Newport Daily News (Newspaper) - January 8, 1976, Newport, Rhode Island Newport Daily I 8 PAGES NEWPORT RHODE ISLAND THURSDAY JANUARY 8 1976 15 CENTS 1 million loan seen best way to solve school deficit The city manager and finance director have recommended that the city borrow 41 million to meet a projected school deficit would be met by using this year's and next year's city surplus The action would result in a increase in the tax rate this year and probably another the following year But that alternative was recommended by City Manager William A Perry and Finance Director Robert S Guy in a letter to the Council made public today The alternative of borrowing the money was one of three choices presented to the Council in an analysis of the school's financial problems by the finance director A second alternative would be to fund the deficit in one year which would add between and 6.75 to the tax rate and still require the borrowing of to meet teachers salaries this year The third alternative would be to provide in one year and defer the salary payments to next year This would add between and to the tax rate next year and defer the payment of current school expenditures to future generations Guy's analysis of school finances was based on information supplied by the School Department which snowed a deficit of about million But School F Trainor told Guy that in teacher salaries could be paid from next year's budget because the teachers receive the pay after this fiscal year ends June 30 Trainor also said the department could save by the end of the fiscal year and the state might provide an additional to the schools Trainor estimated that otherwise the schools would have to close between May 15 and 20 But Guy said that closing the schools would serve no purpose because most of the deficit is needed to pay for payrolls which are obligated under contract The city would have to pay the salaries even if the schools closed Guy said It might be noted in Guy said That if this presumption is correct then the School Committee has clearly violated the city charter be entering into a contract involving expenditure of money in excess of the amounts Nevertheless the deficit must be funded or the city will be in Guy said A default action would have a very serious effect on the ability of the city to market a million sewer bond issue which is required by law in 1976 City Manager Perry referred to another problem in his letter to the Council with Guy's analysis The School Committee has indicated it will require about million additional funds next year Perry said This represents a 35 per cent one-year in- crease and will require a increase in taxes It appears that if the funds are not appropriated the School Committee will spend whatever is desired and a deficiency appropriation will be required next year No solution is available cut budget or raise tax PROVIDENCE AP Gov Philip W Noel said Joday if the Rhode Island General Assembly accepts his to cut state spending only a small tax increase may be needed Noel in his first January news con- ference said he was spending three or four hours daily trying to make some difficult decisions on budget to the General Assembly If they don't follow those including cuts in state spending and personnel then we may have to have a substantial tax the governor said Responding to Republican criticism that there was no need for a tax increase Noel said he would rate the GOP position as one oJ the most irresponsible remarks he has ever heard This year they're starting to put out Tax-free face levy legislation to levy a service charge on all tax exempt property in the city has been drafted and sent to the city Council The Council will receive the draft next Wednesday and is expected to ask legislators from Newport to introduce it in the General Assembly The was drafted by City Solicitor JamesS O'Brien on the recommendation of the Tax Study Committee which has said the service charge could cut the tax rate from per to about If passed by the General Assembly and signed by the governor the question would be submitted to city voters for approval at the next general or special election other than a primary The would authorize the city to impose and collect a service charge upon the owners of all real estate which is exempt from taxation under any located within the city of Newport The service charge would be based on the assessed value of the real estate and would cover police and fire tion the collection and disposal of refuse and street lighting The service charge would be no more than 50 per cent of the tax rate The will require that all tax exempt be listed in the tax book in the same manner at taxable property Tax exempt property has not been assessed and the property is only estimated in the tax book The Tax Study Committee will review tte proposed legislation tonight in City Hall Rep James F Mahoney and Rep Joseph T Houlihan are expected at that meeting at in the city clerk's office the same kind of boloney as they did last he said You can't be a friend of everyone and put a chicken in every pot You can't do that Noel also said it is a shame that so many people are getting involved in congressional campaigns so early in 1976 The governor said If you begin to campaign In January you are going to take up the better part of the year My assessment is that when you announce this early your productivity will be somewhat he said It appears that I will have to make an announcement earlier than I should That's too bad Already announced for the U.S Senate seat being vacated by Sen John 0 Pastore a scat Noel is expected to seek are state Sen John P Hawkins D- Providence and state Rep Earl F Providence Noel began his news conference by paying tribute to former Chief Justice Thomas II Roberts of the Rhode Island Supreme Court who died Wednesday the day after he resigned from the high court He was an outstanding and dedicated public servant and was responsible