Concord adopts FY2026 budget after Finance Committee directs manager to find deeper cuts to lower proposed tax increase

The City of Concord adopted its fiscal year 2026 budget and related capital resolutions on June 5 after the Finance Committee voted to direct the city manager to seek back‑of‑budget reductions intended to lower the manager’s proposed tax‑rate increase by one percentage point.

The Finance Committee's instruction to the city manager followed nearly five hours of deliberation and public comment about dozens of departmental and capital items. The committee and then the City Council approved the manager’s overall budget package and the capital plan, including bond authorizations and changes to water and sewer charges; the manager said he would implement the committee’s direction and return revised documents for the final appropriation steps.

The committee disputed how best to reduce a manager proposal that initially would have raised Concord’s tax rate by 3.96 percent. Members debated dozens of line items — from delaying a new police social‑worker hire to trimming training and recruiting programs to drawing on reserve funds for parks projects — and also added a modest revenue change to the forecast. In the end the committee approved a motion to have the city manager “identify and implement back‑of‑the‑budget cuts across city departments and programs” to reduce the manager’s proposed increase by roughly one percentage point. That direction was paired with a set of tentative cuts agreed earlier in the meeting. City staff said the combined steps were intended to bring the final tax‑rate increase down to about 2.95 percent of the current levy.

Councilors and the city manager repeatedly emphasized the trade‑offs. City Manager Esvelt warned that deep reductions would affect jobs and services: “There’d be positions that would no longer be filled. There’d be employees who would no longer have jobs,” he said during the committee discussion, adding that cuts of the size sought “are going to feel like a really big” change and “we’re going to have to go real deep.” Several councilors said they preferred a targeted, line‑by‑line approach; others argued the manager has the operational view needed to implement reductions quickly.

The budget adopted by the Council packages general operations, enterprise funds and capital spending into a set of resolutions the Council approved at a subsequent public hearing on the same night. Those resolutions approved bond sales and the use of reserves and impact‑fee balances for capital projects, and updated municipal water and sewer rates as part of the FY2026 financial plan.

Key tentative changes the Finance Committee discussed during the work session included: delaying the third police social‑worker from a full 12‑month hire to a half‑year start (a line that was the subject of separate votes during the session), increasing the police attrition assumption, and trimming some training and recruitment allocations across public safety and public works. The committee approved using $205,000 from the community improvement reserve for brush clearing, signage and cleanup at Healy Park, and it approved continuing a manager‑run events grant program funded from the economic development reserve. The committee also debated transferring additional general‑fund dollars to the Solid Waste enterprise and ultimately adjusted that transfer amount in the session.

Public comment at the Council portion of the meeting highlighted community priorities. Dozens of residents, frequent park users, business owners and golfers urged or opposed particular capital projects. Supporters of a new clubhouse at Beaver Meadow Golf Course said improved facilities would support youth programs and local small businesses; others urged the Council to delay major capital projects until more fundraising or additional public input is complete. The Council approved the capital resolutions and the budget motions after the hearing.

What happens next: the city manager will implement the committee’s directed back‑of‑budget reductions and return final budget documents to the Council for formal appropriation and bond authorization. Councilors and staff said they expect follow‑up committee work and public outreach on several projects (including Healy Park cleanup, skate‑park fundraising and multiple CIP items) before final year‑one spending decisions are executed.

In coming weeks the city will publish the manager’s revised line‑item reductions and the updated tax‑rate estimate so residents can see which specific positions or programs were adjusted as part of the 1‑percentage‑point direction the Finance Committee gave.