Local Leaders Warn of “Tough Decisions” in Upcoming Budget

Eric Wellman is a former two-term First Selectman, one-term Simsbury Selectman, happy husband and dad, and enthusiastic cheerleader for all things Simsbury! Keep up to date with what’s happening in Simsbury on his popular Facebook page, Eric’s Best of the ‘Bury.

Watching the Board of Finance meeting this week, I’m reminded of the scene from A Christmas Carol when Scrooge asks the Ghost of Christmas Yet to Come, “Are these the shadows of the things that Will be, or are they shadows of the things that May be only?”

After keeping taxes essentially flat for nearly a decade, the Town of Simsbury may be poised to see its second significant tax increase in two years. The Finance Department’s model shows a possible increase of 4.6% in the upcoming fiscal year and another increase of 4.6% the following year.

“This is not what must be, but what may be,” said Lisa Heavner, Chair of the Board of Finance. “The decisions policy boards make during the budget process have the potential to change this trajectory.”

Complicating the budget process is the issue of the grand list, which is all the taxable property that exists in town. During my six years on the Board of Selectmen, we were fortunate that we had several years of 2-3% growth in the grand list – more than double the average over the past 20 years.

You know that feeling you get when you find a crumpled up $20 bill in your jeans pocket? That’s the feeling politicians have when they see grand list growth. It’s basically free money that helps the Town balance the budget. However, the latest projections show Simsbury’s grand list growth may be slowing or even reversing in future years.

The Town’s budget stands at just over $118 million, 69% of which goes to the schools. Speaking to members of the Board of Selectmen, Board of Education, and Board of Finance at the annual Triboard meeting, Schools Superintendent Matt Curtis recalled other years when we had low grand list growth.

“We were fortunate that the enrollment of the school system was taking a nosedive at that time, I mean to the tune of a couple hundred students a year and we were able to take tremendous offsets without hurting the quality of the programming just from attrition. And we kind of have the opposite going on right now.”

Over the past 5 years, enrollment has increased by 79 students, with the greatest increase coming at the elementary level. Actual enrollment this school year, while continuing to grow, is more than 100 students less than projected.

Along with a growing student population, Simsbury has aging infrastructure. During my time on the Board of Selectmen, there was often a tension between the desire to build new things (Hop Brook Park, athletic fields, a possible senior center) vs. maintaining the infrastructure we already have.

Simsbury’s interim Town Manager Lee Erdmann said the Town is enhancing the Capital Improvement Plan to provide greater insight into investments needed down the road. “I think the Town needs to put more resources into its capital projects and CNR [Capital Non-Recurring] projects.” One concern is that buildings can require more costly repairs if the needed investments aren’t made along the way.

A new project coming down the pike is a proposed bandshell expansion at the Simsbury Meadows Performing Arts Center. The entire project is expected to cost $2.7M, but that would be partially offset by a $900 thousand grant recently approved by the State Bond Commission.

Tom Roy, Simsbury’s Public Works Director, said “The good news is we got the bonding. Bad news is there’s still a significant gap.” Along with an expected fundraising campaign, the Town would still need to contribute about $1 million in order to make the project happen. Expect this conversation to play a dominant role over the budget season.

In light of the slowing grand list growth, the Triboard had discussion about finding other sources of revenue. There are a number of private schools in Simsbury that are tax exempt. Westminster makes a voluntary donation to the Town of $125 thousand a year.

First Selectman Wendy Mackstutis suggested it might be time to ask other private schools to follow Westminster’s lead. “Do we go to the private schools to see if people want to pony up” Mackstutis mused, “because it’s a lot of land that’s untaxed.”

Amid these challenges, Simsbury remains in a strong financial position. Earlier this year, S&P affirmed the Town’s AAA bond rating (the highest possible). This top rating has real financial implications, saving the Town hundreds of thousands of dollars a year on borrowing costs.

The Triboard meeting marks the beginning of the public portion of the budget process. It’s the annual setting of the table. Over the next couple months, staff for the Town and Board of Ed will develop budget proposals that will be shared with their respective boards for further discussion and iteration.

Now is the time to share your priorities with your elected leaders. The Board of Selectmen will be going through a goal setting exercise, which will inform priorities for the budget. It’s often said that a budget is a reflection of our values. Make sure your elected leaders know your values and priorities. I invite you to follow my Facebook page, Eric’s Best of the 'Bury, to stay informed and get involved.