Rutland City Council reviews tax stabilization plan to boost housing development

The Rutland City Board of Aldermen convened on March 17, 2025, to discuss several key issues, primarily focusing on tax stabilization for housing development and committee referrals.

A significant topic was the proposed tax stabilization program aimed at encouraging market-rate housing development in Rutland City. Alderman Talbot emphasized the need for developers to have financial incentives that make projects viable, stating, "the math needs to math." The proposed stabilization would apply only to municipal taxes, with a five-year stabilization period followed by a 20% increase every five years. This initiative aligns with state-level efforts to promote housing development and was supported by various board members.

During the meeting, Alderman Gillum sought clarification that the stabilization would not affect school taxes, which was confirmed. Alderman Talbot expressed his desire to move forward with the proposal without further delay, citing the urgency of housing needs in the city. However, some members, including Alderman McClure, requested a roll call vote on the motion to refer the proposal back to committee for further discussion. The motion passed with a vote of 7 to 3.

In addition to housing discussions, the board addressed the Rutland City membership in the Otter Creek Communications Union District (CUD). Alderman Talbot proposed a motion to refer the city’s membership to the general committee, noting that Rutland City is fully built out with fiber internet and has faced challenges in appointing a representative to the CUD. This motion also passed.

The meeting concluded with discussions about appointments to the Regional Planning Commission and the Regional Transportation Advisory Committee, with Alderman McClure announcing her intention to step down from the latter due to scheduling conflicts.

Overall, the meeting highlighted the board's commitment to addressing housing development challenges while ensuring that all members are informed and engaged in the decision-making process. The next steps will involve further committee discussions on the proposed tax stabilization and the city’s membership in the CUD.