Claremont
In his letter to the City Council accompanying the budget plan, McNutt said such austerity is needed to avoid a significant tax increase.
The spending proposal for the fiscal year beginning July 1 represents a 3.6 percent decrease from this year’s $17 million budget and includes one layoff at the library.
It also relies on roughly $900,000 from the city’s reserve fund to pay for several expenses, including culvert repairs and the debt payment on the bond for redevelopment of mills on the Sugar River.
Though spending is down, McNutt is estimating a property tax rate increase of 6 cents per $1,000 of assessed valuation if the budget is approved as recommended.
The council will begin its budget review on May 11.
In a letter to the council on Tuesday, McNutt highlighted some of the rationale behind his proposal. He said to balance the budget he relied on the elimination of one full-time position, used one-time revenue and left two positions unfilled, a retiring firefighter and retiring city solicitor Jane Taylor. McNutt said using an outside firm specializing in municipal law will save money.
McNutt said he was faced with some “difficult choices” when prioritizing the needs of the city.
Addressing a staffing shortage in the police department and reining in the city’s tax rate, the highest in the state, in the long term were McNutt’s main objectives.
“The only way out of the deficit and tax burden situation is through economic development,” McNutt said in his letter to the council.
To that end, he has assembled an economic development team focused on business retention and identifying opportunities for commercial, industrial and residential growth.
Completing the Peterson Mill on Water Street, which stands vacant, though with new windows and repointed brick, could ease the burden on taxpayers, he said.
“That mill and a few others are key priorities that will, once completed, result in significant new growth. A goal of approximately $300,000 in net new tax base each year is reasonable and achievable,” McNutt said, noting that about $7 million was added to the grand list as of April 1, primarily because of North Country Smokehouse and Jewell Trucking in the Syd Clarke Park and National Field Representatives on Maple Avenue.
Among the department budgets that were reduced in McNutt’s proposal was the fire department, about $90,000; the library, $156,000; and streets and roads, $256,000. Police increased about $107,000 and welfare and assessing also increased.
Though the paving line item is zero, McNutt said the city has $50,000 remaining on a road bond and there are other infrastructure improvements scheduled for this year, including new sidewalks on Belding and Myrtle streets and road reconstruction on Main Street from Opera House Square to Leo’s Market that will include water and sewer replacement and new sidewalks.
Except for a small contribution a couple of years ago, the city had not donated to the nonprofit bus service that serves Claremont, Charlestown and Newport. When Southwestern Community Service took over the service last October, the city gave $22,500 for the nine months that will end on June 30. Last week, SWC’s Chief Development Officer Keith Thibault made a plea to the council for a $30,000 donation next year, saying that local funding was critical to the bus service’s long-term survival. No such funds were included in McNutt’s proposal.
Patrick O’Grady can be reached at pogclmt@gmail.com.
