Granby Drummer | FY26 Budget Issue by Granby Drummer

FY26 BUDGET ISSUE

Drummer

Striking the Balance

Budget Increase 3.24% | Mill Rate Increase 3.26%

By Michael B. Guarco, Jr., Chair Board of Finance

The overall budget of $57,863,713 proposed for FY26 (which begins on July 1st) is a 3.24% increase over the current FY25 budget adopted last April, which also included a one-time transfer from the General Fund for the emergency communications project. The combined operating and capital budget proposal for the upcoming fiscal year has been crafted to meet the vast majority of the needs of the town as identified by the boards of education and selectmen, given the very real financial constraints that towns and taxpayers face. Finding the balance in what we want as a community versus what we are willing to pay for it is never easy, as one person’s got-tohave is another’s unneeded expense of limited taxpayer dollars. As the Board of Finance looks to balance those considerations, it is incumbent upon us to weigh them with an eye on not only where we are and what we have as a town today, but where we will be tomorrow and beyond.

The property tax pool is anticipated to reflect a 3.51% increase. Part of the 1.60% growth in the real estate component of the Grand List was offset by the actions of the state legislature - one providing an exemption for those with 100% military disability and another that mandated a change in the methodology used for assessing motor vehicle taxes. When combined, the net result of these actions removed nearly 1% of the tax dollars available - with no reimbursement. The mill rate that applies to real estate and personal (business) property is projected to be 34.21…a 3.26% increase over the current FY25 rate of 33.13. The difference is attributable to

the fact that state law caps the mill rate on motor vehicles at 32.46. Numerous changes impact the revenue side of the budgetary equation. We see increases in the Education Cost Sharing statutory grant and tuition from other towns, as well as reimbursements from other towns for the special education services we provide.We also, though, see a reduction year-to-year in bud geted revenue for the Special Education Ex cess Cost grant of over $500K, partly due to changes in caseload and partly due to the decline in the reimbursement rate. Under the original terms of the law we should see 100% re imbursement for every dollar spent over the threshold of $93K – 4.5 times the average cost per student in Granby ($20,735). Two years ago we were placed in a tier of towns marked to receive an 88% reimbursement rate. In actuality we realize reimbursement in the 65% range since that rate adjustment was set. Funding us at the 88% would give us $250K more to work with to better manage that balance.

In working to strike a reasonable and tolerable budgetary balance – and adjust for revenue shortfalls – the use of reserves was left flat at $2.185M rather than following an annual patterned stepdown as initially planned. Given the notable 5.53% increase in the overall budget last year, the draw on the General Fund (surplus) reserves had been increased significantly, but that level of use should not continue indefinitely. Anticipated annual reductions in that revenue line should be offset by introducing like amounts into the mill rate over time. It’s all part of the boards working collectively to stretch our tax dollars and reserves in balancing the cost of meeting the needs of our town with the affordability of doing so.

Annual Budget Hearing

Monday, April 7, 7 p.m.

The boards of education, finance and selectmen will jointly present the budget as part of the annual public hearing to be held at 7 p.m. on Monday, April 7 in the Granby Memorial High School auditorium. A public testing and sealing of the optical scanner machine to be used at the budget referendum will be conducted at 1 p.m. on Wednesday, April 2 at Granby Town Hall.

Vote in the April 21 Budget Referendum!

The Town Budget Referendum will be held on Monday, April 21 in the Town Hall Meeting Room, 15 North Granby Road. The polls will be open from 8 a.m. to 8 p.m. As with all opportunities to vote, if you can, please plan to bring an ID, preferably a photo ID to be checked off our official voter list to vote on a paper ballot. The check-in tables will be separated based on STREET address, not last

name. As in the past, non-registered, but otherwise eligible voters who are Granby property owners will also be allowed to vote. They will need to fill out a special form at the assessor’s table if their name appears on the last published grand list. After the public hearing, absentee ballots can be filed in person with the Town Clerk prior to the vote, during the Town Hall business hours after the public hearing.

Note: Revenue percentages are rounded, so totals may exceed 100%. See chart below for exact numbers.

Municipal Services

A summary of the FY26 municipal budget

By Mark Fiorentino, First Selectman

In Granby, the process of budgeting and managing our financial resources never really ends. We constantly ask our staff, our volunteers, our civic organizations and our citizens to do more with less.

