Orange Budget Proposal Wouldn't Raise Tax Rate

Orange's budget would increase 3.6 percent to $61.4 million but the tax rate would remain at 31.2 mills under the 2013-2014 budget proposal released Friday in Town Hall.

However, changes in housing assessments will affect whether homeowners' taxes rise or fall, said First Selectman Jim Zeoli.

Contractual requirements and energy costs are driving the increase, Zeoli continued.

A mill is a $1 tax per $1,000 of assessed value. The average home resale value in Orange is $355,500 and the commercial market value is $328,800, officials said.

Also, the Grand List, or the list of all taxable property in town, grew between 4.5 percent and 5 percent, said Finance Director Al Chiarenzelli.

The town is maintaining its AA+ bond rating, Zeoli noted.

But, he added, "this has been a very difficult budget process" due to revaluation and from having frozen the last revaluation process.

Economic Development

Economic development, specifically by the United Illuminating Co. on Marsh Hill Road, is helping offset residential taxes, Zeoli said. Also, two properties, the former Finlay Jewelry building and the former Wallach Surgical building, have been returned to service.

About 63 percent of the tax base is residential and 37 percent is commercial, according to Chiarenzelli.

"All of these economic drivers have helped increase the Grand List," Zeoli said.

"The budget is solid. Our finances are solid," the first selectman said. The pension fund is also in good health, and the town recently moved away from traditional pension plans.

Meanwhile, the town will be selling $15.4 million in bonds in part to fund school projects.

Zeoli credited town employees and volunteers with keeping the town in good financial health. "We have incredible volunteerism in this town," he said.

"Orange is about as solid as we can be. We're like Gibraltar," according to Zeoli.

Final proposed budget numbers will be released by April 10, officials said.

The Board of Finance budget hearing will be held April 24 at 7:30 p.m. at the High Plains Community Center. The annual town meeting takes place May 9 at 7:30 p.m. at the community center. 

The budget referendum takes place May 21 from noon to 8 p.m. May 21 at the community center.