The Facts About What We're Hearing (Part 2)
The Facts About
What Weâre Hearing (Part 2)
To the Editor:
What weâre hearing...
The municipal budget will end the year with a $700,00 surplus in the operating account.
The facts...
The municipal operating budget is nearly spent as we approach the end of the year â there is no reported surplus at this time. Remember the debt service budget, which includes school and town projects, and town operating budget are two different budgets.
This year we were able to re-fund (refinance) bonds at a very favorable rate (just like refinancing your mortgage). That action netted savings of approximately $1.6 million in current and future interest payments that will no longer need to be paid as originally estimated. This has resulted in approximately $700,000 of interest payments in this yearâs budget that will now be distributed to the fund balance. For the 2012-13 budget, there will be $800,000 less in interest payments. This was already been taken into account in the budget development process, as well as $375,000 less in interest payments in 2013-14. This is a result of our prudent financial policies, but doesnât necessarily give us cash to spend. This savings benefits all taxpayers.
What weâre hearing...
The council has no intention of giving voters the opportunity to vote on a bifurcated budget or answers advisory questions...
The facts...
Our town charter dictates the budget referendum process. In order to bifurcate the budget vote or add advisory questions, the charter needs to be changed and approved by the voters. Last year, a Charter Revision Commission was commissioned to address both of these issues. Their recommendation, which was accepted by the last Legislative Council, was to add advisory questions to the ballot, but not bifurcate the budget. Unfortunately, when the town voted to approve that change, too few voters turned out to allow it to pass. On May 16, the Legislative Council began another round of discussion surrounding charter revision to readdress these very same issues.
All numbers have been confirmed through meeting minutes and in consultation with the town. This letter is from us and not the full council. It is in response to questions that weâve been asked. Please join us in supporting this budget on Tuesday, June 5.
For two more important facts, please see the letter (Part 1) by Mary Ann Jacob.
Kathy Fetchick
18 Clapboard Ridge Road, Sandy Hook                       May 30, 2012