Ridgefield Finance Board Sets Revenue Assumptions, Defers Budget Votes To March 31

RIDGEFIELD, CT — The Board of Finance on March 30 approved key revenue assumptions for the proposed fiscal year 2027 budget, while postponing final votes on spending until the following night.

The board voted unanimously to keep the tax collection rate at 98.8 percent and to set total “other revenue,” including investment income, at about $16.37 million.

Final decisions on the town, school and capital budgets were deferred to March 31.

Revenue assumptions reflect cautious approach

Finance board members debated how aggressively to estimate investment income, citing volatile interest rate conditions.

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Chairman Mike Rettger presented multiple scenarios ranging from about $1.3 million to $1.5 million in projected investment income, depending on rate trends.

Members ultimately leaned toward a midpoint approach.

“I’m very uncomfortable,” BOF member Greg Kabasakalian said of the uncertainty, noting that rate forecasts have shifted significantly in recent weeks.

Member Andrew Okrongly warned that overly optimistic projections could create a budget shortfall if conditions change.

“It’s a highly volatile number,” Okrongly said.

Officials also discussed balancing revenue assumptions with planned use of fund balance to avoid creating future gaps.

Capital plan questions continue

The board also revisited elements of the proposed capital budget, including a $60,000 request tied to planning and zoning work.

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Planning and Zoning Commission Chair Rob Hendrick explained that much of the funding relates to ongoing work in the Branchville area tied to a zoning moratorium and regulatory updates.

He said about $50,000 is already being used for that effort, while a broader, six-figure Plan of Conservation and Development update is not expected to require significant funding until "late '27, '28, maybe in '28, '29."

Board members discussed removing or deferring the item and potentially reallocating previously approved capital funds, pending legal review.

Surplus estimate and fund balance under review

Finance officials continued to refine projections for the current fiscal year, estimating a potential surplus of roughly $1.45 million based on updated revenue and expense data.

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Members said the surplus estimate will factor into decisions on how much fund balance to use to offset taxes in the upcoming budget.

Okrongly cautioned that increasing reliance on fund balance could create a “fiscal cliff” in future years if revenue assumptions prove too optimistic.

The board is expected to take up fund balance decisions at the start of its March 31 meeting.

Next steps

The Board of Finance plans to vote March 31 on:

• Use of fund balance
• Capital budget
• Town operating budget
• Board of Education budget

Members said they intend to finalize the full budget proposal that night, ahead of a town meeting and referendum later this spring.