A Wealthier Newtown Will Face Smaller School Grants

By John Voket

The Legislative Council passed several ordinances on March 7, set a date for its public hearing on the budget, and received some important news about a proposed downward adjustment to the reimbursement for school projects.

During a report by Patricia Llodra, chair of the Education Subcommittee, the council learned that two factors are in play at the state capital that could result in Newtown taxpayers shelling out more money for future capital school initiatives.

Ms Llodra said the next state fiscal cycle will see an upward change in Newtown’s wealth rating from its current 37 spot, to 33. This designation acts as a factor in numerous state grant reimbursement formulas including and especially regarding school building projects.

The District 2 councilwoman said the current formula provides a 32.86 percent rate of reimbursement on school-related state grants, while the change in the wealth rating next year would effectively reduce that reimbursement to 31.43 percent.

Ms Llodra added that based on the budget request for the high school expansion moving forward subject to the new reimbursement ratio would cost the town approximately $500,000 more to fund the expansion than if the grant application was filed by June 30, 2007.

Under that condition, Ms Llodra said Newtown would still qualify for the higher rate of reimbursement. On another front, Ms Llodra reminded fellow council members that the governor’s biennial budget proposal calls for the “spread” of the reimbursement formula to become more restricted, which could also impact Newtown’s rate of return on grant reimbursements.

She said Governor Rell is asking for a reimbursement spread of 15 to 65 percent based on the new wealth rating, from the current spread of 20–80 percent reimbursement. Ms Llodra said Governor Rell is also calling for a cap on the total amount of funding in the overall education grant formula.

“It’s all part of a cost containment measure which could be seductive to legislators,” Ms Llodra said. Adding that if all three scenarios are affected in the new budget, “it would have a detrimental effect on the high school project.”

The council also approved a tax abatement for a new building project at the Curtis Corporate Park. TnT Partners requested the abatement under a new municipal incentive plan that primarily benefits developers significantly modifying or creating new construction in town.

Speaking at the meeting, Economic Development Commission Chairman Chet Hopper said the proposed project is exactly what his group hoped to attract when proposing the modest and limited abatement program, which will forgive 45 percent of property taxes on the assessed value of the finished building for three years.

“We want to see them build a really big building so we can tax it for the next 20 years [after the abatement program is complete],” Mr Hopper said, adding that additional personal property in the building is not affected by the incentive program.

Ordinances Approved

The council also acted on three ordinances, approving each one with unanimous votes.

The first was to permit an increase to the number of members to the Board of Assessment Appeals in years following town revaluations. This was drafted in anticipation of a flood of appeals next year when the state mandated revaluation process is completed by the local tax assessor.

The council then approved a formula modification and clarification to an ordinance granting a graduating amount of tax relief benefits to volunteer firefighters and ambulance personnel. The change, which was explained by ordinance subcommittee chair Frances Pennarola, will make it easier for the assessor to calculate the benefit as a constant, as the local mill rate fluctuates annually.

The final action was to approve a pet control ordinance, which would generally ban pets from town-owned property and municipal buildings unless they are service animals or are otherwise authorized to be in such locations.

Some discussion ensued because the ordinance would prevent pet dogs and other animals from being brought into Edmond Town Hall, unless it was for an authorized obedience class or dog show, and only if the animal was controlled on a leash.

Mr Rosenthal said the Town Hall Board of Managers would have to further authorize the presence of dogs, who may accompany their owners to the Town Clerk’s office to become licensed.

Near the end of this week’s meeting, acting council chairman Timothy Holian said the group would forgo its March 21 scheduled meeting, instead scheduling the final public hearing on the budget one week later, on March 28.