Fed taper and town's budget

As we approach the approval of the Town's 20142015 budget I am concerned about the affect of the Feds decision today, at the FOMC, to continue tapering its monthly bond buying an additional $10 billion. In the proposed budget debt service is up 12% as I predicted in the TC debate, despite the executive branch and legislative branches claim that debt service will go down. With the vast proposed increases and the assessed values of lower and middle priced homes increasing the yet un -disclosed mill rate increase could devastate many residents, especially the town's seniors.

Do we have the expertise necessary in our town government to analyze and forecast the FOMC decision affect on future interest rates and the projected direct relationship to the Town's future borrowing costs (debt service). The current plan is to bond many capital projects  inclusive of $15 million bonding for the new town hall. The cost of money is definitely going up. More importantly there were no dissents on the FOMC's decision,which means tapering will continue. Future interest rates will continue to rise and so will debt service. Has this fact been factored into the Town's operating budget. I sure it will be factored into our mill rate.

The danger is that we have an appointed Board of Finance. The comment by one BOF member last week that an appointed Board is more efficient than an elected Board because: "the Town can do what it wants, whereas an elected BOF would need to answer to the taxpayers). What!  The majority of CT towns have elected BOFs which answer to the taxpayers.

When the executive branch appoints the BOF that is a lack of segregation of duties that results in un checked spending and higher taxes.

I apologize for being so controversial.

Roy A Abramowitz CPA, MBA, Member Firm PCAOB