Thoughts On The 2006-07 Budget

To the Editor:

A two mill tax increase will be a substantial burden for many citizens. Population increase results in the need for schools, recreation facilities, road repairs, etc, and is easy to understand. However, tax increases in the municipal budget to entice businesses to move into town are more difficult to justify.

Should the town assume the role of a real estate developer and speculate with our tax money? The private sector with greater resources and routine contact with growth industries can assume investment risks better than municipal governments. Newtown needs to hoard its scarce tax dollars.

1. The 2006-2007 budget funds part of the approved five-year Capital Improvement Plan (CIP), that includes borrowing $3.4 million for the Economic Development Commission and a budget of $10,000 next year. A $500,000 grant from the state will build a road into the town-owned Commerce Park land for a Technology Park (News-Times, March 6, 2006). That’s fine, but additionally they plan to hire a consultant, seek an additional part-time town employee, and proceed to spend the bonded $3.4 million preparing to attract businesses to Newtown (meeting minutes March 21, 2006). BUT, the group has not presented a “Return on Investment Financial Analysis” to answer the question, “How many years will it take for Newtown to sell the proposed building lots and to receive tax income in return for this $3.4 million?”

2. The FFH Authority is spending $750,000 to mothball three buildings in hopes that a developer will abate and renovate these buildings and lease them from the town, perhaps for as long as 99 years. They have budgeted $330,000 for security; instead, a rapid demolition of all the old buildings and duplexes would reduce security costs by simply land-banking the property. We need FFH more for community use and future town projects. The CIP also includes $3.4 million for a recreation center at FFH although its location has not been announced. 

3. The FFH Authority plans to pave a walking trail at the south end of FFH starting at the existing baseball fields and going uphill to the water towers. No cost has been given for the trail, but the estimated figure of $1.3 million includes the trail, a senior baseball field, parking, and demolition of Fairfield Hall (abated by the state in 1998). In my opinion, we don’t need to spend money on a new trail; we could continue to use the existing paved road, sidewalk, and dirt paths that lead to the High Meadow.

Putting the town into the role of a developer consumes large amounts of money. Legislative Council member Joseph Borst has proposed a Blue Ribbon panel to sort out these conflicting projects and perhaps answer two questions. Should the town be a speculator/developer? Can we afford to be? 

Ruby Johnson

16 Chestnut Hill Road, Sandy Hook                               April 4, 2006