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Fiscal Year 2026-2027
Town Budget Proposal
Public Hearing – April 29, 2026
Town of Colchester, CT
FY 2026-2027
Budget Presentation
1. Balancing Priorities: Stability &
Safety, Sustainability, and
Affordability
2. Budget Environment and
History
3. Budget Overview and Drivers
4. Department Highlights
5. Capital Planning: Colchester
2026 and Beyond
6. Town Revenues & Cost of
Services to Taxpayers
Balancing Budget
Priorities
Maintaining stability and safety
• Adequately fund continued maintenance of
buildings, grounds, etc (ex: Fire HQ, library,
athletic fields, Town Green etc)
• Accurately and transparently budget for
known costs
• Avoid disruptions to services residents rely
on or that we are required to provide – from
public safety operations to administering
elections and providing critical services to
residents in-need of all ages
Sustainable operations
• Prevent fiscal cliffs that set us up for future
failure
• Prevent escalating costs caused by
deferred maintenance
• Perform necessary road maintenance
to avoid deterioration (ex: crack
sealing, repaving, etc)
• Maintenance to keep facilities safe
and usable - including RecPlex
• Planning for the future
• Fund infrastructure necessary for
future economic growth
Balancing Budget Priorities
Affordability for residents and businesses:
Keeping Colchester competitive
• Significantly increased healthcare costs for employers
is a major driver on Town-side in 2026
• Underfunding of healthcare on BOE-side will create economic
pressure this year that impacts Town budget
• Keep Colchester from going backwards — limit deferring
necessary expenses
• Continued focus on operational side of budget
• Capital budget – Focus on completion of existing approved
projects — no new capital requests for FY 26-27
• Responsibly reduce contributions to certain reserves for
FY 26-27
• Utilize non-budgetary new special revenue (ex: cannabis
tax) when possible
• Provide valuable Town services at a rate residents can
afford
Recent Budgetary History:
Fighting the Tide of Inflation
Just like costs in our homes, the costs of running public services has increased since
2020
Increased costs for essential services like plowing, road maintenance, fire/EMS service,
police service, and maintenance of buildings like the library, senior center, and RecPlex
grounds
• FY21-22: $15,704,962
• Town exceeded its budget in FY21-22 - required supplemental appropriation to balance
• FY22-23: $15,622,901
• Town balanced budget by deferring paving
• Unable to bond due to overdue audit - left surplus in debt service
• FY23-24: $15,660,140
• Budget freeze implemented in January 2024 to avoid exceeding budget
• Deficits across fixed line items included underfunding of pension contributions, FICA,
401a contributions, service contracts, and municipal insurance
• FY24-25: $17,102,056
• Significant increase to combat previous three years of compounding inflation and funding
shortfalls
• First post-COVID inflation union contracts go into effect
• FY25-26: 18,086,798
• Increase in healthcare costs and utility costs become major drivers of Town budget
• Year two of post-COVID union contracts
October 2024:
Building and Maintaining • Permanent financing completed for Senior Center/Fire
Financial Stability
Apparatus — $1.2 million bond premium received
• WJJMS state audit completed — $3.5 million note paid,
additional $700,000 reimbursement received
Where we were…
February 2025:
• FY21-22: $15,704,962
• Town exceeded its budget in FY21-22 - required • Permanent Town Finance Director hired
supplemental appropriation to balance April 2025:
• FY22-23: $15,622,901 • 2024 audit report completed – unassigned fund balance
• Town balanced budget by deferring paving
growing, recommendations on internal controls
• Unable to bond due to overdue audits, making interest
only payments • Town health insurance fund goes positive
• FY23-24: $15,660,140 July 2025:
• Town health insurance fund in deficit over $700,000 as
of November 2023 • Efficiency measures go into effect — Water/Sewer Tax
• Deficits across fixed line items included underfunding Dept. Consolidation, cannabis tax revenue offset,
of pension contributions, FICA, 401a contributions, regional animal control service through Montville, shared
service contracts, and municipal insurance
VOIP telephone service for all town buildings
January 2024: • $500,000 from unassigned fund balance used to lower
• Town Finance restructuring begins taxes
• Budget freeze implemented March 2026:
• Overdue town health insurance payments contributed • 2024 audit report released with no Town findings —
Unassigned Fund Balance still at highest level
September 2024:
April 2026
• 2023 audit report completed
• Town portion of health insurance fund covering Board of
• AA+ bond rating secured Education claims temporarily – BOE will reimburse fund
Focus on Safety
and Stability
• No new non-public safety
positions
