$53.7 Million Capital Plan Makes Its Way To The Council

By Jan Howard

The chairman of the Board of Finance discussed some aspects of the five-year Capital Improvement Program (CIP) and other financial issues during a meeting of the Legislative Council last week.

The $53.7 million capital plan for the years 2004–05 to 2008–09 was forwarded to the council recently by the Board of Finance, which approved the plan in December. The plan is currently before the Legislative Council’s finance committee.

The total of proposed capital projects amounts to $53,704,000, including $10,274,000 for 2004–05; $9,720,000 for 2005–06; $15,675,000 for 2006–07; $8,403,000 for 2007–08; and $9,632,000 for 2008–09.

“The CIP is a working document,” John Kortze told council members. “It’s a plan. It’s not set in stone.”

The plan can be changed as needs change and as budget deliberations continue for the 2004–05 fiscal year budget. The Board of Selectmen has already pared capital road improvements from $2 million to $1.82 million and fire and police requests, among others. The town budget now goes before the Board of Finance for review.

The Board of Finance at the request of the Board of Education recently changed a request for a proposed waterline extension to Middle Gate School for approximately $500,000 to priority status for the upcoming fiscal year.

Mr Kortze explained the plan includes not only how much the proposed projects would cost, if approved, but how they would be funded each year, either through the annual budget, bonding, or school and other grants.

Mr Kortze explained his board is struggling with budgetary requirements and issues, such as open space acquisition, economic development, and elderly tax relief, and the costs and/or benefits of them.

Open space purchases and elderly tax relief geared to keeping senior citizens in their homes are being discussed as possible ways to curb town growth and the additional costs in education and services that growth generates.

Mr Kortze noted that $1 million has been allocated each year as a “placeholder” for open space until a more accurate figure is determined following a study by The Trust for Public Land. The study would look at strategies for funding open space acquisitions. In December, First Selectman Herb Rosenthal said that he was thinking more in terms of $2 million a year for open space acquisition.

Mr Kortze cautioned that other issues, such as space needs at the high school, “could throw everything out of whack.”

In regard to elderly tax relief, the Board of Finance is recommending raising qualifying income levels. The Board of Finance is also recommending an additional $10,000 on tax assessments for veterans.

“Tax increases and reval [revaluation] have all but eaten up the tax relief we granted to seniors,” Mr Kortze said.

He noted his board is also looking into a tax deferral program for senior citizens who qualify. On Monday, the Board of Finance voted to recommend a tax deferral option to senior citizens.

All changes in elderly tax relief and changes to benefits, such as the veterans benefit, will be sent to the Legislative Council for review and possible action.