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New Canaan selectmen trim capital requests, project operating increase to 3.56% and review $35M bond closing
Summary
At a meeting of the New Canaan Board of Selectmen, town staff outlined a revised 2025–26 budget that reduces tax‑supported capital requests and lowers the proposed operating increase to 3.56%. Officials also reported closing roughly $35 million in bonds and discussed fund‑balance and lien‑sale impacts on a previously planned $5 million drawdown.
The New Canaan Board of Selectmen reviewed an updated 2025–26 budget and bond activity, with staff reporting a reduced operating increase of 3.56% and the closing of just over $35 million in municipal bonds.
The budget discussion covered revisions to tax‑supported capital, debt service adjustments and revenue items. Josh (town staff) told the board, “On the expenditure side right now, we have an overall increase of 3.56%,” and said reductions came mostly from tax‑supported capital and updated debt‑service numbers. First Selectman Michael Chang (Selectman) told residents the board had lowered the amount raised by taxation by $4,000,000 and reduced the bonded capital request by $4,800,000 from the earlier proposal.
Why it matters: the operating increase and the amount raised by taxation drive the mill rate and the tax bill residents will see when the budget proceeds to the Town Council. Board members said salary and benefit cost increases are the primary driver of the remaining increase.
Officials summarized revenue and expenditure changes. Staff reported the amount to be raised by taxation stood at about 4.33% (as presented), the grand list rose 0.38 (as presented), and offsets included bond premium and transfers from specific fund balances. Josh said the town integrated bond premium and some rental‑property and ARPA interest transfers as revenue items that reduced net pressure on the operating budget.
On the town's use of its designated drawdown fund, staff said the town had set aside $5,000,000 in prior budgeting as a placeholder. Josh said current estimates indicated the town might not need to draw against that $5,000,000 this year because lien‑sale collections provided a cushion; “we won't draw any of it,” he said, describing the lien‑sale proceeds as a one‑time cushion.
Debt and bonding: board members heard that the town closed on a bond issue described by staff as “just about $35,000,000.” Staff reported a reported ‘‘total interest cost’’ figure discussed at the meeting and referenced a bond premium; board members asked for Moody's and underwriting details so they could see the debt metrics and guidance. One board member asked for the Moody's presentation deck to be circulated to the full board for additional metrics and context.
Other notable changes: staff listed reductions and reallocations in tax‑supported capital requests including removal of a part‑time park ranger ($45,000), modest adjustments tied to a DPW contract settlement, reductions in Board of Education lines, PD equipment lines and reclassification of certain police capital into an extra‑duty fund. Staff also reported grouping some tech capital items for bonding and applying fund‑balance offsets from closed projects.
What comes next: the selectmen said they will finalize and vote on the budget at their meeting on Thursday, then forward the voted version to the Town Council for its review and possible adjustments. Staff said the fiscal year ends in June, at which time the board will set the final mill rate.
