Voters reject borrowing, approve new fire truck

WINSTED — In a referendum with low turnout Saturday, Sept. 11, Laurel City voters narrowly defeated a proposal that would have allowed the town to borrow against future taxes to pay current bills, but approved the purchase of a new fire truck with a five-year loan of $415,000.

The first question on the ballot asked townspeople for an up or down vote on tax anticipation notes (TANs) which would have provided temporary money for the town to use to pay bills. The request to borrow as much as $2.5 million with bank-issued short-term notes was explained by town Finance Director Henry Centrella last week as a way to save the town from being financially insolvent during a year when the town’s available fund balance has dropped to dangerously low levels.

Selectmen say the fund balance has decreased to less then $200,000 this year due to overages in the 2009-10 budget.

The proposal to use TANs was rejected by a vote of 299 to 253, with taxpayers complaining that the town should not be seeking credit during a time of fiscal distress.

Separately, however, townspeople did approve the purchase of a new fire truck. The purchase, outlined by Fire Chief Robert Shopey at recent selectmen’s meetings, allows the Winsted Fire Department to purchase one new truck as a replacement for two old ones. The loan of up to $415,000 was approved by a vote of 335 to 218.

On Monday, Mayor Candy Perez said she was working with Town Manager Wayne Dove to determine the next course of action. “We’re kind of already in a spending freeze,� she said. “Now we have to figure out what we’re going to do moving forward.�

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