Cheshire council narrows FY2026 capital plan, targets about $11 million annual bonding to meet 10% debt-policy goal

At a meeting of the Town of Cheshire Town Council, town staff walked councilors through the proposed fiscal year 2026 (FY2026) annual capital expenditure budget and five-year capital plan and showed how different combinations of project deferrals, energy-performance contract savings and grant offsets would affect the town’s projected debt service.

The discussion, led by Sean Kimball (town staff member), focused on bringing long-term debt-service projections in line with the council’s policy goal that net debt service remain at 10% or less of the operating budget. Kimball presented several scenarios, including removing roughly $14 million of projects moved to a “years 6–10” placeholder column, and an illustrative $22 million reduction in years two and three of the five-year plan; that mix produced debt-service projections the town manager described as “roughly policy consistent.”

Why it matters: Cheshire’s recently approved school borrowing and other large projects are driving a sharp increase in future debt-service costs. Council members said they want a realistic five-year plan that rating agencies and voters can rely on, and several members urged staff to pare placeholders that inflate projected borrowing without a clear timetable.

Most important facts

- Kimball said the current first-year bonded plan contained about $11.6 million in gross approvals and —…