The $756,000 sum will be split over two years. Town Council members Tom Winn, Richard DiFederico and Town Council Vice-chairman Ray Primini voted against the proposal.

The resulting mill rate was 22.38 mills, as opposed to 22.59 without the implementation of the savings into the upcoming fiscal year.

Savings have been achieved by shifting existing bond debt into lower interest rates. Watertown will be paying approximately $756,000 less in bond service over the next year, with smaller amounts to be realized in subsequent years, for a total of $834,056 over 14 years.

Prior to the Town Council meeting, the Town Council Finance Subcommittee gathered to make a recommendation to be considered by the full Town Council immediately after.

Town Council Finance Subcommittee Chairman Gary Bernier opened the meeting by summarizing the options before the subcommittee members.

"There's a few ways we can go about this," said Mr. Bernier. "We can take the $750,000 and use it to offset taxes. We can use it for capital projects. What we need to do tonight is decide what the mill rate is."

Finance Subcommittee member Carl Mancini followed Mr. Bernier in offering his suggestion.

"I think we need to determine if capital projects need to be funded," said Mr. Mancini. "Then we can take whatever money is leftover from capital improvement projects, if any, and divide it over two years and reduce the mill rate."

Mr. Bernier agreed on the point of reducing taxes.

"I have felt and continue to feel that we need to use this money to reduce taxes," said Mr. Bernier.

Discussion would migrate to splitting the money into thirds, with one portion going to capital improvement funds and the other two portions used to reduce taxes for the next two years.

However, some members, notably Mr. Bernier, stated that since the entire Town Council is up for re-election, "we need to tie down where the money goes," so that a future council could not re-allocate the funds.

Mr. Mancini then questioned what could be gained by placing $250,000 in the capital improvement fund.

"I don't understand if you put $250K into a capital improvement fund; what is that money intended for?" asked Mr. Mancini. "Is it for a new fire truck? New roads? Town Hall improvements?"

Subcommittee member Richard DiFederico responded, "the town hall roof. They're going to need it for general repairs."

Mr. Bernier then reaffirmed the charge of the Finance Subcommittee for that evening.

"That is not for us to determine tonight; it's not for the Council to determine," said Mr. Bernier. "We need to set the mill rate. If you want to set up a capital improvement fund, that needs another meeting to decide that."

Mr. Bernier further stressed what purview the subcommittee and Town Council held over the use of the money.

"You're spending the taxpayer's money," said Mr. Bernier. "If the taxpayer wants to pay to put a new roof on the Town Hall, they need to tell us that. In all candor, I can't see any other way to take down taxes."

The meeting saw brief public participation from Corriene Peluso.

"I'm asking the council to give the money back to the taxpayers," said Ms. Peluso. "Representing the elderly for so long, they are having such a hard time this year. I thought the recommendation was very good from Mr. Mancini."

As the discussion got underway, the option for capital improvement funding then became an option again to be considered by the full Town Council.

Mr. Primini would speak at length on what he saw as benefits of having a capital improvement fund.

"I've been a strong proponent of the capital improvement fund," said Mr. Primini. "A lot of towns do this, so when we need the money we don't have to borrow it. Eight years ago, there was $500,000 in the asphalt account, now there's $50,000; that doesn't pave many roads. Eight years ago, asphalt was $35 per ton, it went up two years ago to $100 per ton and it has been $70 per ton. I get complaints all the time; the side roads are going to hell, and we have trouble keeping up with the main roads."

One project which could be addressed by a capital improvement fund, noted by Mr. Primini, was the eventual conversion of Heminway Park School into a functioning Town Hall, which could "house all town offices in a single building owned by the town."

"Right now, rents are $85,000 for Depot Square," said Mr. Primini. "Eight years ago, it was $60,000; it's only going to go up. If we got some seed money, we could get Heminway Park started; we could save the $85,000 on rents."

However, before an agreement was reached, Town Council members would stand firm on their positions.

As Mr. Bernier stated, "the situation is simply this: we have passed a budget, and we have $756,000 available to us; it does not give us the right to spend this money in areas for which there is no budget."

Town Council member Tom Winn would air his doubts on the positive impact of reducing the mill rate.

"I understand a lot of people are in bad shape, but to have people save on the average, $30 per year and then it's gone, I think it could be spent more wisely," said Mr. Winn.

Mr. Winn would suggest keeping the mill rate at 22.59 and that "we can do a better job and a more productive job."

As the motion to split the savings over two years to reduce the mill rate was then passed six to three, perhaps the largest influence on this action was the advice of Finance Director Frank Nardelli.

Mr. Nardelli had advised that bond rating agencies would look favorably upon splitting the money as being in line with a more conservative fiscal policy and would have a positive effect on the future of Watertown's bond rating.