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Milford selectmen decline to tap reserves, keep preliminary 2025 tax rate
Summary
At a special meeting the Milford Board of Selectmen voted unanimously not to use unassigned fund balance to lower the town's preliminary 2025 tax rate and instructed staff to submit a revised overlay figure to the Department of Revenue Administration.
The Milford Board of Selectmen voted unanimously at a special meeting to refrain from using the town's unassigned fund balance to lower the preliminary 2025 tax rate.
The board acted after the town administrator presented the Department of Revenue Administration's preliminary 2025 rate — municipal $6.04, county $1.38, local education $16.98 and state education $1.51 — for a total of $25.91 per $1,000, a $2.24 increase from 2024. The administrator said the town's unassigned fund balance is roughly $4,826,000, about 7.7% of the budget, and asked whether the board wanted to deploy any of that money to reduce the tax rate.
Board members weighed the trade-offs between lowering taxes this year and preserving a usable reserve. Selectman Paul Darje argued the board should not draw down reserves, noting a $2,000,000 internal receivable from the water and sewer department reduces immediately available cash. "I suggest we just leave it alone and, not use any additional money," Darje said.
Troy, the finance director (identified by the town administrator), presented calculations showing the town's unassigned fund-balance percentage at roughly 7.47% under current assumptions and laid out how different uses of reserves or changes to the overlay would affect that percentage and the town's cash position. The administrator also recommended raising the assessing overlay from the initially discussed $150,000 to $200,000 based on updated information from the assessing office; staff will submit the revised overlay to the Department of Revenue Administration (DRA) for final rate setting.
After discussion, Darje moved that the board not use any unassigned fund balance to lower taxes; the motion was seconded and carried by voice vote. The board directed staff to work with DRA to finalize the rate and overlay filings; the administrator said staff expects confirmation from DRA within days so final rates can be released next week.
The vote was taken at the special meeting with the motion carrying; the board did not use reserves to lower the preliminary 2025 tax rate.