• Final required firefighter position for equalized
staffing, effective January 1, 2027 – per BOF plan
in 2025
• Police traffic officer funding offset by
retirements and DOJ Cops grant
• Budget Survey Top 3 Priorities Ranked
• #1: Schools/BOE
• #2: Fire/Police/EMS
• #3: Public Works (Roads/Building
Maintenance)
• Maintain existing plans without new initiatives
• Maintain new efficiency operations
implemented in FY25/26
• Continue to utilize non-budgetary funds to
deliver services without creating fiscal cliffs
Budget Drivers - Overview
• Wages: +$562,274
• Increase driven by contractually obligated increases
• Public Works is in year three of a four-year phase-in wage adjustment
contract
• Bringing positions to market rate due to years of chronic turnover
• Includes funding to complete firefighter staffing plan as discussed in FY25/26
budget process
• Employee benefits: +$547,158
• Vast majority of increase driven by cost of health insurance/projected claims
• FICA/Retirement benefits also increase as wages rise
• Contractual services: +$168,877
• Ex: Information Technology Management Contract, Transfer Station hauling
fees, Chatham Health District, State Police Contracts
• Debt Service: +$85,000
• Athletic Complex and Bacon Academy Roof projects approved, part of cost
share with BOE
• Cost of supplies: +$68,031
• Ex: increase in cost of road salt
• Increased utility costs: +$32,179
Total proposed budget: $19,521,660
Increase: $1,435,900 for FY25-26 vs FY25-26 (7.93%)
2,000,000.00 Budget Driver: Rising
1,800,000.00
1,600,000.00
Health Care Costs
• The Town of Colchester is self-insured
1,400,000.00 • Town pays all claims directly from a Health
Insurance Fund (AKA Health Reserve) shared with
1,200,000.00 Board of Education
• Town has secondary “stop loss” insurance to
1,000,000.00 reimburse when a single claimant goes over $125,000
in a fiscal year
800,000.00
• Town-side making net positive contributions to
health insurance fund over last several— expect to
600,000.00 break even for FY25/26
400,000.00 • 100% of projected claims estimates — using estimates
provided by insurance broker
200,000.00 • FY25-26: $1,384,281
• FY 26-27: $1,845,288
0.00
Projected Claims
• Difference: +$461,007
FY24/25 25/26 26/27
By budgeting appropriately, town insurance fund
went from deficit of -$700,0000 in November 2023
to positive balance of $260,000 as of March 2025
Budget Driver #2: Wages & Employee
FICA/Retirement Benefits
• Wages and FICA/Employee retirement
contributions rise together
• Wages: +$562,274
• FICA/Retirement: +$81,151
• Firefighter position from FY25/26 fully funded
• Funded only for six months in FY25/26
• Final firefighter position (recommended by
BOF in FY25/26 budget process) funded
effective Jan. 1, 2027
Wages and Labor Environment
National wage growth (all non-farm payroll) year-over-year
• January 2022: +5.7%
• January 2023: +4.6
• January 2024: +4.5%
• January 2025: +4.1%
• December 2025: +3.4%
• From 2021-2023, four-year labor contracts kept wages locked in
average 2.5% growth – far below state and national averages
• Colchester faced a staffing turnover “tsunami” (as
described by HR Director) and hiring struggles due to
historically non-competitive wages
• Contracts negotiated in 2023 and 2024 reflect this changed labor
environment
• Wage restructuring primarily affected FY24/25 budget –
except in Public Works (phased over four years)
Wages make up about 41% of budget
• COLA increase for FY25/26: 3% average
Benefits make up about 17.5%
Colchester average below national averages for wage Total percent of Town Budget: 58%
growth overall
Wages and Labor Environment
National wage growth year-over-year: 3.4% increase
from December 2024 to December 2025 (Bureau of
Labor Statistics)
• The Town of Colchester has six labor unions:
Administrators, TH Clerical, Library (under
negotiation), Public Works, Firefighters, and Police
• All contracts currently in place were negotiated in
2023 and 2024 when average national wage growth
was between 4-5%
• Average YOY increase: 3%
Wage restructurings have been effective: Colchester
has been operating at full/consistent staffing levels
Wages make up about 40.5% of budget
Benefits make up about 16.4%
Total percent of Town Budget: 56.9%
Wages and Labor Environment
Firefighters Union (2023-2027) – Negotiated Summer/Fall 2023
• 3% COLA
Public Works (2024-2028) – Negotiated Fall 2023
• Year 2 of 4 for wage restructuring phase-in
Administrators Union (2024-2028) – Negotiated Winter 2023
• 3% COLA
Clerical Union (2024-2028) – Negotiated Winter 23/24
• 3% COLA
Police Union (2024-2028) – Negotiated Spring/Summer 2024
• 3% COLA
• Library Union (2023-2026) – Currently in negotiation
Wages make up about 40.5% of budget
National wage growth year-over-year: 3.4% increase from Benefits make up about 16.4%
December 2024 to December 2025 (Bureau of Labor Statistics) Total percent of Town Budget: 56.9%
Budget Driver #3: General Inflation – Electricity,
Private Contractual Services, Etc.
