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Town finance update: tax collections steady, insurance overruns and $6 million bond issuance reported
Summary
Town staff reported tax collections at about 47% of budget, a $14,000 state reimbursement for a tangible-exemption program, insurance costs over budget and an aggregate $6,000,000 bond issuance to fund school construction and other projects.
Town finance staff presented a fiscal update at the council meeting, reporting generally strong tax receipts and several cost pressures.
Year-to-date tax collections were reported at about 47% of the annual budgeted tax revenue, ahead of prior-year pace in the first quarter. Staff also said the town received a $14,000 state reimbursement tied to a tangible-exemption program.
On the expenditure side, the town’s insurance line—covering property, liability and workers’ compensation—was reported as already over budget despite a significant planned increase to that line. Finance staff explained the pressures stem from trust rate adjustments, property revaluations and rising wages affecting workers’ comp costs, rather than an increase in insurance claims.
Staff also reported the town completed an aggregate $6,000,000 bond issuance in early September: a $4,000,000 BAN for school construction, a $1,000,000 taxable issuance for the Thomas property balance and a $1,000,000 tax-exempt issuance for the Rose project. The town said the new long-term notes are 10-year maturities and provided a reported rate range of approximately 3.95% to 5.09%.
Finance staff said police overtime is down materially from last year, freeing limited budgetary room, and that work is already underway on next year’s budget where compensation remains the principal uncertainty.
What’s next: staff will continue budget planning and will return to council with more detailed proposals during the regular budget cycle.
