Town’s Grand List Goes Up Slightly
February 4, 2010 by Josh Morgan
Despite the economic downturn that has affected many similar communities, the Town of Cheshire experienced growth to its grand list over the last year.
The grand list grew to $2.82 billion, an increase of over $10 million from Oct. 1, 2008 to Oct. 1, 2009. The grand list represents the total value of taxable property in town, comprised of three areas: real estate, personal property, and motor vehicles. The growth of .36 percent, while smaller than previous years, was still a positive indicator as some other communities are seeing no growth or, worse, a decline in their grand lists.
“To see this grow is a positive thing,” explained Town Manager Michael Milone. “Some towns are seeing a decrease. This is not the most glamorous subject, but it's important. It's important to know how much revenue we have to work with.”
More than 75 percent of a given year’s operating budget is funded through tax revenue. If nothing changes and the mill rate stays the same, the growth in the grand list will provide an additional $261,000 in revenue. Of course, the Town Council, when it begins discussing the budget, can choose to increase the mill rate and raise taxes, which would produce more revenue. Knowing the value of the grand list provides the Council with less questions as budget preparations continue behind the scenes. Already faced with a $1.4 million shortfall from last year’s budget, the news of growth to the grand list is welcomed.
“This gives a sense of how much money we have to work with,” Milone said. “On the surface, you'd think that we'd be disappointed, but you have to consider the economic climate. Many towns are not seeing growth this year.”
The real estate portion of the grand list increased by more than $9.8 million, or .39 percent, over the last year. Motor vehicle values increased by 1.6 percent, or $3.1 million. Personal property decreased by more than $2.8 million, or 2.5 percent. Milone believes that motor vehicle growth was down simply because, in this economy, many residents are not purchasing new vehicles, he surmised.
In regards to personal property, businesses might not be purchasing new items in an effort to scale back, and the decrease in value is standard depreciation.
“Businesses are not buying equipment and are holding onto what they currently have,” Milone said. “People also aren't buying cars. The buying habits of Cheshire residents has changed.”
There was little movement in the top 10 taxpayers in Cheshire, with Bozzutos Inc. making up nearly 2 percent of the grand list. Connecticut Light & Power was second, 181 West Johnson Ave, commonly referred to as the Bob's Building, was third, and Cheshire Biotech Acquisition, the home of Alexion Pharmaceutical and Arch Chemicals, was fourth, with Macy's rounding out the top five.
The 2008 grand list grew by $291 million, or 11.5 percent, but that was related to the property revaluation that occurred throughout town. In 2007, the grand list increased by $22 million and, in 2006, it grew by more than $26 million. Milone said that, despite the Town not experiencing its average of $25 million in growth, he was still pleased that the grand list increased.
“These numbers are critically important to the formulation of the budget,” Milone said. “There was never really a fear of the (grand list) going down, but there was worry about no growth at all. This will help with the budget and any growth to the grand list is positive.”