A proposed spending package for fiscal year 2023-’24 has been released, with combined Town and Board of Education (BOE) spending up $4.7 million, a 4.19% increase over the 2022-’23 budget. While overall spending is up for both the Town and BOE, officials said they expect to see the mil rate drop by more than seven points due to the recent revaluation and Grand List increases. Residents are invited to voice their opinion on the proposal at a town budget meeting on April 4.

In the proposal, the town side of the budget calls for a total of $45,900,848 in spending, an increase of $1,617,038 or 3.65% over the current fiscal year. Increases in spending on both the town operating and operating capital budgets are moderately offset by a $97,762 reduction in debt service.

First Selectman Matt Hoey said the budget largely reflects the current economic climate.

“This is a difficult time with inflation running what it’s at. The cost to provide town services are increasing just like everyone else’s budgets. Energy costs alone are a significant driver in the increase of this budget,” Hoey said. “The work that both the Board of Ed and the Board of Selectmen did to craft that budget as narrowly as we could while retaining, and in some cases enhancing service delivery, as well as meeting certain obligations, like the addition of a new employee to manage a mandated WPCA sewer avoidance program-these are the costs that we as Selectman deem appropriate, were done so we can continue to deliver the services that residents have come to expect.”

On the BOE side of the budget, the proposed spending package seeks $68,766,475, a $3,136,438 or 4.78% increase from the current fiscal year.

According to Board of Finance (BOF) Chair Michael Ayles, the BOE budget proposal is “catching up” from previous years’ smaller budgets. Ayles noted that the BOE budget had not seen increases greater than 1.77% in six of the last seven years.

“Last year, they had a huge increase in insurance costs, and that was just something out of their control. And we look at this year, and they came in at less than 5%, and yet they still had staffing needs, inflation escalation just like everyone else. They had benefit costs. The biggest factor in their increase was in non-discretionary items, so salaries, benefits, and insurance. There was very little; in fact, I believe it was well under 1% that was considered discretionary. (I)t was an incredibly fair budget based on what they’ve been doing over the last eight years,” said Ayles. “Is it a greater increase than people have seen in the last eight years? Sure, but when you average it out over that eight years, it still comes in under 2% as an average over those years. So, they are catching up with the needs of students, and that’s what the majority of the Board of Finance understood.”

Despite proposed increases to both the Town and BOE budgets, the combined $4,753,476 proposal also features an expected reduction in the town’s mil rate. The current 33.25 mil rate is expected to drop by 7.37 mils to 25.88 in large part due to an increase Grand List tax base, the result of the recent property revaluation. Despite the rate’s decrease, however, many Guilford residents may see significant property tax increases while others may see a reduction. Property owners can calculate their property taxes by multiplying their new revaluation figure by 0.02588.

“One of the challenges this year, and we’ve heard this, is the revaluation. It is difficult to talk about mil increases or decreases when there’s been a reval. So, everyone’s is going to be different,” Ayles said.”

Ayles noted that a significant increase in non-tax revenue of nearly 13% will offset some of the proposed spending increases.

“The non-tax revenue change went up 12.7%, which is quite a bit on non-tax revenue change upwards. So rather than collect taxes to meet these increased budgets, we will have quite a bit of this non-tax revenue coming in to offset that 4.19% increase,” said Ayles. “Having an offset like that is important to note.”

Ayles continued, “The question…that Guilford residents and voters need to determine is — when looking at what Guilford provides and what the impact is based on their new assessment — is ‘Is it fair?’ I think it’s important for voters to understand that it’s incredibly important for our educational system and for our town system need to function on budgets that provide what is expected by the community. It is going to be a different impact for everybody.”

The proposed spending packages will head to an annual town budget meeting scheduled for Tuesday, April 4, at 7:30 p.m. at the Nathanael B. Greene Community Center, 32 Church Street, Guilford. At that meeting, the Boards will vote to send the budget to a town referendum set for April 18.