Avon council backs $124.3 million FY27 budget, warns health‑insurance claim drives 5.43% mill‑rate increase

The Avon Town Manager told the Town Council on March 5 that the proposed FY26/27 budget would total $124,311,191 and include a 5.43% mill‑rate increase, largely because of a single large health‑insurance claim.

The manager said the Town operating budget is up 3.45% year‑over‑year and the Board of Education budget is up 6.78%, combining to about a $5.2 million increase in the General Fund. He added that “we have a large claim that we’ve talked about which accounts for about $1.5 million of the increase,” and that the town is continuing to seek reimbursement from the stop‑loss carrier but, for prudence, has budgeted as if it will remain the town’s responsibility.

That claim — and a broader increase in medical and pharmacy utilization — were presented as the principal reasons the manager said the proposed mill rate rose to 5.43%. “Without this claim we would be around 3.99%,” he told councilors, and he said the town is exploring options, including consultant analysis of self‑insured versus fully insured or state partnership plans for implementation July 1, 2027, subject to collective bargaining constraints.

Council discussion centered on tradeoffs between operating needs and capital investment. Councilor Weber warned that capital improvements funding has trended downward and urged caution about underfunding infrastructure and facility maintenance. Chairman Polhamus said the Board of Education had already trimmed many positions and that councilors should await additional detail at a scheduled tri‑board special meeting on health‑insurance costs.

On a motion by Councilor Weber, seconded by Councilor Ausiello, the council voted 4‑1 to recommend the FY26/27 Proposed Budget to the Board of Finance. Councilor Bratton cast the lone vote against the recommendation.

The recommended budget lists revenue sources including $105,859,259 from property tax and assessments and line items for town and school operating budgets, sewer operations, debt service and capital. The council instructed staff to present more detail at the upcoming tri‑board meeting and to review potential adjustments before the Board of Finance workshop.

Next steps: councilors said Lockton Incorporated, the town’s independent health‑insurance consultant, will present comparative plan analysis at the scheduled special meeting, and the Board of Finance will consider the council’s recommendation at its budget workshop.