Westport Board Of Finance Sets 13.2 Mill Rate As Property Revaluation Shifts Tax Burden

WESTPORT, CT — The Westport Board of Finance unanimously approved a fiscal year 2026-27 mill rate of 13.2 on May 20, adopting a rate that reflects the town's recent property revaluation and a significant shift in the local tax burden from commercial properties to residential homeowners.

The new mill rate represents a roughly 30 percent decrease from the previous rate of 18.86. However, town officials emphasized that many homeowners are still likely to see higher tax bills because residential property values increased substantially more than commercial values during the revaluation process.

Finance Director Gary Conrad said Westport's overall grand list grew by more than 50 percent following the state-mandated revaluation conducted every five years.

According to Conrad, residential property values increased 59.55 percent on average, while commercial properties rose 16.55 percent. Motor vehicle values increased 5.9 percent and personal property values increased 1.3 percent.

"The expenses remain the same," Conrad told the board. "It's just the rebalancing of who pays that amount of taxes."

Board members repeatedly stressed that the primary driver of tax increases for many homeowners is the redistribution of the tax burden resulting from the revaluation rather than a corresponding increase in town spending.

Board Chair Danielle Dobin said the revaluation shifted a larger share of taxation onto residential properties because they appreciated much faster than commercial properties over the past five years.

"Residential properties have appreciated roughly, on average, 60 percent in Westport, while commercial properties have appreciated only 17 percent," Dobin said.

Conrad said the slower increase in commercial property growth reflects broader market trends, including changing retail patterns and pressure on brick-and-mortar businesses.

Future Debt and Capital Projects

Board members also discussed future financial pressures facing the town, including planned capital projects and debt service obligations.

Dobin noted that future budgets will increasingly reflect borrowing associated with major capital investments.

Conrad said approximately $80 million in borrowing is already included in current planning, with much of it tied to the new Long Lots School and other Board of Education and municipal projects.

At the same time, the town is paying down approximately $9 million annually in existing debt, partially offsetting the impact of new borrowing.

Board member Elaine Whitney said that while this year's tax changes are largely driven by revaluation, future increases could be more heavily influenced by operating costs and capital spending.

"We definitely have a lot of projects to be considered," Conrad said, adding that inflation will remain a financial challenge.

Fund Balance Debate

The board reviewed the town's policy of maintaining an unassigned fund balance between 9 percent and 11 percent of expenditures.

Conrad recommended applying $2.65 million from the current year's favorable budget results to reduce taxes while maintaining a projected fund balance of approximately 11.45 percent.

He said the recommendation balances taxpayer relief with concerns from bond rating agencies.

Conrad noted that Moody's has indicated towns similar to Westport typically maintain fund balances closer to 15 percent, although Westport's strong pension funding and financial management practices have helped support its AAA bond rating.

Dobin said preserving a strong credit profile remains important as the town prepares for future borrowing.

"A AAA rating allows you to borrow at the lowest cost of debt available in the market," she said.

Budget Factors and Revenue Sources

Conrad outlined several factors incorporated into the tax calculation, including approximately $27 million in non-tax revenue from permits, fees, recreation programs and investment earnings.

Additional offsets included:

• An estimated $400,000 in supplemental motor vehicle taxes.
• Approximately $200,000 in recurring departmental savings.
• About $600,000 from the town's retiree health care trust to pay current retiree claims.
• Roughly $278,000 in additional state aid.

Conrad also noted that two firefighter union contracts remain unsettled and negotiations are beginning with the Department of Public Works union, creating some uncertainty in future costs.

Public Concerns

Some residents raised concerns about the impact of higher assessments on homeowners, particularly retirees and residents on fixed incomes.

Resident Toni Simonetti asked how the revaluation would affect the average homeowner and expressed concern about the combined impact of higher property taxes and sewer-related costs.

Conrad responded that homeowners whose properties increased at the residential average could expect tax increases reflecting the roughly 9.5 percentage-point difference between residential appreciation and overall grand list growth.

Nancy Kail, an RTM member from District 9 speaking as a resident, asked how Westport compares with neighboring communities and whether similar revaluation trends are occurring elsewhere.

Conrad said Fairfield experienced nearly identical shifts between residential and commercial property values. He said other towns have also experienced rebalancing, although the magnitude varies based on their commercial tax base.

Kail also highlighted the availability of local tax relief programs for qualifying residents.

"We're all in this together," board member Jeff Hammer said, noting that board members are also taxpayers who will experience the same effects.

Added Dobin, "We're really trying to keep in mind all of the Westporters that are on a fixed income."