Budget

Fails By

266 Votes

The first-round 2011–12 budget referendum was rejected by taxpayers on Tuesday by a 7.75 percent margin, or 266 votes. According to the final count issued by poll moderators, 1,850 voters rejected the proposal versus 1,584 who endorsed it.

The failed referendum brought out a total of 3,434 voters, 69 of whom cast absentee ballots ahead of the machine vote.

The turnout represented about 20 percent of qualified voters, a relatively small showing at the polls. The one in five voters who did cast ballots declined the proposed $106.6 million spending plan.

The council convened a special joint meeting with the Board of Finance to initiate discussion on a second-round proposal Wednesday evening at 7:30 at the Booth Library on Main Street (see separate story).

The first referendum sought approval of a spending plan that would have distributed $37,922,648 to town operations and $68,703,427 to the school district.

The failed $106.6 million proposal would have increased the local tax rate by more than half of one percent. A mill represents one dollar in taxation for every $1,000 in taxable property.

The defeated budget request represented roughly a 2.25 increase in operational costs over the current year for both the school and town-side divisions. The balance of what was an overall 2.68 percent increase over the current year represents a $1 million, one-time reduction in revenue which eliminates all dependence on the town’s fund balance to offset increased taxation.

The move to wean the town from this practice was a hallmark of the current budget deliberations and a move that was embraced by Finance Director Bob Tait, finance board members, Mrs Llodra and virtually all other town officials expressing an opinion on the move.

Perhaps more importantly, the elimination of fund balance dependence by the town was viewed as possibly removing the final roadblock to a coveted AAA municipal bond rating from Moody’s Investors Service — the highest municipal rating available, and equated to a perfect credit score.

A second-round referendum incorporating the council’s reduction is planned for Tuesday, May 17.