The Town of Granby closed the books on the fiscal year—FY23—that ended on June 30 in a strong financial position, as anticipated. The past four years have seen minimal actual tax rate increases—two years with no change and two years at less than one percent—while the General Fund continued to strengthen, on both fronts benefiting from the recent growth in the Grand List, local tax collection rates, and the level of state revenues to the town all coming in above the norm and over what was budgeted.
Granby is then well-positioned to tackle the impending municipal communications system capital project, paying for it from existing resources rather than long term debt upon its completion. Being able to handle this roughly $4M expenditure in this manner allows us to not have to bond it, which would otherwise add a nearly one percent increase in taxes to 20 years’ worth of budgets.
Even while looking to use our own money for the communication system, capital expenditure once submitted for public approval, executed, and paid for, Granby will still be holding a roughly 15 percent General Fund reserve, sufficient to maintain our current AA+ credit rating from Standard and Poor. Over the past two dozen years, Granby has gradually seen its financial position strengthen, and its credit rating continually improve as well. Yet many factors can put pressure on budgets…on taxes…on the General Fund. The positive trends referenced above come and go…Special Education needs across the nation are volatile and hard hit—and given the recent cost inflation we have all had to deal with at home—so too it affects government at all levels as it impacts budgets and labor contracts.
While the challenges are many, the boards, and those who serve on them, are well prepared to deal with the issues Granby, like other towns, will face. Experience and results do matter. For the Board of Finance, fiscal discipline and taking the long view have been hallmarks of how we operate and look to manage the fiscal affairs of our town, as we endeavor to balance the needs of Granby with the cost to each of us to do so. As we look ahead at what we as a town will face in the upcoming years—whether it be for operations or capital infrastructure—part and parcel of budgetary decision-making is an implicit and integral sensitivity to the taxpayers.