Wednesday, March 19, 2008

To Override or not to Override

By Kimberly Reiss

NEWTON - A $24 million override has become a dark cloud over the city. Since Newton is running $10 million behind, and an additional $5 million is needed for the designs for the new elementary school, the mayor has proposed an override of $24 million.

 The override raises taxes in Newton.  The city cannot raise taxes without citizens voting by more than 2.5 percent because of a document called Proposition 2 ½.  The document was issued in 1982 and has been effective ever since.  In 2002 the city issued a $11.5 million override which only passed by 700 votes.  

“My personal fear is that since ’02 we just haven’t done enough throughout the city government to prove to people why we need this money.”  Alderman Scott Lennon said.   

“What we did here in Newton two years ago was to beginning to try and forecast what operating revenues would be for a five year period,” said Dave Wilkinson, city comptroller

Wilkinson said a committee of residents who had expertise in municipal finance analyzed assumptions in the forecast.

“The mayor figured that by proposing $24 million dollars it takes care of the fiscal stability of Newton for the next two years,” Lennon said. 

A yearly tax increase of $24 million could mean as much as $1,000 added to a household’s taxes.

Citizens blame the new Newton North High School building project as being the source of the city’s financial shortcomings.  The behemoth of a high school has become a more than $150 million project.

“The lack of money is intertwined with the new school,” Lennon said.

Lennon is not optimistic about passing the override in May.  He said that this could mean less police, firemen, and other city officials on the streets.  Newton residents have not seen enough actions taken to try and consolidate departments to save money. 

“To me the override should be a last resort and we haven’t taken into consideration to mitigate that.” Lennon said.   

But officials still say the override is necessary, for the financial needs of the city. 

“No question that the city needs the money,” Alderman Anthony Salvucci said. “Everyone thinks it’s just for the school, but it’s cause our costs are rising greater than the income, and this is what we have to do.” 

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