Simsbury reports FY25 surplus, $2.8M moved to capital reserves after Henry James refund

Town finance staff told the Board of Finance on Nov. 18 that fiscal year 2025 closed with revenues about $2.31 million above budget and expenditures roughly $1.1 million under budget, producing a net increase in the town's fund balance. Finance staff explained the primary drivers: timing in conveyance-tax receipts, higher-than-expected interest income, and savings on employee benefits tied to a midyear shift in retiree health-plan arrangements.

Staff also reported receipt of returned bond proceeds tied to the Henry James project (approximately $3.0–$3.3 million) and proposed using those funds to reduce planned bonding and to increase the capital-reserve balance. The board approved a resolution transferring $18,000 for town-hall HVAC roof work, $150,000 for a Station Street supplemental, and a $2.8 million contribution to capital reserves. Staff said these moves will lower near-term debt service, create cash capacity for fiscal‑year‑2027 capital planning and provide more flexibility for larger upcoming projects.

Finance staff and the board discussed the mechanics: returned bond cash will be transferred into capital reserves and then applied to approved FY26 bond projects, which will reduce the town’s need to issue new bonds for those items and lower debt-service obligations in later years. Staff committed to model scenarios for December showing how applying the Henry James proceeds reduces annual debt-service costs and creates capacity for cash-for-capital options when larger projects arrive.

Separately, consultants from Finuchin Advisors presented pension and OPEB information: the town’s pension plan shows funded ratios in the low 70% range (town ~71%, Board of Education ~72%, police ~79%), the OPEB trust holds about $28 million in invested assets, and investment managers and plan assumptions will be reviewed in upcoming actuarial and experience studies. Consultants recommended an experience study to retest actuarial assumptions.

The board also approved several reappropriations (parks and rec garage ventilation $10,004; Meadows facility maintenance $10,000; pavilion repairs $75,000) and clarified closeout rules for capital (vehicles/equipment lapse after one year unless encumbered). The board approved a minor policy change to raise the fund-balance minimum to 16% and left the capital-improvement threshold at $250,000.

Finance staff said the town’s general fund unassigned balance remains above policy minimums (about 17.7% unassigned at year end in the presented closeout) and that some transfers and encumbrance cleanups remain part of the audit closeout to be reflected in final audited statements.