Shelton's Auditor Reports Strong Tax Collection and Low Operating Costs

The City of Shelton Aldermen Full Board meeting held on February 13, 2025, focused on the city's financial health and tax collection rates. The meeting began with a review of the city's financial standing, highlighting that Shelton operates with a significantly low general fund balance compared to other cities. Despite this, the city maintains a strong and growing grand list, which allows for the return of surplus funds to taxpayers.

A key point of discussion was the city's debt management, with officials noting that Shelton's operating costs are lower than those of similar towns. The city is on track to pay off its $10 million debt within five years, indicating a healthy financial situation. The auditor emphasized that Shelton's financial practices allow for a lean operation while still providing essential services.

The tax collection rate was another critical topic. Historically, Shelton's tax collectors have achieved a collection rate exceeding 98%, with recent estimates suggesting a rate as high as 99.9%. However, there was some confusion regarding the accuracy of this figure, prompting further clarification on how tax collection is calculated. The auditor explained that adjustments throughout the fiscal year, due to ongoing construction and property assessments, often lead to an increase in the grand list, positively impacting revenue.

Concerns were raised about uncollected taxes, particularly in relation to motor vehicles, which are often difficult to assess when owners move out of town. The auditor reassured the board that real estate taxes remain largely collectible, and the city is actively managing outstanding collections.

In conclusion, the meeting underscored Shelton's robust financial health, characterized by low operating expenses, effective debt management, and strong tax collection rates. The board expressed a commitment to transparency and communication with citizens regarding the city's financial status and ongoing efforts to maintain fiscal responsibility.