Montville ― The town’s finance committee met Tuesday night to “do a deeper dive” into Mayor Leonard Bunnell’s 2024-2025 budget proposal and look for places where reductions could be made.
Bunnell proposed a $70.7 million budget to the Town Council earlier this month which calls for a 2.2% increase over the current budget. If finalized, it would raise the tax rate by 1.29 mills. For residents who own a home assessed at $210,000, the median value in town, the tax increase would be $270.
But Town Council Chairman Tim May, a member of the finance standing committee, said Tuesday his goal is to adopt a budget that would raise the tax rate by less than one mill.
After the meeting, May said he found a few lines of the budget where more accurate budgeting could be done, specifically in the areas such as pensions and workers’ compensation.
He said one way the town could offset the tax rate increase would be to use some money from the town’s reserve fund balance, which municipalities keep on hand for emergencies and to preserve a strong bond rating.
The reserve fund balance currently stands at $12.4 million, a number that equals 16.9 percent of the town’s annual expenditures, according to Finance Director Barbara Griffin.
It is recommended the town retain an amount that equals 12 to 16 percent of its annual expenditures to maintain its bond rating. The rating helps determine the interest the town pays when borrowing money for projects.
Griffin said Tuesday decreasing the balance to 14 percent would free up about $2.1 million. Bunnell is proposing to use $500,000 of the fund to offset the tax increase.
Members of the finance standing committee will continue to examine Bunnell’s budget proposal before the Town Council votes to approve it later in May. Tuesday’s meeting was only to examine line items in the town government budget. The committee cannot suggest changes to line items in the school budget.
Bunnell’s proposal reduces the school board’s original $45.5 million request by $1.2 million.
At a public hearing for the school board budget last week, five residents, including one school board member, spoke in favor of approving the original $45.5 million request which was a 4.5% increase over the current budget. Of the $45.5 million, just $305,000 were new requests, with the rest of the increase being largely comprised of positions no longer being funded by COVID-19 grants.
Residents there noted the long-term benefits of increased school spending, and said the additions in the school budget, which included a new high school special education teacher, contractual raises for teachers, and $100,000 in full-time paraprofessional positions, were vital. They added investments in the school system would also attract new residents.
d.drainville@theday.com
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