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Council reviews FY26 budget updates; debate surfaces over funding level for economic development corporation
Summary
City manager presented FY2026 budget updates including restored fund balance, recommended uses and a proposed 5.8% tax‑rate increase; the council debated a nonprofit economic‑development organization's request for additional funding and left the manager's recommendation intact.
City Manager Nicholas presented updates to the proposed FY2026 general fund budget and answered council questions on revenue assumptions, fund balance and department presentations.
Key items in the presentation: auditors completed the FY2024 audit and reimbursements from FEMA restored fund balance above the city’s charter 5% cap. Staff recommended returning the $84,000 excess fund balance to taxpayers to lower next year’s tax levy; council directed that the city restore seasonal cemetery staffing and keep year‑round yard waste operations at the city yard. Nicholas said the proposed general fund spending would be essentially flat year‑to‑year at about $14.8 million and that the projected tax‑rate increase (assuming the assumptions in the presentation) would be about 5.82%.
Department heads presented budget lines for public works, planning and permitting, assessing and administration. Public Works Director Bridal Baker highlighted personnel vacancies and the department’s multi‑year paving plan; Finance Director Don noted completed audits and adjustments in fund balances. Planning and permitting and assessing budgets reflect software and personnel costs tied to contracted appraisal software and ongoing inspections.
The council also heard a public plea from a BADC (Barre Area Development Corporation) board member asking the council to restore an increase the organization had requested. BADC asked for a 10% increase in city funding but the manager’s revised recommendation was level funding at last year’s amount. The BADC speaker requested a 5% compromise increase, arguing the organization’s grants and matching funds multiply the city’s contribution; the council debated the request and the manager said the organization’s request could be revisited but stood by the recommendation. No council motion to change the manager’s budget recommendation was recorded during the meeting.
Other votes during the meeting included approval of minutes, warrants and three liquor licenses; the council approved consent items by voice vote.
What this means: the manager offered a largely flat spending plan with targeted restorations paid from excess fund balance and modest revenue adjustments. The council will continue budget review and needs to finalize the FY26 warrant in advance of the required town meeting and ballot deadlines.
