Winooski council approves $62,500 one-time allocation to sustain Downtown Winooski through FY26

The Winooski City Council voted April 7 to assign $62,500 from the city's general fund balance to Downtown Winooski to cover the organization's operations through June 30, 2026.

City staff said the one-time allocation will be paid in equal quarterly installments, with the first payment authorized on April 7, 2025. The council also asked staff to include language in a memorandum of understanding (MOU) requiring Downtown Winooski to maintain an executive director position and to make a good-faith effort to seek additional funding sources that could reduce the city's share. Council asked that the MOU and the funding request be revisited as part of the fiscal year 2027 budget process, when staff will consider recommending a $50,000 increase plus a cost-of-living adjustment.

Council discussion and staff presentation Deputy Mayor Thomas Renner called for council consideration after staff presented options for covering Downtown Winooski costs until various dates: $25,000 through June 2025, $37,500 through Dec. 31, 2025, or $62,500 through June 30, 2026. Elaine (city staff) told the council that the $62,500 one-time use would not preclude anticipated capital requests in fiscal years 2025 or 2026. Elaine said that, under a likely scenario, the city would still have about $1.97 million remaining in the general fund balance after this allocation.

Several councilors expressed support for the larger amount so Downtown Winooski could continue event planning and business support through the full event season and into next year. Councilor Oakley (speaking by comment) favored installment payments and making funding contingent on maintaining an executive director position. Councilor Christine and others discussed phrasing the MOU so it required Downtown Winooski to preserve the executive director role rather than naming any individual employee.

Terms and follow-up The motion approved by the council directed that $62,500 be paid in equal amounts every three months, with the first payment on April 7, 2025. The approved motion also asked staff to draft MOU language that: (1) specifies the funding supports an executive-director position, (2) asks Downtown Winooski to seek additional funding sources, and (3) schedules reconsideration of the city's ongoing allocation during FY27 budgeting.

No public commenters addressed this item during the meeting. Councilor Thomas moved the funding motion and Councilor Charlie seconded it; the council voiced approval and the motion carried.

Context: why it matters Downtown Winooski provides events, business support and programming tied to Main Street businesses during the ongoing Main Street revitalization project. Council members said the city's support helps ensure continuity of downtown programming while construction and the marketing campaign Winooski Mosaic run through 2026. Staff noted that Downtown Winooski has recently regained 501(c)(3) status, which could affect its ability to pursue grant funding.

What the council did not decide Council did not approve an ongoing annual appropriation; the vote authorized a one-time allocation and directed staff to return language for an MOU and for future budget deliberations. Staff acknowledged that additional capital requests or unforeseen needs could affect reserves and that the recommended scenario was not the most conservative projection.

Votes at a glance - Motion to assign $62,500 of general fund balance to Downtown Winooski, payable quarterly beginning 04/07/2025, and to include MOU commitments to retain an executive director and seek additional funding; to consider a $50,000 increase plus COLA in FY27 budgeting. Motion by Councilor Thomas; second by Councilor Charlie. Outcome: approved.

Looking ahead Council asked staff to draft MOU language reflecting the direction given tonight and to review the allocation during fiscal year 2027 budget deliberations.