Why Windsor Residents Could See a Tax Hike

Windsor residents saw , but increased spending and decreased state aid could lead to a budget that calls for residents to pay more over the next fiscal year, which begins July 2012.

According to documents from the Town Council's January 3 meeting, the fiscal climate of 2012-13 could be made especially difficult because of an anticipated drop in town revenue and an increase in spending to maintain the current level of services provided to residents and town employees.

Town Manager Peter Souza said he anticipates a 25 percent drop in special education reimbursement funds from the state, minimal growth in property tax revenue (particularly due to the loss of ABB and Motown tax revenue), and interest earnings that do not exceed .5 percent.

In addition, the town is faced with an anticipated 11 percent increase in health insurance costs, a 10 percent jump in gas and diesel fuel prices, and the depletion of  funds to replace town vehicles and information technology systems.

Other obstacles of note include a $600,000 gap in education funds provided by the state and the town's efforts to preserve current health, safety and welfare needs of the community, which, according to town documents, include investment in infrastructure and asset management.

In the current fiscal year, residents were spared a tax increase of roughly 4 percent when .

A public hearing allowing residents to present budget requests to council members has been scheduled for February 6.