This report was updated at 11:30 am on May 11 to include comments provided by current Borough Warden James Gaston about the current borough budget balance. The update also corrected a previous and incorrect identification of the former Borough Attorney as a former Borough Warden.

A planned budget hearing and vote was postponed May 8 after more than 120 qualified Borough of Newtown taxpayers, some with children in tow, pushed the lower meeting room at Edmond Town Hall far beyond its capacity.

On several occasions after the hearing's scheduled start time of 7:30 pm passed, Borough Warden James Gaston could be seen glancing nervously between the growing number of attendees continuing to pour into the room and a sign that stated the room's maximum capacity, which according to the town hall's website is 50 with tables and chairs.

Eventually, with several residents still standing in the hall, he called for attention and informed those gathered that the meeting could not go forward.

He said he tried to secure another space in the Edmond Town Hall, where the hearing legally had to occur, but a Bridge Club gathering was occupying the Alexandria Room, and a dog training class was happening in the gym.

The theater had already begun its nightly film screening, so that space was also inaccessible.

Mr Gaston was peppered with questions about why he did not anticipate a large crowd and make accommodations for it in planning.

He responded saying that borough budget hearings rarely draw more than 20 attendees, and he believed that 50 seats and some additional standing room in the lower meeting venue was sufficient.

The Newtown Bee that the rescheduled meeting and vote would take place in the Alexandria Room at 7:30 pm, on Thursday, May 17.

At the time, he said to expect the hearing and budget vote to occur on Wednesday, May 16. But he later informed 

The uncharacteristic interest in the borough budget was peaked after 

The Newtown Bee ran a story May 4 on the proposal, along with letters to the editor from Mr Gaston and former Borough Attorney Don Mitchell focusing on the comparatively astronomical requested increase that would see the normally modest borough spending plan increase by roughly 75 percent.

That would bump the current budget of $199,330 up to $354,330 on July 1, pushing a mill rate increase from 0.85 to 1.49. A mill represents $1 for every $1,000 in taxable property.

Mr Gaston explained that he and borough burgesses hoped to amass a significant amount of funds that would be allocated for legal expenses. Those funds, he said, needed to be in place for anticipated litigation to block a rumored multi-family development containing as many as 79 residential apartments on the current site of the abandoned Inn at Newtown.

The borough leaders are seeking a $100,000 special assessment to reserve funds for such a contingency. After consultation with Borough Counsel Monte Frank, Mr Gaston estimated that litigation costs could exceed $300,000.

Several people exiting the postponed meeting could be heard complaining that the borough already had more than a half-million dollars in reserve between a fund balance and a 12-month Certificate of Deposit (CD), and wondering why the special assessment along with an increased legal budget from $10,000 to $50,000 was necessary.

Mr Gaston contended

in a previous report that the borough has about $300,000 in reserve. Mr Mitchell wondered what happened to the extra $200,000 he said was there a month earlier, and said he planned to bring up that question when the hearing resumed May 17.

Mr Gaston clarified in an e-mail to

The Bee on Friday morning, May 11, that the current borough reserve is approximately $475,000.

"That reserve is proper, legal and our auditors have approved and recommend it since the Borough cannot bond; it is about $475K but we have a month and half of bills left in our fiscal budget that ends June 31st," Mr Gaston stated.

Several other budget lines that may be tied to future action involving the inn property, as well as other borough business, or costs for special services have increased. Among them is a $5,000 increase for consulting from zero dollars in the current year; a $2,000 bump in the contingency line; a $4,900 increase in the Historic District line, up from $100 this year.

Among the burgesses attending May 8 was Christopher Gardner, who commented by e-mail after the postponement, "The borough has been thrust into a very difficult situation with the Inn property."

Mr Gardner echoed statements from Mr Gaston, saying he and his fellow burgesses would like at all costs to avoid a protracted and very costly legal battle with the Inn's owner DWR Co. III, LLC and proprietor Rob Ryder, "if he insists on knocking down the Inn and building housing."

"It is not fair for the borough taxpayers to shoulder this legal expense," Mr Gardner said. "I hope that everyone can take a deep breath, think about the important historical role the Inn has played in Newtown, and negotiate a fair resolution that will satisfy everyone."

The subject has erupted with perspectives on various local social network pages, with several postings questioning why the town was not stepping in to assist with the anticipated legal battle.

First Selectman Dan Rosenthal said he does not want to see high density housing on Main Street, but there is no formal application for any project on the table at this time. That said, the first selectman also clarified that the issue is within the jurisdiction of the borough government, so his ability to become involved formally is limited and would only happen if asked.

"As far as the town stepping in legally, I don't think we have standing to do that," Mr Rosenthal said. "I think there is interest alignment between the town and the borough, but from a legal standpoint, this is a borough issue. I would be happy to lend my support if the borough was interested in having it, but in effect, the town does not have legal jurisdiction."

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