Cromwell Board of Finance Sets FY27 Mill Rate at 29.28, a 7 Percent Increase

Board of Finance · Meeting of May 7, 2026

CT CROMWELL — Cromwell's Board of Finance set the fiscal year 2027 mill rate at 29.28, a 7.13 percent increase over the current rate, at a May 7 special meeting. Chair John Ireland led the board through a series of unanimous votes that drew a combined $2,410,678 from the general fund balance for rate stabilization and $929,949 from the capital fund for capital non-recurring projects, with the board settling on a 55-day operating reserve floor rather than the policy's standard 60-day goal. The rate increase was driven by a $740,000 revenue shortfall tied to the Covenant Living reassessment credit, an $860,000 jump in school debt service for the new middle school, and a grand list that held essentially flat at approximately $1.913 billion.

Member John Flanders warned during deliberations that "whatever number we come out of here is going to be shocking — it's just a question of how shocking." The board also approved a $24,000 appropriation from the capital non-recurring fund for a town manager search consulting firm identified as PCM, and both the mayor and board members signaled the Town Council should revisit the town's fund balance reserve policy before the next budget cycle.

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Source: the Board of Finance meeting of May 7, 2026, reported from the official video recording and transcript.

CROMWELL — May 7, 2026 — The Cromwell Board of Finance voted unanimously Thursday night to set the fiscal year 2027 mill rate at 29.28, an increase of 1.95 mills — roughly 7.13 percent — over the current rate, after a lengthy debate over how much of the town's fund balance to deploy to soften the blow to taxpayers.

The board approved drawing a combined $2,410,678 from the general fund balance for mill rate stabilization and $929,949 from the capital fund for capital non-recurring projects, while setting the total other-than-tax revenue figure at $10,229,100 and approving a grand list of approximately $1.913 billion for use in setting the rate.

The Full Story

Chair John Ireland opened the special meeting at 7:33 p.m. with a motion to seat Associate John Flanders in place of absent Member Daniel Kelly, which passed unanimously. One resident spoke during public comment before the board moved to its core business: working through the building blocks of the mill rate calculation one item at a time.

The board's first substantive action was approving a set of special revenue fund appropriations. A brief procedural dispute arose when Member Ed Maley questioned why the dog fund appropriation of $23,900 and the sidewalk fund transfer of $100,000 were labeled "non-binding recommendations" rather than full approvals. Maley argued that state statutes require the board to approve all municipal expenditures regardless of what the town charter does or does not specify. After an amendment to remove the "non-binding" language passed unanimously, the board voted 6-0 on the dog fund. A parallel argument about the sidewalk fund's charter language led to a second amendment clarifying the wording before that motion also carried.

The board then approved two transfers out of the capital non-recurring fund tied to Woodside Intermediate School projects. A transfer of $35,329.18 from a completed exit-signs LED renewal was redirected to LED gym lights; a second transfer of $23,228 from the same line was redirected to air-conditioning window replacements at Edna C. Stevens School. Both carried unanimously. The board also approved a $24,000 appropriation from the capital non-recurring fund balance for a consulting firm — identified in discussion as PCM — to conduct a town manager search.

The pivotal discussion of the night centered on the grand list, fund balance policy, and mill rate. Town Assessor Sarah said the grand list stood at approximately $1.917 billion as of May 4 but recommended the board use $1.913 billion to account for two pending court cases involving Eversource and Yankee Gas — together representing roughly $7 million in contested assessments — as well as two smaller cases totaling about $1.7 million. The assessor also noted that a 100 percent tax abatement on the Amazon distribution facility, valued at approximately $26 million, would expire and come onto the grand list for fiscal year 2028.

"The good news is Covenant has been resolved, and all that is through the budget, and everything's all done with that. We have two interesting cases, which was about late penalties — it was Eversource and Yankee Gas." [00:00:00] — Town Assessor Sarah

The board set the Senior Tax Relief Program figure at $60,000, up from $55,000 the prior year, and approved the state revenue figure, which included a supplemental education grant of $520,405 and an updated state of Connecticut line of $7,276,329. Member Matthew Blanchette and others questioned at length whether the supplemental grant would affect the town's minimum budget requirement for education; Mayor Tony said the Office of Policy and Management had confirmed it would not.

