Date: Fri 05-Jan-1996

Publication: Bee

Author: KAAREN

Quick Words:

surplus-Spragg-finance

Full Text:

Town Posts A Surplus Of Nearly $2 Million

B Y K AAREN V ALENTA

For the third year in a row, Newtown is slated to show a significant budget

surplus.

A report on the audit of the 1994-95 fiscal year, which ended June 30, 1995,

has been completed by the accounting firm of Kostin, Ruffkess & Company of

West Hartford. It shows the town finished the fiscal year with an undesignated

fund balance, or audited surplus, of $1,979,153, an increase of 32 percent

over the $1.5 million surplus of 1993-94.

The surplus will be available for use in the 1996-97 budget year.

Two years ago, the town finished the 1993-94 fiscal year with what Finance

Officer Benjamin Spragg described as an "unprecedented" $2.3 million surplus.

Each year since then the Legislative Council has decided to put $600,000 of

the surplus into the following year's budget to offset taxes and the rest into

the town's reserve account for capital and nonreoccuring expenditures, a fund

which has been used for building repairs, equipment purchases and anticipated

expenditures such as the hookup of public buildings to the new sewer system.

The results of the 1994-95 audit are included in Newtown's Comprehensive

Financial Report, a report compiled by Mr Spragg with the assistance of other

town departments. The report is on file in the town clerk's office for public

review.

The report showed that general fund revenues for the 1994-95 fiscal year

totalled $42,215,735, an increase of 4.1 percent from the previous year.

Property tax revenue increased $1,428,578 due to increased tax collections and

growth in the grand list. Tax collections totalled 97.5 percent of the

adjusted tax levy, compared to 97.3 percent the previous year. But the town

lost $212,058 in licenses and permit revenues because the landfill was closed

which resulted in the town no longer collecting tipping fees from the

independent garbage collectors.

During the 1994-95 fiscal year, annual investment income grew by $153,746 to

reach $621,666, an increase of 33 percent. The town's pension fund trust

earned $816,934 of investment income.

The report showed that general fund expenditures for governmental purposes

totalled $42,531,806 in 1994-95, an increase of $2,824,922 or 7.1 percent over

the previous year. The major increases in expenditures were due to the

transfer of funds to the newly formed Newtown District Department of Health

and to the capital reserve account, a combined total of $1,580,631, and

$961,188 which was transferred to the Board of Education to help underwrite

the school district budget.

There were three categories of expenditures in 1994-95 which showed a

reduction. The cost of operating Newtown's government decreased $224,577

because of reductions in employee health claims and a one-time funding, done

in 1993-94, for the 1995 revaluation. Health and welfare costs decreased

$109,116 because these expenses were shifted to the Newtown District

Department of Health. And debt service decreased $220,375 as a result of

reduced interest payments on outstanding bond issues.

Bonds totaling $2.5 million were issued to pay for road reconstruction notes

and for the architect's fees for an addition and renovation of Hawley

Elementary School and the high school.

At the end of the 1994-95 fiscal year, the town had a number of debt issues

outstanding. These issues included $24 million in general obligation bonds and

$2.5 million in State of Connecticut Clean Water Fund loans (for the sewer

project). The town maintained its A-1 rating from Moody's Investor Service on

general obligation bond issues.

The auditing firm made only one comment or "recommendation" in its review of

the budget. The auditors noted that some of the town's supervisory personnel

have not had the required two hours of training and education on sexual

harassment in the workplace. State law requires that an employer having 50 or

more employees must provide two hours of this training within six months of

new supervisory employees assuming their positions.

Mr Spragg explained that Kenneth Freeston, the school district's former

assistant superintendent of schools, also was the district's sexual harassment

training officer. Because of an oversight, this position was not filled when

Mr Freeston left and a new assistant superintendent was hired last year. This

situation will be corrected, Mr Spragg said.

Besides reporting on the results of the 1994-95 audit, the report includes

other information on the status of the town. It showed that the value of

commercial and residential property in Newtown has increased from $356,535,820

ten years ago to $1,037,996,061 as of June 30, 1995. There were 196 new

residential units started in the 1994-95 fiscal year, compared to 222 in

1993-94 and 164 the previous year. New commercial units totaled one, four and

one respectively in those same years.

The town's population has grown from 20,030 in 1986 to 20,920 over the past 10

years while the school enrollment has increased from 3,697 to 3,821.

Unemployment is 3.9 percent compared to a state average of 5.4 percent. The

3.9 percent in Newtown is a drop from a peak of 5.5 percent in 1992 but higher

than the 2.8 percent recorded 10 years ago.

According to the most recent information available, the 1990 Census, the town

has a per capita income of $22,747 and a median family income of $65,537.

The town has 651 government employees, which include 515 school district

employees, 35 police officers and 101 general government workers.