By Tom Williamson
The Town of Greenwich is moving forward with its annual budget process as officials weigh rising costs, economic uncertainty, and political divisions within the Board of Estimate and Taxation. The Budget Committee has approved a spending plan that would result in a 4.42 percent increase in the mill rate, sending the proposal to the full BET for further debate. The final budget could bring higher property taxes for residents and impact town services in the coming year.
The budget process begins with the First Selectman’s office submitting a proposed spending plan, which is reviewed by the BET Budget Committee. The four-member committee, chaired by Republican Leslie Tarkington and including Republican Harry Fisher and Democrats Leslie Moriarty and David Weisbrod, is responsible for refining the budget before passing it to the full BET. After further adjustments, the Representative Town Meeting will vote on the final spending plan in May.
First Selectman Fred Camillo proposed a $526 million budget, a 5 percent increase over the previous year. Education spending accounts for nearly 39 percent of the total budget, continuing a trend in which school costs have grown at a rate outpacing general town expenditures.
The Budget Committee agreed on some reductions before approving the proposal. The General Fund Capital Budget was cut by $2.79 million to $54.35 million, down from an initial recommendation of $56.4 million. The General Fund Operating Budget was reduced by $3.150 million to $508.578 million. To offset some of the tax impact, the committee increased projected revenues by $3.15 million.
The March 5 Budget Committee meeting revealed partisan disagreements over spending priorities. The committee’s Democrats, Moriarty and Weisbrod, voted to approve the budget, while Republicans Tarkington and Fisher abstained. Fisher said the abstentions reflected their frustration over a lack of cooperation from the Democrats. “They did not work with us on any meaningful reductions,” he said.
During the final meeting, discussion turned to Superintendent of Schools Toni Jones’ budget proposal, which included a modest $250,000 reduction to the Board of Education’s budget increase. Tarkington and Fisher supported the reduction, but the Democratic members rejected it outright. “That’s the elephant in the room,” Fisher said. “The Board of Ed budget is double the guidelines and it’s driving the tax rate up really high.”
Fisher pointed to broader economic challenges as another factor straining the town’s finances. He said that in past years, the town benefited from “tailwinds” in t he form of higher interest rates on municipal reserves, steady grow th in the grand list, and moderate increases in healthcare premiums. Now, he said, those advantages have reversed. Interest rates have declined, reducing the town’s investment income. Healthcare costs are projected to rise by 12 percent, more than double historical increases. Labor contract settlements are adding costs, with wages rising between 2.75 and 2.95 percent. Inflation is also pushing up the cost of materials and labor for town projects.
Higher energy costs are an additional concern, affecting not only town operations but also homeowners. Fisher noted that municipal electricity and fuel costs have increased, placing added strain on the budget. “We have to pay electricity to run all of these buildings, just like every homeowner,” he said. Residents are also facing higher utility bills, raising concerns about the town’s overall affordability.
If the 4.42 percent mill rate increase stands, property owners will see higher tax bills. Currently, Greenwich’s mill rate is 11.712 mills, meaning a home valued at $1 million (assessed at $700,000 under Connecticut tax law) has an annual property tax of $8,198. With the mill rate rising to approximately 12.23 mills, that homeowner’s tax bill would increase to $8,561, a difference of $363.
For a $2 million home (assessed at $1.4 million), the current annual tax is $16,396. Under the new mill rate, it would rise to $17,122, an increase of $726.
A $5 million home (assessed at $3.5 million) currently has a property tax bill of $40,992. If the mill rate increase is approved, the new bill would be $42,807, reflecting an increase of $1,815.
The full BET will review the budget in the coming weeks, with public hearings scheduled for 7 pm March 26 for the Board of Education at Central Middle School and March 27 at Town Hall for town departments. A final vote is expected on April 1st before the budget moves to the Representative Town Meeting for final approval in May.
Fisher said Republicans on the BET plan to push for additional reductions, particularly in the Board of Education budget, though he declined to specify the amount. “The budget process is not over yet,” he said.
See Harry Fisher’s column on the editorial page this week.
