Board of Finance approves fire department capital funding shift

Board of Finance · Meeting of February 24, 2026

New Canaan's Board of Finance says favorable health claims are holding its insurance budget increase under 1 percent. Insurance consultant Joe Spurgeon told the board Tuesday that claims this year are running "about 1.9 million, or almost 31 percent, better than expected," pushing the Board of Education's requested Internal Services Fund contribution up just $139,000, to $18.55 million, for fiscal year 2027. Last year the self-funded plan, capped at $300,000 in liability per member, ran about $358,000 over its $17.3 million expected claims, with stop-loss premiums near $1.5 million against $818,000 in excess claims.

Board staff, identified as Sean, said the fund's projected 8 percent reserve corridor, split with the town's 12 percent share, would absorb a projected $803,000 net decrease against a $3.2 million opening balance. The board also shifted $20,000 in capital funding from a scrapped fire department training tool to a forcible entry door and fuel flow meter.

In the full story:

• The complete report — 896 words

Source: the Board of Finance meeting of February 24, 2026, reported from the official video recording and transcript.

The Full Article

NEW CANAAN — February 24, 2026 — The New Canaan Board of Finance learned Tuesday that lower-than-expected medical claims have kept the Board of Education's proposed health insurance fund contribution increase to under 1 percent for fiscal year 2027, even as officials warned that a tightening stop-loss insurance market could still push costs higher before the budget is finalized.

Board of Education insurance consultant Joe Spurgeon told the board that claims this fiscal year are running about $1.9 million, or nearly 31 percent, below what was expected through the reporting period. Based on that trend, the town's requested contribution to the district's self-funded health insurance reserve, known as the Internal Services Fund, would rise by just $139,000, or less than 1 percent, to $18.55 million for fiscal year 2027.

The Full Story

The meeting opened with a roll call and procedural votes: alternates were seated for two absent regular members, Victor Alvarez and Todd Lavieri, and the board voted to name a chairman pro tempore, identified in the meeting only as Chris, to run the session in Lavieri's absence.

The bulk of the meeting was devoted to a presentation from Board of Education officials, including staff identified only as Brian and Sean, along with outside insurance consultant Joe Spurgeon. Spurgeon walked the board through New Canaan's self-funded health plan, under which the district pays all claims directly and carries stop-loss insurance to cap its liability at $300,000 per covered person per year. He said the district's third-party administrator, Sigma, processes claims without adding any markup, charging only a flat per-employee monthly fee.

Spurgeon reported that in the prior plan year, the district's expected claims were about $17.3 million against actual net claims of $17.654 million, or roughly 2 percent over budget. Stop-loss premiums that year totaled nearly $1.5 million, while the district's excess claims above the $300,000 threshold came to $818,000. For the current plan year, Spurgeon said claims tied to large, "catastrophic" claimants over $50,000 have been notably lower than in prior years, driving the favorable variance. He cautioned that the board's working budget projection, currently $20.1 million in claims for fiscal year 2027, is based on data through November and will likely be revised in March after January and February claims are reviewed.

Board members pressed Spurgeon on the mechanics of the projection, including the "applied trend" factor used to forecast claims nearly two years forward, and on why medical and drug cost trends were set closer to 11 percent for the coming year, up from 8.3 percent last year. Spurgeon attributed most of the increase to rising hospital claim costs rather than more people getting sick. Board member Alan Bedaines and others also questioned the stability of the stop-loss insurance market after Sunlife took over as the district's carrier from Voya; Spurgeon said stop-loss premiums are budgeted at a 15 percent increase as a placeholder but could come in lower given the district's recent performance.

Sean, addressing the Internal Services Fund budget directly from the town's fiscal year 2027 budget book, said the fund is projected to see a net decrease of $803,000 for the year, fully absorbed by a projected opening reserve balance of $3.2 million. He said the district and town split responsibility for a reserve "corridor" tied to the plan's aggregate stop-loss coverage, with the Board of Education holding 8 percent and the town holding 12 percent.

"New Canaan is a self-funded group. What that means is that you are liable for all claims that are incurred against the plan," Spurgeon told the board.

"We've always felt like we should have something in the ISF to cover just in case. And so that's how we landed on the 8 percent," Sean said.

"We are running about 1.9 million, or almost 31 percent, better than expected," Spurgeon said of the current year's claims experience.

Why It Matters

New Canaan taxpayers fund the Board of Education's employee health coverage through the Internal Services Fund, and the size of the town's annual contribution depends heavily on unpredictable medical claims. This year's favorable claims experience is holding the requested increase to $139,000, but board members noted the projection could shift again once January and February data are reviewed in March, before the budget is finalized. A tightening stop-loss insurance market, following an insurer's exit from that reinsurance business, adds uncertainty to premium costs the district cannot lock in until close to the fiscal year's start.

Separately, the board approved shifting $20,000 in previously authorized capital funding, freeing money the fire department no longer needs for a training tool so it can instead pay for a forcible entry door and a fuel flow meter, avoiding a new budget request for those items.

Key Motions & Votes

- Vote: Seat alternates for absent members Victor Alvarez and Todd Lavieri Tally: Approved unanimously

- Vote: Name a chairman pro tempore (Chris) to preside over the meeting Tally: Approved unanimously

- Vote: Accept minutes of the February 5, 12 and 14 meetings as submitted Tally: Approved unanimously

- Vote: Approve reclassification of $20,000 in fiscal year 2025 capital funding from a fire department search maze to a forcible entry door and fuel flow meter Tally: Approved unanimously

- Vote: Adjourn Tally: Approved unanimously

Source

Town Of New Canaan: Board of Finance meeting, February 24, 2026