Town Council hears FY 2026 budget overview; manager cites 5.7% operating increase, school budget as largest driver

Town Manager Matt Sturgis and Finance Director Helene DeBartolomeo opened the Town Council’s budget season March 10 with a draft municipal operating budget that proposes $16,156,757 in general operating expenditures — a 5.7% increase over the prior year.

“The big 1 of the overarching goals of this budget is to ensure financial accountability and sustainability while still providing quality public services,” Sturgis told the Council, summarizing a packet that frames the town’s spending plan against inflationary pressures on residents and operations.

The proposal estimates non‑property tax revenues of $8,577,689 (up about 6%) and lists the net taxes to be raised at $7,000,005.79 — described in the presentation as a tax rate impact of $0.68 and “just over a 5% increase” compared with last year’s levy. Sturgis emphasized that the estimate is shown on a zero‑growth municipal valuation for planning purposes; he said assessor work on property valuations could reduce the percent increase experienced by taxpayers as the valuation base grows.

Nut graf: The school district budget remains the largest single influence on the town tax rate. Sturgis said roughly 70% of the municipal tax rate is related to the MSAD 51 annual budget, and county and state valuation changes also affect the final rate the town sets.

Key budget details and Council questions

- Staffing: The draft includes no new full‑time positions. Sturgis said a number of department vacancies will be filled before any additional hiring is reconsidered. The presentation explicitly omitted two firefighter/EMT positions and one patrol officer request; the clerk’s office vacancy also was removed from the draft.

- Compensation and benefits: Wages and salaries account for about 38.35% of the draft budget and are projected to increase 3.1% overall; three collective bargaining agreements reflected a 4% contract increase. Benefits are budgeted at 15.56% of the total, up about 4.8% from the prior year because of health insurance and retirement contribution adjustments.

- Contracted services: Contracted services are budgeted at about 11.19% of expenditures and show a 21% increase, Sturgis said, driven largely by a higher dispatch cost and a new, year‑over‑year maintenance contract with Siemens for municipal building systems.

- Revenues and fees: The draft includes an expected 8.3% rise in excise tax receipts and anticipates increased building permit revenue based on planned developments. Sturgis said discussion items will include a proposed adjustment to rescue (ambulance) billing rates and the treatment of revenues tied to a proposed trash bag program (the draft assumes $240,000 in revenue from bags; Councilors noted that decision has not been finalized).

- Paid Family Medical Leave: The budget includes a PFML line reflecting the town’s employer share (one‑half of 1% of salaries), which Sturgis said is required under current state law; he noted legislation under consideration could change the program.

Councilors pressed managers for follow‑up information on the Siemens contract, dispatch costs, the assumed bag revenue, and how vacancies will affect overtime and service levels. Sturgis and DeBartolomeo said staff will return with clarifications and requested targets from the Council if members want specific budget reductions to be explored.

Ending: The Council will continue the line‑by‑line budget review in upcoming workshops; Sturgis asked members to send follow‑up questions so staff can provide answers in subsequent meetings.