This report was updated April 24 clarifying language about 2016 budget ballot advisory questions.

Following extended discussion and several spending reductions April 6, the Legislative Council is sending a proposed $114,182,379 budget request to taxpayers for consideration that would increase overall spending by 1.62 percent and, if approved, would result in a 33.6 mill tax rate.

A mill represents one dollar for every $1,000 in taxable property.

After all was said and done at the end of a four-hour budget session Wednesday evening, officials endorsed a 2016-17 spending plan for the school district totaling $73,665,065, and $40,517,314 for the town, which includes all debt service on capital borrowing including for all school district projects.

Voters on April 26 will have the opportunity to endorse each request separately, along with responding to advisory questions asking voters whether they rejected one or both budget proposals because they were "too low."

Finance Director Robert Tait affirmed the following reductions resulting in the final proposal as the meeting closed. Overall the Board of Selectmen's (municipal) budget was reduced by $419,366.

"That was comprised of $250,000 Public Works capital roads; $15,000 from highway capital; $25,000 Parks & Rec capital; $25,000 public building maintenance capital; $35,000 information technology equipment; and it was decided to cut debt service payments by $69,366," the finance director said.

Then, the council voted to reduce the selectmen's budget request by another $100,000. Mr Tait said that reduction would encompass $30,916 from the Fairfield Hills Authority line; $5,000 from the Board of Fire Commissioners' request; $3,000 from the budget the local business and neighborhood support agency for SHOP (Sandy Hook Organization for Prosperity); and another $60,084 to be determined by First Selectman Pat Llodra

The council also voted to reduce the school district's request by $100,000. Although the council has no line-item authority, officials suggested the funds be reduced in the district's technology line because of corresponding revenue flowing into next year's district budget from part of a bond premium.

That premium, which was the subject of extended deliberation April 6, will be distributed between the town and schools to cover a number of one-time capital purchases, with the nominal balance being applied to reduce the overall debt service on existing bonds.

Besides the corresponding bond premium reduction, the council voted to reduce the district request by an additional $100,000, with several council representatives suggesting those savings could be found in the school transportation line.

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The bulk of deliberations during the council's final budget meeting before sending the requests to vote centered on the aforementioned bond premium and district transportation. Mrs Llodra said that unlike the town's last significantly lower bond premium, which was applied to bolster the municipal fund balance, the $519,366 resulting from the latest windfall should be applied mostly to the capital nonrecurring account.

"The challenge tonight is to determine the highest and best use of any surplus funds to address pressure points in the budget," the first selectman said.

Mrs Llodra said those funds could fully underwrite several capital purchases that would have otherwise been included in the 2016-17 budget, and would be subject to taxation. Utilizing most of that one-time revenue in this manner effectively reduced taxation in that budget by nearly 1.9 percent.

Mr Tait explained to the council that the premium represents a difference between the stated interest rate on the bond and the actual market rate, and Newtown received the difference. As a result, any capital items the town and school could develop up to the amount of the premium, that exceed allocations in the current year's budget, can be taken out and purchased from the Capital and Nonrecurring Fund - thereby reducing next year's planned spending for those items.

"The immediate effect is a taxation decrease," Mr Tait told the council.

Council Vice Chair Paul Lundquist asked if using the premium as proposed would be the most tangible way to give taxpayers the best benefit of the one-time windfall, and Mrs Llodra responded saying it provides the best taxpayer benefit, while addressing the most significant "pressure points" in the budget proposal.

Councilman Chris Eide suggested the best use might be to apply the premium equally to debt service, allocating $25,000 in each of the 20 years of the bond's debt service, and made a motion to that effect which subsequently failed.

During discussions on proposed reductions to the selectmen's budget request, Mr Eide also took issue with asking Mrs Llodra to find an additional $61,084 to cut.

"A lot of good work went into the budget," the freshman councilman said, adding if the council is receiving line items in the budget they should not ask the Board of Selectmen to apply random reductions. "We should be offering specific places to reduce."

Councilman Ryan Knapp then made several motions attempting to reduce wage increases budgeted for the town's technology director, deputy fire marshal, and the new economic development coordinator. But all three motions failed.

District Deliberations

Following a brief recess, the council turned to the school district request, with Mr Eide proposing to restore $214,000 in reductions made by the Board of Finance. He supported that motion saying he was concerned that those reductions would affect programming and/or staffing.

That brought Superintendent of Schools Joseph V. Erardi Jr, school board Chairman Keith Alexander and Business Manager Ron Bienkowski before the panel. Dr Erardi first brought up lingering concerns about transportation costs ahead of the district negotiating a new five-year transportation contract next fiscal year.

He said he proposed the school board retain a consultant to do a comprehensive analysis of the town's school transportation network and current provider All-Star Transportation. At the same time, he pledged to return any savings that might result from negotiations with All-Star or another provider to the general fund.

Regarding technology, Dr Erardi told the council that the IT budget was scrutinized and that the request represented what officials determined was needed.

He agreed with Mr Eide, saying any further reductions to the district request by the council "would have a backward effect on programming or staffing - impacting class size or reducing opportunities for students."

After several minutes of further discussion, Mr Knapp moved to reduce the district request by $200,000, saying that in 1999, with the same number of students in the district and one less school, the town managed with 56 percent fewer buses.

Council Chair Mary Ann Jacob noted that she had previously worked for family members of the All-Star ownership, and that her family was also engaged in school transportation. She agreed with Mr Knapp, saying the district is going into its fifth year with All-Star, which is running the same number of buses as in year one, for 1,000 fewer students.

"We should be pressing our vendor to find more savings," she said.

Ms Jacob also took issue with the fact that All-Star is providing both transportation and consulting services. "Isn't it like the fox guarding the henhouse?" Ms Jacob asked.

Mr Knapp also defended his motion saying that All-Star did not conform to its contract by neglecting to file regular ridership reports to help better analyze where savings and efficiencies might be found.

That brought suggested amendments to Mr Knapp's motion, first by Mr Lundquist to reduce the reduction to $57,000, which did not pass on a tie 6-6 vote. Then a Neil Chaudhary motion to amend the district reduction to $100,000 passed 9-3.