Groton budget proposal would hike tax rate 15.4 percent
Groton — The town tax rate would increase 15.4 percent under the town manager’s proposed budget for the coming fiscal year, which means $334 of additional property taxes owed for every $100,000 of assessed value.
Town Manager Mark Oefinger finished his proposed $125.1 million budget this week and outlined four possible scenarios Groton may face with regard to state aid. The most optimistic assumes the town would receive about the same amount as this year; the most pessimistic assumes it would lose $13.3 million in state support.
Under the best scenario, the town tax rate would still rise 9.1 percent because the grand list declined this year and costs rose for items like insurance. The 9.1 percent tax rate hike translates into $197 in additional taxes for every $100,000 of assessed value.
Under the worst scenario, the tax rate would soar 25.6 percent, or an additional $556 in local property taxes for every $100,000 of assessed value.
Oefinger’s budget assumes neither extreme but something in the middle — a $5 million loss in state education funding.
“We’ve got to start somewhere,” he said Thursday. “We’ve got to sort of frame the issue.”
Town Councilor Diane Barber said she knew the budget would be bad, but it was still overwhelming.
"How do you even start?" said Barber, who hadn't seen the proposal yet. "How do you not just throw your arms up and say, 'I give up?'"
The budget represents an overall increase of about $3.6 million in spending, or 2.9 percent over the current year.
Education spending would increase 1.7 percent,the subdivisions, Groton City or Groton Long Point, would receive an overall 5.5 percent increase and the town would place an additional $225,000 in contingency, a 52.9 percent increase. Contingency is money set aside for unforeseen expenses. Oefinger proposed the addition to cover future wage increases not yet known.
Spending on town operations would increase 2.7 percent, mostly because of higher costs of insurance and claims, and contributions to other funds. The personnel portion of the town budget has been whittled down over the years; Groton has cut 51 full-time positions from town departments since 2002.
The budget also includes an increase of about $787,000 or 13.8 percent for capital spending and debt. The town has a growing backlog of capital needs and a limited reserve, Oefinger said.
At the same time, local revenues are down. Groton just completed a revaluation of property and the Oct. 1, 2016 grand list fell 1.9 percent from the previous year. Even if all other things remained equal, Groton would need a .43 mill rate increase to make up for the loss, according to budget documents.
Town Councilor Rich Moravsik said he hasn't seen the proposal, but the council won't let taxpayers shoulder the whole burden.
"This is a three-way deal," he said. "The board of education, the taxpayer and the staff. And we're all going to share."
If the state cuts education funding, the town might not make up the whole difference, Moravsik said. Capital projects might have to go on hold unless they're safety-related and the town may freeze hiring, he said.
Groton Town also isn't required to fund the police departments in the subdivisions, Groton City or Groton Long Point, he said.
"Before we hit the taxpayer, we're going to strip down everything we can," Moravsik said.
Despite the potentially devastating revenue picture, one comparison shows the town's tax burdens compare favorably to other towns. The State of Connecticut/Municipal Fiscal Indicators for Fiscal Years 2011-2015 compared 168 of the state’s 169 municipalities.
Groton ranked 100 in its debt per capita, 108 in its education expenses per pupil and 144 in its tax levy per capita.
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