CHESTER— The spring budget season ended quietly Thursday night as voters at the annual budget meeting approved a $12,507,736 budget plan for 2014-2015. About 40 residents turned out for the meeting, with the budget and a related $350,000 transfer of funds for capital projects approved on unanimous voice votes.
The spending package includes a $3,649,681 town government budget, a $342,670 capital expenditure plan, a $4,150,677 appropriation for Chester Elementary School, and the town’s $4,364,508 share of the Region 4 education budget. The Region 4 budget was approved by voters of Chester, Deep River, and Essex in a May 6 referendum.
The spending plan that won quick approval Thursday will require a property tax rate of 24.82 mills, an increase of 2.87 mills from the current tax rate of 21.95 mills. The new rate represents $24.82 in tax for each $1,000 of assessed property value. The hike in the mill rate was driven by a 12 percent decrease in the grand list of taxable property that resulted from the townwide property revaluation completed last year.
But the drop in assessed values for residential property that came with the revaluation is also expected to cover or limit any increase in tax bills resulting from the new and higher mill rate. First Selectman Edmund Meehan said 57 percent of all property owners will have a decrease in their tax bill, while some total bills will remain the same or have a small increase.
Meehan said the selectmen and board of finance endorsed two transfers from the town undesignated fund balance to limit the need for additional tax revenue and calculate the tax rate at 24.82 mills. There was a direct transfer of $13,287, and an additional transfer of $350,000 to prefund capital projects for the 2014-2015 and 2015-2016 budget years
The transfer for capital projects, which was approved on a unanimous voice vote, includes $300,000 for road and sidewalk repairs, $150,000 in 2014-2015 and $150,000 in 2015-2016, and $50,000 for repairs and code compliance improvements at town buildings. The transfer is expected to leave about $1.8 million in the fund balance on June 30, 2015.