Date: Fri 28-Feb-1997

Publication: Bee

Author: STEVEB

Quick Words:

budget-grand-list-Cascella

Full Text:

Lack Of New Revenues Will Force Tough Budget Choices

B Y S TEVE B IGHAM

The small growth in this year's grand list caught many residents off guard at

its unveiling last week, especially in light of all the new home construction

in town.

The 1996 list of taxable property showed just a 0.5 percent increase over last

year, jumping from $1,488,600 to $1,497,000.

Coupled with the reduction in state aid for schools, overall revenues are up

just $27,000 over a year ago. However, the town's proposed $53 million budget

shows a 6.7 percent increase over last year. Both First Selectman Bob Cascella

and Board of Education Chairman Herb Rosenthal admitted their surprise at the

small grand list increase. The Legislative Council must now determine if it

wants to cut spending or increase taxes.

Though Newtown's Financial Director Ben Spragg is still collecting revenue

projections, he said this year's $3.3 million budget increase will swell the

tax rate by more than two mills if the currently proposed budget is adopted by

the town.

Why the small increase in the grand list? According to Sharon Bowman, the

town's deputy assessor, the town lost nearly $9 million from its grand list

with the recent departure of Dual Lite and DuPont, along with their equipment.

Also, because many of the town's new homes completed in 1996 were assessed at

a significant percentage of their total value when they were under

construction in 1995, the increase in the grand list was minimal.

Of the 221 homes completed in 1996, 150 of them were taxed at 40 percent or

more in 1995, meaning the town is seeing only a small increase in revenue this

year. Sixteen new homes completed in 1996 were taxed at 100 percent in 1995,

so the town sees no increase from them, and 35 homes were taxed at 90 percent

a year ago, so the town gets just a 10 percent increase this year. Mrs Bowman

said there are only 20 new homes in town this year that are being taxed at a

100 percent increase over last year.

"That would impact the '96 list substantially," said Mr Spragg.

Mr Cascella said the problem was compounded by $14.5 million being cut from

last year's grand list because of successful assessment appeals.

Mr Cascella said last year's revaluation boosted property assessments to

present-day market values from their previous 1985 values. The average

residential assessment increased by about 40 percent due to the revaluation.