At its Feb. 9 meeting, the Granby Board of Finance reviewed all then-available pertinent information that would impact the FY27 budget, took public comment and set operating budget guidelines at no more than its initial Plus One budget’s net impact on the mill rate. The municipal operating projection is for a 2.38 percent increase.
The school system projection is 3.8 percent with a net impact of 2.67 percent. This is offset to a degree (1.13 percent) by increased tuition revenue from other towns, greater state and projected reimbursements from other towns for special education costs. Combined with a greater contribution to the Capital Non-recurring Expenditure Fund that helps buffer the impact of future capital project debt service, a bit more put into the Small Capital infrastructure fund and a phased increase in the other post-employment benefits fund, the total budget for FY27 now looks to be a 3.7 percent change from 2026.
On the revenue side, the growth in the Grand List of Oct. 1, 2025, showed a 1.51 percent increase. Revenue from the state and other towns went up while local revenues are anticipated to decrease due to lower interest rates on cash. Collectively, these revenues offset the initial overall budget projection and reflect an anticipated increase in all property taxes of about 2.65 percent. The mill rate that applies to real estate and business property would go up by 2.86 percent—from 34.21 to 35.19—as the rate on motor vehicles, which make up some 10 percent of the full Grand List, is capped per state law at no greater than 32.46 per $1,000 of assessed value. This factor itself makes for some complicated calculations in formulating the mill rate requirement.
The intent of the BOF is twofold. First, to work with the boards of selectmen and education and the respective administrations to get past the post-pandemic pressures on operational costs that pushed mill rate changes into the 3+ percent range in the past two years. The goal is to settle in closer to inflation, running under 3 percent. And second, to keep in mind the desire to manage our fiscal affairs and near-term upcoming budgets so that mill rate changes, including capital, remain around or under 3 percent as well.
The budget package taking shape meets those criteria. It is structured with an anticipated mill rate change of 2.86 percent and takes steps to help us better fit the FY28 budget within the above parameters. What steps we take today we do with an eye on the next fiscal year—and beyond. Stability in local government operations, and in the cost of providing them, is inherent in our deliberations as we collectively seek to meet the majority of the needs of our community while being mindful of what it costs each of us to do so.