New Canaan BOF Approves FY2020 Budget of $150.96 Million, Increase of 0.02%

New Canaan BOF Approves FY2020 Budget of $150.96 Million, Increase of 0.02% is Lowest in Last 10 Years

Funds to be Raised by Taxes Declines .55% - First Decline in More than 10 Years

The Board of Finance on March 7th approved a Total Expenditure Budget of $150.97 million for fiscal year 2019-20, representing an increase of only 0.02% over the current fiscal year’s budget expenditure of $150.94 million. This is the lowest town-wide budget increase in the last decade.  The funds to be raised by taxation declined to $139.26 million from the current year’s $140.02 million, a decrease of 0.55% -- the first decline in more than 10 years.

The Board of Finance’s budget recommendation now goes to the Town Council which may accept, reduce or reject the Finance Board’s budget recommendation. The Town Council will hear from Town Departments and the Superintendent of Schools and after an official notice will hold a public hearing on the budget on April 2, 2019, and will vote on the final budget on April 4, 2019.  The budget will come back to the Board of Finance for final approval on April 9th.

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 0.57 %), debt service of $16.84 million (down 9.29 %), and tax-funded capital projects of $1.75 million (down 22.09 %). To fund this budget, the amount to be raised from taxation is $139,255,686 (down 0.55%). 

“Virtually every department came in on, near, or below the guidance that was established by the Finance Board in the Fall.  I want to thank all the town department heads for their hard work during this budget process,” said First Selectman Kevin Moynihan. 

“This budget is our first step towards making changes to our spending and debt policies,” added Board of Finance Chairman Todd Lavieri.  “Our solid financial picture, with a Aaa bond rating and an unencumbered $26 million reserve fund, continues to strengthen with this budget while protecting the town assets, services, and schools that we all support.  Our biggest concerns now are what financial challenges will be coming at us from Hartford.”

The Board of Finance’s budget takes into account the 2018 Revaluation as of October 1, 2018, where the town’s 2018 Grand List declined 7.19% to $7.74 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 16.67.  The final mill rate is subject to Board of Finance and Town Council final budget actions.

Check out the Board of Finance FY 2019-2020 Budget Summary showing further details of Town Department and Board of Education (BOE) year-over-year budget changes.