Public Hearings Slated On Proposed Budget

By Steve Bigham

Newtown residents will have an opportunity to comment on the 2000-2001 budget at a public hearing at 7:30 pm in the middle school auditorium.

A second hearing will take place Saturday, April 1, at 9 am in the same location.

Last week, the Legislative Council voted 8-4 in favor of a $68.96 million budget, which represents a 10 percent or 2.92 mill increase over the current budget.

If approved, the 2000-2001 budget would raise the mill rate from 27.9 to 30.8.

The $39 million school board budget is up 15 percent. The school package includes an additional $500,000 which was added by the council at the eleventh hour. The move restored just about all the funding originally requested by the school board.

The Parks & Recreation budget saw a big boost, including $550,000 for the development of the Amaral property for baseball fields along Elm Drive.

Council Chairman Pierre Rochman has been vocal in his opposition to the council’s decision to approve the budget. He was one of four members – along with Melissa Pilchard, Peggy Baiad, and Doug Brennan – who voted against the proposal. He fears the council is being swayed too much by special interest groups, which dominate the budget meetings, sometimes altering a council member’s original intent.

“I used a lot of adjectives about this budget, but I have to say it’s unconscionable that the council would propose such a massive increase,” he said this week. “People need to understand that once we have this increase, it’s something that doesn’t go away. You will pay that for as long as you own your house. This is not a one-time cost. I hope people vote it down.”

Council member John Kortze was one of eight members who voted in favor of the spending plan. He too acknowledges the hefty burden this budget puts on local taxpayers. However, as he points out, the council made every effort to reduce the budget. There are simply no other places to cut.

“That’s what the council voted on. I would rather not see such a large increase, but I think that the budget process works,” he said. “There’s been some concern about caving in to special interest groups. I think a lot more people en masse spoke out this year. You have to take that information into consideration.”

Council vice chairman Melissa Pilchard is quick to point out that this expensive budget is not a one-time thing. Newtown will get hit hard for at least the next three years as it pays off an aggressive $45 million borrowing plan of major capital projects. The proposed budget includes $8 million in debt service for the fiscal year 2000-2001. That figure is up $636,000 over the current budget, according to Finance Director Ben Spragg. However, it could have been much higher when you consider the kind of borrowing scheme the town has in mind for the next three years.

The debt service was originally unveiled at $9.3 million, but in an effort to keep this year’s tax rate increase down, Mr Spragg proposed spreading the town’s bond issue out over three years. His plan provides a reduction of $1.27 million or 0.75 mills in this year’s budget, but creates an increase in debt service of 1.1 mills next year, 1 mill the year after, and 0.4 mills in the third year.

  “The actual borrowing would take place over two years, but would impact the mill rate for three years,” Finance Director Ben Spragg said. “The way it’s proposed is good because there are no spikes in the mill rate. It remains fairly level over the three years. It’s a combination of bonding and bond anticipation notes.”

Mr Spragg said the plan provides the kind of flexibility that the town needs to get through its current situation. That situation involves several large projects that must be accomplished within the next two years. The lengthy list of debt service items includes the proposed 5/6 school, Fairfield Hills purchase, Edmond Town Hall maintenance, ball fields, municipal space needs, and Hawleyville sewers.

“This is the first of three years of substantial mill increases that build,” Mrs Pilchard said. “Three years of 11 percent compounded. I’m not a mathematician, but it’s not 33 percent. It’s more like 37 percent.”

The council will have 10 days after the public hearing to re-open the budget for further examination. It will likely take one final look at its April 5 meeting. Mr Rochman announced this week his plans to actually put the reconsideration of the budget on the agenda.

“I feel it’s a bad budget,” he said.

The $68.96 million budget will be offset by an estimated $17.1 million in town revenue. Therefore, $51.8 million will have to be raised through taxation.

Council members voting in favor of the budget package were Mr Kortze, Brian White, Donald Studley, Ruby Johnson, Joe Borst, Will Rodgers, Tim Holian, and Dan Rosenthal.