As the Board of Selectmen (BOS) develops the annual budget for your consideration, its overriding goal is always the same. We strive to provide the best municipal services we can and to plan for our future needs and for the maintenance and protection of our town assets, all while minimizing the impact on our taxpayers.

This is no easy task, but we are fortunate to live in a town where many

groups and individuals are willing to work collaboratively and creatively to get it done.

Our work is especially challenging because of continued unfunded and underfunded state mandates. This year alone, these mandates created an unexpected shortfall in revenue of approximately $1.37 million.

Fortunately, we were able to mitigate the impacts of this shortfall by taking advantage of efficiency and cost saving measures that we have implemented over the last year or so. These measures include:

1. T he restructuring of both our Public Works and Parks and Recreation departments (which resulted in the elimination of two positions);

Facing the Challenges Ahead

By Michael B. Guarco, Jr., Chair Board of Finance

The look ahead gives one plenty to ponder, as both the federal and state government face real challenges in today’s harsh fiscal straits. Whether a soft landing or mild recession, dollars are tightening as Washington looks to close a massive deficit and CT sees what has been a steady stream of budget surpluses on a downward trajectory. Granby receives about $750K in direct federal money for grant-related programs. These appear in the budget book but are actually outside of the General Fund budget that voters approve. Just over $6.5M is anticipated to come in from the state, the bulk of that in support of education. Yet even when the legislature has moved to raise reimbursement levels for the high-dollar special education cases, they haven’t fulfilled their own commitment to the towns as they too find there is only so much to go around. This year has been a difficult one in balancing the budgetary equation as the wants outpaced existing revenue streams and resources, and stretched

2. The transition to high deductible health plans for all eligible employees;

3. The ongoing implementation of automation software to assist in the management of our timekeeper/payroll, accounts payable, property assessment and building permit management systems.

The main nondiscretionary cost drivers for this year include salaries and wages (a $264,300 increase over last year); contribution to the Board of Education for IT services (a $45,200 increase); health insurance ($137,700 decrease); electricity ($36,900 increase); and waste collection ($24,000 increase).

For the fiscal year 2025-26, the proposed operating budget is $14,109,203. This represents a 2.40% increase over the prior year and meets the guideline set by the Board of Finance. The proposed expenditure for Capital Projects is $2,605,000 and $1,731,368 for debt service. The total proposed municipal budget is $18,445,571.

The Selectmen’s proposed operating budget represents 2.40% increase over FY 24-25.

Over the past several months, we have worked hard with the Board of Finance (BOF) and the Board of Education (BOE) to develop a proposed budget that effectively anticipates and manages these costs without the need to reduce services.

The proposed budget also continues our commitment to public safety and our first responders. The budget includes a $92,940 contribution to the purchase of a new ambulance for the Granby Ambulance Association. It also includes the addition of a new sworn police officer. The addition of a patrol officer is long overdue, and especially in today’s environment, is vital to improving the safety of both our citizens and the officers themselves.

The process that led to the proposed budget was extensive and included numerous public meetings and workshops where we solicited questions, comments and suggestions. On behalf of all of the members of the BOS, BOE and BOF, thank you to those who participated and provided input. A special thanks to Town Manager Mike Walsh, Kimi Cheng, our Director of Finance, and Betsy Mazzotta, our Administrative Projects Manager, who all work tirelessly to get the budget ready for your consideration. And, of course, thanks to all of our team leaders and staff.

If you have questions on the proposed budget, or want additional information, please plan to attend the public hearing on April 7, 7:00 p.m., in the high school auditorium. You can also access a copy of the entire budget book on the Town of Granby Website at: granby-ct.gov. Most importantly, mark your calendars for April 21. Voting on the proposed budget will take place between 8:00 a.m. and 8:00 p.m. at Town Hall.

the question of what level of increase is affordable, tolerable and ultimately approvable at referendum. The initial computations reflected on the worksheet reviewed at the Three Board meeting in mid-January produced a 6% mill rate change. The boards since that juncture have worked their way down to a more modest level that we believe should be approved. Spending was reduced in some areas, swapped around in others to lessen the impact on taxes, efficiencies were taken and a couple of open positions were left unfilled. At the same time revenues were scoured and revised – and more funds were drawn from reserves – to balance the equation and fund what we collectively feel should be adopted. For about fifteen years, budgets averaged around or just over 2% and mill rate changes averaged just under 2%. That was in an era of essentially 2% inflation, with labor contracts in the 2-3% range including steps, a steady decline in debt service cost, and decreasing

