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Simsbury selectmen back using surplus, not health‑insurance reserves, to avoid raising mill rate
Summary
At a April 23 special meeting the Simsbury Board of Selectmen agreed without objection to recommend using $1 million of projected year‑end surplus rather than drawing $1 million from the town’s health insurance reserves, preserving a proposed mill‑rate increase of 2.15%.
The Simsbury Board of Selectmen on April 23 unanimously agreed to support a plan that would use $1 million of the town’s projected $3 million year‑end surplus to offset next year’s operating budget rather than tapping $1 million in the town’s health insurance reserves, keeping the town’s proposed mill‑rate increase at 2.15%.
Finance staffer Amy laid out three options the Board of Finance had reviewed: (1) keep the original plan and use the $1 million in health insurance reserves, (2) use $1 million of the projected year‑end surplus instead and leave the health fund reserves intact, or (3) budget a $1 million tax increase — which would push the town’s tax increase from about 2.15% to roughly 3%. “One option is just we keep it status quo,” Amy said, describing the first approach and noting the health fund is currently projected at about 18% of expected claims versus a typical target of 20–25%.
The Board of Finance told the selectmen it was leaning toward the conservative, tax‑increase option while the town waits for additional data from Lockton, the town’s benefits consultant, on whether current higher claims are a one‑time spike or the start of a sustained trend. Amy said Lockton had previously projected a roughly 14% increase going into next year.
Several selectmen urged caution about raising taxes. “I’m not in favor of making further cuts,” Mike said. “Minimizing the increase to 2.15… I don’t think that’s fair to the residents.” Kev added, “I’m in support of option two,” and another member noted the surplus is current‑year taxation and therefore an appropriate pool to cover a current‑year spike.
Under the approach the board supported, the town would: leave the health insurance fund’s $1 million untouched; use $1 million of a projected $3 million year‑end surplus to offset next year’s operating budget; and, if needed, use approximately $500,000 of the remainder to bring the health fund from an estimated 18% of expected claims toward the 20–25% target. Any leftover surplus would be applied to capital reserves as is the town’s typical practice, Amy said.
Wendy, who led the meeting, said the board would document its position in a letter to accompany the next public hearing. “We want to keep the mill rate. We want to follow the finance director’s guidance,” she said, and the board agreed to prepare a letter, with Amy’s support, to present that position at the next hearing. The board recorded its support “without objection.”
The board did not take a new formal budget vote at the meeting; members agreed to put the plan in the record and to coordinate with the Board of Education as that board finishes its scheduled meeting next week. The meeting ended after an affirmative voice vote to adjourn.
The meeting recording includes a prerecorded appeal for donations to S(imsbury) Community Media (SEM) after adjournment; that segment is promotional and not part of the board’s deliberations.
What happens next: the selectmen will send a letter documenting their support for option two and present that position at the next public hearing; the Board of Education will consider its own posture when it meets next week.
