BETHEL – Selectmen found themselves in a pickle Monday night when they learned their legal account was overdrawn by $20,000.

Additionally, that overage is expected to increase to $60,000 or more as the town fights its way through litigation concerning taxation of timeshare properties in Bethel.

“We don’t have any choice but to continue, because there’s a lot more that we stand to lose,” said acting Chairman Reggie Brown.

Brown took over the chairman seat when Harry Dresser Jr., who owns a timeshare, took himself off the board because of a possible conflict of interest.

If the town loses its case, it might also be forced to abate from $150,000 to $200,000 in taxes on the properties, Town Manager Scott Cole said.

In the fiscal year 2004 budget, which ends June 30, the town budgeted $18,000 for legal services. But, to date, expenditures have exceeded $38,000, with the bulk of it related to timeshare taxation litigation.

Cole warned the board that “significant” additional expenditures in this area are expected over the next six months.

“We didn’t know it would get into this,” said Cole regarding decisions that he and the Board of Assessors made to continue the litigation battle, despite costs.

“What we’re fighting over amounts to from zero to 4.2 percent of the town’s total tax base,” he said.

Cole said the total value of the timeshare properties tax base is $8.7 million, while the town’s total tax base is $204 million.

Forecasted expenditures for timeshare litigation and related expert appraisal have been estimated at $30,000. Cole and the assessors have been advised they needed to better the town’s chances of winning the tort.

“We’re trying to get the expertise so we can resolve this without killing our tax base,” Selectman Al Barth said.

Another $10,000 expected to be spent from all other legal fees, creates a $60,000 overdraft.

“Typically, forecasted expenditures are covered by the June town meeting appropriation without need for supplemental appropriation,” Cole added.

In the past, the town has addressed forecasted overdrafts by either calling a special town meeting to appropriate the funds, or using a “cleanup” article at the annual town meeting in June to appropriate the money.

“We’ve spent way over what we should have. What we’re doing now should have been done in November,” Brown added.

He said a special town meeting must be convened to appropriate the money for the overdraft, but others wanted to table the matter until they learn the exact amount to be appropriated.

“I don’t want to have a special town meeting to appropriate money then find out it isn’t enough,” Barth said.

The discussion was tabled until the board’s Feb. 23 meeting.

tkarkos@sunjournal.com

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