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Board reviews FY 25/26 budget packet and local option under House Bill 7067 on vehicle valuations
Summary
Board members reviewed the FY 25/26 budget packet, were briefed on a state change to motor-vehicle valuation methodology under HB7067 and upcoming public hearings on April 7 and April 9; staff emphasized strong permit revenues, $632,648 in excess cost special education grant receipts, and elevated interest income projections.
At its March 24 meeting the Avon Board of Finance reviewed the updated FY 25/26 budget as approved by the Town Council on March 6 and was briefed by Finance Director Tom DiStasio on related items and upcoming dates.
DiStasio highlighted two near-term public events for the budget process: a Public Hearing scheduled for April 7 at the Senior Center (hybrid) and a Board of Finance budget workshop set for April 9 (hybrid). He also noted a Special Town Council meeting to discuss the local option enabled by House Bill 7067, which was signed by the governor March 3 and affects the 2024 grand list motor-vehicle valuation method.
DiStasio explained the prior valuation method relied on estimated market value updated with National Auto Dealers Association pricing. Under the new state methodology each vehicle is valued by applying an MSRP-based depreciation schedule. That change reduced motor-vehicle grand lists in many municipalities. HB7067 gives municipalities a local option to revise that depreciation schedule to increase vehicle valuations at each level of the schedule; DiStasio emphasized the Board should understand this is a redistribution of the existing property tax levy rather than a net increase in town revenue.
On revenues and expenditures, DiStasio told the Board current levy collections are strong and building permit fees and other license revenues are particularly high this year. The Town received $632,648 of excess cost special education grant funds from the State and expects an additional grant revision in May. Interest income year-to-date is strong; annualizing current figures could put interest receipts north of $2 million. He reported Town operating expenditures for the period ending Feb. 28 are at approximately 65.71% of budget year-to-date and that the Health and Social Services line is over budget driven by assistance connected to the Avon Place fire.
The Board did not take final action on the budget at this meeting; the materials and dates provided will frame the public hearing and subsequent Board workshop.
