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Simsbury Board of Finance approves FY27 budget adjustments, draws $700,000 from health reserves to blunt tax increase
Summary
The Board of Finance voted April 29 to use $700,000 from the town's General Fund health insurance reserves and cut education and insurance line items to reduce the FY27 tax impact; the board also approved detailed departmental appropriations totaling $30,121,926 for the Board of Selectmen and $90,948,518 for the Board of Education and sent the budgets to referendum.
The Town of Simsbury Board of Finance voted April 29 to adjust the proposed FY2026'27 operating budget by using $700,000 from General Fund health insurance reserves and approving a set of targeted cuts intended to limit the tax increase for residents.
Board member Lalitha Shivaswamy moved the primary package of adjustments, which included the $700,000 reserve draw, a $560,000 reduction to the Board of Education budget and a $140,000 cut to the Board of Selectmen's Major Medical Insurance line; Regina Pynn seconded the motions, and each passed as recorded. The board also voted to assign $700,000 from General Fund reserves to offset a projected health insurance operating "cliff" in FY2027'28.
Why it matters: Finance Director Amy Meriwether presented updated claims that raised the town's projected health plan exposure and showed a higher stop-loss reimbursement estimate; the board debated whether to absorb the short-term spike through reserves, phase it into the operating budget, or a mix of both. Meriwether said the consultant and town analysis show a projected reserve of about 25% for the current year and cautioned against routine use of reserves to fund operations, adding that "reserves should not be used to support the operating budget, but that a targeted use of reserves is okay as long as there is a plan to build it back in." (Amy Meriwether, Finance Director).
Board members said they support a measured approach. "If we have one area that is consistently coming in under budget, we should adjust accordingly," Lisa Heavner said when reviewing sources of the current surplus. Several members pressed for a split approach to the $1 million shortfall: part from reserves, part from spending reductions and part from taxpayers. Dr. Shivaswamy proposed a one-third split among those levers; Town Manager Marc Nelson and Superintendent Matt Curtis discussed shared services and limited near-term personnel savings as factors in how much can realistically be cut.
Formal outcomes: The actions approved included (1) use of $700,000 from health insurance reserves to offset the FY27 operating budget (motion passed unanimously), (2) a $560,000 decrease to the Board of Education budget (unanimous), and (3) a $140,000 decrease in the Board of Selectmen Major Medical Insurance line (unanimous). The board also approved moving specified small capital items into the Capital Non-Recurring (CNR) fund and reallocating certain operating items into CNR, a motion that passed 5'1 with Mike Doyle recorded as opposed on one reallocation vote.
Budget totals: The Board of Finance adopted departmental appropriations including $30,121,926 for Board of Selectmen functions and $90,948,518 for the Board of Education (both approved by vote), and the total town operating budget figures and departmental line items were recorded in the minutes as adopted. The board set referendum questions for the approved budgets (see separate item listing ballot questions and amounts).
Public input and remaining steps: Members of the public used the hearing to raise concerns about legal fees, special education costs, and demographic priorities; Joan Coe urged taxpayers to vote no unless legal fee accountability measures are adopted. The board closed the public hearing, and the approved appropriations will appear on referendum ballots as required by charter sections cited by the board. The board adjourned at 8:49 p.m.
