Connecticut Smalls Towns Have Much In Common With The Rest Of America
Posted on 10. Nov, 2009 by Brad in Places | Twitter: @bradhart |
Valley responds to financial crisis
Valley responds to financial crisis
Written by Susan Hunter
Thursday, October 16, 2008SEYMOUR — All through the Valley, residents and government leaders are trying to catch their breath and take stock of last week’s dizzying Wall Street tumble and financial sector collapse.
The market rebounded Monday following weekend meetings of Group of Seven finance ministers, representing the world’s wealthiest nations, who vowed to take decisive action.
Hoping to calm nervous investors, President Bush addressed the nation Tuesday morning to say that part of the $700 billion financial bailout package would be used to inject capital into banks by buying their shares.
Wednesday saw the second largest Wall St. drop ever.
People are wary of a volatile market responding to the real estate bubble of shaky mortgages sold on the international market that has caused widespread financial losses and panic.
Many residents who spoke with the Valley Gazette see the situation as a global phenomenon that requires a unified solution.
“”I’m sure we’re in for a global recession and depression,” said Seymour resident Robert Miller, as he loaded his young son — and groceries — into his car at Stop & Shop. “We’re so interconnected.”
Miller said his family has made changes to accommodate to the economic situation. He’s switched his cell phone service to a pay-for-use plan, and his family takes day-long trips to the mall in one car, rather than using two cars to make several trips a day.
“We’re trying to drive a little less,” Miller said.
He said he is thankful he works for a school system, because it may offer him more job security than other fields.
“I’m in stunned shock,” said Bethany resident Christine Silverstrim.
She’s kept a close eye on her 401K plan, but hasn’t cashed it in, despite encouragement from others to do so.
Her son, Damian Silverstrim, a Cornell University student who was home for the weekend, said his classmates who are business majors have already felt the effects of the financial fallout.
All of their job prospects for next year have fallen through, he said. All had completed internships and interviews, and their prospective employers called them this past week and told them there would not be jobs for them after all.
Two had planned to work at Lehman Brothers and two at Merrill Lynch.
“I feel sorry for young couples just starting out and buying homes, and for people who were planning to retire soon,” said Anne Dembski of Bethany.
Her family and others around the world are “adjusting to a global economy,” she said. “I wouldn’t be surprised that if in two months, we’re back in a bull market.”
But meantime, Dembski said she would continue her life-long habit of only buying what she can afford.
Everyone is suffering the consequences of those who haven’t, she said.
“This is finally coming home to roost,” she said, and people’s attitudes need to change. “A 2,000-square-foot home can do just as well as a 7,000-square-foot home.”
On the bright side, Dembski said she’s paid a little less for the groceries she was loading into to the trunk of her car.
“I’ve seen food prices go down a little,” she said, and believes it’s due to decreasing oil and gas prices that make it cheaper to transport the food.
But Lyn Hurd of Shelton, who was doing errands in Klarides Plaza further down Route 67, said she has seen prices at Ocean State Job Lot increase during the past weeks.
Hurd said she had been planning to sell her house, but the slowdown has changed her plans.
“I don’t see this as possible,” she said.
“We’re waiting it out on the IRA,” said Ansonia resident Christa Manzolli, who was shopping with Karen Fisher of Oxford.
The women said they were trying to figure out how to buy necessities and be able to afford heating their homes this winter. They’ll continue their usual habit of buying goods on clearance and using coupons, rather than buying at retail price.
Local governments respond
Just down the road at Seymour Town Hall, First Selectman Robert Koskelowski was doing his own belt-tightening.
He has sent out letters to town department heads, asking them to reduce their spending from 2 to 2.5 percent. They’ll have to postpone asking for funding for equipment or projects.
“It’s just very scary,” Koskelowski said. “This isn’t going to be resolved in six months.”
He said he’s concerned about the effect of upcoming property revaluation on taxpayers and the town’s loss of income in other areas.
A total of 71 houses are in foreclosure in Seymour, he said, and the town is losing $1 million in tuition payments from Oxford students who are leaving Seymour High School to go to their own new high school.