• Increased utility costs across Town buildings
• +$32,179
• Transfer Station
• Hauling fees for Casella: +$71,550
• Snow
• Two serious winters in a row, costs of supplies increasing
• Projected sand and salt increase for FY26/27: +$74,780
• Regional Health District
• Contract renewal at 2.4%: +$6,269
Contractual services represent about 12% of
budget
Supplies represent about 5%
Utilities represent about 2%
Department Highlight: Public Works
Continued Support for Highway and Fleet
In previous years, Public Works fell behind in several areas including road
maintenance, crack sealing, street sweeping, roadside mowing, etc due to poor
employee retention, understaffing, and loss of budget resources
In FY24-25 Budget…
Contract phased in wage adjustments over
First year of a new Public Works contract
Added new maintainer in highway four years – necessary due to poor
negotiated in 2023 employee retainage
Improved staffing retention and resource allocation led to improved outcomes in FY24-25
Repainted 25 miles of road center Rubberized chip seal on 6.5 miles of Completed Town-wide street
Regraded 9 miles of dirt roads
lines road, mill/pave 2.7 miles sweeping and roadside mowing
FY25-26 Consistent staffing, resources, and more experienced crews…
Rubberized chip seal on 6.8 Completed Town-wide Addressed additional needs
Repainted 35 miles of road including: bridge repairs,
Regraded all dirt roads miles of road, mill/pave 2.5 street sweeping and
center lines culvert repairs, drainage
miles roadside mowing improvements, and more
Department Highlight:
Public Works
Continued Support for Public
Works
• Public Works and Public Safety are
the primary functions of the Town
government
• Residents depend on ongoing
maintenance of town roads,
proactive treatment of roads in
winter, timely response to blocked
roads in storms, etc
• Contractual payroll increases in year
three of CBA:
• Admin: +$2,644
• Highway: +$55,791
• Fleet: +$16,201
• Transfer Station: +$14,026
• Grounds: $32,471
• Facilities: $4,734
• Other increased costs
• Traffic Control and Street Lights
(Electricity): +$26,019
• Transfer Station hauling fees:
+$71,550
• In FY 24/25 – BOF addressed longstanding
maintenance issues for grass management
and others
• Three new part-time employees to
cover man-hours for RecPlex and
school fields ($53K)
• New service contracts for treatment of
fields ($16k)
• Materials increase for sand top-
dressing, seeding materials, etc ($91K)
• Equipment rental for top-dressing,
biostimulus sprayer ($5k)
• Programs were successful at improving
maintenance at RecPlex and other grounds
• FY 25/26 – first full year with grass
maintenance program and seasonal
workers
• New natural turf growing in
successfully
• Improved maintenance at Town Green,
walking paths and open space parks,
downtown streetscapes
Department Highlight: • Sablitz Preserve trails opened
Public Works FY26/27 Request: No new initiatives or
positions – maintain funding level to focus on
Continued Support for Grounds Maintenance continued implementation of successful
programs started in FY24/25 and continued in
FY25/26
R1 – Before (Spring 2024) R1 – After (Fall 2025)
Natural grass turf grown in thanks to 2024 and 2025
maintenance program
Field primarily weeds and clover
April 2025 May 2025
Start of Season Mid-season
First spring for new program Following first spring of new program
Department Highlight:
Fire & Emergency Medical
Service
• Combination department — relying on full-time paid staff
and volunteers
• Paid staff work rotating shifts
• 2489 calls in 2025 — average 6.8 calls for service per day
• 735 fire-related responses — average 2 per day
• 1754 EMS-related responses — average 4.8 per day
• 22% increase in calls since 2015
• Total personnel hours (calls/emergencies): 9,973
• Total training/drill hours (5,795)
• September 2023 Town-UPFFA Contract sets goal of
minimum staffing of three officers per shift
• In FY24/25 – two shifts were operating below minimum
staffing goal
• FY25/26: BOF funded 1 position at 50% for hire effective Jan.
