As with almost everything, COVID-19 has changed the way Wilton will adopt a budget and mill rate. This year, there will be no Annual Town Meeting. This year, the budget process was extended by one month. This year, by executive order of the governor, and authorized by the Board of Selectmen, the Board of Finance has been designated to set the FY2021 budget and mill rate on its own.

Tonight, the Board of Finance will begin its three-day process of doing that–deliberating and setting the FY2021 budget and the FY2021 mill rate.

Wilton’s three main governing boards–Selectmen, Education, and Finance–have been meeting for the past two months, individually and together. In their meetings, the residents who volunteer to serve on these boards held discussions examining the impact of COVID-19 on town residents and institutions.

In her nightly update to residents on the town’s COVID-19 response, First Selectwoman Lynne Vanderslice called the collaboration between the three boards “unique to Wilton,” and said, “Wilton residents should feel confident in the process and the proposed budget.”

The budget that has been proposed and will be considered is posted to the town website. The Board of Finance comment period ends today, and residents can still email with feedback.

Among the highlights:

  • Board of Education‘s proposed budget: $82.3 million (flat to the FY2020 revised budget)
  • Board of Selectmen‘s budget request:  $32.8* million (2.0% decrease from FY2020 ATM approved budget
  • Debt Service: down $1.1 million or down 11.2%
  • Tax Relief for Elderly/Disabled and WVAC:  $1.23 million (flat)
  • This year the BOF increased reserves significantly to $2.97 million–more than 500%– in anticipation of potential financial risks to the town associated with COVID-19
  • Other Revenues are down $404,000, mainly from lower interest revenue (-$110,000), lower Supplemental Auto Taxes (-$200,000) and lower Permits & Fees (-$114,000)
  • FY21 General Fund balance set at 10.0% of Town Operating Budget
  • $7.7 million of Excess Undesignated General Funds used to reduce the tax levy vs. $2.9 million in FY202–primarily due to savings from both the Board of Education and Board of Selectmen
  • Grand List: growth of 0.78%
  • Collection rate: 99% (decrease 0.3%)
  • Pension:  funded at 99% of liabilities as of June 30, 2018
  • Moody’s reaffirmed Wilton’s Aaa bond rating (March 2020)
  • Mill Rate decreased by 3.87% to 27.4343
  • Total Funds Required to be funded by taxes is down $4.1 million (-3.4%)**

In other words, for FY2021, town officials are proposing an overall budget decrease of 3.4%.

*Last week, during the special meeting of the Board of Selectmen, the selectmen approved a slightly higher FY2021 budget request, to $32.9 million (1.73% decrease from FY2020). That reflects $300,000 in anticipated savings (in medical benefit costs) the town can realize because its hope to move town employees to the State Partnership health plan is solidifying (based on successful discussions between town officials and the various town employee unions).

Of note, that  $32.9 million budget request is still $586,000 lower than the current year’s budget and $996,000 lower than the FY2021 pre-Coronavirus recommended request.

According to Vanderslice, “When and if the Town begins to enjoy those medical savings, some portion of previously discussed and unpopular reductions, including those to the Transfer Station, the Wilton Library and Trackside Teen Center, may no longer be necessary.”

**Plugging in the new budget recommendation from the BOS would result in a 3.07% budget decrease. The new mill rate would decrease by 3.54% to 27.5282

Before the COVID-19 crisis, the Board of Education had adopted a budget proposal with a 2.58% increase over FY2020, or $2.11 million. The BOE was able to reduce its request to flat by pre-purchasing some items with savings from the current year budget; deferring the $550,000 Middlebrook renovation project; reducing staff training, substitutes, and travel; and reducing costs elsewhere.

In addition, the Board of Finance is restricted from cutting the Board of Education budget beyond a certain point by a state regulation called Minimum Budget Requirement (MBR), which sets the maximum reduction allowed under state law. Following the MBR model would result in a 1.45% decrease from FY2021, which the BOE said would mean a budget that “would reduce teachers, possibly increase class size, and erode programs and support for students.”