Whoever wins Tuesday’s election may soon wish they hadn’t. The new Town Council will inherit a budget crisis shaped by two converging forces: a new property revaluation and a dangerously depleted fund balance — the town’s financial cushion for emergencies and unexpected costs.How Did We Get Here?
Over the past two years, the Republican-controlled council has drawn at least $13.6 million from the fund balance to keep tax increases low.
What Is the Fund Balance?
The unassigned fund balance consists of unspent money from department budgets and revenues that exceed expectations. In municipal budgeting, it serves as a safety net — covering unexpected emergencies such as sewer failures, and lawsuits. It can also be used strategically to soften tax increases, especially in revaluation years.
The key word is strategically. Using reserves occasionally makes sense. Draining them year after year — especially before a revaluation — does not.What Happened Over the Past Two Years
At the end of FY 2024, Enfield's fund balance stood at roughly $31 million, according to the town's audit. When the town manager presented the FY2026 budget in April (See appendix), he projected the FY24 ending balance would be around $28 million - the audit later showed it was actually $2 million higher.
Despite starting with more cushion than expected, heavy fund balance usage continues. A council source projects the fund balance will fall to about $24 million by the end of FY26 (June 2026), after accounting for planned withdrawals in both FY25 and FY26 and any additions from unspent funds. In the meantime, there is ample room for caution about the path the town is on.
Here’s How the Republican Majority Used It:
FY 2025: The council withdrew nearly $8 million from reserves, including $5.6 million to cover
an education shortfall caused by rising special education costs, lower state reimbursements, and higher insurance rates.
While Republicans blamed Democrats for the gap — claiming it stemmed from poor budgeting the prior year — the real causes were largely outside anyone’s control: more special education students arrived after the budget was set, the state imposed new mandates, and reimbursements fell short.
FY 2026: The adopted budget included another $5.6 million from reserves. After adoption, the council approved an additional $1.37 million for refuse trucks and pickleball courts — neither of which qualified as emergencies.
The refuse trucks were necessary but long anticipated; by March, the council already knew outsourcing wasn’t viable. The pickleball courts were discretionary. Both should have been funded through the regular budget process — not out of reserves.
This use of the fund balance allowed Republicans to set a 3% tax increase instead of an increase that ought to have been much higher.
How Much Is Left?
The current fund balance is probably below the $24 million projected in the budget, though it will rise somewhat as unspent funds and unexpected revenues are added back. No one yet knows the precise figure the next council will inherit — only that the long-term trend keeps heading lower.
That might sound like plenty, but the town must maintain at least 9% of its operating budget — roughly $15 million — to protect its bond rating.
That is dangerously tight.
The Looming Revaluation Problem
The timing couldn’t be worse. Enfield is heading into a new property revaluation for the FY 2027 budget. Home values have climbed sharply since 2022, while commercial property values remain uncertain. The result will almost certainly be higher residential tax bills.
If the new council begins with only $9–12 million in usable reserves (Again, this is a projection), it will have almost no room to maneuver. Using about $5 million to offset revaluation increases — a reasonable expectation — would drop the fund balance to just $4–6 million above the minimum safety threshold.
At that point, Enfield’s fiscal check-engine light will be flashing red.The Next Council’s Impossible Position
The Republicans accuse Democrats of reckless spending. But had Republicans limited their own use of the fund balance, today’s taxes would indeed be higher.
What’s Done is Done
Whoever wins on Tuesday will face an impossible choice: draw down reserves again to soften the revaluation’s blow, or let property taxes spike to preserve what little cushion remains.
There are no good options left — because the current council spent them all. The Republicans could have raised taxes a little to reduce the need for the fund balance; instead, they raised the risk for everyone else.
Enfield’s finances aren’t collapsing yet, but the town is running out of road.
Appendix
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This is a slide from the town manager's proposed budget earlier this year.
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