MONROE, CT — While crafting a town budget proposal for fiscal year 2025-26, First Selectman Terry Rooney reduced the Board of Education’s request by $1,850,000, and recommended reducing the tax rate by nearly 10 mills and using $4 million of surplus funds to limit the impact the state-mandated revaluation will have on homeowners.
He is proposing a $107,069,131 town budget with a 2.84 percent overall spending increase for Monroe’s public schools and municipal services.
The budget proposal has $73,917,629 for education, which is $2,453,370 or 3.43 percent higher than the current $71,464,259 spending plan. The school board had requested a $4,303,370 or 6.02 percent increase.
“As I understand the challenges education is currently facing, the trajectory of these increases is not sustainable,” Rooney said. “In recognizing the rising costs of education, my administration has modified the grant writer position in this budget to assist the Board of Education. This initiative promotes working together to lower the impact of education costs in Monroe.”
Municipal spending would rise from $31,873,849 to $32,437,035 for a $563,186 or 1.77 percent increase. The town budget also includes total fund appropriations and contingency, which would be reduced from $771,586 to $714,467 in the first selectman’s proposal.
The municipal budget will be reviewed by the Town Council, before the Board of Finance reviews the entire town budget, then a final proposal comes before voters at referendum on May 6.
Dramatic increase in home values
The town is facing a difficult budget year amid a state-mandated revaluation performed by Vision Government Solutions. Monroe’s overall residential property assessment total increased by 50 percent, while the commercial and industrial assessment total increased by only 16 percent, shifting a greater share of the tax liability to homeowners, according to the first selectman.
“The combined growth of our residential and commercial real estate has resulted in a net grand list increase of $877,640,833 for the fiscal year 2025-26,” Rooney said. “While this office cannot control the outcome the state mandated revaluation, we can certainly mitigate the impact it will have on our taxpayers.”
“Communities all across Connecticut are sharing the impact caused by the dramatic increases in housing prices on property assessments,” he said.
The first selectman said a comprehensive analysis by his office, the Finance Department and Assessor’s Office resulted in a proposed mill rate reduction from the current rate of 38.27 to a mill rate of 28.61 for fiscal year 2025-26.
“My budget proposes an overall increase in expenditures of 2.84 percent, which is .06 percent lower than the national inflation rate of 2.90 percent,” Rooney said. “This budget is the best-case scenario to satisfy the lowest level of taxpayer impact, while considering the increase in housing values and emphasizing community needs.”
The first selectman noted that motor vehicle taxes are expected to decrease as a result of the proposed mill rate, which he said will offset a portion of the residential tax impact.
The town had a surplus in fiscal year 2023-24, so Rooney said he is requesting that $4 million be returned to the taxpayers by assigning fund balance in this budget to offset the impact of the revaluation.
“Using fund balance is not optimal,” Rooney said, “however, after returning this surplus to the taxpayers of Monroe, our projected unassigned fund balance will remain above the high end of our established range and should help maintain Monroe’s AAA bond rating.”
To see the first selectman’s entire budget presentation, which in on the town website, click here.
All respectful comments with the commenter’s first and last name are welcome.