Date: Fri 27-Feb-1998

Publication: Bee

Author: STEVEB

Quick Words:

council-budget-grand-list

Full Text:

Grand List Increase Eases The Pressure On Taxes

BY STEVE BIGHAM

Town officials are feeling a little less apprehensive this week after hearing

the news of the large increase in the town's grand list.

The total amount of taxable items in Newtown was finally released by the tax

assessor's office Monday, showing an increase of more than 4.5 percent. That

should keep the tax rate increase for next year somewhere around 1.6 mills --

great news to taxpayers, especially since the $57.8 million proposed town

budget reflects a significant increase in spending.

Last year's tax rate went up 0.9 mills.

The total grand list, according to Tax Assessor Denise Hames, is

$1,566,644,349, up nearly $70 million or about 4.65 percent over last year.

Using last year's tax rate, the net increase in collectible taxes for this

coming year is about $1.8 million. That figure includes houses, real estate

and motor vehicles.

"I thought the grand list would be over four percent this year just because of

all the new buildings and overall growth of the town," said First Selectman

Herb Rosenthal.

The increase in the grand list is especially welcome after last year, when it

rose just .05 percent due to some assessment errors.

The high grand list increase for this year will make the job of the

Legislative Council a bit easier, especially when it comes to financing the

Board of Education side of the budget, which topped out at $32.7 million, up

$3.1 million (a 10.1 percent increase).

"My thought in that was, thank God. We were looking at some major problems

without that," said council chairman Pierre Rochman. "It obviously doesn't

make up for all the expenses, but it definitely helps."

John Kortze, chairman of the council's finance committee, says the huge grand

list increase doesn't necessarily mean "no cuts."

"I am happy with the figure, but I still think we have a lot work," Mr Kortze

said. "Regardless of the increase, there is still a discussion to be had in

regards to the percent increase in the Board of Education budget. I think in

today's day and age, an increase of that magnitude is very aggressive. What

does a $3.1 million increase buy us?"

In a way, Mr Kortze said the projected 1.6 mill increase in the tax rate is a

bit of a "phantom."

"If it wasn't for the interest revenue from all the capital projects last

year, we would need a million dollars more and the tax increase would have

been more like 2.2 mills," he explained. "That money will not be there next

year."

Mr Rosenthal believes that through some "creative financing," the Legislative

Council would probably be able to reduce the mill rate even further, without

ever cutting the budget, suggesting that the town might consider the use of

LoCIP funds and other funding sources.

Board of Education Chairman Amy Dent said she is pleased to see that Newtown

is finally seeing some "financial benefit to offset the costs of having so

many new students in the school system."

The chairman said, "I hope this will help the Legislative Council recognize

our needs and fund them."

Mrs Dent realizes that it is the job of the school board to provide the best

education for students, while the council is charged with keeping the taxpayer

in mind. She hopes that the council will send an uncut budget proposal on to

the residents for them to decide.

Mr Rochman said the council can't just pass it on without "taking a look down

the line." He pointed to anticipated expenses in the coming years for things

like municipal space needs and a new elementary school.

"These are all things that we may have coming," Mr Rochman said. "We can't

ignore them."