Proposed town budget would bring tax rate increase

CHESHIRE — The average resident would see their tax bill increase by $439, or about $36.58 per month, under Town Manager Sean Kimball’s proposed $121.57 million municipal budget.

Kimball’s budget proposal for fiscal year 2021-22 represents a $5.31 million, or 4.57 percent, increase over current spending. He was to present his proposed budget to Town Council Tuesday evening.

If Kimball’s budget were to be approved as proposed, a tax rate of 35.12 mills would be needed to fund it. That would represent a 1.90-mill, or 5.72 percent, increase over the current tax rate of 33.22 mills.

In recognition of financial difficulties many town residents faced as a result of the COVID-19 pandemic, the council last year kept the tax rate unchanged from the previous fiscal year.

“Our residents and businesses are struggling,” said council Chairman Rob

Oris, a Republican. “I think we have a strong track record of being fiscally responsible and we’re going to be taking a very judicious look at the budget again.”

The calculation of the impact the proposed budget would have on the average Cheshire taxpayer is based on someone with two cars and home with an assessed value of $212,604.

Though the past year was difficult one for Cheshire residents, Kimball said “building permit revenue has remained very strong as residents are initiating more home improvement projects and businesses are relocating or expanding in town.”

“Conveyance tax and land record recording fees are up significantly due to the strong housing market and home price increases,” he said, in a letter to council members that accompanied the budget documents they received. “Expected department revenues are projected to increase over the FY21 budgeted amounts by $146,060.”

Kimball said the town has experienced “above average” growth in its grand list of taxable property in each of the past two years.

The town’s grand list grew by 1.21 percent, or $34.38 million, in assessed value. Over the past two years, the town’s grand list grew by 2.73 percent, the largest amount of growth in any two consecutive years for non-revaluation grand lists in over 15 years.

The real estate component of the grand list increased by $16,26 million, or 0.67 percent. The personal property component increased by $3.49 million, or 2.08 percent, while the motor vehicles portion increased by $14.62 million, or 5.83 percent.

The pandemic forced Kimball to implement position freezes and reduce service level expectations for pandemic-impacted events and programs, he said.

“The proposed FY22 budget restores services levels and unfreezes some full-time positions as we plan for a fiscal year after July 1 that is operationally more in line with prior years, including summer camps and concerts, athletic events, expanded programming and the continued full availability of all town facilities,” Kimball said.

The proposed budget includes $78.48 million for the Board of Education, which represents a $3.89 million increase, or 5.22 percent more than the current budget for the school district. Education spending accounts for 64.5 percent of Kimball’s proposed budget.

Nearly half of the proposed school board increase, or $1.87, million, is the result of a decision by the board to start replenishing the district’s medical benefits account, which has dwindled over the years.

Democratic Councilman Peter Talbot said councilors from “both parties go into the budget looking to strike the delicate balance between providing the services people expect and what taxpayers can afford to pay.”

“We want people to move here and we want people who are already here to be able stay,” Talbot said.

The council will spend the next two months reviewing Kimball’s budget and are expected to vote on it on April 27. The spending plan for fiscal 2021-22 goes into effect July 1.