Morristown Stays with Two Tax Payments

by Amy Kolb Noyes

MORRISVILLE - The Morristown Selectboard has decided to stay with its
system of collecting two tax installments a year, rather than change to
a four-installment system. One resident, however, has said he will force
the issue to a town-wide vote on Town Meeting Day.
Morristown had originally planned to vote on changing to a
four-installment system at Town Meeting last March, but decided to pass
over the measure due to concerns raised by the school district, a new
statewide property tax law and the town's recent reappraisal. In
compiling a budget to be voted on at the next Town Meeting, the board
again came up against the tax installment issue.
Lamoille South Supervisory Union Chief Operating Officer George Cormier
discussed the issue with the selectboard at its meeting Monday evening,
January 3. He said financial impact to the school district of moving to
a four-installment system would be a loss of $5,000 to $10,000.
Cormier explained the financial picture is the same as it was when the
issue was discussed last year. He said the school district earns several
thousand dollars by borrowing funds in anticipation of taxes at a low
interest rate, and investing that money, until it is needed, at a higher
rate. The interest earned is used, he said, to offset taxes.
Cormier said switching to a four-installment system would have a
negative impact on the school district's cash flow, resulting in a
short-term loss of $5,000 to $10,000. In the long term, Cormier said the
impact could be even more significant. When profit rates were higher,
Cormier said the school district's arbitrage profits were in the $15,000
to $20,000 range.
Cormier also reiterated a comment made at the 2003 Town Meeting by Town
Clerk Mary Ann Wilson. He noted, under the current system, taxpayers are
welcome to make two, four or more tax payments each year. If the system
is changed to a four-installment collection, taxpayers will lose the
option to make only two payments.
Selectman Shaun Bryer said, in his opinion, the town should stick with
the two installment system due to the concerns raised by Cormier as well
as the fact additional installments would necessitate additional
administrative work for the Town Clerk's office and the listers. Bryer
said the board has heard the issue, discussed it and considered it, "and
now we're hearing from our own people and from the school district that
this wouldn't be advantageous."
Selectboard members Cathy Voyer and Jim Paige said "ditto" to Bryer's
statement. Chairman Brian Greenia also agreed and suggested the town
send out reminders that taxpayers are welcome to pay their taxes on
their own schedule, rather than just two installments.
Resident Richard "Buckwheat" Lowe was in attendance for the discussion.
He argued that Stowe has gone to a four installment system and vowed to
circulate a petition to have such an article put on the Town Meeting
Warning.