South Burlington proposes $55.8 million municipal budget with modest property tax increase and investments in public safety, infrastructure

South Burlington City Manager Jesse Baker on Monday presented a proposed $55.8 million fiscal year 2026 municipal budget that would raise about $22 million from property taxes and includes a proposed 3.3 percent municipal tax-rate increase.

Baker described the proposal as a "level services" budget that maintains current public-safety and public-works staffing while prioritizing affordability and non-property-tax revenue sources. The proposal would fund continued investment in emergency services and a community outreach program that embeds Howard Center outreach workers with police, invest additional pavement funds in the capital-improvement plan and add Sunday hours at the public library.

Baker said the city’s FY26 request includes an assumed 1.5 percent grand-list growth and an assumed 20 percent increase in tax increment financing (TIF) district revenue tied to development in the city center. The municipal budget also funds a 54,000 increase in the city’s Green Mountain Transit contribution (to about 700,000) and allocates roughly 345,000 for related capital work tied to the city’s climate-action goals. Baker said the overall municipal tax-rate change equates to an average annual increase of about $56.53 for the typical condo owner and about $83.59 for the average homeowner in the city, before any income-based property-tax adjustments.

Baker told the meeting the city negotiated a smaller health-care increase for employees than initially projected — reducing an anticipated 16 percent rise to roughly 4 percent — and avoided a planned pension contribution increase because the municipal retirement plan is performing well. Baker also described two utility-fund staffing additions in the wastewater program: one position to maintain roughly 45 pump stations and another to add redundancy at the Bartlett Bay Wastewater Treatment Plant, which is undergoing a major capital upgrade.

The city manager framed the budget against recent investments: a second ambulance, a modernized public-safety dispatch center, online permitting and two large infrastructure bonds for a new Dorset Street water tank and a $34 million Bartlett Bay wastewater project. "This community has invested a lot in municipal service delivery," Baker said, and the FY26 proposal aims to preserve those services while limiting the municipal property-tax increase.

Officials and members of the public asked for clarification on line-striping frequency and paint types; Public Works Director Tom DiPietro said striping occurs "as needed" and noted recent increases in the line-striping budget from about 20,000–25,000 several years ago to 40,000 last year and 60,000 proposed in FY26. DiPietro also described the use of longer-lasting materials such as polyurea and surface-recessed paint to reduce wear from plows.

Questions at the hearing covered pension options, where Baker outlined the city’s use of the Vermont Municipal Employees Retirement System (VMERS) for new hires and noted optional 401(k) and 457 plans are available. A resident asked whether the city could replace a pension system with 401(k) plans; Baker said such a policy could be considered but warned it would complicate recruitment and benefits for public-safety and public-works positions.

Baker closed by reminding residents that Town Meeting voting occurred the next day, with polls open 7 a.m. to 7 p.m., and by pointing to online budget documents and the city’s new website for details. "We really encourage you to go out, make your voices heard on your community," he said.

Votes at the meeting included the approval of minutes from Jan. 22, 2025 (voice vote, outcome: approved; counts not specified) and a motion to adjourn (voice vote, outcome: approved; counts not specified).