Halfway through the 2022-23 fiscal year, Finance Director Bob Tait is projecting a modest budget surplus at the end of the fiscal year in June 2023. At the December 16 Board of Selectmen meeting, Tait laid out what the 2022-23 municipal budget looks like as it crossed its halfway mark.

Tait said even though current taxes were budgeted as if motor vehicle taxes had the same mill rate (the state capped the motor vehicle mill rate at 32.46, which is less than the town's pre-revaluation mill rate of 34.67), due to additions to the Grand List, those revenues will meet projections. Additionally, supplemental taxes will exceed projections by $50,000, again, due to increases in the Grand List. A surplus is projected of at least $50,000 overall for property taxes.

All state revenues are expected to be received, including a $638,000 reimbursement from the state for lost vehicle property taxes (due to the aforementioned vehicle mill rate cap). Tait is projecting a surplus of at least $500,000 in state revenues.

The finance director also said that revenue accounts that relate to economic activity such as new construction have "slowed down a bit" from the prior year. It is expected that the accounts will reach the budgeted amount, however, and Tait said he believes there may be a surplus of at least $50,000 in those accounts.

Investment income is projecting a $1.2 million surplus, as the rate for the Connecticut Short Term Investment Fund (STIF) was 0.09% in December 2021 and is 4.01% in December 2022.

"This revenue account will most certainly help balance the 2023-24 budget," said Tait.

Tait said the town budgeted from the fund balance at the budgeted $1.3 million, in accordance with the town's fund balance policy which states that the fund balance should be no more than 12% of the total budget amount. Due to surpluses in other accounts, however, the use of the fund balance was "not required," he explained. The fund balance money will be budgeted for the 2023-24 budget, most likely being offset by a transfer to the capital and non-recurring fund.

Tait is expecting an estimated net surplus of $500,000 in revenues for the 2022-23 budget when it ends in June.

For expenditures, Tait noted a budget transfer for $116,000 was approved from the highway salaries account to various energy accounts due to the inflation on energy such as electricity and gasoline. The town was initially planning two additional similar transfers, but Tait believes they may not be necessary as the town entered into a gasoline contract for 69,000 gallons at $2.93 per gallon when initial estimates were $4.07 per gallon.

There continue to be savings in various salary accounts due to vacancies. Accounting for the transfer for energy, Tait says there is still a $165,000 surplus in those accounts.

Tait said no other accounts in the municipal budget "appear in stress," nor are there any others with "significant positive variances." There is still $103,843 in the contingency account that could be used depending on winter conditions.

"All in all, the Board of Selectmen expenditure budget should have a small budget surplus," said Tait.

Associate Editor Jim Taylor can be reached at jim@thebee.com.