The 7% Budget Referendum: A Political Weapon, Not Reform

This was the budget data the Charter Revision Commission examined. It shows the percentage of budget increase by year. The budget increase does not translate to a tax increase. In 2023, the Democrats for instance, lowered spending but taxes still increased. The party and COLA columns were added by author. 

The Charter Revision Commission’s 7% budget referendum proposal isn’t reform — it’s a political weapon. It's disguised as fiscal responsibility, but it’s engineered to shift blame, confuse voters, and lock Enfield into bad policy.

There are some good ideas in the commission’s package. But this one? It shouldn’t go to the ballot.

Here’s what the proposal says: If town expenditures increase by more than 7% over the current fiscal year, it would trigger a referendum. That sounds reasonable — until you understand the facts.

The 7% Fiction

First, Enfield hasn’t approved a 7% budget hike in at least 15 years — likely far longer. No council, Republican or Democrat, proposes a 7% hike unless there’s a windfall in revenue or a crisis to address.

Second — and most importantly — a budget increase does not equal a tax increase.

Consider the FY2022 budget, adopted in May 2021. Republicans controlled the council and approved a 5.5% budget increase — the highest in nearly a 10-year period (see chart). But taxes did not increase because the grand list — the total taxable property value in town — grew enough to offset the spending.

Despite passing that election-year budget, the Republicans lost the council majority to the Democrats in November 2021. Why? There's only room to speculate without local polling, but the January 6 U.S. Capitol riot may have motivated local turnout.

What the Democrats Inherited

The incoming Democrats faced a revaluation disaster. Enfield’s 2021 property revaluation had just taken effect — and it hit residents hard. COVID, remote work, and low mortgage rates (around 3%) drove residential home prices through the roof. Assessments followed.

Since residential values soared and commercial ones lagged, homeowners now carry a much larger share of the tax burden.

John Wilcox, Enfield’s Director of Finance, told the Charter Commission on March 6:

"The reality of that tax increase," Wilcox told the commission, is that "it was set by market conditions in the real estate market in the town of Enfield."

According to Wilcox, residential values jumped 25%, commercial only 8%, for a net grand list increase of about 17%.

The Democrats' Problem

Even if spending stays flat or drops, taxes can still go up — because the residential share of the tax pie got bigger.

In FY2023, the Democrats tried to soften the blow of the tax shift and cut spending by nearly 1%, but taxes still increased — by about 4.5% on my Southwood Acres home, which was typical for single-family properties.

In FY2024, Democrats passed a 5.4% budget increase aimed at sustaining services. Even so, tax bills jumped again — 8–9% for many households. The cause? The continued ripple effect of a smaller commercial tax base.

If commercial properties had kept pace with residential, they would have absorbed more of the burden. They didn’t. So homeowners paid the price.

The Politics of Enfield's Revaluation Disaster

Politically, the Democrats couldn’t survive two tax hikes in two years — even if they weren’t the ones responsible for the revaluation shift. Republicans seized the opportunity. Glossy mailers accused Democrats of going “hog wild” on taxes and spending.

But the reality is this: The tax shift caused by this revaluation happened under the Republicans’ watch. They could have acted to soften the blow of the revaluation tax shift, but they didn't. The Republicans passed the FY22 budget — with a 5.5% increase — knowing full well what was coming in FY23. They didn’t act. Now they’re trying to make sure voters blame someone else.

The 7% Budget Referendum

At the March 6 Charter meeting, Mayor Ken Nelson used the FY23 tax increase as justification for the 7% referendum trigger:

“What we are trying to accomplish with the 7% lock is we’re really trying to stop a tax increase to the residents of 7%," he said.

But that’s not how this works. The Republicans know the cause of the tax increase, and it's not spending alone. They’re shaped by market-driven revaluation shifts, state aid, and grand list changes.

The problem didn't end with the 2021 revaluation. Nelson himself seems to know what’s coming in 2026. Enfield’s next revaluation is due that year.

“I think we’re going to see it as bad, if not worse,” Nelson said. “Residential real estate has gone through the roof, and commercial is tanking.”

Later in the meeting, Nelson  jokingly told fellow commissioner and former mayor Bob Cressotti, a Democrat:

“I’ll tell you what — you guys can have the majority next year, okay, Bob?,” Nelson quipped.

Cressotti replied,

“No, I want an apology.”

It was a lighthearted and unguarded moment — but an honest one. What follows the 2026 revaluation may result in yet another tax shift and a revaluation-driven tax increase to residents.

What the Republicans Must Decide

The Republicans have two choices. They can mislead voters about the merits of the referendum -- or they can level with the voters and campaign on the real issues facing Enfield.

They can't do both.

In the last election, Republicans blamed Democrats for rising tax bills — but they knew the real cause was the 2021 revaluation, which shifted the tax burden onto homeowners. That shift happened under their watch, and they failed to prepare for it. Instead of taking responsibility, they went “hog wild” with misleading mailers.