$58.1M town budget gains approval

SEYMOUR — Residents who are having a hard time making ends meet due to the coronavirus pandemic wreaking havoc on the economy will not have to shell out more for property taxes next fiscal year.

That is due to the Board of Finance on Tuesday unanimously approving a $58.1 million budget for 2020-21, that holds the line on taxes and keeps the current tax rate of 36 mills.

The board passed the budget, meeting virtually, since the pandemic shut down in-person gatherings. Residents normally cast votes on the budget at a town-wide referendum, but an executive order by Gov. Lamont allowed the finance board to approve a budget this year.

“I think it's a good budget because it keeps services to the taxpayers at current

levels without increasing their tax burden,” said board Chairman Bill Sawicki. “Given the effect that the COVID-19 virus is having economically on families, we recognized that and did not want to add to their burdens. Also, being able to keep services steady means the town does not have to play catch-up in future years, as our base is left intact.”

First Selectman Kurt Miller echoed similar sentiments and was equally pleased the town retained its near-perfect, AA+ bond rating from the S&P.

“This budget falls in line with our long-term strategic plan of doing all that we can to keep taxes as level as we can for the residents of the Town of Seymour,” Miller said. “I’m proud of the fact that we have been able to keep the mill rate stable for five consecutive years. This budget allows us to continue to invest in our infrastructure and helps us to keep the town moving forward. This budget also provides the necessary hedges to help protect us should there be a drastic downtown in the economy because of the COVID-19 pandemic.”

Sawicki concurred that “keeping an AA-plus rating is quite an accomplishment, and is a credit to everybody on the (finance) board, the finance department and the first selectman for watching over all our pennies,” during a difficult economy.

Sawicki was also grateful that no town employees had to be laid off.

Overall, the budget represents a 1.2 percent increase over the current fiscal year’s budget, with $34.6 million allocated for the Board of Education and about $23.4 million for the town’s side of expenses. In order to keep taxes flat, the town will use about $228,000 from its fund balance.

Much of the budget increase is driven by a spike in employee health insurance benefits and retirement pensions.

In related business, the board also unanimously approved a resolution authorizing the town to borrow up to $4 million in tax anticipation notes, a move prompted by the pandemic.

Sawicki said because it is not yet clear how much the town will collect in annual property taxes, which are normally due July 1 and Jan. 1, the ability to borrow to cover a potential shortfall in taxes was necessary.

The town previously approved a tax deferment program, per an executive order from Lamont that allows eligible taxpayers to delay their payments for 90 days.

Sawicki said borrowing the money, if needed, will serve as “a cushion to safe guard against a really rapid drop in our tax collection.

“It’s a mechanism for temporary financing if absolutely needed,” Sawicki noted.”We won’t know anything until mid to late July or later to see where, if any, we have a shortfall (in tax collection.)”