Various Ways to Close the 2026 Budget Gap

Posted March 23, 2026

Hi. JB Leep, Town Councilmember District 3, here again.

In this post I want to discuss the various ways we can try to close the current budget gap in Windsor by increasing our taxes or fees collected. The budget problems? I talked about those in another post.

FYI, even as a Town Council Member, I am free to comment on stuff related to a tax measure as a private resident until such a measure is approved to move forward to the ballot. All of the information I will provide is publicly available, and I did not request special research or other Town money or resources to obtain it.

Many of the Town-related posts I have made are at https://jbfor windsor.com.

There has been a comment raised like this: “The Town says it is open to and considering all means of funds, but it is concentrating on only a Sales Tax measure.”

Wow, this could not be further from the truth! You can look at any version or presentation of the current information being distributed by the Town, and it is all a balanced summary of all the ways we can raise funds, including taxes, fees, and then an analysis of whether each is allowed for the General Fund, and how effective they will be. The Town has been scrupulous about presenting just the balanced facts. You can see the entire Budget and Tax presentation (1.5 hours!!) here: https://www.youtube.com/watch?v=m-EmUyHbr1Q .

There is a visual in this post that is the summary of what I am talking about here.

Let’s analyze this. First, understand that we are trying to fund the General Fund, that’s where the problem is. It pays for the most part for stuff like roads, drains, and other maintenance, fixing up the roof on the historical museum, police and fire, summer concerts, and is a general emergency reserve source for paying for things when we need extra funds. These things are costing more than projected, and that is called a “deficit”. We don’t have enough income to cover it.

In the ways to fix this, there are a few methods that are special and not directly applicable to the problem. Funds derived from Property Taxes, Parcel Taxes, and Property Assessments might somehow be arranged to alleviate general fund issues, but they don’t directly go into the General Fund. And they fall on the backs of property owners and only Windsor residents, not visitors.

Ok, how about TOT, Transient Occupancy Tax, which is a tax on hotel rooms and AirBNB places. Total possibly available, $300K. Not enough to make much difference.

So we are left with Business License Tax, Utility Users Tax, and Sales Tax. The first burdens just the businesses and is only around $1M. Is that fair and what you might want to do? Also, it requires us to put in place an expensive and complicated implementation plan.

Utility User Tax burdens just businesses and Windsor residents, not visitors. Is that what you want to do?

You have to seriously consider these questions because these options specifically make only Windsor businesses and homeowners pay for the funds needed. And again, it is not enough money to take care of the problem.

Another thing to consider is that we are trying to cover $5M in budget deficits. To accomplish that with multiple alternatives like the ones I mention above, it will take 1 or 2 or 3 tax measures on the ballot, and a lot of management. Actually, you don’t even cover the need that way.

Ok, so we are left with a possible Sales Tax of 1%. With such a tax, we cover the deficit all at once with just one measure to vote on. The Sales Tax is distributed more or less evenly among all residents and visitors to Windsor according to how much they buy, not including food and other personal items. So people who buy more expensive taxable stuff pay more. And people who buy only groceries and diapers pay less. And people who come to Windsor to spend money also pay, unlike the other options.

So think about it. What is the best way to solve the problem?

Remember, in the beginning, I was trying to answer how we were looking at all the available methods of raising funds. And though we end up with a Sales Tax as what might be the best possible alternative, we are definitely looking and analyzing at all the other options.

There are other issues to talk about: The next one is going to be how Sales Tax on auto purchases is handled, and “No Taxes!!” But those will be in later posts….