Hampstead adopts FY2026 budget, keeps property tax rate unchanged and approves 8% water rate increase

The Hampstead Mayor and Council on Tuesday adopted the town's fiscal 2026 budget and the annual tax levy while approving an 8% increase in water rates.

The council approved Ordinance 556 (levy of taxes for FY2026) and Ordinance 557 (the FY2026 annual budget) by roll call votes after a public hearing. Council members Barrett, Painter, Thomas, Anglesby and Zollner each voted in favor during roll calls recorded for the budget ordinances. The council also approved Resolution 2025-02, which raises water rates by 8%, and adopted Resolution 2025-03 to establish a revised rental housing license fee.

Mayor (Town of Hampstead) opened the public hearing by saying, "it being June and we have to adopt the budget tonight," and outlined the council's long-term planning approach, including a focus on capital improvements and resilience.

Why this matters: The budget funds ongoing capital projects — most significantly the town's PFAS water treatment and centralization program — and covers operating costs that include a modest across-the-board 2% salary increase for employees, rising health-insurance costs and several long-term debt service schedules.

Key elements of the FY2026 budget as described at the hearing: - Property tax revenue: $1,728,000 (the mayor said this figure represents the largest piece of the local budget). The property tax rate remains $0.22 per $100 of assessed value, unchanged from the prior year. The mayor noted the previous townwide rate increases were in 2016 and prior to that in 2002. - Personal property taxes: budgeted at $85,000 at a stated rate of 55' (as presented at the hearing); the mayor attributed part of the increase to the arrival of Penguin Random House. - Amusement tax: projected at $60,000 at a 7% rate, attributed largely to Oakmont Green activity. - Highway user funds (state transportation trust share): projected at $443,000 next year. - Program Open Space (park grants): $109,000 budgeted for park improvements. - Employees: 25 full-time and one part-time employee in the payroll, with a 2% general salary increase budgeted. - Major operating contracts and costs called out: trash/waste removal with Hughes at $423,000 (year 3 of 5, 1.9% increase), and rising stormwater-management costs that the mayor said have grown from roughly $40,000-$50,000 in prior years to about $150,000 currently. - Benefits and insurance: the mayor said health-insurance costs rose about 30% last year and another 17% this year, contributing to budgetary pressure.

The council voted to adopt the budget and levy in a roll call. Councilman Barrett, Council member Painter, Council member Thomas, Council member Anglesby and Council member Zollner recorded yes votes on the levy; the same group recorded yes votes on the annual budget adoption.

Water rates and PFAS project funding: The council approved the 8% water rate increase via Resolution 2025-02, which the mayor and staff tied directly to ongoing PFAS treatment work and related bond and grant financing. Jim (town staff) reported that the town expects Board of Public Works consideration of $19,500,000 in funding connected to the water-treatment project and that the town has applied for an additional $8,150,000 to finance the project. The mayor and staff repeatedly described the PFAS project as a multi-contract program that will increase both capital and operating costs and said future rate increases at similar levels should be expected as the project proceeds.

Decisions versus direction: The council's votes constituted formal action to adopt the FY2026 budget and levy and to approve the water-rate resolution. Staff reported administrative actions taken to advance projects (for example, intent-to-award letters for pipeline construction and inspection services), which the council did not need to ratify at the meeting.

What to watch next: Town staff said Board of Public Works consideration of the $19.5 million funding request was scheduled for the following day. Staff also said they hoped to begin construction work this summer, subject to contract execution and state approvals.

Ending note: Council members and staff framed the budget decisions as part of a 20-year planning horizon focused on maintaining town services and complying with evolving state and federal regulatory requirements.