Date: Fri 10-May-1996

Publication: Bee

Author: STEVEB

Quick Words:

growth-tax-impact

Full Text:

Growth Takes Its Toll In The Tax Rate

B Y S TEVE B IGHAM

The proposed 1996-97 budget of $49.6 million, a increase of more than 10

percent over last year, has made it clear that Newtown and its residents are

being stretched to the limit. The growth in local spending is related to all

the new homes and the rising population of the town.

Newtown residents have watched developers, some local some not, turn Newtown

into one of the fastest growing communities in the state. With every new home

comes more responsibility to the town, and taxpayers see the burden of growth

lying squarely on their shoulders.

"There's a perception that the taxpayers are the big losers here," explained

town finance director Ben Spragg.

How much does it cost the town for every new home that goes up? That all

depends on who moves in, according to Mr Spragg.

If a family with six children moves into town and all six of them attend

public schools, that family will be more costly to the town than one with six

kids in private schools.

Each child attending Newtown schools currently costs the town an average of

$6,456 per year, according to the office of Superintendent John R. Reed, while

the average house pays between $4,000 and $5,000 in property taxes annually.

"I truly see both sides of this issue. I can see people's concerns about their

taxes going up, but I also understand and believe in the American system,"

said First Selectman Bob Cascella.

With new homes being constructed more rapidly than local businesses, Newtown's

grand list of taxable properties continues to be economically non-diversified.

Newtown's growth spurt has been most evident in education, where schools have

simply run out of space. The Board of Education's proposed additions at

Newtown High School and Hawley School, expected to cost more than $30 million,

have been well documented, but there are other areas where the town has been

forced to spend more.

At the highway department Fred Hurley's crew has had to increase the number of

road maintenance and snow plow miles every year. That affects overtime.

"It takes us longer to complete one entire sweep of the town," he said. "This

town is growing quickly. People don't want to accept that, but that is what is

happening."

Since 1992, Newtown has accepted 15.96 miles of road (about 3.5 miles added

per year). At present, there are 4.49 miles of new subdivision roads that the

highway department plowed this winter because it had three or more occupied

houses on them.

For the past two or three years, the police department has had to increase its

force by an average of one or two officers per year, and, since 1975, the

number of emergency medical responses has more than doubled.

Twenty years ago, the Newtown Volunteer Ambulance Corps responded to 500

calls; ten years ago the number rose to 900 calls. Last year, the number had

risen to 1,300 and is expected to be just as high or higher in 1996.

This year's proposed budget includes $120,000 for a new firetruck for the

Sandy Hook Volunteer Fire Department.

According to Mr Spragg, 14 percent of this year's budget is for infrastructure

borrowing, including road improvement, schools and library additions. The

town's current debt service or total outstanding bonds totals $24 million.

A Community Decision

With Newtown changing so much, Mr Cascella knows some tough decisions need to

be made in order to point Newtown in the right direction for the future.

"We're embarking on a new era. We have to start looking at other areas," he

said. "We need to have an open mind for business."

Economic development may be the answer to offset the cost to taxpayers,

according to Mr Cascella, but choosing the best way to go about it has to be a

decision made by the community.

"This has to be a community decision. I don't want a McDonald's in Newtown,

but if people in Newtown want that, then we can have a McDonald's in Newtown,"

he said.

Economic Development Commission Chairman Lyndon Thomas has said that while

bringing in more industry won't necessarily lower taxes, it might level them

off.

"Perhaps we can reduce the rate of tax increase," he said.

The EDC is currently looking at several areas of town for possible industrial

development, including Fairfield Hills, Hawleyville and Commerce Road.