The deepest debate came over how much fund balance to use. The town's policy calls for maintaining unassigned fund balance between 15 and 17 percent of the general fund budget, with a goal of 60 days of operating expenses. Board members noted that a tax shortfall of roughly $740,000, stemming from the Covenant Living reassessment being applied as a three-year credit in a single year, and a $860,000 year-over-year increase in school debt service were among the primary drivers of the rate increase. The mayor argued that because the Covenant Living shortfall was a one-time event, dipping below the 15 percent floor was defensible, and that the policy's own language allows a drawdown to 12 percent for specific purposes.

"I would like to not completely shock the taxpayers of this town. It is — I will guarantee you whatever number we come out of here is going to be shocking. It's just a question of how shocking." [00:00:00] — Member John Flanders

After a recess, the board coalesced around a plan to use 55 days of operating expenses — rather than 60 — as the reserve floor, leaving approximately $250,000 of unencumbered fund balance above that threshold as a working cushion for the coming year. The motion as amended allocated $1,043,253 from the general fund balance and $929,949 from the capital fund toward capital non-recurring projects, plus $2,410,678 from the general fund balance for rate stabilization. The amendment carried unanimously. The board then voted unanimously to set the mill rate at 29.28.

"The mill rate, if this were to go through, would turn into 29.28, an increase of 1.95. It's a 7% increase — 7.13%." [00:00:00] — Member Steven Wygonowski

Ireland closed the meeting by thanking staff and members for thorough preparation and flagged that the board's fund balance policy may be worth revisiting with the Town Council.

Why It Matters

Cromwell property owners will see their mill rate climb from 27.33 to 29.28 for fiscal year 2027, a 7.13 percent increase driven by three converging pressures: a $740,000 revenue shortfall tied to the Covenant Living tax credit, an $860,000 spike in school debt service for the new middle school, and a flat grand list. The board used a combined $3,459,931 in fund balance and capital reserves to limit the increase, but that drawdown leaves less cushion for fiscal year 2028. Members and the mayor signaled that the Town Council should revisit the fund balance reserve policy before next budget cycle, and a $26 million addition to the grand list — the Amazon facility whose abatement expires — is expected to provide meaningful relief beginning in fiscal year 2028.

Key Motions & Votes

- Vote: Seat Associate John Flanders in place of Member Daniel Kelly Tally: Approved unanimously

- Vote: Appropriation of $23,900 for the dog fund (special revenue fund, FY27) Tally: For: 6, Against: 0, Abstain: 0, Total: 6

- Vote: Appropriation of $100,000 for the sidewalk fund (special revenue fund, FY27) Tally: Approved unanimously

- Vote: Transfer of $35,329.18 from CNR exit-signs LED renewal to WIS LED gym lights Tally: Approved unanimously

- Vote: Transfer of $23,228 from CNR exit-signs LED renewal to ECS AC window replacements Tally: Approved unanimously

- Vote: Appropriation of $24,000 from CNR fund balance for town manager search consulting firm Tally: Approved unanimously

- Vote: Grand list figure of approximately $1.913 billion for FY27 mill rate calculation Tally: Approved unanimously

- Vote: Senior Tax Relief Program figure of $60,000 for FY27 Tally: Approved unanimously

- Vote: Other-than-tax revenue figure of $10,229,100 for FY27 Tally: Approved unanimously

- Vote: Property tax collection factor of 98.85 percent for FY27 Tally: Approved unanimously

- Vote: Amended motion to utilize $1,043,253 from general fund balance and $929,949 from capital fund for CNR projects, plus $2,410,678 from general fund balance for mill rate stabilization Tally: Approved unanimously

- Vote: FY27 mill rate set at 29.28 Tally: Approved unanimously

Source

Cromwell's community access TV: Board of Finance meeting, May 7, 2026