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Simsbury boards present budgets that would raise town mill rate; combined tax hike about 2.63%
Summary
Tri‑board presenters proposed a town and education mill rate of 33.73 and a separately taxed fire district mill of 1.33, producing a combined mill rate of 35.06 and a combined tax increase of about 2.63% (roughly $284 annually for a $450,000 home). Boards signaled use of OPEB trust funds and capital reserves to smooth debt service.
Lisa Hefner, a member of the Board of Finance, told residents the proposed board of education and board of selectmen budgets would require a town and education mill rate of 33.73. She noted the town collects fire-district taxes but has no jurisdiction over the fire district’s separate budget; the fire district’s mill rate is estimated at 1.33, producing a combined mill rate of 35.06 and an overall tax increase of about 2.63 percent.
Hefner said that for a sample homeowner with a $450,000 house the proposal would mean an annual tax increase of roughly $284 (about $24 per month). She described the budget’s main pressures as growing debt service, negotiated salaries and benefits, and limited grand list growth, which the assessor currently projects at about 0.9 percent and that will generate only about $1 million in new revenue.
The board described debt service as a structural constraint: recent capital investment has raised debt-service costs by nearly $4 million since 2020, and that obligation must be funded each year. To manage volatility, the board said it is using a debt-smoothing plan and planned draws from capital reserves; it also proposes beginning to use the town’s other postemployment benefits trust (OPEB) as designed, a change the presenter said is expected to save more than $20 million over 20 years.
Board finance staff and the budget director provided context on revenues: property tax makes up roughly 87 percent of the town’s revenue, state aid about 7 percent, and all other revenues about 4 percent. Presenters noted a drop in projected interest income (reducing revenue by about $480,000) and said non‑tax revenues are down roughly $219,000 from last year, increasing reliance on property taxes.
The board emphasized that the town’s mill rate remains higher than several peer towns because Simsbury’s per-capita grand list is smaller, which requires higher mill rates to raise equivalent revenue. The finance presentation closed with a reminder that the board of finance may adjust proposed budgets before sending them to referendum, and that the tri‑board public hearing will continue on April 21 for final deliberations.
The public hearing was extended by a unanimous board vote to April 21 at Town Hall; the boards asked staff for additional line-item motions and updated projections before then.
