Stratford budget workshop: town projects $1M in state revenue, holds $17M fund balance as pension and OPEB costs rise

Stratford finance officials told the Town Council at a recessed budget workshop on March 20 that the town expects modest revenue growth next year and continues to hold a substantial fund balance while pension and post‑employment liabilities press operating costs.

Finance Director Dawn Saba said property tax revenue projections reflect a 0.85% increase in the grand list, and that the town has conservatively budgeted $1,000,000 for state revenue sharing after receiving $1,600,000 last year. She told councilors the town budgets roughly $40,000 annually for sporadic FEMA public‑safety grants and that departmental revenues are estimated using three‑ to four‑year averages adjusted for known local activity, such as higher building‑permit receipts tied to Sikorsky work on Lordship Boulevard.

Councillor Green pressed staff about a $5.5 million surplus shown for 2023; CAO Chris Timiak and Saba said surplus amounts roll into the general fund and that the town is carrying roughly $17 million in fund balance. Staff noted rating‑agency guidance typically targets fund balances near 10% of operating budgets.

On personnel costs, Saba said employee benefits rose roughly $734,076 year over year, driven primarily by higher pension contributions and an increased contribution to the town’s OPEB (other post‑employment benefits) trust, which the town doubled this budget cycle to signal fiscal prudence on long‑term retiree health liabilities. She described the town’s health plan as self‑funded and administered through Brown and Brown and said actuarial pension estimates are provided by the town’s actuary (Milliman/Munistat).

Contingency and insurance lines also grew: purchased‑insurance costs were estimated to rise by about $126,000 pending market renewals, and the audit line and unanticipated expense accounts remain in place to cover contract settlements, workers’ compensation and other fixed obligations.

Council members pressed staff for more transparent historical context in the budget book—several asked that grand‑list figures and multi‑year actuals be displayed alongside proposed numbers to make revenue drivers easier to understand. Saba and the CAO committed to follow up with supplemental schedules and a full bond schedule on the pension bonds that run from 2013 to roughly 2038.

The council recessed the workshop with staff directed to provide clarified line‑item histories and the full bond schedule for the next meeting.