Special Meeting of the Stamford Board of Representatives – May 20, 2026

At a special meeting called on Wednesday, May 20, 2026, at 7:01 PM, the Board of Representatives considered and acted on a resolution to approve an additional tax rate to fund a capital reserve fund (Fund 57) for future school construction projects. The meeting concluded with the resolution passing 32‑1 after a presentation and Q&A with members of the Board of Finance.

Discussion Items

Presentation by the Board of Finance

• Board of Finance Chair Mary Lou Ronaldi and member Richard Friedman presented Fund 57, a capital reserve fund used to pay for the Board of Education’s long‑term facilities plan. The fund is authorized under Connecticut General Statutes § 7‑361, which allows municipalities to levy an additional tax of up to four mills for such a reserve.
• The fund currently holds approximately $78 million, built from three sources: $45 million raised through mill rates, $27.7 million from prior‑year surpluses, and about $5 million in interest earnings.
• The Board of Finance recommended a $7 million contribution for fiscal year 2026‑2027 (down from the mayor’s recommended $10 million). This amount, combined with a previous $3 million from surplus, brings the total annual contribution to $10 million.
• Mr. Friedman explained that surplus levels have returned to historical norms (about $4–6 million per year) and are needed for other obligations (rainy‑day fund, storm reserves, heart‑hypertension reserve, and capital non‑recurring). Therefore, relying on surplus to fund Fund 57 is no longer realistic.
• The additional tax rate amounts to approximately 0.22 mills across most tax districts, leading to a total mill‑rate increase of 4.8% for FY 2026‑2027. For a home assessed at $500,000, this adds about $110 per year (or less than 1% of total property taxes).
• The fund will be used both to pay school construction costs directly and to provide float (pre‑reimbursement cash flow) for large projects like West Hill Elementary School, which is expected to generate significant invoices starting within the next year.

Questions and Responses from Board Members

• Representative Finkel asked whether the fund can be used to bridge payments before state reimbursement. Mr. Friedman confirmed that float is a key function, noting that monthly construction bills at West Hill could reach $20–25 million and the state typically reimburses in 60–90 days, requiring a float of $60–70 million.
• Representative Goldberg expressed strong support for the $7 million, calling previous years’ decisions to cut Fund 57 contributions “pennywise and pound foolish” and noting that the delay cost an entire year of interest.
• Representative Pavia asked about the fiscal year 2024 surplus and how surpluses are allocated. Mr. Friedman explained that surpluses are never used for operating expenses; they fund reserves (rainy‑day, heart‑hypertension) and capital non‑recurring. He also noted that the capital budget is historically about $25 million and has been strained without surplus supplements.
• Representative Graham asked about the accounting process for paying construction bills from Fund 57. Mr. Friedman clarified that the money is already appropriated; the administration sources payments directly, and the city recently hired an accountant dedicated to managing school construction billings and state reimbursement.
• Representative Adams asked why the mill‑rate increase is higher this year (4.8%) despite a growing grand list. Mr. Friedman responded that grand‑list growth this year was only about 0.35% (the lowest in 13 years), while costs rose significantly, including a 12.5% increase in healthcare costs and a $25 million increase in the Board of Education budget.
• Representative Weinberg calculated that the Fund 57 contribution adds about 0.22 mills, which is less than a 1% effect on taxpayers. He contrasted that with the substantial interest savings from bonding, and Ms. Ronaldi emphasized the minimal taxpayer impact.
• Representative Goldberg asked about comparative mill‑rate increases in neighboring towns. Ms. Ronaldi noted that Norwalk’s board of taxation inquired about Stamford’s secret, as they were facing a 6–7% increase. Representative Adams credited the growing grand list and improved pension/OPEB management.

Key Outcomes

• Resolution F32.088 was passed by a roll‑call vote of 32 in favor, 1 opposed (Representative Pavia was the sole no vote).
• The resolution approves an additional tax rate (ranging from 0.22 to 0.23 mills depending on tax district) to raise $7 million for Fund 57 in FY 2026‑2027.
• The approved mill rates for FY 2026‑2027 are:
  • Tax District A: 25.14 mills
  • Tax District B: 24.66 mills
  • Tax District C: 24.31 mills
  • Tax District C S: 24.72 mills
  • Personal Property: 28.47 mills
  • Motor Vehicles: 24.31 mills
• Proceeds from the additional tax will be attributed to the capital non‑recurring fund (Fund 57).
• The meeting concluded at 7:53 PM.