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Simsbury Board of Finance re-notices FY27 budget after $3.5 million surge in health claims
Summary
After Finance Director Amy Meriwether reported a projected $3.5 million increase in current-year health insurance claims that would reduce reserves, the Board re-noticed the FY2026–27 budget, moved funds between accounts and voted to eliminate planned use of health-fund reserves in favor of direct appropriations to the Board of Education and municipal insurance lines.
The Simsbury Board of Finance voted Wednesday to re-notice its proposed fiscal year 2026–27 budget after the Finance Director warned that current‑year health insurance claims are projected to be $3.5 million higher than budgeted.
Finance Director Amy Meriwether told the Board the projection comes from current‑year claims experience and would leave the health insurance reserve at about 18% of expected claims, below the Board’s 20–25% target. "Our current year claims are projected to be $3.5 million higher than what was budgeted due to a spike in claims during the second half of the year," Meriwether said, and added the town would likely need to contribute approximately $500,000 at year‑end to return to a 20% reserve level.
Why it matters: the Board had planned to use health-fund reserves to offset part of the FY27 operating budget. With the new projection, members said they need more time and information from the benefits consultant before deciding whether to rely on reserves, apply year‑end savings, or increase the budget and taxes.
Board Chair Lisa Heavner argued for caution and transparency: she said that "if we had the information regarding health insurance earlier in the process, we would not be using reserves to offset the operating budget," and recommended re‑noticing any increased budget to give the public additional notice and an opportunity to comment.
At the meeting, Dr. Lalitha Shivaswamy moved — and Art Wallace seconded — a set of amendments that eliminated the planned use of Health Fund reserves: $800,000 was shifted to increase the Board of Education budget and $200,000 was added to the Board of Selectmen's Major Medical Insurance line (to a total of $3,404,195). Both motions passed unanimously. The Board also approved a motion to re‑notice the FY27 budget and schedule a public hearing for April 29, 2026, at 5:45 p.m.
The Finance Director presented three options for the Board to consider: replenish reserves at year‑end and proceed with the Board of Selectmen’s budget; use year‑end savings instead of the health reserves (also phased in using general fund reserves); or, time‑sensitive, increase the budget and taxes by $1 million. Meriwether said the Board has until year‑end to choose options that rely on end‑of‑year results and that the third option — raising the budget and taxes — would be time sensitive.
The Board also discussed the motor vehicle tax reimbursement and a state cap on the motor vehicle mill rate of 32.46 mills; members reached consensus to set the motor vehicle mill rate at 32.36 mills and noted this adjustment will affect FY27 collections and subsequent state reimbursement timing.
What’s next: the Board re‑noticed the budget, set the public hearing for April 29, and directed staff to provide additional detail from the benefits consultant and updated claims data before making a final decision about reserves or tax increases.
