Town manager proposes $150.2 million budget; recommends 31.16 mills, which would raise average Cheshire property tax about 12.7%

Town Manager Sean Kimball on March 11 presented a proposed $150.2 million operating budget for fiscal 2026 and recommended a tax rate of 31.16 mills, a move that would raise the average Cheshire property tax bill by roughly 12.7%, the manager said.

Kimball told the Town Council that the proposed budget reflects a number of revenue losses and rising costs that together create a substantial fiscal gap. “If you take all of those revenue factors … that sums up to $4,700,000 in lost revenue,” he said, describing reductions in state aid and one‑time federal and town funds. He added that, “that alone … represents a 1.16 mil increase in taxes or about a 4.2% tax increase before we even talk about expenditures.”

Major expenditure drivers cited in the presentation included the Board of Education’s recommended increase — a $6.2 million request that Kimball said included higher medical‑benefit costs and staffing for enrollment growth — and a projected 28.4% jump in debt service, largely tied to financing two new elementary school projects.

Kimball said the proposed total operating budget is $150,200,000, a 7.34% increase from the current year, and that the recommended mill rate of 31.16 (up from 27.46) equals a 3.7‑mill shift. Using the town’s revaluation figures, the manager illustrated the average homeowner impact: a property assessed at the town average would see annual taxes rise from about $8,175 to $9,277, an increase of roughly $1,102.

Kimball attributed part of the revenue shortfall to state actions and federal funding timing: he cited about $900,000 in cuts to state pilot and education cost‑sharing (ECS) aid, the end of a municipal revenue‑sharing payment budgeted at $500,000, and the one‑time use of ARPA funds earlier in the budget cycle that are no longer available. The manager told the council that changes in motor‑vehicle valuation methodology reduced the grand list by about $27.6 million and that a large share of recent grand‑list growth from the Stonebridge Crossing project is subject to a credit‑enhancement agreement that directs most of those taxes into the TIF arrangement rather than the general fund.

Other line items the presentation highlighted included a proposed restoration of the community pool subsidy to about $500,000 (up roughly $200,000 from the current-year subsidy), rising liability and workers’ compensation insurance, and requested raises and minimum‑wage adjustments that increased personnel costs across town departments.

Kimball also showed the town’s projected reserves, saying his recommended budget would use $1.25 million of reserves and leaving an estimated unassigned fund balance of about $17.2 million — roughly 12.36% of expenditures, above the council’s 10% policy target.

The manager proposed a modestly scaled first year of capital projects — about $7.7 million — and noted that the five‑year capital plan includes higher borrowing that will add to future debt service. He said he reduced several capital requests in order to moderate debt forecasts.

Kimball closed by giving the council a schedule of budget workshops and hearings. The town council will hold a public hearing on the proposed budget and a sequence of departmental and capital workshops in March and April before a planned adoption in late April. He encouraged residents to follow the budget documents posted on the town website and attend the meetings.

Council members thanked Kimball for the presentation and noted there will be detailed reviews in the coming weeks; the board of education’s request and debt service projections will be the major focus of those workshops. No vote on the budget was taken at the March 11 meeting.