1, 2026; committed to bringing final position forward in
FY26/27 budget
Department Highlight:
Fire & Emergency
Medical Service
• FY26/27 proposal: Fully fund
position from Jan, 1, 2026; hire final
position Jan. 1, 2027
• Payroll: +$97,056
• FICA/Retirement: +$16,586
• Colchester Fire & EMS Annual
Estimated Revenue (Ambulance
Billing): $660,000
Department Highlight:
Colchester Police
• Total calls for service in Colchester 2025: 9013
• 2,543 traffic stops
• 242 accidents
• 391 reportable criminal investigations
• 140 arrests
• 36 DWIs
• Among first Resident State Trooper towns to become Tier 3
Accredited
• Received DOJ COPS Grant in FY25/26 to increase staffing level
— grant timed with upcoming retirements to allow cost-
effective growth
• DOJ Grant Funded position hired January 2026
• Partnered with UCONN T2 Center for free “Your Speed”
feedback signs, placed at strategic locations around Town
• Data shows reduction in speed on roads with feedback sign (Ex: Route 16,
354, Cabin Road)
• Received and administered Rural Roads/DUI enforcement
grants
• Special Duty Revenue from private assignments (ex:
Eversource projects) covering police vehicle replacement
costs
• FY26/27 – Must replace two
retiring corporals
• New hire, effective January
1, 2027
• Costs offset by DOJ
COPS grant
• Payroll: +$35,225
• FICA/Retirement: +$37,694
• Resident Trooper Contract
with State of CT: +$15,702
Goal: Dedicate one officer as
full-time traffic officer to
address speed enforcement
Department Highlight: and traffic concerns
Colchester Police
Colchester Fire & EMS-
Colchester Police
Community Services Beyond
the Call
• Colchester Fire/EMS and Colchester Police
provide community services beyond just 911
responses…
• Support for Town sponsored events such as…
• Memorial Day Parade
• National Night Out
• Trunk or Treat
• Holiday Homecoming/Santa Visit
• Airline Trail Ghost Run
• Free quarterly CPR classes for public
• Juvenile Review Board case management with
Youth Services
• Pistol Permit processing
• Prescription Drug Drop-Box Collection
• Mock crash awareness event for Bacon Academy
students
• Safety and emergency response training for Town
employees
Department Highlight:
Senior Center
• Senior Center opened December 2024
• FY25/26 was first year budgeting for new building,
initial budget developed with two months of usage
data
• On-site meals served:
• 2024: 4,765
• 2025: 7,202
• Membership total
• 2024: 2,046
• 2025: 2,707
• ‘Wellness Nights’ (Tuesday and Thursday Nights open
to 8PM)
• Funded 100% from cannabis tax revenue
• Fuel & Heating: +$5,100
• Electricity: -$10,450
• FY26/27 Request: $12,208 (combined) to raise wage for
senior bus drivers to $21-22 per hour – currently $17-19
Department Highlight:
Elections
• Registrar of Voters (one Republican, one Democrat)
jointly administer elections and referenda and maintain
voter records in compliance with state statutes
• Increasing state requirements, increasing number of
hours worked to complete duties
• Mandatory training
• Early voting periods
• New voter registration system
• Number of registered voters increase (now ~13,000, up
from 12,000
• Registrars paid stipend currently calculated at 10 hours
per week, requested stipend be recalculated at 20 hours
per week based on hours worked
• Payroll: +$37,676
Data provided supports number of hours worked,
compensation should be fair — positions must be
filled and duties must be completed on schedule
Continuing Efficiency
Operations, Savings, Special
Revenues from FY25/26
• Consolidated Water and Sewer Collections with
Tax Office:
• Savings: ~$33,000
• Regional Animal Control Partnership with
Montville:
• In FY25/26, migrated to Montville for savings
of about $5,000
• Former provider raised rates for all clients
effective July 1, 2026 of ~150%
• Estimated Savings: $35,000 for FY26/27
• Cannabis Tax Revenue to Fund Youth Services
programming:
• Savings: $20,700
• Cannabis Tax Revenue to Fund Senior Center
evening programming:
• Savings: $15,000
Capital Planning and Maintenance
FY26/27: Completing Already-Funded Capital Projects
• Youth Center Renovation (ARPA Funded)
• Renovation underway currently, anticipated reopening date – September
2026
• Over $700,000 in structural and other repairs to 1800s historic building — will
reduce future maintenance needs
• Norton Park/Remediation of former Norton Paper Mill
• Environmental remediation of former mill site funded under DEEP/DECD
