Capital Improvements Spending Cut in Proposed 2012-13 Budget

The decision by finance officials to reduce the capital improvements portion of the proposed 2012-13 budget means less will be allocated for school driveway upgrades and town road improvements.

In total, the Board of Finance removed $125,000 from that portion of the proposed municipal budget.

The move eliminated the Board of Education’s proposal to improve the driveway entrance to Canton High School at $75,000 and trimmed $50,000 from the Board of Selectmen’s capital plan – likely to come from the road maintenance funds.

That change brings the allocation for road maintenance to $450,000, which is still $50,000 more than the current year.

Not everyone agreed on the reductions, though. There were many varying thoughts on the budgets and some proposals to cut the operating budgets.

First Selectman Richard Barlow, Superintendent of Schools Kevin Case and Board of Education Chairwoman Beth Kandrysawtz said each plan contained few new initiatives in light of hard hits on insurance and health-care costs. They said the cuts would affect services and educational instruction and staff. 

In the end the finance board voted to keep the operating portion of the budgets as the boards of selectmen and education proposed.

The changes made to the budget proposal mean the bottom line is now $34,739,474, a 2.12 percent increase over the 2011-12 approved budget of $34,015,978.

The plan will now go to voters. The annual budget meeting is scheduled for May 14, but the plan will likely be petitioned to referendum.

Part of the lengthy discussion centered on the impact to taxpayers. Prior to the meeting, the 2012-13 proposal would have meant a 1.22 percent tax increase, resulting in $81 more a year for the owner of an “average” home, valued at $361,429 and assessed at $253,000.

Some board members were very hesitant to raise the mill rate by the 0.32 mills.

Mary Tomolonius and others said many families are still struggling financially.

"We do have a lot of residents who are living almost on the margins,” she said.

On the other hand, people have come to expect certain levels of service, member Ike Eickenhorst said.

“I prefer we go with what’s here,” he said.

In the end the finance board came up with a compromise to close the budget “gap” — the amount the town would fall short if the budget were passed as proposed under current revenue projections. It is closed through taxes, other revenue ideas or cuts. 

At the suggestion of the chairman Richard Ohanesian, the board voted to project the tax collection rate at 99 percent for 2012-13, resulting in an estimated $75,000 more revenue than the projected 98.75-percent collection rate.

With that move and the cuts to the capital portion of the budget, taxes will go up by 0.14 mills if voters approve the proposal. That brings that extra $81 in taxes for the “average” homeowner down to $35.

Superintendent Case said he was pleased the board did not cut the operating portion of the Board of Education budget, which he said would have impacted staff and education.

“I’m thankful for the support of the Board of Finance," he said. "They realized we presented a fiscally responsible budget that will continue to move our school district forward.” 

The $75,000 removed from the school budget brings the proposed education budget to $23,440,402, a 3.6 percent increase over the 2011-12 approved budget of $22,618,066.

The $50,000 reduction in the Board of Selectmen’s budget brings it down to $9,437,222, a 2.3-percent increase over the 2011-2012 approved budget of $9,221,562.

First Selectman Barlow said he was thankful the Board of Finance did not go forward with any cuts to the operating budget.

“I’m pleased that the operating budget was approved as proposed,” he said.

Barlow did add that he was disappointed with the $50,000 cut in the capital plan, which he said will have to go to the Board of Selectmen but added that it would likely come from the roads. Cutting other items such as the funds put aside toward vehicle replacements would be detrimental and not make sense financially, Barlow said.

Roads were the topic of some discussion at the meeting. Selectmen had proposed $500,000 for road work and have discussed getting the yearly funding for the line item closer to the $600,000 to $700,000 recommended in a pavement management study done for the town.

Ohanesian asked how realistic that was considering an $18 million proposed bonding package for November, which includes some $7.5 million for roads. Bonding, whatever the eventual funding amount, would already add impact to future budgets, he said. 

He said he understood that the road bonding would be for major projects and the yearly funding for maintenance and prevention but was still worried the town couldn’t afford it all.

“My concern is going forward is how sustainable that’s going to be,” Ohanesian said.

Chief Administrative Officer Robert Skinner said roads are a big priority to many.

“The one area for the town side I hear (about most) is the roads,” Skinner said.

He also said the maintenance and work would save money in the long run. The study gave some techniques and priorities and road conditions which would give the town a roadmap to salvage marginal roads before they required complete reconstruction, Skinner said. Not keeping up roads funding would put the town right back where it is, he said. 

While some Board of Finance members proposed trimming $100,000 from the selectmen's capital spending, others wanted to maintain it.

Member Brian First recommended, “splitting the difference,” an action the board carried forward.