Thomaston Town Budget Summary 2025-2026 Post-Hearing Revision

TOWN OF THOMASTON Recommended Budget July 1, 2025 - June 30, 2026 Post Hearing Revision

Budget in Brief Mill rate (real estate/personal property) 36.28 Mill rate (motor vehicles) 32.46 * Operating budget = $31,469,588 $903,053 (2.95%) increase in spending Use of fund balance = $300,000 * Per State of CT

Mill Rate Calculation Total Expenditures Revenue other than property tax * Total taxes needed . $ 21,204,123 Divided by Value of 1 mill $ 31,469,588 ( 10,265,465) $ 584,504 = 36.28 mills * Includes MV tax capped at 32.46 mills

Budget Drivers Revenue Educational Cost Sharing (ECS) Cut by $134,000 Must be made up by increased taxes Motor Vehicle Tax Mill Rate Cap 32.46 Assessment changes Starting Point: From NADA MSRP Depreciation: From NADA Decrease MSRP by 5% each year Motor Vehicle Grand List & Tax Impact Grand List Decrease of $14,778,773 Tax Decrease of $479,719 Shifts Tax Burden to Real Estate & Personal Property

Budget Drivers Motor Vehicle Tax Impact Vehicle Age* Own Property Tax Increase/Decrease Old No New No Old Yes New Yes *Tax impact will vary based on the make/model, age, and number of vehicles

Budget Drivers - Spending Unfunded State Mandates 1,400 unfunded state mandates Early voting mandate costs the town an additional $30,000 annually Rising Energy Costs Electricity Trending +10-15% per year Heating Fuel Trending +3-5% per year Water/Sewer Trending +3-5% per year Healthcare Costs Trending +5-10% Contractual Obligations (Salaries)

Spending Cap (Explanation) State Statute* Budget cannot exceed the prior year budget by 2.5% or the rate of inflation, whichever is higher The calculation for municipal spending excludes; debt service, special education, capital investment. The inflation rate for the 2526 fiscal has been stated at 3.31%. This state-imposed spending cap represents a cut to our original budget of approximately $1MM. We have worked very hard to review opportunities to reduce spending across the entire budget to adhere to this requirement. * subsection (f) of section 4-66l of the CT General Statutes

Spending Cap (Inflation Projections) Federal Reserve Congressional Budget Office Non-Governmental Sources Year 2025 2026 2027 2028 2029 2030 Low 2.2 2.0 2.2 2.2 High 2.5 2.2 2.6 2.6 Low high 2.4 2.3 2.2 2.1 2.0 Based on these projections, spending caps in future budget years will drop below unfunded mandates, energy, healthcare, and contractual obligations.

Spending Total Spending is up $903,053 (2.95%) Increase / Increase / (decrease) (decrease) % increase/ % increase/ decrease decrease 2025 2025- -2026 2026 2024 2024- -2025 2025 Town Operating Town Operating Expenditures Expenditures $ 10,475,434 $ 10,475,434 $ 10,074,512 $ 10,074,512 $ 400,922 $ 400,922 3.98% 3.98% Board of Education Board of Education 18,184,512 18,184,512 17,688,975 17,688,975 495,537 495,537 2.80% 2.80% Debt Service Debt Service 2,300,000 2,300,000 2,300,000 2,300,000 0 0 0% 0% Capital outlay Capital outlay 509,642 509,642 503,048 503,048 6,594 6,594 1.31% 1.31% Total Budget Total Budget $ 31,469,588 $ 31,469,588 $ 30,566,535 $ 30,566,535 $ 903,053 $ 903,053 2.95% 2.95%

Town Operating Expenditures Function 2025-2026 Expenditures % increase (decrease) from 2024-2025 General Government $ 4,740,045 6.11% Public Safety 2,547,574 4.90% Public Works 2,262,128 1.16% Health & Welfare 103,514 1.01% Culture & Recreation 543,518 0.87% Housing & Development 242,055 (8.55)% Operating Subsidies to Other Funds 36,600 0% Total Town Operating Expenditures $ 10,475,434 3.98% Note: all benefits (pension, health and retiree health) are included in general government

Use of Fund Balance This budget includes the use of $300,000 to balance the budget reducing fund balance to an estimated $6,696,603 or 21.28% of the operating expenditures. GFOA recommends that fund balance reserves be two months of expenditures or 16.67%. Fund balance is used as operating capital until we receive state funds and tax receipts. The use of fund balance to balance the budget implies a structurally unbalanced budget which will cause the Town to start the following year with a hole to fill.

Use of Fund Balance Average annual use of fund balance is $663,804 31% Tax Reduction, 69% Unplanned Expenses At the current run rate, we have 2 years (F26 & F27) of fund balance before it impacts our ability to borrow Note: There was a surplus in the FY1920 education Budget. FY2021 was augmented with Covid ARPA monies.

Use of Fund Balance $6,696,603 Fund Balance F2526 Expenditures $31,469,588 $5,244,931 Used for Cash Flow (2 Months) $1,451,672 Unforeseen Expenses & Tax Mitigation $663,804 Average Annual Fund Balance Usage 2 Years of Fund Balance Availability

Historical Variance Year Budget Increase (decrease) % Town: 2025-2026 2024-2025 2023-2024 2022-2023 BOE: 2025-2026 2024-2025 2023-2024 2022-2023 $ 13,285,076 $ 12,685,210 $ 12,630,633 $ 12,299,436 $ 407,516 $ 54,577 $ 331,197 $ (17,931) 3.16% 0.43% 2.69% (0.15)% $ 18,184,512 $ 17,688,975 $ 16,886,874 $ 15,931,434 $495,537 $802,101 $955,440 $ 502,920 2.80% 4.75% 6.00% 3.26%

Capital Improvement Program FYE 2026-2030 Capital Improvements by Category Total Proposed funding Category Requested Vehicles $ 1,207,170 $ 130,088 Public Safety 527,000 101,000 Public Facilities 32,727,773 105,000 Board of Education 12,264,137 114,046 Town Administration 171,508 59,508 Total $ 46,897,588 $ 509,642

Capital Improvement Program Projects to be funded in 2025-2026: Assessor GIS Maps & revaluation Board of Education tables, epoxy floor, air quality study Fire Department turnout gear, SCBA, communications, floors Public Works lease payments, sidewalks, streetlights Recreation Nystroms Park reserve Town Hall building repairs TOTAL $ 59,508 114,046 101,000 195,088 20,000 20,000 $ 509,642