Your Local Taxes Will Be...

A 3.27 percent increase in overall spending has translated into a 1.75 percent increase in property taxes. The Board of Finance set the mill rate to be applied to the 2009 Grand List at 13.585 (or $13.585 for every $1,000 of assessed value) at their meeting May 11.

In order to keep the increase under 2 percent, the board decided to draw $2,548,000 from New Canaan's general fund to partially offset the portion of the $119 million budget to be paid for by property taxes.

With a projected balance of about $14 million at the end of the current fiscal year, Chief Financial Officer Gary Conrad says even after the draw down the general fund will still be worth more than 10 percent of the total budget net of revenues—a target Town Council has asserted to ensure New Canaan maintains its Triple-A rating. Without the contribution from the general fund, the mill rate would have had to go up by 4.118 percent.

Board of Finance member Kathleen Corbet pushed for an even more modest 1.5 percent increase, but Conrad said that would require taking about another $350,000 from the general fund.

"That's really our cushion," Conrad said.

Though New Canaan has collected 99.27 percent of taxes owed for 2009-2010 as the end of the fiscal year nears, Conrad explained that the mill rate is usually conservatively based on what 97.5 percent collections would net. With the mill rate at 13.585, the town can expect to garner $111,252,436 to cover the $111,050,442 in budgeted expenditures slated to be paid for by property taxes.

"It would be prudent to leave it at a level that leaves us a little bit of room," said First Selectman and Board of Finance Chairman Jeb Walker in support of the 1.75 percent mill rate increase, noting that that also represents one of the lowest year-on-year increases on record. "I think this is the best you can do."

The Board of Finance approved the new mill rate unanimously with Corbet making the motion.

Corbet also raised the motion to increase the sewer fund mill rate by 1.75 percent to .6105 ($.6105 for every $1,000 of assessed value) to cover the $39,738 increase in sewer district expenses. Again the vote was unanimous.