FARMINGTON — The Farmington Select Board set the town’s FY 2027 tax rate at $12.07 per $1,000 of assessed value Sept. 22 after weighing how much to reserve for future abatements against how much to rebuild the town’s downtown tax increment financing account.

The board ultimately approved $75,000 for the Downtown TIF and $50,000 for overlay after an initial $50,000-$50,000 proposal failed. The compromise reflected competing concerns about maintaining enough money to cover tax abatements following the town’s revaluation while also restoring a funding source used for downtown economic development projects.

Town Assessor Frank Xu presented several options that would have produced rates near $12 per $1,000 depending on how much the board allocated to the TIF and overlay accounts.

Town Manager Erica LaCroix said Farmington did not contribute to the TIF the previous year while trying to limit the tax burden following the revaluation. “We are supposed to be funding that TIF every year,” LaCroix said. “We don’t want to kick that can down the road too much.”

The town has used TIF money for downtown projects and discussed potential future needs, including additional parking near Prescott Street. Board members also noted that keeping money in the account can allow Farmington to act when larger projects or opportunities emerge.

Selectman Scott Landry Jr. pointed to a previous $200,000 TIF contribution toward a bridge project as an example of why maintaining a balance can be useful. “The reason Christian was able to commit $200,000 for the bridge was because the money was there in the TIF,” Landry said. “That’s why we need the TIF.”

The overlay raised a different concern. LaCroix said Farmington had more than $100,000 in abatements during the previous year, well above the roughly $30,000 to $50,000 she said is more typical. She attributed much of the increase to adjustments arising from the revaluation.

She said $50,000 would provide a more reasonable cushion than the $30,000 used previously without adding too much to the tax rate.

The board initially considered putting $50,000 into each account, but that motion failed. Members then backed a compromise of $75,000 for the TIF and $50,000 for overlay.
Executive Assistant Leah Giusti later confirmed the resulting tax rate of $12.07 per $1,000 and the two allocations.

LaCroix said during the meeting that the town had previously projected a $12.05 rate. She estimated that a $300,000 home would see an increase of about $465 compared with the artificially reduced 2025 rate, with the additional 2 cents in the final rate adding about $6 more annually.

The prior year’s $10.50 rate had been lowered below the roughly $11.70 rate that otherwise would have been needed, LaCroix said, making a direct year-to-year comparison less straightforward.

The final decision gives Farmington more money for future downtown projects while preserving an abatement reserve that board members said remains important as the town continues working through the effects of the revaluation.

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