Town's budget crisis must be remedied

Less than two weeks after being elected, Winsted’s new Board of Selectmen is already in crisis mode, having inherited a budget shortfall that could leave the town broke by the end of the year. And while the problem is not new or particularly surprising, the extent of the crisis should be enough to alarm townspeople, who may be asked to approve a loan system in which the town issues tax-anticipation notes next month.

The big news — that Winsted may end up half a million dollars or more over budget next month without revenues to cover the expenses — came as somewhat of a shock to board members and town residents, who weren’t notified about the problem until the day after the Nov. 3 election. The bearer of the bad news, former Town Manager Keith Robbins, conveniently resigned a week later.

Now, selectmen are scrambling — along with the town’s finance director, purchasing director and school administrators — to find ways to defer costs while speeding up payments to the town from state and federal agencies.

The most obvious problem is the town’s embarrassingly weak fund balance. At just more than $390,000, the fund balance is more than $1 million less than it should be. This is the result of near-sighted budget policies aimed at saving taxpayers money each year in the annual budget.

Instead of putting money into the fund balance, selectmen have bowed year after year to the rantings of so-called taxpayers’ representatives who call for zero-tax increases each year. One-time payments to the town that should have gone into the fund balance have been used to appease a vocal minority.

In the process, town leaders have repeatedly failed to stand up and properly defend their budgets, resulting in a string of failures at referendum and successive rounds of cuts. When the final cuts have been made, no one dares to say, “Hey, let’s put some money into the town’s savings account.�

Well, now is the time to say just that. The fund balance needs to be restored to a reasonable level by this Board of Selectmen as soon as possible. The balance should be increased to at least $1 million, beginning immediately in the upcoming fiscal year. Voters should recognize the importance of funding this account instead of using revenues for short-term tax reductions. No one wants to get into the business of borrowing money to pay the bills.

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