Town Council reviews 2025 budget with 12% lower tax increase despite higher investments

During the recent Tamworth NH Selectmen meeting held on February 5, 2025, key discussions centered around the town's budget for the upcoming year, highlighting significant changes and financial strategies that could impact residents.

One of the most pressing topics was the increase in various insurance costs, with health insurance rising by 9.9%, and both PrimeX liability and workers' compensation insurance increasing by 12%. In response to these rising costs, the town has implemented a 3% cost-of-living adjustment (COLA) for employees in 2025, reflecting an effort to maintain competitive compensation amidst inflationary pressures.

The meeting also introduced a new approach to budget presentation. Unlike previous years, the budget now categorizes unassigned fund balances as revenue rather than offsets, aligning with the Department of Revenue Administration's guidelines. This change aims to provide clearer financial reporting and transparency for residents.

A notable point raised was the underspending in the 2024 budget, particularly in public safety and highway departments. The police department's staffing shortages and the unpredictable nature of highway expenditures due to weather conditions contributed to this underspending. As a result, approximately $900,000 was identified as over-budgeted, with a portion of these funds being transferred for future projects.

The town's strategy for managing its finances includes utilizing excess funds from underspending to reduce the tax burden on residents. This year, despite an increase in the overall budget due to significant capital investments—such as bridge repairs and vehicle replacements—the anticipated amount needed to be raised in taxes is projected to be 12% lower than in 2024.

In conclusion, the discussions during the meeting reflect Tamworth's proactive approach to budgeting and financial management, aiming to balance necessary investments in infrastructure and services while alleviating the tax burden on its residents. As the town moves forward, the implications of these financial decisions will be closely monitored by both officials and community members.