Stonington finance board approves 4.5% increase
Stonington — The Board of Finance on Wednesday voted 6-0 to approve a proposed 2023-24 budget that calls for a 4.5% spending increase.
A public hearing is scheduled for March 28 at 7 p.m. at the high school on the $80.2 million proposal that would lower the tax rate by 5.2 mills to 17.45 mills.
The board was able to decrease the tax rate while increasing spending by $3.4 million because of an increase in the grand list and by applying $3.8 million from its $19.6 million undesignated fund balance to offset the tax rate.
To determine their new tax bills, property owners can take their new assessment, divide it by 1,000 and multiply that number by 17.45. They can then compare that to their current tax bill.
Residents will vote at a referendum later this spring on whether to approve the budget.
Finance board member Bob Statchen ultimately voted to approve the budget, though he argued against using such a large amount of the undesignated funds to offset the tax rate, suggesting a $2.2 million figure instead.
Board member Bryan Bentz initially proposed using $4.8 million from the fund to bring the tax rate down to 17.25, but Lynn Young and Statchen expressed discomfort in using so much of the surplus.
Town policy is to keep two months of operating expenses plus and an additional $1 million in the fund, or $14.3 million.
“We need the reserve, because we need the reserve, but it’s also taxpayers’ money that we’ve collected in excess of what we’ve spent, which is why I’m comfortable taking out a little more, as long as we have what we need there, and it sounds like, by policy, we have what we need there,” board Chairman Tim O’Brien said.
“I’m a proponent of giving it back to the people who put it in there,” said member Chris Johnson.
Statchen disagreed and pointed out that the previous budget only used $1.5 million, and that using only $2.2 million to $2.3 million would yield a reasonable 3% tax increase.
He suggested that utilizing such a large amount of the fund would create a “false narrative” and make the board look like “heroes,” but would leave nothing to offset steep hikes next year.
“I think it’s setting us up for next year, when we don’t have $6 million dollars, to put us in a much more difficult situation, for what would be a much more dramatic increase,” he said.
The board ultimately settled on a figure of $3.8 million.
The board approved a $41.6 million Board of Education budget, a slight reduction from the $42 million request.
Most capital improvement project requests were cut by at least half, and none were fully funded, including Washington Street drainage improvements, which saw a $110,000 reduction in funding to $50,000 and a $235,000 reduction to a public works request for highway equipment.
The borough will receive half of its requested $100,000 request for public restrooms to be located near the library, and a request to purchase and develop a master plan for the circus lot will receive $125,000 of its $480,000 request.
Additionally, the first selectman’s salary will increase from $105,172 to $120,710, to reverse a past reduction. The increased salary will take effect after the November election.
The board was able to decrease the tax rate while increasing spending by $3.4 million because of an increase in the grand list and by applying $3.8 million from its $19.6 million undesignated fund balance to offset the tax rate.