Date: Fri 12-Feb-1999

Publication: Bee

Author: STEVEB

Quick Words:

Rochman-Council-finance

Full Text:

Council Chairman Watches And Worries As The Town's Money Game Gets Bigger

BY STEVE BIGHAM

For Pierre Rochman, being chairman of the Legislative Council can, at times,

be more than a full-time job. It's like being self-employed, he said, I carry

the town's business with me at all times.

And lately, the responsibility of serving on the council is weighing on him.

No longer is the council simply charged with approving a town budget each

year. The town's finance board is contemplating its spending plans five to ten

years in advance. In addition to an ever-increasing operating budget, council

members are now faced with $30-40 million worth of major capital projects,

including a new 5-6 school and a proposed 23,000 square-foot addition to

Edmond Town Hall.

"I don't know if I want that kind of responsibility," Mr Rochman said -- only

half serious. "I don't want to mortgage everyone for the next 10 years."

Next week, the Legislative Council will begin deliberation of a proposed

operating budget that features a 10.5 percent increase (plus an additional $2

million in capital requests) in educational spending. After an increase of 7.1

percent in the school budget last year, it is clear that local costs are

escalating dramatically, he said.

The proposed budget for the 1999-2000 fiscal year may rise above the $63

million mark.

"Now we have a second year of substantial increases without a corresponding

revenue increase in the grand list," the council chairman said.

Although the grand list has not yet been released, Mr Rochman said early

indications show a 3.5 percent increase over last year's $1.56 billion figure.

"It's good news but not good enough," he noted. "The increase will not begin

to absorb all the costs."

Mr Rochman hesitates to celebrate the reported $1 million savings in the

selectmen's proposed budget since that proposal does not include any new

funding for the town's non-recurring capital improvement plan. That money is

usually put in later by the Legislative Council.

Mr Rochman and the council's finance committee is still trying to absorb the

Board of Education's proposal for a grades 5-6 school, especially after the

town just finished financing massive additions to the high school and Hawley

School. Earlier predictions in school enrollment growth were a bit off target.

New forecasts call for a new school.

"We were told a year and a half ago -- `no new schools.' We looked at our

budgets and thought debt service was going down," Mr Rochman said.

In actuality, the debt service continues to rise and taxes could go up by 25

percent over the next four years. That's more than six percent each year.

"I'm not blaming anybody. Things change," Mr Rochman acknowledged. "But we're

going to see huge increases without addressing operating costs."

The council chairman believes his panel needs to take on a more conservative

role. In recent years, the town has been able to survive these financial hits

thanks to a strong economy. We can't expect that to last forever, he said.

In a way, Newtown has found itself evolving into a "mini-city" where both the

town's needs and character have changed. Before long, he said, the town may

want to consider hiring a full-time financial planner.