Hamden Mayor Garrett Addresses ‘Substantial’ Tax Increase, Options In Message To Residents

The following message is from Mayor Lauren Garrett regarding the town’s recent property revaluation and residents’ taxes.

HAMDEN, CT — My fellow residents of Hamden,

I am communicating to you today about a matter of significant importance to our community: the recent town-wide property revaluation and its impact on your property taxes.

As many of you know, the Town of Hamden recently completed a state-mandated property revaluation. This process, the schedule of which is also determined by state law, is essential for ensuring that property assessments reflect current market values. A substantial increase in our grand list as a result of this revaluation is, in the long term, a positive indicator of our town's economic health and potential.

However, as I delved into the details of this revaluation, a serious and unintended consequence became clear. Due to the significant influx of new residents during and after the COVID-19 pandemic, residential property assessments have increased at a far greater rate than commercial property assessments. On average, residential assessments have risen by a staggering 55%, while commercial assessments have only increased by approximately 30%.

This disparity has created a significant shift in our local tax burden, moving it disproportionately from our commercial sector onto our residential homeowners.

In my proposed budget for the upcoming fiscal year, I have recommended a 9 mill reduction in our tax rate. This is the largest decrease in our town's tax rate in decades, and it reflects my commitment to fiscal responsibility. However, despite this significant reduction, the reality is that the average homeowner in Hamden will still see a substantial increase in their property tax bill due to the dramatic rise in residential assessments.

Frankly, as your Mayor, this is unacceptable to me. I know the financial pressures many of our families are facing, and I am deeply concerned about the impact these increased taxes will have on all of our lives.

Upon recognizing this inequitable outcome, I immediately directed my staff to explore all available options to mitigate this burden on our homeowners. There are two additional options to consider aside from directly implementing the grand list. We can phase in the grand list which will help some property owners more than others. We can also delay the implementation of the grand list. My administration is working with the Legislative Council and will cooperate with any of these three choices.

As the Finance Department was calculating the effect of a phase in of the grand list, they realized the wrong mill rate was provided for my proposed Town of Hamden Fiscal Year 2025-2026 Operating Budget. While this was unintentional, the revised mill rate reflects a more favorable outcome than initially reported.

The updated figures indicate an additional 3.22 mill reduction in the mill rate with a total mill rate reduction of 12.22 from last year’s budget. This results in a mill rate of 43.39. This does not affect the revenues and expenses in the budget.

I recognize the distress the increase in assessments has caused and hope that phasing in the grand list will provide some relief. While I wish the mill rate was even lower, I hope this change helps. We will make sure the updated mill rate is reflected in the online budget.

Phasing in the grand list will provide relief to some who experienced an increase much larger than 40% in their assessment. Delaying the implementation of the grand list will provide some relief this year only. Examples of a two-year and four-year phase in are included below:

While this is a significant step and offers some tax relief in the short term, it is not a panacea. The underlying issue of the shifting tax burden from commercial to residential properties is a challenge being faced by communities across our state. I have already engaged in numerous conversations with other municipal leaders who are grappling with similar situations and we are actively seeking solutions.

Moving forward, we will work collaboratively with our state legislative delegation to explore more equitable ways to apply property taxes and address this statewide trend.

I want to assure you that I have heard your concerns loud and clear. I have had many conversations with residents who are understandably worried about the impact of these increased taxes. Please know that I am your neighbor, and I share these concerns.

My proposed budget, even with the recommended mill rate reduction, remains a tight one, with the majority of increases driven by unavoidable contractual obligations. However, I want to assure you that my administration will continue to seek out opportunities for cost savings and efficiencies in town operations.

To ensure a thorough and open dialogue on this critical issue, I will be holding a series of community meetings to be held across Hamden. The first meeting will be held on Thursday, April 24 at 6:30pm at Thornton Wilder Auditorium in the Miller Library Complex. These meetings will provide an opportunity for us to discuss the revaluation, its impact on your taxes, the proposed phase-in ordinance, and our ongoing efforts to find both short-term relief and long-term solutions. I encourage each and every one of you to attend these meetings so we can have a productive face-to-face discussion.

We are all in this together, and I am committed to working tirelessly to address this challenge and ensure a fair and sustainable future for all residents of Hamden.

Thank you for your understanding and your continued engagement in our community.

For further information, please contact the Mayor's Office at (203) 287-7100 or by email at mayor@hamden.com.