[Todd Lavieri is chair of the Board of Finance.]
As we finish the calendar year of 2025, and the halfway mark of our financial year of 2025-2026, I wanted to share a few highlights and updates regarding our Town’s financials.
Residents often ask for details and benchmark comparisons. As I mentioned earlier this year, the average increase in the amount raised by taxation over the past 8 years, including next year’s budget, is 2.30%, a very strong accomplishment by our Town and Boards over this period, and far below the average rate of inflation. Especially the inflation headwinds that we have experienced since 2021 including a 9% increase in inflation in 2022. Our average increase of 2.30% is lower than most of our comparable Fairfield County towns. We budget prudently and manage the budget to deliver surpluses. We have delivered a combined total of $38M in budget surpluses since 2017 and have returned $36.5M of that back to the taxpayers by applying the surpluses to fund our education, and other expenses, reducing the demand for even higher property taxes.
Our average increase in the amount raised by taxation for the period from 2017 through 2023 was 1.53%, an incredible achievement and one of the lowest in the County. The past two years have been higher due to higher Board of Education budgets and Board of Education health care expenses, coupled with much higher recent inflation that has remained sticky. As a reminder, our Board of Education budget represents approximately 66% of our total operating budget. Our total town expenses have increased $20M over the past 4 years, with $17M of that increase attributed to increased spending in Education.
Our foundational goals that we established 25 years ago for Finance are still solidly in place. We want to continue to build and maintain a top school district. Continue to have fully funded pensions that now allow us to have a lower tax burden today as the funds become largely self-funding, while avoiding punitive liabilities for future taxpayers. Continue to maintain a beautiful and vibrant downtown business, shopping, and dining district. Protect and maintain our parks and recreational assets. Budget prudently. And fully support our town’s emergency, health, public works, water, and safety services. Throughout the years, we have worked to fund and deliver these services and support through prudent investments, always with an eye on the tax burden. There is always pressure to do more and spend more. The results have shown we can meet the growing demands and rising costs head on.
Accomplishing these goals does not happen overnight, or in one year. It happens over time with steady commitment and focus by outstanding and thoughtful volunteers and leadership. Once again, I would like to thank our Board of Selectmen, Board of Finance, our Town Council, our New Canaan school administration, our Board of Education, our Department leaders, Town employees, and the many town volunteers on our committees and commissions for their hard work and guidance as we all work to build and maintain our incredible town. And especially thanks to our Award-winning Finance and Audit team.
Wishing everyone a very happy and healthy holiday season.