Derby council votes to exceed revenue-neutral rate, adopts $80.1 million 2026 budget and five-year CIP

The Derby City Council voted 6-0 Tuesday to adopt a resolution to exceed the state-calculated revenue-neutral property tax rate and to approve a $80,100,000 proposed 2026 operating budget and a 2026–2030 capital improvement plan. The council’s adopted levy for the 2026 budget is 44.998 mills, a decrease of 0.5 mills from the adopted 2025 levy, but the city said the change does not necessarily lower individual tax bills because assessed valuations have risen.

Finance Director Megan Pater explained the revenue-neutral process at the hearing. “The revenue neutral rate is the tax rate in mills that would generate the same property tax revenue in dollars as the previous tax year using the current assessed valuation,” Pater said, describing the state-mandated public hearing required when a city intends to exceed that rate.

That procedure drew public comment and sharply divided reactions. Bob Hole, a retired Air Force veteran, told the council, “You’re increasing it by $966,000. You’re taking 12% more of my money.” Pat Carney, who said she has lived in Derby 50 years, said she is “so freaking fed up with my property taxes being this high.” Both urged the council to limit tax increases and do more to shield fixed-income seniors.

Council members and staff framed…