Date: Thu 02-Jan-1997

Publication: Bee

Author: STEVEB

Quick Words:

Surplus-budget-finance

Full Text:

Town Posts A Record Surplus

BY STEVE BIGHAM

For the fifth year in a row, the town is expected to show a significant

surplus.

The recently released town financial report for 1996-97 (ending June 30) shows

the town ended the year with an undesignated fund balance of $2.36 million,

the highest surplus in town history, up 8.7 percent from a year ago.

The $2.36 million surplus represents five percent of the entire $50 million

1996-97 budget.

Such a large amount of leftover money raises the question: Are Newtown

residents being over-taxed?

Not according to the town's financial director, Ben Spragg. As he points out,

the town's policy is to designate some of that surplus for the following

year's budget in an effort to keep taxes down. Some of the leftover money will

be put into the town's reserve account for capital and non-recurring

expenditures. Also, nearly a million dollars in surplus came from investments.

Last year's budget totalled $49.2 million, a ten percent increase over the

previous year. However, the tax rate went up just over one mill, keeping tax

increases to a minimum.

The general fund revenues for the 1996-97 fiscal year totalled $49,549,289, an

increase of 9.6 percent over the previous year. Property tax revenues

increased $2,519,030 due to increased tax collections and an increase in the

tax rate. Tax collections totalled 97.9 percent of the adjusted tax levy,

compared to 97.8 percent the previous year. The town received $846,769 in

intergovernmental revenues, an increase of nearly a million dollars due to the

additions and renovations to Newtown High School and Hawley Elementary School.

Investment income increased $844,942 because capital financing funds were

available for investing.

The report also showed that general fund expenditures for governmental

purposes totalled $49,162,55, an increase of ten percent. Education

expenditures increased by $1,249,737 or 4.6 percent. Debt service expenditures

increased $3,207,592 or 87.5 percent

The town's finance department was awarded a certificate of achievement in 1996

for is excellence in financial reporting. The award was presented to Mr Spragg

and his staff by the Government Finance Officers Association of the United

States.