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06/10/2010 12:00 AMVoters approved a $14 million town and schools budget for the 2010-2011 fiscal year recently by the comfortable margin of 174 to 69. In a year when officials kept the budget very tight, the result is a tax rate that will hold steady at 21.73 mills.
Several factors combined to help town officials bring forward a budget that is actually a few dollars less-$23,501-than the present one, according to First Selectman Dick Smith.
"Our Grand List did go up a little, so that provides us with approximately $73,000 in new tax revenue. We are expecting a small increase from the state in town aid road funds, although other state grants may see cuts. We paid off the last of the sewer construction bonds in this present fiscal year. That decrease really helps. As of this month, the town has no debt," Smith said.
The town does, however, continue to pay its share of the Region 4 school bonds.
Increases came where expected, including a 14-percent increase in health insurance costs. Town Hall employees will receive a two-percent wage increase in the new budget. Last year in negotiations they agreed to a wage and benefits freeze for the 2009-2010 fiscal year, which ends on June 30. There is an increase in salaries for the road crew. Smith also increased the highway maintenance account to bring it up to $100,418.
Within the approved budget is the public health nursing service costs. Voters last month chose to dissolve the Deep River Visiting Nurse Service (see story on p. 1), however, the referendum vote came after the boards of Selectmen and Finance were required to propose a budget for the new fiscal year. As a result, this new budget contains nursing service costs of almost $400,000.
"There will be some costs associated with shutting down the nurses," Smith said. "There are employee payout costs. For instance, employees will be compensated for unused sick time and personal time, also accumulated vacation time. In some cases that is considerable. There may also be unemployment payments."
The nurse service has a pension plan and Smith said actuaries will review it to determine the appropriate payout for those employees.
"We are not sure of exact numbers yet. We will be paying the Visiting Nurses of the Lower Valley $25,000 for service to the uninsured and under-insured. We are estimating a savings of $100,000 overall."
The new fiscal year begins July 1. Residents will be receiving tax bills soon. The tax rate for the new year will remain at 21.73 mills.