Martin offers update on financial situation

WINSTED — Town Manager Dale Martin said this week that there have been no announcements from the state police major crimes squad in the wake of accounting irregularities in town and the subsequent firing of the town’s finance director, Henry Centrella, and news on the case could take weeks or months to develop as investigators wait for a financial audit.Martin said the town’s former accounting firm, BlumShapiro, must finish its audit of the 2009-10 fiscal year and give the audit to state police, who are investigating missing and improperly handled funds totaling more than $100,000 that disappeared while the former finance director was in office. Centrella, who was fired last month, has been unavailable for comment since his termination and waived his right to have a formal hearing.Martin confirmed state police are investigating Centrella regarding multiple instances of missing or misappropriated funds. The total amount of missing money remains undisclosed.“It could take months or even years for us to find out what happened,” Martin said. “we have to wait for the audit and then see what the state police do with it. It may take a while.”At this point, the investigation continues into numerous irregularities, Martin said.Though Martin said he cannot talk about specifics of any criminal case against current or former town employees, he said he realizes the town’s credibility has been dealt a blow. “People’s faith has been shaken with the whole Henry mess,” he said. “We need to get back their confidence.”Part of that process, Martin said, involves being open and honest about the upcoming budget and explaining to people that, while the mill rate may increase this year, taxes for many residents will remain flat.Accomplishing that task involves multiplying the town’s reduced grand list by a new mill rate, which is expected to be somewhere between 30 and 31, compared with the current mill rate of 25.43. Though that appears to be a sharp increase, reduced property values will translate into lower tax bills.“All you have to do is do the math,” Martin said. “Compare your tax bill now to what it would be under the proposed mill rate and assessment. If you look at the mill rate combined with the assessment you will see your taxes will not go up.”Martin’s current proposed budget for 2013-14 is $31.6 million, compared with the current-year budget of $30.9 million.Martin said part of the plan for the 2013-14 fiscal year will be to add some money to the general fund balance and to allow the town’s Water and Sewer Commission to adjust rates for water users in order to pay back money owed to the town. Fees are expected to rise sharply for water users this year, which means Martin will try to limit any tax increases to a minimum.“Water users have been undercharged for 10 years now,” the town manager said. “That’s why, in addition to water and sewer rate increases, you have to temper the mill rate increase.”Martin said gradually building up the town’s general fund will be a priority in the coming years, but that taxpayers do not appear ready to make a large investment. “We’re not going to rebuild the fund balance in one year.”