Sent: Thursday, June 10, 2004 12:28 PM
To: Avon Board of Finance; Avon Town Council; Avon Board of Education
Cc: 'Philip Schenck Jr.'; Dr Richard Kisiel (Central Office)
Subject: For the Record - Deficiencies in the Construction of the Budget
3. Supplemental Motor Vehicle Taxes; Building, Structure & Equipment Fees; and Fees for Police Services - habitually,
the Town has underestimated revenues from these sources. In 2002-03, actual revenues from these three items
exceeded the budget by $410,042. The estimated revenues for 2004-05 appear to be underestimated by approximately
$188,000.
4. Cafeteria Sales and Cafeteria Grants - Consistently, estimates of revenues for Cafeteria Sales and Cafeteria
Grants have been lower than the prior year's actual revenues, which do not make sense when the student
population has been increasing every year. These revenue items must be re-estimated. Concurrently, the estimate
of expenditures for Cafeteria Operations must also be re-estimated since the current budgeted expenditure is clearly
understated based on prior years' actual experience.
5. Sewer Operations - On June 1, 2004, I submitted a request to the Town Manager and the Town Engineer to
defer the implementation of the increase in Sewer Use fee (that was scheduled to take effect July 1, 2004). I
maintain that the balance in the Sewer Fund ($1,303,217 as of June 30, 2003) was adequate to meet any
contingency. Furthermore, for fiscal year 2003-04, actual sewer use charges are estimated to exceed budgeted
revenues by more than $200,000, which would be added to the fund balance. Lastly, the reduction in cost of the
upgrade to Simsbury's treatment facility will result in a substantial reduction to Avon's share of such cost.
In my opinion, the following principle applies to all of the above:
"Accumulation of tax funds where the only apparent purpose is to accumulate is taxation without a public purpose. "Taxes [***28] are levied because they are necessary to defray the expenses of government and not for the purpose of enriching the public treasury. Taxing authorities, therefore, will not be permitted to levy taxes faster than they are likely to be needed. An unnecessary accumulation of money in the public treasury is unjust, impolitic and against the policy of the law." Cities Service Oil Co. v. Carter, 247 La. 974, 984, 175 So. 2d 288 [**1169] (1965); People ex rel. Brenza v. Morrison Hotel Corporation, 4 Ill. 2d 542, 547, 123 N.E.2d 488 (1954); People ex rel. Kramer v. Chicago, Burlington & Quincy R. Co., 8 Ill. 2d 382, 387, 134 N.E.2d 335 (1956); 84 C.J.S., Taxation Section 352 c (3)." (Caulfield v Noble, 178 Conn 81; emphasis supplied)
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