It looks as though Naugatuck residents will have a vote about how the borough spends its money in the 2013-14 fiscal year.
The head of Naugatuck Taxpayers in Revolt, a budget watchdog group, has set into motion the process by which one forces a referendum on the budget, per borough Charter.
Alec Wargo picked up a petition form Wednesday at Naugatuck Town Hall after he said many people contacted him and asked him to get the ball rolling. Wargo, and those who want to help, have until May 31 to collect signatures from 8 percent of registered voters – or about 1,400 people – on petition forms for both the municipal and education budgets.
“In general, we’re doing this because they need to reduce spending,” Wargo said. “It’s a matter of going back to the same old story: the town has a lot of wants and some needs. …And the town is saying, ‘We need to give them all of this stuff, so we have to raise taxes.
“The people just got brutally killed by the collapse of our economy and it has come back some but it hasn’t come back entirely."
Wargo said many people will help collect signatures. He said he hopes to collect about 1,600 because he knows that some of those who sign may not be registered to vote.
He said people will be collecting signatures at various places around Naugatuck, including outside of Stop & Shop in Mountview Plaza, Cindy’s Grocery, Nelson’s Pharmacy and various gas stations. He said other businesses have given permission to have petitions forms available, as well.
The Budget
Naugatuck officials set the tax rate for next fiscal year at 44.8 mills last week after approving a budget of $110.9 million, a 3.08 percent increase in spending.
The tax rate, expressed in mills, is up significantly from 33.55 mills after a state-mandated revaluation saw the average home drop in value by 29.1 percent. The average house in Naugatuck was assessed last year at $171,000, according to the Naugatuck Assessor’s Office, which says the average house has now dropped to $120,000. In the current fiscal year, the average homeowner paid $5,737 in real estate property taxes, and will pay $5,376 based on the new tax rate.
The increased tax rate, however, means that in all likelihood, most people will see a significant increase in automobile taxes if the budget is approved. Commercial property owners are also likely to see a significant tax increase as those values went down just 3.8 percent on average in the revaluation.
The net increase in tax rate – what the increase would be had there not been a revaluation – is .93 mills.
The school portion of the budget was set at $59.47 million, an increase of 2.4 percent, and the municipal budget was set at $51.42 million, an increase of 3.87 percent.
The Referendum Process
Naugatuck officials usually set the budget and tax rate without say-so from voters. Per the Charter, someone must petition and get signatures from 8 percent of voters to force referendums on the school and town budgets.
In order for the votes to count, 15 percent of registered voters must vote at the referendum.
If the budgets fail, borough officials make cuts and send it to a second referendum. If that fails, it goes to a third and final referendum. If the third referendum fails, borough officials are expected to make cuts and then set a budget that they believe is appropriate.
Two Takes on the Budget
Wargo says he believes Naugatuck is doing exactly what he believes the state is doing, which is “driving businesses out of the state.”
“This budget will have a significant impact on the businesses in this town,” he said.
Mayor Bob Mezzo, following the budget adoption meeting last week, had this to say about the budget:
“I’ve never been happy with the budget for four years because ultimately we’ve increased the tax rate. We have been forced to in many instances due to increases in costs, contractual costs, utility costs, etc. I do think we’ve made significant process in the past two weeks to get the budget down. I thought it would be very difficult to get it below 45 mills, particularly with the significant loss in state revenue (more than $600,000).
"I would not say I’m satisfied (with the budget)," he said. "I think many of us are exhausted after the long process, but I think everyone in this room (Board of Finance members and burgesses) is very conscious of the economic conditions and produced a very responsible budget, not filled with gimmicks, and one that will not put the borough in jeopardy in years to come, which is what we have tried to do in previous years.”
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
