Auditor warns of 'grim' budget year as New Milford council introduces 2026 municipal budget

Auditor Steven Wilcox told the Borough of New Milford mayor and council that the 2026 municipal budget is “the worst municipal budget year I’ve seen in my long stellar career,” blaming inflation, rising health-care costs, pension bills and other largely uncontrollable charges.

Wilcox, introduced by the mayor, said the borough’s 2026 appropriations remain about $800,000 under the statutory appropriation cap and roughly $40,000 under the tax levy cap, achievements he called significant given current pressures. At the same time, he told the council the proposed tax levy is increasing 5.23 percent. “The impact on the average taxpayer is more than anybody would like it to be,” he said.

The auditor said departments are budgeting less money overall for items the council can control — about $102,000 less than in 2025 — and urged caution on filling vacancies and adding positions that carry benefit costs. He described multiple external cost drivers — including health-care and pension bills, liability and workers-compensation premiums and sewer-disposal charges — as factors the borough cannot easily negotiate.

Council members thanked Wilcox and budget staff for their work and said they would continue to look for ways to control costs without sacrificing essential services. The council voted to introduce the 2026 municipal budget on first reading; a public hearing on the budget is scheduled for May 11.

What this means: The borough kept its budget within the state-imposed caps but will ask taxpayers to shoulder a higher levy this year. The introduction begins the formal review process that includes the public hearing and any subsequent amendments before final adoption.

Provenance: The budget presentation and introduction were discussed and recorded throughout the meeting (auditor presentation began when he was introduced and the council moved to introduce the budget later in the meeting).