Still cutting budgets as 11th hour nears

NORTH CANAAN — There have been budget seasons that seemed uncertain in their early stages. But this year’s process might be the one that truly goes right down to the wire.

Local boards presented plans at a public hearing on April 21 that showed new decreases in proposed spending. They hoped the cuts would offset a large increase in the regional school district assessment, as well as potential cuts in state aid.

Region One education expenses are divided among the towns on a per-student basis. The number of students is counted in October (of 2009, in this case). But the total regional budget is not finalized until May, when taxpayers vote in the regional referendum.

Word from the North Canaan Board of Finance is that still newer and “firmer� numbers are likely to be in place in time for the May 18 town meeting, when North Canaan residents and property owners will vote on the 2010-11 spending plan.

It is highly unusual for the budget numbers to change between the public hearing (when numbers are discussed) and the town meeting (when a vote is taken).

At this point it looks like the municipal budget of $6.6 million (to pay for town offices and salaries as well as road care and repair) has been reduced by $43,589. But the town’s share of the Region One budget will be $307,000 higher than expected.

Revenue, aid are uncertain

With no approved state budget for the current year, it’s hard to say for sure what will happen on the revenue side.

Board of Finance Chairman Louis Allyn said he is not anticipating a huge decrease in state aid, as had been feared.

And North Canaan Elemntary School is anticipating a significant surplus from the current budget (the fiscal year ends June 30). That money can be rolled over to the new budget.

But will taxes increase?

The public comment portion of the public hearing turned into more of a discussion between members of various boards and the few members of the public who attended. It took more of a philosophical bent, as opposed to being about the crunching of numbers.

Resident Scott Fellows expressed concern about tax hikes for homeowners, who, he noted, were faced with higher tax bills a couple of years ago. He wondered if another increase is expected this year.

Allyn said that a previous increase was the result of the 2007 revaluation of taxable properties in town. The values of residential properties had risen substantially from the last time a reval had been done. But at the same time, there was a shift that year that can happen when businesses are able to decrease the value of their assets.

Given the business climate during the 2007 revaluation, when “there was not a house for sale for under $200,000 in Canaan,� more of the tax burden was shifted onto the shoulders of residential property owners, Allyn said.

“Reval is a snapshot in time,� he said. “It wasn’t good timing for homeowners.�

The mill rate has stayed at 21 mills since then, and there are too many unknowns at this point to speculate what might happen to it before this budget season is over.

A mill represents $1 in tax for every $1,000 of assessed property value. A 15-mill tax rate would translate into a tax bill of $1,500 for the owner of a home assessed at $100,000.

Among the unknowns is possible good news: A concerted effort to reduce regional health insurance plans has sparked competitive bidding that is proving to reduce costs for area schools and towns.

North Canaan’s plan for municipal employees, for example, started out at nearly a 20-percent increase. That has dropped to an 11 percent-increase. According to First Selectman Douglas Humes, that increase could be down to 4 percent when all is said and done.

“I’m hopeful we can get through this without an increase in taxes,� Allyn said.

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