Paul Babarik of the Elderly Tax Relief Committee discussed the committee's recommendations with the Board of Selectmen at its Tuesday, Feb. 21, meeting, at the Town Hall.

First Selectman Edward B. St. John said that in its present state, he will not bring the committee's recommendations before the Board of Finance because economic times are tough and the potential loss of revenue from the program is too great.

Babarik said the first year of the program could result in a reduction of revenue in the $150,000 - $300,000 range. The following years should show a reduction in Middlebury's portion of Region 15 costs, he said.

That potential reduction figure will not fly at a Board of Finance meeting, St. John said.

How the Program Would Work (as presented)

• Assessed value of home: $170,000.

• Normal property tax is assessed value multiplied by the mil rate -- $4,044.

• If household income is $20,000, a homeowner would qualify for a 20 percent reduction based upon the median asset value.

• Reduction -- 20 percent of the median asset value of all houses in Middlebury -- at $246,700. That figure is $49,340.

• New asset value = $120,660.

• New property tax = $2,870.

• Savings from program = $1,174 or 29 percent of your total tax.

Instead of offering different benefit amounts based on income levels, St. John asked Tax Assessor Daniel Kenny and the committee to look at what the potential reduction of revenue will be if those eligible for the program received a flat rate benefit.

"I would support this program if you provide numbers that are a little more accurate," said St. John.

Babarik said he will come back to the Board of Selectmen in about one month's time.

Eighty seniors in town take advantage of the state's Circuit Breaker program, St. John said. He suggested using that number as a base for figuring out what the potential loss of revenue will be using different variables, such as the flat rate as opposed to savings based on income.

The Connecticut Office of Policy and Management offers the Circuit Breaker Tax Relief Program. According to the OPM website, the program provides a property tax credit program for Connecticut owners in residence of real property, who are 65 and older, or totally disabled, and whose annual incomes do not exceed certain limits.

"The credit amount is calculated by the local assessor and applied by the tax collector to the applicant's real property tax bill," the website stated. "The amount of the credit that may be granted is up to $1,250 for married couples and $1,000 for single persons. Credit amounts are based on a graduated income scale."

Details from Babarik's Presentation

The committee's mission is as follows:

• Review elderly tax relief opportunities for Middlebury
• Allow the elderly to keep their homes
• Create recommendations for the Board of Selectmen
• Identify financial impacts and benefits of a proposed plan

 One of the main benefits of the program would be keeping the elderly residents in their homes and maintaining a healthy balance between older and younger families, Babarik said. Doing so will help education expenses stay at a more reasonable level, he said.

But, as Selectman Ralph Barra noted, the program could put a burden on the young families with children.

St. John said he does not want the situation to turn into a youth vs. elderly conflict.

Babarik said fewer students in town will hopefully equate to reduced taxes for all residents.

Benefits

If 10 percent of the single family homes owned by elderly people were retained per year, that will create a revenue-neutral program, Babarik said. That is assuming that a family with average of one school-age child occupies the home vacated by the elderly person, he said.

Eligibility to Participate in the Committee's Recommended Plan

• 65 years of age or older
• Living in Middlebury 183 days a year or more
• Living at the same residence for five years or more
• Primary owner and taxpayer, plus are living in the home
• Current with tax assessments