Simsbury Board of Finance uses $700,000 in reserves to soften health-insurance hit, approves revised FY27 budget

The Board of Finance voted April 29 to tap $700,000 in the town’s health-insurance reserves and make targeted budget reductions after updated projections showed higher-than-expected employee medical claims.

Finance director Amy Merryweather told the board that updated stop‑loss reimbursements and claims data had pushed a projected health-fund shortfall from a manageable level toward a $2.6 million loss and reduced reserve ratios. "We were showing that we would be at about 18% of expected claims," Amy said, explaining that reimbursements and corrections later raised the reserve level into the low‑20s but left the board facing a material budget gap.

The board adopted a package of motions to address the gap. It voted unanimously to use $700,000 in health‑insurance reserves to offset part of the FY27 operating budget, to reduce the Board of Education’s proposed spending by $560,000, and to cut $140,000 from the selectmen’s medical-insurance line. A companion motion assigned $700,000 from general-fund reserves to back up the health fund “in case we need it,” with the money held in general reserves and earmarked for possible release if not needed.

Board members debated the trade-offs at length. Some members cautioned against drawing reserves below recommended guidance from advisors, warning that using too much reserve money could create a fiscal "cliff" next year. Others argued that smoothing the tax impact for residents was an equitable approach given the sudden nature of the claims spike. One member summarized the approach as spreading the burden among three sources—taxpayers, reserves and cost reductions—saying each should take part of the adjustment.

Under the compromise the board agreed to, the town will absorb most of the one‑time cost through reserves and operating reductions while passing a smaller share—$300,000 split between the town and the Board of Education—onto taxpayers. Amy presented model scenarios showing the mill‑rate outcome of each option; the board’s motions result in an estimated net tax increase of about 2.3% for town taxpayers (2.78% when including the fire district impact presented separately).

The board also approved multiple capital‑and‑nonrecurring (CNR) funding changes. It authorized a set of smaller CNR transfers from operating (for items such as library computer replacements, police vehicles and IT equipment) and moved a separate group of items into capital reserves (including public‑works equipment, police body and car cameras, and parks maintenance equipment). One member voted against funding roadside cameras on privacy grounds; that line item was recorded as opposed in the roll call.

Direct appropriations and referendum language were approved later in the meeting. The board signed off on the recommended appropriations for the Board of Selectmen ($30,121,926), the Board of Education ($90,948,518) and other special‑revenue and enterprise funds, and it approved referendum questions listing the education, selectmen, sewer/reserve and capital totals for voter consideration.

Public comment at the start of the hearing flagged separate budget concerns. Joan, a resident, called for greater transparency around the town attorney’s contract and questioned high special‑education litigation costs; Lori Boyco urged the board to scrutinize town support for community organizations; and Margaret Ruden raised demographic concerns and asked for more detail about a roughly $2 million unexpected insurance cost that helped trigger the board’s discussion.

The board closed the public hearing after the votes and asked staff to finalize the materials for the upcoming referendum. With the motions approved, staff will post the final line‑item budget and supporting documents and prepare the official referendum packet.

Votes at a glance - Use $700,000 health‑insurance reserves to offset FY27 operating budget: approved unanimously (tally: 6–0). (Motion text introduced April 29, 2026.) - Decrease Board of Education budget by $560,000: approved unanimously (6–0). - Decrease Selectmen medical‑insurance line by $140,000: approved unanimously (6–0). - Assign $700,000 from general‑fund reserves to offset the health‑insurance operating cliff: approved unanimously (6–0). - Fund listed CNR items from operating transfers and move a package of items to capital reserves: motion carries; roadside‑camera line recorded with one no vote (Mike Doyle). - Approve selectmen, education, debt service, sewer and special‑revenue appropriations and CIP/CNR totals: motions carried, with friendly amendments to some funding‑source labels.

What happens next Staff will publish the final budget line item summary and referendum questions; the budget will then be presented to voters under the town’s referendum schedule. If surpluses or new information emerge before the fiscal year begins, the board retains the option to reassign funds or make supplemental appropriations as allowed under town policy.

Speakers quoted in this report are drawn from the public hearing record and motions recorded on April 29, 2026.