By Beth Barhydt
On April 2, the New Canaan Town Council approved the fiscal year 2024-2025 budget, amounting to $174.93 million, marking a 4.99% increase over the previous fiscal year.
The approved budget assigns $109.14 million to the Board of Education, reflecting a 5.93% increase from the previous year. This includes Board of Education operating expenses of $91.55 million, up by 3.67%, and transfers to the Health Internal Service Fund expenses of $17.59 million, up by 19.44%. The budget further comprises $8.96 million of other Board of Education expenses paid by the town.
In addition, town department operational expenses are set at $33.83 million, a 4.33% increase from the previous fiscal year. The budget also details a combined Town and Board of Education debt service of $18.91 million, up by 2.83%, and tax-funded capital projects of $0.38 million, a decrease of 31.25%.
During the council meeting, Town Council Chairman Michael Mauro emphasized the town’s challenge in managing inflationary pressures and increasing costs in labor, energy, materials, and healthcare. Mauro stated, “As with last year, the Town continues to address the challenges of acute inflationary pressure and ever-increasing costs for items such as labor, energy, materials, and healthcare.” He further highlighted the council’s efforts in scrutinizing operating and capital budgets to maintain high service standards for residents.
The Town Council’s budget takes into account the Town Assessor’s reported 2023 Grand List increase of 23.53% to $9.90 billion from the 2022 Grand List of $8.01 billion. This Grand List combined with an estimated $5 million fund balance drawdown will result in a projected decrease of the mill rate from the current 18.940 to an estimated 16.144 (down 14.77%).
The Board of Finance has the option to draw down less or more than $5 million and will make the final determination in May or June. The final mill rate, which determines property taxes, is to be set by the Board of Finance by June 11, 2024.
During the council meeting, discussions on potential reductions to the budget, particularly concerning the Board of Education, were robust. Council member Rita Bettino expressed concerns about the overall budget increase and its impact on residents, especially during a revaluation year. She stated, “…we’re looking at a 6% increase, about $9 million, to be exact, on an already very healthy budget.” Bettino further mentioned the importance of prioritizing and considering postponing certain expenses.
In response to Bettino’s comments, Council member Hillary Ormand voiced her reluctance to support a cut to the Board of Education budget. Ormand argued that any reduction would be symbolic and would not significantly impact the mill rate. She emphasized the high value residents place on the district’s educational offerings and her trust in the superintendent’s judgment in staffing decisions.
Additionally, a Council member suggested examining full-time positions for potential budget reductions. They remarked, “I think we need to consider what we want to prioritize this year in a reval year and think about maybe what we might want to postpone until next year.”
The council ultimately voted to reduce the Board of Education budget by $250,000. Council Chairman Mauro underscored the significance of this decision, stating, “We are the only body in this town with the statutory authority to say yes or no on any penny that’s spent in this town overall.”
Another point of discussion centered around the allocation to the town library. The council ultimately decided to reduce the library’s requested budget. Council member Maria Naughton proposed reducing the library’s funding from an 8% increase to a 4% increase. Naughton suggested the library could offset the reduction by charging nominal fees for some of its programs.
The discussion revealed differing perspectives among the council members. Council member Hillary Ormand voiced opposition to reducing the library’s budget, citing the value of free library services and the importance of keeping the library as an accessible community resource. She shared a personal anecdote illustrating how the library’s inclusive approach was instrumental in her decision to move to New Canaan.
During the same meeting, there was a discussion about the funding for the Playhouse theater project. The council faced a decision regarding additional funding requests due to cost overruns in the project’s completion. The total additional funding needed for the Playhouse project amounted to $284,400.
Cinema Lab, the entity collaborating with the town on the Playhouse project, agreed to contribute an additional $120,000 towards the project. This left a shortfall of $163,600, which the Town Council was requested to cover. The council was informed that these additional costs were primarily related to building improvements and necessary upgrades, including plumbing for the concession stands and bars, additional design fees due to structural challenges, and increased cooling needs for AV equipment.
During the council’s deliberation, the specifics of these additional costs were examined. It was highlighted that certain aspects, such as additional plumbing and the creation of a small server room to accommodate AV equipment, resulted in unanticipated expenses. The council also learned about miscommunications regarding the project, such as the flooring finishes for the staircases leading to the first and second floors, which had not been clearly assigned in the initial agreements.
The council ultimately voted to approve the special appropriation of $163,600 to cover the shortfall, thereby ensuring the completion of the Playhouse project. This decision was made considering the project’s significance to the town, its potential as a cultural hub, and the nearing completion date.
Other areas of the budget, such as town department operational expenses, debt services, and capital projects, were discussed in the context of the overall fiscal planning but did not see notable changes or amendments during this meeting.
