The following is the third in a series of articles about the Town of Westport’s finances. Written by ex-Board of Finance Chairman Brian Stern, this piece looks at the ten-year trend in town finances.

Westport Journal presents these pieces of news and analysis to help readers better understand town finance: the dynamics that create the town’s revenue, how that revenue is spent, the major drivers of town budget increases and how the town manages capital and infrastructure expenses. We plan to also put the decisions made by the Board of Finance and the Finance Department into the larger context of continuing to secure a safe and predictable long-term future for the town.

By Brian Stern

In this article I shall outline the major trends in Westport finances over the 10 years from 2016 to 2025. (All data is sourced from audited financials and the Connecticut State Bureau of Statistics.)

In my observations, Westport’s budget talks almost always focus on the change from the single prior year. That is useful for limiting tax increases over the short term while preserving the services the Town delivers.

But that tends to overshadow the long-range view. For here-to-stay residents like me, the longer term comes quickly, so a more strategic measure of performance over multiple years may be even more relevant.

So, what has happened in Westport over the past 10 years?

Population

Our population remained static, increasing only 0.3%.    Larger new homes have been built, but the total number of residences increased by only 124 or 0.1%. This does not include apartment units.

Importantly, pupil enrollment declined 8.2% during the same period. This may come as a surprise since the common thinking has been that the school system is experiencing the strain of a post-Covid exodus from New York City.

Headcount

The number of Town employees has remained constant – approximately 350 – varying by only seven over the 10 years. Six police officers were added primarily for the school system and five were added for increased Human Services activities. The cost of these new positions was partially offset by a minor reduction in civilians at the Fire Department.

Town spending: lower than inflation

On the spending side, Westport has been relatively frugal. Town spending increased 21% over the decade, below the statewide inflation of 35%, according to the US Bureau of Labor figures for the state of Connecticut. In 2025, the town spent $241 million, up from $198 million a decade earlier. We can call that good news!

How was Westport able to beat inflation? With reductions of $3.4 million (24%) in debt service and $6.3 million (45%) in employee benefits. 

The debt service dropped sharply because of low interest rates and astute refinancing, plus the gradual decline in outstanding debt from past school building projects. As the Town embarks on an overdue school rebuilding program and other capital projects, the associated debt service will become a financial headwind that the town will face for the foreseeable future.  

The significant reductions in employee benefits reflect both conservative post-employment health reserve strategy (OPEB), plus good returns from the market on our pension asset portfolio. During this period, there was some restructuring of the pension schemes. The changes brought modest savings during the decade discussed here, but the true benefit will arrive over time as a higher percentage of employees become enrolled in the new plans.

School spending

Within the 21% total town increase, school spending has increased 30%, again less than the rate of inflation. The Board of Education managed this lower than inflation increase while absorbing higher contractual labor costs, medical insurance costs that soared 44% and rising expenses for facilities maintenance.

The district faced these increases even with the declining school population mentioned above. Combined with the relatively fixed cost base of our system, the cost per student rose to $27,252, a 42% increase, over the 10 years. 

(Consider this: The cost per student means that two wonderful children standing at the bus stop cost about $55,000 each year – almost triple the average property tax of $18,500 per household (9,582 households collectively pay $177 million in residential property tax, averaging $18,472). That means that, in addition to a household with two children, we need two more homes with zero school kids to pay for their superior Westport education. Maybe we need more single folks and older empty nesters like me to support our benchmark educational system.)

While each of us can have our own opinions about the quality of services these expenses pay for, the financial side presents a picture of controlled spending and sound fiscal management by our Town. 

Note: the tax levy over the same period has increased only 17%. What’s more, the mill rate – the amount of property tax you pay per $1,000 of your home’s assessed value – has remained relatively stable. I shall explain this apparent mismatch in a subsequent article after the mill rate is set this May.

Editor’s note: Westport Journal would like to thank Finance Director Gray Conrad and his staff for this revenue-related interview and we look forward to more insightful discussions as the budget process develops. 

Brian Stern

^{_{Brian Stern spent 40 years at the Xerox Corporation in a variety of executive capacities. He earned an MBA from the Harvard University Graduate School of Business Administration. He spent 14 years on Westport’s Board of Finance, eight of them as Chairman.}}