TOWN OF NEW CANAAN PRESS RELEASE TOWN COUNCIL APPROVES FY2020 BUDGET OF $150.94 MILLION -- DECREASE OF 0.43% IS THE LOWEST IN LAST 10 YEARS FUNDS TO BE RAISED BY TAXES DECLINES 0.56% -- FIRST DECLINE IN MORE THAN 10 YEARS

The Town Council on April 4th approved a Total Expenditure Budget of $150.94 million

for fiscal year 2019-20, representing a decrease of 0.43% over the current fiscal year’s amended

budget expenditure of $151.58 million. This is the first decline in more than a decade. The

funds to be raised by taxation declined to $139.23 million from the current year’s $140.02

million, a decrease of 0.56% -- the first decline in more than 10 years.

The Town Council budget will be filed in the office of the Town Clerk and will become

effective eight days after publication unless a notice of intent to file a petition for a referendum

has been filed in the office of the Town Clerk within seven days after publication (Town Charter

Sections C4-13 and C4-14).

The Total Expenditure Budget includes Board of Education operating expenses of $91.43

(up 1.86 %) , Town department operating expenses of $39.92 million (up 0.56 %), debt service

of $16.84 million (down 9.29 %), and tax-funded capital projects of $1.73 million (down 40.32

%). To fund this budget, the amount to be raised from taxation is $139,230,687 (down 0.56%).

“We have much to be thankful for. Town leadership really came together to deliver the

tightest budget in over a decade, one which accurately reflects our priorities as a town: the #1

school system and among the lowest taxes in what most experts agree is still the best place to

live in Connecticut,” said Town Council Chairman John Engel.

The Town Council’s budget takes into account the 2018 Revaluation as of October 1,

2018 where the town’s 2018 Grand List declined 7.64% to $7.71 billion from the 2017 Grand

List of $8.34 billion. The decline in the grand list was primarily due to lower valuations of homes

valued at more than $2 million. The overall average decrease in residential property values was

7.2%. Commercial properties increased on average 10.8 %.

The reduction in the Grand List will result in an increase in the mill rate from the current

16.960 to an estimated 18.259. The final mill rate to be set by the Board of Finance on April 9.

Attached is Board of Finance FY 2019-2020 Budget Summary showing further details of

Town Department and Board of Education (BOE) year-over-year budget changes.

For further information, contact: Lunda Asmani, Budget Director, 203-594-3026.

Chairman's View: Council Faces Cost of Debt, Capital Projects and Lower Property Values (Oct 4, 2018)

Chairman’s View: Council faces cost of debt, capital projects and lower property values

OCTOBER 4, 2018 BY NEW CANAAN ADVERTISER

A guest column from New Canaan Town Council Chairman John Engel.

New Canaan has the highest per-capita debt in Connecticut at $5,800, double that of Darien because we are a larger town with many more miles of roads and dozens more buildings. Therefore the Board of Finance has presented to the Town Council their recommendation that we reduce our debt service as a percentage of expenses over the next five years from 12% to 10%.

Capital Plan

The Town Council, Board of Education and Board of Finance agreed last year to work on common budget guidance in the fall. Those meetings are still needed. There is a disconnect between current Board of Finance guidance to reduce Town debt service to 10% levels and the new public-private initiatives we read about each week. Your town government needs to have an honest conversation about priorities and scrub the five-year capital plan.

State and local

High net worth taxpayers are continuing to leave Connecticut. The election will have an impact on our budget thinking. We need to vote for a change in our taxes that will have an impact on our budget planning. The latest poll shows Lamont leads Stefanowski by 6 points with a margin of error of 4 points. 40% of Connecticut voters are independent. Stefanowski has gained 6% with unaffiliated this month, but he trails among women by 22%. This race is too close to call.

Congressional elections, transportation  

New Canaan tax base is largely dependent on Wall Street, and it benefited from recent deregulation of the financial sector, federal stimulation and the bull market. But, the latest polls predict a Republican Senate and a Democratic House in Washington. We should anticipate gridlock from a balanced Congress at a time when what New Canaan needs is federal attention on our infrastructure. New Canaan needs multiple good commuting options, particularly faster and more trains. Town leaders are working on the affordable expansion of Talmadge Hill to make more parking available for commuters. This should shorten the waiting lists. I am surprised at how few people are taking advantage of newly available “Boxcar” parking in the St. Aloysius lot. Parking habits are equally slow to change.

2019 Revaluation

The property tax change is a concern for budget planning. In January we will learn that many tax bills will rise between 10% and 20%. Why? The Grand List is predicted to shrink 8% reflecting a reset at the top end of our market and subsequent compression as top tier prices fell and put price pressure throughout the system on lower-priced homes. Those homes will make up the deficit. 

Therefore, the Board of Finance and Town Council must re-evaluate our Tax Relief for Seniors program and its means-testing in light of the coming property tax volatility. We want to retain our seniors as we explore new senior housing options. It’s a small line item but deserves a fresh look.