for much of the progress in our justice the governor said Noel also said he expected the General Assembly to fill the Supreme Court vacancy early in the session He added that House Speaker Joseph A Bevilacqua would have his support if he wants it Returning to the question of the state budget Noel said his budget message io the legislature would call for further re- duction in the number of slate employes through attrition There's a lot of turnover in state Noel said so hopefully any further reduction can be handled by attrition The governor also defended his pointment of Anthony V Arico Jr as deputy director of the Department of Business Regulation Noel said when re- ducing state manpower it becomes im- stronger department management be appointed On no-fault car insurance Noel said he did not think it would be a panacea to state motorists But I think it's a better system than we he said Noel suggested that the General Assembly at least bring the matter up for a vote this session If it's defeated then we can put it behind he said Noel also said he would not take sides on a recommendation from state Democratic chairman T Reilly that General Treasurer Raymond H Hawksley not seek re-election It's a personal matter that should be left up to the general he said I th ink Chairman own opinion but if he Hawksley wants to run I would be inclined to support Mr Hawksley Home aid urged upon city YOUNG DEER wandered Into middle of Shuttle Meadow Reservoir in New Britain Connecticut Sunday and was unable to get his footing of New Britain Herald recorded city workers In true western style roping animal and pulling him to shore Young buck uninjured scrambled to his feet dashed to safety UPI Island's ponds unsafe 2 skating areas open Outdoor ice skating on Aquidneck Island for the most part has been poor this year And even when local ponds freeze only a few are checked regularly to ascertain whether skating is safe Only two skating areas in the city are regularly available and both are proved by the city Recreation ment Director Daniel J McCarthy said this morning Both are extremely shallow A small area has been dug out at a natural spring off Harrison Avenue near Sullivan Street which is about eight inches deep and readily freezes in cold weather Basketball courts at Braga Field arc flooded with about four inches of water in cold weather During ex- tended cold spells when there is con- skating at the two areas for a week or two the Fire Department periodically smooths out the ice with a fresh film McCarthy said But the city's largest skating area the Big Pond hasn't frozen properly for safe skating in more than two years said McCarthy The pond a city reservoir is checked regularly Ice must be at least five inches thick at all points before it is declared safe he said There have been times when it has been as thick as eight or nine inches in some spots but only an Council hears park plan Planners rap buying farm inch or two along the edge thin enough to crack under weight of several skaters he said There are no approved outdoor skating areas in Middletown and Portsmouth but Police Department Joes check popular skating areas during cold weather to make sure they are safe A spokesman for the Portsmouth Police Department said he knows of no one who makes regular checks of ponds in that town Outdoor areas frequented by skaters in Portsmouth are St Mary's Pond and Sisson's Pond he said There are a few small private ponds that others use lie said The most popular outdoor skating area in Middletown is Green End Pond which abuts the Big Pond to the north Skaters frequent the north end near Green End Avenue whenever it freezes so the town's police make regular checks said Town Administrator John F Fitzgerald If the pond is unsafe skaters are asked to leave Reservoirs owned by the city Water Department generally arc limits to the public although skating is allowed at the Big Pond and at Gardner Pond in Middletown whenever are safe a Water Department spokesman said Currently there is no safe ice skating in in the area But Recreation Director McCarthy predicts there most likely will be safe skating this weekend at the Harrison Avenue spring and at Braga Field Colder weather is this way he observed By JAMES A JOHNSON The Planning Board today mended that a residential loan and grant program be started by the city as the first step in the city's community development program Charles S Planning Board chairman said it has become obvious to the that it will take several months for the board to review a proposal by the Broadway Project Area Committee Rather than leave the entire com- munity development program in limbo while the board considers the PAC proposal the board felt that the city could legitimately and logically implement a residential loan and grant he said The program would provide loans of up to at three per cent interest to eligible individuals to fix up their houses or grants of up to for the elderly The loans and grants would go to owners who lived in the houses to compliance with the Newport housing code to promote rehabilitation and to develop neighborhood pride To be eligible for loans an applicant would have to be an have income less than the Housing Administration guidelines for a median income family and show his or her ability to repay the loan The loan could be used to correct housing code violations or for in- and exterior repairs including heating and wiring systems ceilings floors walls and porches The loans could also apply to providing parking planting trees and clearing debris The grant program would allow elderly property owners below the median in- come level to comply with housing code and to improve the visual quality of buildings including painting fence and yard improvement and a general up The Planning Board recommended that a revolving fund with an initial ex- of be established for the loan program The initial funding for the grant program would be said