Town Budget Promises an Inconsequential Hike in Taxes

Yes, Virginia, there is a Santa Claus. Well, Almost

 

By Lloyd Garrison

Michael Sconyers, chairman of the Board of Finance, presents the 2012-13 budget at the annual budget hearing.

Michael Sconyers, chairman of the Board of Finance, presents the 2012-13 budget at the annual budget hearing.

Norfolk’s Board of Finance Chairman, J. Michael Sconyers, may be no Santa Claus, but with a creative shift of funds from one column of the budget to another, he has given the town something to cheer about come tax time in 2012.

The budget for fiscal year 2012-2013 had already been approved by the Selectmen when Sconyers rose to present it before the annual budget hearing in Botelle School’s Hall of Flags auditorium the evening of April 30.

He was quick to stress that the mill rate, which had stayed nearly constant the last two years, would rise from only 20.11 to 20.18, an increase of a mere 0.07 mills. “For example,” said First Selectman Sue Dyer, who fielded questions from an attentive audience, “a house valued at $200,000 would see their taxes rise only $14.”

The more than 30 residents in attendance had reason to be cheery, especially when comparing Norfolk’s mill rate with several surrounding towns. Winsted’s projected tax rate is going from 25.43 to 27.43 mills. Colebrook’s mill rate last year was 26.

In effect, Sconyers and the Board of Finance have managed to hold the line on taxes at a time of sluggish revenues, depressed real estate values and an economy still climbing out of a recession. They did so while increasing spending on education by 2 per cent, paying an extra $50,000 into an under-funded pension account and shifting from a fixed-pension plan to a 401(k) plan for town employees. “The 401(k) will cost the town more in the immediate future but less in the long run.” said Sconyers in an interview before the meeting began.

The shift from one column of the budget to another amounted to $400,000. It originated in an account containing unspent funds that is listed in the budget under “Positive Fund Balance.” It was shifted to beef up the town’s revenue, thus avoiding a more substantial hike in the mill rate. “There is no risk here,” said Sconyers. “We still have over $1 million in reserve to be used as needed for future contingencies.”

Photo by Lloyd Garrison.

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