grants worth over $1 million underway currently
• Sewer/Water Infrastructure Improvements
• $3.1 million in improvements and repairs to Cabin Road filter vessels
(underway), Highland Farms water tower, Elmwood Heights water tower, and
PFAS engineering – estimated loan forgiveness under DWSRF - $780,000
• Airline Trail/Lebanon Ave Trailhead (STEAP Project)
• Improvements to trailhead and sidewalk connections up to Mill Street funded
via $1 million STEAP grant
Working with Tyche Planning Group on several grant opportunities seeking
funding for future capital projects such as Norwich Ave sidewalk
reconstruction, road reconstruction projects, former Senior Center
renovation for Colchester Police/Veterans Hall, and Generator
Replacement
Capital Planning and
Maintenance
Athletic Complex Renovation – Approved
February 2026
• Improvements to Bacon Academy and Recreation Complex
to begin Spring 2026
• Recreation Complex improvements will address tennis
courts, pickleball courts, SplashPad, and concession stand
— locations have required significant repairs funded by
Buildings and Grounds reserve in recent years
Bacon Academy Roof Replacement – Approved
February 2026
• Building Committee began meeting in March 2026
• Intend to pursue state funding for project to reduce costs to
the town
Capital Planning and
Maintenance
Reduce reserve contributions, hold funding flat for
capital plans*
• Vehicle Improvement Plan Funded held at $361,000
• Road Improvement held at $540,000
• Supplement with state TAR
• $75,000 in Facilities/Grounds Reserve
• Budget Reduction: $25,000
• $25,000 for Equipment Reserve
• Budget Reduction: $25,000
• Information Technology Equipment: $19,900 - funds purchases
of computers, repairs, etc
• *Town Website Upgrade (Platform Expiring): $10,000 (New One-
Time Expense for FY26/27)
• Open Space Preservation: $10,000
Saving for future known expenses
• Town-wide revaluation (every 10 years): $28,000
• Fire SCBA Replacement (every 15 years): $18,000
• Skatepark resurfacing/replacement – removed due to inadequate
funding
• Budget Reduction: $2,500
Department-Level Requests
Not Funded FY 26/27
If all Department Level-requests
were approved, the Town increase
would exceed 15%...Items requested
but not approved include…
• Beam Replacements at Fleet Garage ($250,000)
• Fleet Generator Replacement ($100,000)
• Senior Center Additional Staffing and Hours ($51,148)
• Road Improvement Budget Increase ($60,000)
• Tree Removal Budget Increase: ($20,000)
Additional Reductions:
FY 26/27
Budget Development Process - First Selectman and
Department Heads meet as group to review budget
and find reductions together
• Fire Dept: Start New Hire January 1: $30,056
• Tree Removal Reduction: $20,000
• Perform additional work if department surplus available at end of fiscal year
• Road line painting: $15,000
• Grounds Department Training Courses: $7,000
• Street signs, cones, batch basin tops: $7,000
• Land Use Admin Coverage: $6,000
• File Digitization: $5,000
• Youth Services Building Repairs: $4,000
• Brush Removal: $3,500
• Tax Office Postage: $2,000
• Numerous other reductions: between $100 and $5,000 across
departments
Town Revenue: • Grand List: Increase of $610,0000
• Investment income: $1,100,000
Economic Growth • Intergovernmental Revenues (State
is Driving Revenue Funding): $497,247
• Ambulance Fees: $660,000 (increase of
$10,000)
• Building Fees: $725,000 (increase of
$125,000)
• Conveyance Fees: $300,000 (increase of
$75,000)
• Town Clerk Fees: $120,000 (increase of
$20,000)
• Transfer Station Fees: $280,000 (increase
of $5,000)
Board of Finance proposal: Utilize
$750,000 from unassigned fund
balance to reduce tax impacts
Cost of Town Services to Taxpayers
Taxpayers receive a bill based on combined budget — budget shows cost to taxpayers for Town services
Average Residential Homeowner bill equates to $153 per month TOTAL for all Town Services in Proposed FY26/27*
Full budget book available online at ColchesterCT.Gov/Budget2026 for review
The Town of Colchester provides valuable services — from public works and public safety functions to human
services like Cragin Library, Parks & Recreation, Senior Services, Youth & Social Services, and town administrative
functions — at an affordable, reasonable rate
*Note: does not show use of unassigned fund balance - $750,000 will be used, further reducing mill rate
Full budget book available online at ColchesterCT.Gov/Budget2026 for review