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Board of Finance backs $20 million general obligation bond to boost capital program
Summary
The Burlington Board of Finance voted unanimously to recommend a $20 million general obligation bond for capital projects, saying the borrowing would be phased over three years and could raise taxes up to about $12 a month on a $500,000 home at peak.
The Burlington City Board of Finance unanimously recommended placing a $20 million general obligation bond on the March 4, 2025 town-meeting ballot, saying the borrowing would be drawn incrementally over three years to support city capital needs.
Treasury staff outlined that the $20 million would expand annual capital capacity toward a target of roughly $8 million to $10 million a year and said the city would not draw the full sum in FY2026. Ashley (Treasurer's Office) said, “we won't be drawing down $20,000,000 into FY '26,” and that the bond’s maximum tax impact would be “about $12 a month on a $500,000 house.”
Why it matters: city staff said the infusion is intended to fund a mix of fleet, sidewalks, streets, buildings and parks projects that exceed the city’s current $2 million annual borrowing capacity. The presentation showed example allocations for the $20 million to cover bare necessities of deferred capital work while the administration continues to develop a longer-term sustainable funding plan.
Discussion and questions: Councilors asked about the assumptions underlying the city’s debt capacity, including grand-list (property-value) growth and debt schedules. Finance staff said recent grand-list growth and two planned development projects (City Place and Cambrian Rise) increased capacity since 2022 and that repayment schedules are tracked in the city’s Debtbook system. Councilor Travers asked whether staff had consulted Moody’s or the city’s financial advisors; staff said the city has worked with financial advisor PFM and with bond counsel and had not had recent direct conversations with Moody’s but expects Moody’s to monitor operating budget performance closely.
Public comment: Former Councilor Sharon Buscher, speaking during the public forum, said she supports the $20 million GO bond but expressed concern about affordability and asked about how tax impacts compound over time, saying, “if it increases our taxes by $6.92 a year, am I to assume at the end of FY28 … it would be $20.76 per month more at that point in the bond.” Staff responses during the meeting addressed the timing and phasing of draws and noted the maximum estimate communicated to the board.
Outcome: The board voted to recommend the resolution placing the $20 million general obligation question on the March 4, 2025 ballot. The motion was made and seconded and carried unanimously.
