Nearly $60 Million In 5 Years––

Finance Board Reviews

List Of Capital Projects

By Jan Howard

Newtown’s Board of Finance this week considered nearly $60 million in capital projects that will affect the town’s tax rate in the next five years and also measures that might be taken to mitigate the impact of property taxes on Newtown’s senior citizens.

The board members, October 14, reviewed a completed version of the five-year plan through 2009 for projects that, if approved, would cost $59,138,000. These projects would be funded through a variety of sources, including the general fund, $13,285,000; bonding, $34,754,000; school budget, $1,404,000; state agency grants, $3,695,000; and school grants, $6 million.

Over the five-year period, costs for the proposed capital projects would be as follows: fiscal year 2004/05, $8,758,000; 2005/06, $8,720,000; 2006/07, $25,625,000; 2007/08, $7,403,000; and $2008/09, $8,632,000.

By departments, the total requests over the five-year period are: parks and recreation, $4.57 million; police department, $5.15 million; tax assessor, $450,000; Economic Development Commission, $6.85 million; Board of Fire Commissioners, $780,000; public works, $10.25 million; and schools, $31,088,000.

For fiscal year 2004/05, proposed capital improvements would include: road projects, $2 million; revaluation, $225,000; Sandy Hook Center Streetscape Project, $200,000; pumper truck for Botsford, $385,000; grader replacement, $250,000; Commerce Technology Park, $1 million; Head O’ Meadow heating and ventilating, $4 million; Hawley School heating and ventilating, $290,000; and high school auditorium repairs, $208,000.

Borrowing through the year 2009 is projected to be $59,306,000, according to a report by Finance Director Ben Spragg. According to a debt analysis by Mr Spragg, the town’s gross debt is $52,386,853. Minus school grants, the town’s actual debt is $43,438,694.

The Capital Improvement Plan (CIP) included a new cost estimate for the high school academy proposed for fiscal year 2006/07, which member Jim Gaston questioned. “Seventeen million for the academy is a pretty large chunk,” he said. “Why can’t they add on to the existing high school?”

First Selectman Herb Rosenthal said some improvements are needed at the police building, but he does not support a new facility. The $4.9 million in the CIP for fiscal year 2006/07 is not a firm number, he said, and “is not a number I’d get behind.”

However, he noted, “We need to make the building more esthetically pleasing and more functional.”

Chairman John Kortze asked the members to individually rank the projects for discussion at the next meeting. The issue of alternatives to the projects would also be discussed at that time.

Mr Spragg said all proposed projects could be approved within current guidelines. Mr Rosenthal explained Wednesday that the Legislative Council and the Board of Finance have a guideline that annual debt service should be no more than ten percent of total expenditures. The debt service for proposed new projects over the next five years plus the existing debt would fall within the ten percent guideline, he said.

Mr Spragg submitted documentation based on ten percent of expenditures growing at three and six percent per year.

Tax Relief For Elders

In other business, the board members discussed a tax abatement/relief plan for the town’s senior citizens. A paper handed out by Mr Kortze noted that the plan would accomplish four major factors: provide relief and stabilization of the added tax burden from budgetary increases to senior citizens; promote and encourage a diversity and character in the population of the town; promote and encourage the long-term residency of senor citizens; and promote a fair and equitable system for tax relief for senior citizens.

Points discussed included several topics, including whether the current plan should be expanded; the age level at which the plan should begin; current levels of relief and whether they should be increased; changing income levels; whether the total amount should be capped and then prorated; possible phasing in of the program over a few years; inclusion of a tax deferment program; and the validation process.

The purpose of the program, Mr Gaston said, “is to keep people here.”

Board member Peter Giarratano asked that statistics be provided to show the economic impact of keeping seniors in their homes versus new families with children coming into the community. Mr Giarratano also questioned whether income levels should be increased to allow more people to qualify for tax relief.

Member Harry Waterbury said a study prepared for St Rose Church for consideration for building new facilities indicated 2.3 children per family. He was asked to bring the study to a future meeting.

Jim Gaston suggested the town continue the current relief plan but offer a tax deferment plan as an alternative. He suggested that residency requirement for a deferment plan should be three years. Under the current plan, one year of residency is required in order to qualify for the tax relief program.

The Board of Finance also voted unanimously for three bonding resolutions: appropriating $400,000 for the planning, design, and construction of new classrooms at Newtown High School; $500,000 for the design and construction of a water main extension to provide clean drinking water to the Middle Gate School; and $245,000 for architectural and engineering services for the planning and design of renovations to the heating, ventilation, and air conditioning system at Head O’ Meadow Elementary School.