March 1, 2012
Savings Achieved on Refunding
Last week, the town went through the process of refunding some of our outstanding bond debt. A refunding is very similar to refinancing a mortgage. Just as many homeowners are taking advantage of low interest rates by refinancing their homes, municipalities can go through the same process.
All told, the refunding will save taxpayers approximately $571,000 over the next 14 fiscal years. The refunding was done on bonds issued in both 2002 and 2005. I want to thank Maggie Cosgrove, our CFO, for all the hard work she put in to make sure we took advantage of this opportunity.
We are always looking for ways to save money and opportunities like this are just one method we can use.
Recommended 2012-13 Budget Presented
This week, I will be releasing my recommended town budget. A lot of hard work goes into the creation of this budget and I want to thank all the staff members who worked diligently to present a budget that moves the town forward.
The overall town budget will represent a decrease in spending compared to the current fiscal year. Two main factors contribute to this overall decrease. First, we are experiencing a significant drop in debt service as some of the bonds from previous projects are paid off. Along with the drop in debt service, we are also seeing an associated drop in revenue from matching state grants as some of this debt was from school construction projects.
Second, we have seen a large decrease in the cost of health care. We have been moving employees to less expensive health plans and experiencing lower utilization of health services. When going into contract negotiations with unions, I have been very focused on benefits, including the health plans. While all of our full time employees deserve a good health plan, governments can no longer afford the generous health plans of the past. Our health costs continue to be a major focus of mine and I’m glad we are in a situation where costs are in decline.
As of the writing of this column, I do not yet have final budget numbers. However, the entire budget will be released this week and put on the town website. The budget contains a summary of changes and department budgets by line item. I would encourage all residents to look at the budget and provide any feedback.
I will be presenting the town budget to the Board of Finance on Monday, March 5 at 7PM at Town Hall. The public is invited to attend so they can comment on the proposal. After I make my proposal, the budget is then in the hands of the Board of Finance who has the ultimate say on what gets presented to the town.
- Gregg Schuster
First Selectman
Previous Selectman Notes can be viewed at
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