Cheshire proposes 13.5% property tax increase as FY25‑26 budget faces $15 million gap

The Town of Cheshire held a public hearing on its proposed fiscal year 2025–26 operating budget Tuesday, March 18, during which town staff and school officials described a roughly $15 million gap that the administration says would be addressed by a proposed 3.7‑mill increase in the tax rate to 31.16 mills.

Town Manager Sean Kimball summarized the drivers of the shortfall and the proposed mill rate. “The mill rate proposed at 31.16 is a 3.7 mill increase, which is a 13 and a half percent increase over the current year's adopted mill rate of 27.46,” Kimball said, attributing the gap to about $4.7 million in revenue losses and roughly $10.3 million in expenditure increases.

Kimball told the council and residents that the major revenue shortfalls include reduced state aid and the loss of pandemic‑era ARPA and similar one‑time funding, and that the town also faced a drop in motor vehicle assessed values after a state law changed the valuation methodology. On the expenditure side, Kimball identified three large cost increases: the Board of Education request (+$6.2 million), higher debt service (+$2.6 million) largely tied to recent school construction, and an increase in other town services (+$1.5 million).

The town manager also explained why recent property value growth has not provided immediate relief. He said the largest new development in the North End (Stonebridge Crossing) added about $45.3 million of value this year, but 75% of that growth is captured by the town’s tax‑increment financing (TIF) district and diverted from the general fund until TIF obligations are repaid. “When I say that it's basically a flat grand list, that's because if you take $34 million out of $37.5 million, it's effectively just an increase of $3.5 million of value,” Kimball said. Kimball estimated that, when fully built, the North End development could generate roughly $5 million to $6 million a year in additional revenue but that most of that revenue would not be available to the general fund until obligations are satisfied (staff estimated most value would not be available until about fiscal 2028).

Superintendent Dr. Jeffrey Solon presented the Cheshire Public Schools’ portion of the budget, which the board adopted at $95,000,007.56 (about a 6.94% increase). Solon described the budget as primarily people‑driven and said it funds instruction, special education, transportation and extracurricular programs for nearly 4,400 students. He said the proposal includes a net increase of one certified classroom position (two elementary teachers added and one reduction at Norton), two speech and language pathology assistants, a 0.5 school counseling position, a 0.5 art teacher, a 0.5 TESOL teacher and other noncertified staff such as paraeducators and an additional bus driver. “What we provide through that budget is high quality instruction next year to nearly 4,400 students,” Solon said.

Solon and board staff highlighted other budget pressures: rising medical‑benefit claims (the district is self‑insured and projects an increase in medical costs), negotiated wage increases and growth in special‑education costs. The district reported that 80% of its budget is devoted to personnel costs and noted per‑pupil spending of $20,156 compared with a state average of $22,837 (state data cited by the superintendent).

Several residents who spoke during the public comment period urged the council to look for cuts or alternatives to a large tax increase. Commenters raised concerns about impacts on seniors and fixed‑income households, questioned the size of the school request relative to enrollment changes, and urged staff and elected officials to pursue state assistance and other revenue options. Town and school officials reminded the public that the council will hold a series of budget workshops and that the Board of Education would appear later in the evening for detailed review.

The council closed the public hearing and proceeded with the first budget workshop, opening a multi‑week review process. The meeting also ended with a formal motion to adjourn; Councilor Patricia Kramer moved to adjourn and Councilor David Velber seconded; the chair called the motion approved.

Next steps: staff said the council must adopt a budget and mill rate by April 30 under the town charter schedule. Officials also noted remaining state budget uncertainties — including final Educational Cost Sharing (ECS) allocations and final state or federal actions that could alter revenue projections — and said updated bond interest rates would be known after upcoming bond market sales for ongoing school construction.