WOODBURY — Town officials have instructed department heads to reduce their budget requests by 10 percent for the coming fiscal year in an effort to avoid a potential deficit created by the economic recession.
In a letter sent Dec. 15, Board of Finance Chairman William T. Drakeley said the town will monitor tax revenue collections due at the end of the month to determine whether it can afford to hold the budget flat for the 2009-10 fiscal year beginning July 1. With businesses failing and the financial crisis snuffing out savings, neither Drakeley nor First Selectman Paul D. Hinckley share much optimism tax collections will hit a projected 98.5 percent rate of receipt.
"I would think a percent or more and we'll be looking to make that difference up," Drakeley said. "This next budget year we are going to look at cutting whatever we can."
Drakeley said in his letter that programs "may be severely compromised or eliminated altogether" to meet the goal of cutting 10 percent, but he said "we are facing demanding economic times and we must take difficult steps to avoid putting the town's finances in jeopardy."
Town income already has suffered in the depressed real estate market. Conveyance tax receipts from property transfers dipped 32 percent from the 2006 fiscal year to 2007. And even if sales for the past six months continue at the same pace through the end of the current fiscal year, conveyance revenues will decrease another 12 percent.
Hinckley said he plans to meet with department heads individually this month to determine what they need and what they can cut. Depending on tax collections, he said cuts could impact the current budget.
"Not all departments will be able to cut back 10 percent," Hinckley said. "Some may not be able to cut at all. Some might be able to cut more."
Fire Chief Janet Morgan told the Board of Fire Commissioners last month the department could expect savings from measures to conserve energy but that she would have difficulty cutting her budget because she has little control over many of her costs. Hydrant fees have increased 56 percent, but that amount is set by the state Department of Public Utility Control, she said. In addition, she said the department purchased fuel through a consortium at a high rate before oil prices fell.
Town Clerk Rita Connelly said she could look to cut supplies or conferences, but she said supplies don't amount to much and the state requires she attend several meetings.
"I will need to look at my whole budget and look at what to cut," Connelly said. "We don't really have a lot of fat here."
Hinckley said the town is fortunate it receives about 90 percent of its revenue from local taxes so it will not have to rely on state money that might dry up as it faces its own deficit. But, he said, raising taxes was not the answer.
"We're aiming to keep the mill rate where it is and not put any more burden on our residents," he said.
Reader Comments
The following are comments from the readers. In no way do they represent the view of The Republican American.
Submit a Comment
We encourage your feedback and dialog. Please be civil and respectful. Registered users comments will be posted automatically. All other comments will be reviewed by our staff before appearing on the Web site. Click here to register If you're witty, to the point and quotable, your reader comments may also be included on the Around the Towns page of The Sunday Republican. |
|
|
| Please log in or create an account by filling out the form below |
Login
|
Create Account
|
Subscribers can read more in the e-edition. Login here
E-Edition 
Bookmark
Comments