Town Council approves New Canaan Budget $166.62 million, increase of 3.12%

The Town Council on April 5, 2023 approved a Town of New Canaan Total Expenditure Budget of $166.62 million for fiscal year 2023-24, representing an increase of 3.12% over the current fiscal year. 

The Total Expenditure Budget includes Board of Education operating expenses of $88.30 million (up 3.08%) and Board of Education transfers to the Health Internal Service Fund expenses of $14.72 million (up 10.05%) for a combined Board of Education expense budget of $103.03 (up 4.02%). In addition to these Board of Education expenses, the budget includes $9.14 million of other Board of Education expenses paid by the Town. Town department operational expenses were $32.42 million (up 4.96%). Other budget items include a combined Town and Board of Education debt service of $18.39 million (up 0.31%) and tax-funded capital projects of $0.55 million (up 140.95%). To fund this budget, the amount to be raised from taxation is $152.18 (up 5.51%).

“This has been a challenging year given the current backdrop of rising costs and inflationary pressure on most major budget categories. The town faces many of the same challenges the private sector is experiencing, including the rising interest rates, cost of energy, healthcare, labor, and materials,” Town Council Chairman Steve Karl said. “We managed to keep the increase raised by taxation flat over the past four years, but this year may bring a modest increase to our tax bills. On a positive note, our Town Departments and Board of Education have done a great job holding the line and controlling costs as much as possible without sacrificing the finished product our residents have come to expect.”

The Town Council’s budget takes into account the Town Assessor’s reported 2022 Grand List increase of 1.02% to $8.01 billion from the 2021 Grand List of $7.93 billion. This Grand List combined with a $4 million fund balance drawdown will result in projected increase of the mill rate from the current 18.372 to an estimated 19.194 (up 4.47%). The final mill rate is to be set by the Board of Finance on May 9, 2023. 

Attached is the Town Council FY 2023-2024 Budget Summary showing further details of Town Department and Board of Education (BOE) year-over-year budget changes. The full Town Council Approved Operating and Capital Budgets for FY 2023-24 can be found at the Finance Department homepage at www.newcanaan.info/Departments/Finance.

Town Council FY23-24 Budget Summary

For further information, contact:  Joshua Kaufman, Budget Manager, 203-594-3026.