August 30, 2014

Deep River Town Meeting Approves Revised $15.27 Million Budget After Initial Referendum Defeat

DEEP RIVER— A slightly reduced $15,277,887 town/schools spending plan for 2014–2015 was approved at a town meeting Monday on a 92-24 paper ballot. The budget, which will require a 0.80 increased in the property tax rate, was initially rejected on a 115-78 vote in a May 27 referendum.

After the referendum defeat, the finance board approved a $25,000 reduction, $12,500 from the town government budget and $12,500 from the appropriation for Deep River Elementary School. But the board was unable to make any changes to the major factor in the tax increase, the town’s share of the Region 4 education budget, after it was approved in a separate referendum on May 6. Voters in Deep River opposed the Region 4 budget, 156-69, but it was approved with support from the voters of Chester and Essex.

With more students attending Valley Regional  High School and John Winthrop Middle School, Deep River faced a steep $442,063 increase in it’s share of the Region 4 budget. The Region 4 increase accounted for all but $56,313 of a total spending increased of $498,376. With declining enrollment, the $5,461,500 appropriation for the elementary school was actually down by $49,658.

Finance board chairman John Bauer said the board was unable to make any reductions in the Region 4 appropriation that could have reduced the tax increase. “Nothing can be done after that budget is approved” in the three-town referendum, he said. Bauer said the town government and elementary school appropriations were already “very tight,” adding the town is unable to transfer any money from an undesignated fund balance that only contains about $500,000.

Richard Balducci, a former speaker of the house who also served on the local board of finance, urged the crowd to approve the revised budget, and then become more involved in the Region 4 budget process and referendum next year. Balducci contended the supervision district budget, which funds shared services in the school system and is then included with the Region 4 and elementary school budgets, can be a major factor in higher education costs even with lower student enrollment.

After about 30 minutes of discussion, voters lined up to cast paper ballots on the budget. The new tax rate of 25.88 mills represents $25.88 in tax for each $1,000 of assessed property value.