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Windsor Town Manager William Saunders has proposed a fiscal year 2026 town budget that features $5,020,849.89 across all four funds, with no change to the real estate, personal property (vehicle) or machinery and tools tax rates.

The proposed budget includes no increase to the 6% meals tax rate, the cigarette tax is proposed to stay at 40 cents per pack, and the budget maintains a water rate of $8.50 per 1,000 gallons, with a minimum bill of $29.75, based upon 3,500 gallons.

The draft budget document notes that the FY26 General Fund portion of the budget totals $3,653,772.89 and is balanced. This represents a $6,108.17 increase from the $3,647,664.72 amount budgeted for 2024-25.

Saunders’ draft FY26 budget document states, “The indirect expenses, including salaries, that the General Fund charges the Water Fund total $411,706.84; therefore, the General Fund’s net revenues and expenditures total $3,242,066.05.”

The draft budget document indicates that the FY26 Water Fund portion of the budget is balanced at $1,194,077. This represents a $23,077 increase from the $1,171,000 amount budgeted for 2024-25.

The draft FY26 budget indicates that the FY26 Space Needs Fund is balanced at $105,000, which represents no change from the budgeted amount for 2024-25.

“This fund was established to allow the town to set aside funds for the future facilities and space needs of the town of Windsor,” the FY26 budget document states, adding that the fund is funded by current-year revenue.

The document indicates that the FY26 Windsor Town Center Fund is balanced at $68,000, a $9,500 increase from the $58,500 amount budgeted for 2024-25.

In a May 13 letter to the Windsor Town Council that begins Saunders’ draft FY26 budget document, he noted that the budget includes no increase to the current real estate tax rate of 15 cents per $100 of assessed value. He also stated that the draft budget maintains the personal property (vehicles) tax rate at 50 cents per $100 of assessed value and the machinery and tools tax rate at 25 cents per $100 of assessed value.

Saunders wrote that the sale of water to customers is the Water Fund’s only consistent source of revenue, although connection/tap fees for new services contribute varying amounts of miscellaneous revenue.

“The water rate is routinely evaluated, and revisions must be made as necessary,” he wrote before indicating that the Town Council had recommended 25-cent increases in odd fiscal years until the revenue/expense balance is sustainable.

Because FY26 is an even year, the proposed budget maintains the existing rate.

Saunders provided context for his overall proposed FY26 town budget in his May 13 letter.

“This budget proposal comes with some uncertainty due to the current economic environment and potential future economic downturns in the wake of the recent inflationary period and other uncertainties,” he stated. “Some disruption in our normal revenue streams during these uncertain times may occur. We should all continue to watch this situation closely.”

He wrote that the budget includes a plus-or-minus $75,000 contingency due to the aforementioned and other uncertainties in fiscal year 2026.

“While this budget is balanced and largely complete, new revenue information, and expense information from a few vendors, may result in minor revisions as we move through May,” he stated.

In a May 13 memo to the mayor and Town Council, Saunders noted that there will be public hearings on the proposed budget and Capital Improvement Plan at a special council meeting set for Thursday, May 29.

Saunders then noted that public hearings on the tax and water rate ordinances for FY26 will be held at the council’s regular June meeting, which will take place on Tuesday, June 10.