Middlefield Finance Board Gets Budget

Middlefield’s tax rate would increase by 1 mill under the $15.6 million budget for next year presented tonight to the town’s Board of Finance.

The total spending plan represents the Board of Education’s recommended $11.2 million budget and the town government’s proposed $4.4 million budget. The combined proposals would see spending increase here by $912,256 in fiscal 2011-2012.

Under the proposed tax rate increase needed to fund the budget, a property owner here with an average assessment of $192,400 would pay an additional $191 in annual taxes.

First Selectman Jon A. Brayshaw presented the budget to the finance board. In a written address on the proposal, Brayshaw said the budget is still “a work in progress with numbers changing constantly,” and he does not expect taxes to increase by as much as projected.

The budget must still be reviewed by the finance board, which can make changes and cuts. It will go before voters at a town meeting in May and must be adopted before the start of the next fiscal year on July 1.

The school budget request represents an increase of 3.1 percent above current year education spending and the municipal budget would see town spending increase by 14.2 percent.

Some of the major increases in the town budget include a 37 percent hike in the cost of street lighting. Brayshaw said that while the town eliminated 40 of its 400 street lights last year to save money, electrical costs were on the rise so that line item jumped from $49,500 to $55,000.

And the costs of employee pensions will jump by more than 19 percent next year because of the continuing financial crisis that has seen all investment accounts showing poor returns in recent years.

And with expected hikes in health insurance premiums also expected for next year, Brayshaw said the town has figured in a 5 percent increase in employee health insurance costs.

The town still must negotiate new contracts with three municipal employee unions and, following a national trend, may seek concessions from the unions to offset some of the increased costs.

State and local employee unions across the country are being pressured to contribute more toward the costs of their health care and pensions and the local unions are likely sensitive to that trend, Brayshaw said.

“I think they know that more than likely the town is going to be looking for them to pay more for benefits.”

There are some positive revenue developments in the proposed budget. The town will receive $100,000 next year as a first installment in its agreement to sell the former Powder Ridge ski area for $1 million to a developer. The town, Brayshaw said, also has proposed a joint resident state trooper program with Durham, which would save Middlefield $60,500 next year.

 “We’re not sure it’s going to work out, but we hope it does,” he said.