Budget Crisis Looms as Town Faces Revenue Shortfalls

During a recent government meeting, officials discussed the financial challenges facing the town over the next several years. Concerns were raised about the potential decline in revenue and the impact of property tax changes on local communities. One official highlighted the need for a legislative fix to address these issues, emphasizing that the current budget does not account for critical needs expected in the coming five years.

The discussion pointed out that other areas of the town are not experiencing significant growth, which means funds are not being reallocated from those areas. The reserve balance for fire services is projected to drop to 15% by 2025, raising alarms about the sustainability of funding for public safety. Currently, the Public Safety Local Income Tax (PSLIT) is primarily used to cover salaries for police and fire personnel, but its reserve balance is expected to fall to just 2%.

Officials noted that while there are plans for one-time capital expenses, including $1.5 million in 2025 and up to $6.5 million in 2026, these figures are not guaranteed. If revenues do not meet expectations, the town may have to reconsider these spending plans. The meeting underscored the importance of careful financial planning to ensure that essential services remain funded amid uncertain economic conditions.