Koskelowski predicts that the only increases in next year’s budget will be contractual, and he plans to evaluate the feasibility of reducing some town government positions from full to part-time.
“I don’t want to put anyone out of work,” he said.
On the bright side, houses are holding their value in Seymour, although “the housing market has stopped. Houses are selling at their assessed rate,” he said, and that’s not happening much around the state.
A $400,000 or $500,000 house in Seymour would cost $1 million in Fairfield County.
“The value for your dollar is better here,” Koskelowski said.
Property taxes only increased an average of $100 this year, he said, just about a third of increases in fuel costs.
Seymour residents get good services for the taxes they pay, he said.
Derby paints rosy picture
Derby mayor Tony Staffieri is upbeat about the effects of the economic slowdown on the city.
“There’s no fallout,” he said. “The City of Derby’s finances are in great shape. We kept a lean budget this year.”
There will be increases, however, in the areas of electric bills, insurance and contract obligations.
Derby will see tax benefits from the newly opened Center for Cancer Care and from the new Lowe’s home improvement store, Starbuck’s and from the Valley Diner that has put on an addition. The city is negotiating a project on the Hotchkiss property that will result in a continual care facility run by the United Methodist Church.
The village of seniors age 72 and older will be self-sustaining and generate $1 million in taxes a year.
“We’re in a healthy condition,” Staffieri said.
The financial crisis may put a hold on plans of prospective developers of the downtown revitalization project. Although about 14 developers have shown an interest in developing the property that has been entangled in litigation, they may “wait and see” before making a commitment, Staffieri said.
City officials conducted a walk-through of the redevelopment zone Sept. 19, and seven interested developers took part. Requests for qualifications are due in from interested parties on Nov. 12.
Overall, Derby officials say developers want to move to town.
“There’s a lot of interest,” Staffieri said. “They see Derby as a main catalyst and a big opportunity to invest in Derby.
“Derby is in a strategic location,” he said. It’s a transportation hub with a heavily used train and bus station, located at the intersection of Routes 8 and 34 and at the confluence of the Naugatuck and Housatonic Rivers.
“Businesses are seeing that,” he said.
Prospective business owners like the fact that Derby is a small city. “People continually ask, ‘Is there a spot here for me?’” said Sheila O’Malley, the city’s economic development director. “We still have people interested in the city. We have location.”
Despite her optimism, O’Malley said she’s sure the world-wide economic situation will affect the city indirectly.
Ansonia saves energy
Ansonia Mayor Jim Della Volpe is guardedly optimistic about the effect of the financial crisis on the city.
“We don’t foresee any major problems,” he said, but he met with department heads Friday to discuss saving energy by turning lights off during the day in city offices and conserving air conditioner and computer use.
The city has established an Energy Improvement District to serve as a vehicle for private companies to band together to reduce energy costs and make use of cleaner and more efficient on-site power technology.
The program to allow municipalities to set up energy improvement districts became law in June 2007, and Ansonia was one of the first cities in Connecticut to take advantage of it.
The city’s consultant, Pareto Energy LTC, is expected to deliver a concept plan in mid-November, Della Volpe said.
Savings could occur in municipal buildings, the public works department and the city’s wastewater plant.
“We look like we’re in okay shape,” Della Volpe said, and the city’s tax collection rate is the same as it was last year.
Town officials are heartened that developer Robert Scinto is starting his development at the Fountain Lake Commerce Park.
Surveying has been done at the site, Della Volpe said, and construction is expected to start within the next few weeks.
Post 21 of 100 of Brad’s Tiny World Scribefire Challenge.
As we can see small towns and big cities across america have people facing the same challenges in their daily life, is it too much to hope for that we can ever reach an understanding that we are all pretty much the same and need to work towards better communities as a whole?
One Response to “Connecticut Smalls Towns Have Much In Common With The Rest Of America”
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01. Sep, 2009
Hi…
Thanks for sharing such a nice information. Indeed in Seymour, the value for dollar is better. Also residents get good services in return for paying the tax.