Board Of Finance Approves Mill Rate Increase In New Canaan

NEW CANAAN, CT — On Tuesday, the Board of Finance approved a mill rate of 16.691 for the 2026 fiscal year, an increase of 0.547 compared to the 2025 fiscal year's mill rate of 16.144, town officials announced this week.

According to a news release provided by the town, a mill rate of 16.691 means a tax payment of $16.69 for every $1,000 of assessed property value.

The amount to be raised from taxation for the 2026 fiscal year will be $164 million, a 3.76 percent increase from the 2025 fiscal year amount of $158.10 million, town officials said.

Setting the mill rate marks the final action of the fiscal year 2026 budget process following the Town Council's approval in April of the $181 million expenditure budget, an increase of 3.47 percent over the current fiscal year's budget of $174.9 million, according to town officials.

The fiscal year 2026 budget takes into account the town assessor's reported 2024 Grand List increase of 0.38 percent to $9.94 billion from the 2023 Grand List of $9.90 billion, town officials said.

This Grand List, combined with a $5.75 million fund balance drawdown, resulted in the mill rate of 16.691, according to town officials.

"I want to congratulate and thank Board Chairman Todd Lavieri and all the members of the Board of Finance," First Selectman Dionna Carlson said in a news release, "for a fiscal year 2026 Budget that resulted in a mill rate increase of 0.547 from the current fiscal year and an increase in the amount to be raised by taxation of 3.76 percent in the upcoming 2025-2026 fiscal year. Many thanks to all who participated in the budget process and were committed to funding our departments to meet the needs of our community while being sensitive to the inflationary environment we face."

Town officials also noted maintaining healthy reserves and a stable mill rate remain priorities of the Board of Finance.

"By delivering a budget surplus of $8.0 million this year, we are able to return $5.75 million of that back to the taxpayers by reducing the amount raised by taxes, with the balance of the surplus going to our 'rainy day' general fund," Lavieri said in a news release. "The average increase in the amount raised by taxation over the past 8 years, including next year’s budget, is 2.3 percent, a very strong accomplishment by our town and boards over this period, especially with inflation headwinds recently. That average increase compares favorably with surrounding towns. During the budget process, we were able to reduce operating expenses by more than $2 million and capital requests by more than $6 million, while meeting the needs of our schools, public safety, public works, and many other town-related services. I would like to thank our Board of Finance, our Town Council, our New Canaan school administration, our Board of Education, our department leaders, town employees and our Board of Selectmen for their hard work and guidance."

The town's release can be read in full here.