approved, further reductions in the selectmen’s budget will impair our ability to provide services.

Unfortunately, one major factor beyond our control impacted our residential taxes this year — the recently completed state-mandated property assessment revaluation. The State Legislature and governor changed the law from revaluation every ten years to every four years. Newtown had to do this for the October 2002 grand list. Following procedures and formulas mandated by the state, a private, professional assessment firm reassessed our 11,000 properties. This resulted in a shift of taxation from commercial properties, personal property, and motor vehicles, which appreciated at an average of 11.7 percent, to residential homeowners whose properties appreciated at an average of 64 percent. This means that the average homeowner will see a property tax increase on their home of eight percent due to revaluation. This percentage figure will vary from taxpayer to taxpayer. There also was a shift in taxation from the higher priced homes which did not increase as much as the 64 percent average to the moderate and lower price homes which increased in value more than the 64 percent residential average.

The median assessment of $260,000 will result in taxes of $6,136. To calculate your taxes, multiply your new assessment by .0236 (new mill rate of 23.6 mills). The only bit of good news in the process was that all of us will pay approximately 30 percent less tax on our automobiles.

As difficult as it may be, I hope that you will join me in voting Yes at the budget referendum on Tuesday.

Sincerely,

Herbert C. Rosenthal

First Selectman

45 Main Street, Newtown                                               April 30, 2003