Fully Funding PILOT Would Save East Lyme Property Owners $3 Million

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To the Editor:

The East Lyme Board of Finance voted to reduce the amount of the increase that the Board of Education and Board of Selectman requested. The budget with a 5.88% increase in the mil rate from 26.35 to 27.9 will be presented at the Public Hearing April 28th.

One budgetary challenge is the State of Connecticut’s lack of fully funding grants to the town, especially the Payment in Lieu of Taxes, (PILOT) which compensates the town for foregone tax revenue on State property. The State owns Rocky Neck State Park, York Correctional Institution, Camp Nett, and several miscellaneous properties.   If they were not state owned, they would generate approximately $3,837,508 in property taxes for the town based on the proposed new mil rate. Last year the State of CT PILOT grant to East Lyme was $749,591, underfunding the town $3,059,291.

In addition to the lost revenue, Town Public Safety services are deployed to these properties, increasing our expenses. Since 01/01/2022 thru 04/11/25, there have been 1,532 calls for service at State properties. During busy weekends at Rocky Neck, added police are needed for traffic control. If the State were to fully fund the PILOT grant, it would help offset these expenses and greatly reduce the tax burden from the proposed 5.88% increase to a 1.71% mil rate increase.

Connecticut has the third highest property taxes in the country. I urge state legislators to fully fund the PILOT grants to help all property owners, and enable towns to reduce property taxes.

Denise Hall
East Lyme, CT

Hall chairs the East Lyme Board of Finance