See Challenges on page 4

Education Services

Education Services Breakdown

FY26 education budget supports goals from strategic plan

By Monica L. Logan Chairman, Board of Education

I am pleased to present the Board of Education Budget for the 2025-2026 fiscal year, which aligns with our district’s strategic priorities:

1. Student Learning and Achievement – Enhancing student achievement, academic performance, and opportunities for all learners while reducing achievement gaps to ensure college and career readiness.

2. Community Engagement –Strengthening communication and fostering trusting relationships with all stakeholders.

We remain committed to empowering students to be resourceful learners, effective communicators, and positive contributors to the Granby community.

The proposed FY26 budget of $39,418,142 represents a 3.41% increase over the FY25 budget, slightly exceeding the 3.25% budget guideline set by the Board of Finance (BOF). This additional 0.16% is attributed to the newly approved School Resource Officer Program.

The primary drivers of the FY26 budget increase are staffing and student needs, with salaries and benefits comprising the largest portion of expenditures. Special education costs account for 0.75% of the budget increase. To address student needs effectively, the following special education positions have been added:

• 1 Board Certified Behavioral Analyst (BCBA)

• 4 Teaching Assistants for the B.E.A.R. Transition Academy

• 1 Teaching Assistant for the RISE Program at Kelly Lane Primary School

These positions support our goal of keeping students in Granby Public Schools and reducing costly out-of-district tuition and transportation expenses. Educating special education students within their home district strengthens their connection to the school community and enhances academic outcomes.

Additionally, the B.E.A.R. Transition Academy has the ability to generate revenue by serving students from neighboring towns. With continued investment, the RISE Program at the elementary level and other newly created programs have the potential to do the same in the future.

The Small Capital Improvement Plan for FY26 covers lease payments for technology, transportation and building maintenance projects. A key priority is addressing the track and turf field at the high school, installed back in 2012. At 13 years old, it has surpassed its life expectancy with significant sinking on one side which has created unsafe conditions. Additionally, we continue to make incremental improvements to our safety and security infrastructure as previously reported last year.

Given the pressures of national inflation, this budget represents a responsible and necessary investment to maintain the quality of education in Granby. This budget reflects our continued commitment to excellence and ensures our students receive the best possible education.

Student Enrollment & Class Size

District enrollment is projected to decline slightly. PK-12 district enrollment of 1,680 in FY26 reflects a decrease of 8 students from FY25. Enrollment is monitored closely to calculate class size and staffing needs.

9.4%

Debt Service as a percentage of Granby’s FY26 Municipal budget

2.99%

Challenges

Debt Service as a percentage of Granby’s Full FY26 budget (the lowest percentage in more than 20 years)

cont’d. from page 2

school enrollment (enough that the town could close a school). However, during most of the prior decade after 2000, the budgets and mill rates were running in the mid-3% to mid-4% range. That was a time when we saw continued growth in student enrollment (which peaked at some 2200+ kids about 15 years ago), as well as a significant increase in debt service from the 2000 High School additions and renovations, Wells and Kelly elementary school expansions, and most of the buildings on the Town Hall campus being built. The differences in those time periods played very different roles in how budgets – and taxes – changed over time.

Those underlying elements are key indicators of what the future holds, and what we can anticipate having to address moving forward. Enrollment is projected to exhibit a slight though steady decline. At roughly 1,700 students we

are down nearly 25% from the peak. Hopefully municipal aid from the state will not decline or will see a gradual increase as it has done historically. As our infrastructure ages, capital will be addressed. Inflation has moderated over the past year or so, and hopefully will continue to do so. The residual impact of that is seen in what public sector labor contracts are running at currently, as they are both the predominant and driving force within the operating budgets. As go the contracts, so go the budgets and taxes. Statewide the contracts are running in the 3-4% range with steps. It would take some healthy Grand List growth or state aid increases, or significant efficiencies or cost containment, to have taxes run lower than that level. Some will want lower taxes and others would support more. The challenge will be to find the middle ground that best suits the citizens of Granby.