By Elizabeth Barhydt
On March 6, 2025, the New Canaan Board of Finance finalized its $181.15 million fiscal year 2026 budget, closing out a months-long review that cut millions in proposed spending while maintaining the town’s commitment to infrastructure, public services, and education.
Chairman Todd Lavieri summed up the board’s approach in his Budget Letter (see the editorial page for full letter) issued on March 10: “When the Board of Finance received the budget from the First Selectman’s office in January, we set three goals: reduce the amount paid in taxation by $3 million, cut capital expenses by at least $3 million, and lower taxpayer-supported capital spending by $1 million. We accomplished all three.”
In the end, they exceeded those targets:
The amount raised by taxation was cut by $4.1 million.
Bonded capital requests were reduced by $4.8 million.
Taxpayer-supported capital spending (not bonded) fell by $1.2 million.
Despite these reductions, town expenses will still rise by 3.56%, largely due to contractual salary and benefits increases across town departments and schools. “Of this increase, 94% is driven by contracted increases in salaries and benefits for Town, Police, and Fire department employees and school district teachers, administration, and other school-related employees,” Lavieri explained.
Much of the March 6 final vote was a confirmation of previous decisions made over the course of the month.
Education remains the dominant line item, consuming 66% of the total budget. Lavieri previously underscored the board’s continued investment in the school district, which was recently ranked #1 in Connecticut. “A high-quality, high-performing school district has been a focus for this town for many years,” he said.
Debt remains well-managed, with CFO Anne Kelly-Lenz reporting a $35 million bond issuance at a 3.34% interest rate, generating a $1.912 million bond premium. The town’s total outstanding debt is $139 million, with $7 million scheduled for repayment this year.
The historic renovation of The Playhouse movie theater—which won a national award for best refurbishment—was highlighted as an example of the town’s ability to execute high-quality projects while maintaining financial discipline.
In his letter Lavieri emphasized that the town is shifting toward a “Debt Diet”, balancing capital investments with a commitment to gradually paying down obligations. “We will push hard, starting this year, to go on a Debt Diet so we can absorb our investments while continuing to pay down our debt on a straight-line basis,” he stated.
One of the more discussed line items had been the $201,000 appropriation for a new scoreboard and play clocks at Dunning Stadium. The project, originally planned for the Board of Education’s long-term capital budget, was accelerated to ensure installation before the 2026 athletic season.
However, a $14,000 funding gap emerged, raising the question: who would cover the shortfall?
Superintendent Bryan Luizzi assured the board that fundraising efforts led by the All Sports Booster Club and the Parent Faculty Association would close the gap. It’s a minor detail in a multimillion-dollar budget, but it underscores how even in a town with a $9.94 billion Grand List, financial discipline applies at every level.
For taxpayers, the most immediate impact of the budget will be the mill rate. The new budget assumes a mill rate of 16.78, marking a 3.96% increase over last year’s rate of 16.44.
Lavieri framed the increase within a broader context of value and investment. “As we have discussed over the past few years, our Town financials remain in very good shape,” he said. “We strive as a board and as a town to deliver value and results for every dollar we collect and manage.”
If silence at the budget hearing on the March 6 was surprising, it shouldn’t have been. Last year’s meeting drew only one public comment. This year, there were none.
The lack of public feedback does not necessarily indicate a lack of interest—a consistent pattern in how the town approaches its budget process. Still, Lavieri encouraged residents to stay engaged.
Now that the Board of Finance has completed its work, the budget heads to the Town Council for review and final approval. The process unfolds as follows:
April 1 – Public hearing on the budget.
April 3 – Town Council votes on the final budget.
June – The final mill rate is set, taking into account any last-minute revenue adjustments.
Residents can access budget documents and meeting details on the town website.
In the end, the March 6 meeting and Lavieri’s follow-up statement confirmed one thing: New Canaan’s budget is a reflection of the town’s priorities and long-term vision.
“Over the past 15 years, we’ve made major capital investments in our schools, Town Hall renovations, road repairs, athletic fields, and public safety,” Lavieri said. “We have a AAA rating by Moody’s, and our financial standing remains strong.”
