Residents Approve Appropriations Despite Mistake in Deep River, Connecticut

DEEP RIVER - First Selectman Dick Smith admitted a clerical mistake was made, leading the town to appropriate $147,895 less than it should have for Regional District 4 for the fiscal year '06-'07 budget.

Smith said the error occurred in February 2006 when members of the Board of Selectmen and Board of Finance were preparing the town budget.

Normally during town budget preparation, numbers are presented, changed, entered into a computer program, and reviewed on a weekly basis.

During this time, Regional District 4 also prepares drafts for its budget.

That budget assesses the towns of Chester, Essex and Deep River based on projected enrollment figures for students attending the John Winthrop Middle School and Valley Regional High School, both in Deep River.

Smith said the Regional District 4 budget combines debt service and operating expenses while the two are separated out in the town's budget.

This mistake was discovered in February 2007 when the Board of Finance was preparing a budget for fiscal year '07-'08.

The Board of Finance did not immediately transfer money from the unallocated fund balance into the Regional District 4 line item, Smith said, because we "wanted to wait until the end of the year to make sure that it didn't change since schools could have been short or had money left over."

Independent auditors who reviewed the town's accounts earlier this year confirmed that the mistake took place.

Voters at the Regional District 4 Board of Education Referendum in May 2006 approved the town of Deep River to spend $5,419,565 to the district while the Deep River Town Budget included only $5,271,670.

"Region 4 still got the funding that residents approved," Smith said, adding that students were not affected by the mistake and that this was not overspending of finances by Regional District 4.

"This is the first time in my 18 years," that a budget mistake of this magnitude occurred, Smith said.

However, Smith noted that if the mistake were not made, the Board of Finance probably would have set the mill rate higher, resulting in higher taxes for Deep River residents.

The $147,895 amount was just one of nine appopriations totaling $462,343 that was approved by residents at a special Dec. 11 town meeting.

A $20,092 appropriation for the selectmen's budget comes after the account manager left, requiring the town to pay for accumulated sick time, vacation, insurance and overlapping training time for a new account manager.

An appropriation of $43,562 for town building operations covered the increased costs of fuel oil, electricity and building repairs while $39,952 was appropriated for police protection, which is fully reimbursed through grants and other revenue.

A $40,304 appropriation for the highway department consisted of monies designated for salary, equipment maintenance and road maintenance.

Some $45,961 was allocated for waste recycling with funds going toward tipping fees, bulky waste coverage and household hazardous waste.

An appropriation of $30,598 was designated for sanitation and this cost occurred when the town joined the Connecticut River Area Health District, with some of that cost offset by grants.

The $53,678 allocation for public health nursing included items such as supervisor's salary, extended hours, health services, secretary's salary, medical/professional expenses, nurses' salaries, and professional dues and fees.

Some $40,301 was allocated for capital outlay projects that include the Village Street Bridge, road repair and Devitt Field irrigation.

Smith said unanticipated revenues of approximately $300,000 means that only about $150,000 would need to be transferred out of the unallocated fund balance.

Smith said the only residents voting against the appropriations were John Kennedy, Susan Huybensz, Claudia Epright, and Anna Pollock, all members of the Deep River Independent Party.

This past November, the party unsuccessfully ran Kennedy against Smith, one of the longest serving first selectmen in the Connecticut River Valley.

In a recent letter, Huybensz accused the town of "ongoing poor financial planning and money mismanagement."

According to the Dec. 11 town meeting minutes, Selectman Richard Daniels told residents, "If you compare our budget to other towns, you will find that Deep River's budget is very lean."

However, Smith said to prevent large over-expenditures of money in the future, several steps will be taken.

Board of Finance Chairman John Bauer agreed to add funding to the highway department and building operations, two budget items that exceeded their budget the past several years, Smith said.

Bauer also indicated to Smith that additional appropriations to transfer money from the unallocated fund balance to other accounts would be made throughout the year rather than waiting until the end of the year.

"If we act on them individually throughout the year, it will require more advertising for each meeting and could be more expensive," Smith cautioned.