that while the loan and grant program is in effect the Planning Board would continue to review the PAC proposal to make a recommendation to the Council A key element of the program he said is that it be administered by the city In that way the city would get the proceeds from the interest which could go into a revolving fund to provide future loans even after the five-year life of the com- munity development program The recommendation to start the program will be taken up by the city Council next Wednesday The Planning Board asked the Council to approve it and to begin to implement it by March 3 said the loan and grant program probably would be the only activity under the community ment program that could be put into effect during the first year 1 don't see how we could do anything else this he said The first year of the program ends in May The city is eligible for million over the next five years for the program sponsored by the U.S Department of Housing and Urban Development Sighting of smew here excites By CLARA Relax Lil Abner Just mosey back to Dogpatch It one of your little moos that is providing a winter tourist attraction here this week but a creature almost as rare in these parts a smew This rara avis popped into Newport and became an instant celebrity when it was spotted Saturday at Beach and on Green End Pond swimming and flapping its wings News of its advent was broadcast in New York and bird chers from New York Connecticut and Massachusetts have been coming here to see it One New Yorker who drove to Newport said he has friends coming here from Chicago and Virginia The reason for all this furor is the bird's rarity This is said to be only the third sighting of the smew in the con- United States It has been previously reported in Seattle and British Columbia Its habitat is coastal but it prefers fresh water Lee Gardner director of the Norman Bird Sanctuary has been receiving queries about the bird ever since its discovery by his wife Saturday The Field Guide to the Birds of Britain and Europe gives this Identification much smaller and more than other mergansers which have long The male is uniformly white with conspicuous black eye patch At short range a small drooping black and white crest is visible also narrow black lines across foreparts and above scapulars flanks pale gray black back Inflight it looks darker with conspicuous black and white wings The female is smaller and grayer with slightly crested chestnut cap and white cheeks and throat Gardner reports that the smew breeds in Siberia and northern Finland and migrates to the Caspian Mediterranean and Black Sea areas Mrs Allan G Davenport of Jamestown expert watcher says the bird may be expected to remain in this area for some time regardless of cold or stormy weather since it will feed on salt water if the ponds freeze over By JAMES A JOHNSON The Planning Board has asked Gov Noel to reject any state plans for buying Hammersmith Farm on Harrison Avenue In a letter io the governor Charles S board chairman said the board is strongly opposed to plans of the Department of Natural Resource to buy Inside NOUS Amusements 7 Classified County News Editorials Features Homemaker Sports State News Weather Gearing tonight windy and colder low temperature in the teens Variable clouds Friday high in the Friday Sun Rises Sets Tides High P.M Low P.M Wednesday Temperatures High 41 Low 25 Dannin dies Page 2 athlete of 12 4 5 5 13 17 part of the estate of Hugh D Auchincloss for recreational purposes It is our position that in these very troubled economic times Newport cannot afford to have its tax base further said He noted that 50 per cent of the land in Newport is tax exempt and a trend to declare more land tax exempt must be reversed if Newport is to remain an economically viable community He also questioned the prudence of the state spending the money tp buy the estate since the governor has said the state's economic health is in jeopardy and greater efficiency will be needed in 1976 The state of Rhode Island owns more that sufficient land and facilities in Newport to satisfy near and long-term recreational and tourist said Therefore we recommend that the Department of Natural Resources concentrate on developing presently owned state property rather than further acquiring taxable and potentially developable local property This would conform to the city master plan he said which calls for more in- tensive use of present recreational land and facilities prior to acquiring new areas for development Besides opposing the purchase of Hammersmith Farm the Planning Board asked the governor to reject any state plan for acquiring additional land and facilities in the city In a related matter the city Council met last night with Dennis J Murphy state director of natural resources to discuss state's plans for the land Mayor Donnelly said the no decision on its stand concerning the possible state purchase of the estate which is assessed for Murphy described possible uses for the land as a park and a memorial to the late President John F Kennedy or as a cultural arts center No concrete proposals have been made and many things could be done Murphy told the Council Councilmen brought up alternatives they wanted to be considered including an America's Cup Museum or different uses for the money that would be used to buy the property Two alternatives were that the state use the money as the city's share to match federal funds for the restoration of the Cliff Walk or to buy Easton's Beach from the city and upgrade the facility These were ideas that were tossed out as food for Mayor Donnelly said He said the Council have to give any proposal for the estate a great deal of thought before endorsing or opposing it V CHRISTIAN MILITIAMEN fire down on Palestinian positions around camp from nest la suburban Sin el Fil while supporting Christian forces launch counter attack on ground to push back into encircled camp Story on Page 18 UPI