Derby Council Discusses 2026 Budget and Property Tax Strategies Amid Inflation Concerns

The Derby City Council meeting on August 26, 2025, focused on critical discussions surrounding the city's budget and property tax rates, as well as the impact of inflation on local government funding.

City officials emphasized the need to collaborate with state authorities to explore various funding options for local government, particularly regarding sales and property taxes. Council members noted that if cities were granted more flexibility in sales tax options, it could lead to a reduction in mill levies, benefiting residents financially. The ongoing discussions at the state level regarding tax structures are expected to continue, as previous negotiations between the house and senate were unresolved.

Inflation was highlighted as a significant challenge over the past five years, particularly affecting costs related to road maintenance and public safety equipment. City Manager Kyle Mangus reported that the cost of street projects has tripled, and the price of essential equipment, such as fire engines, has surged dramatically. Despite these challenges, Derby has experienced healthy sales tax growth, although recent trends show a flattening in revenue.

The council also addressed concerns raised by residents regarding high property taxes, particularly for those on fixed incomes. One resident, Pat Carney, expressed frustration over rising taxes and the burden it places on seniors. Council members acknowledged the need for better communication about available state programs that could assist low-income seniors and disabled veterans with property tax relief.

The meeting concluded with a motion to adopt a resolution to levy a property tax rate exceeding the revenue neutral rate for the proposed 2026 budget. The council approved the motion unanimously, indicating a commitment to maintaining essential services while navigating the financial challenges posed by inflation and rising costs.

Overall, the discussions underscored the city's efforts to balance budgetary constraints with the need to provide vital services to its residents, while also seeking solutions to alleviate the financial pressures faced by the community.