Montpelier holds ballot informational session outlining FY26 budget, proposed tax and bond items

Montpelier City Council staff presented an informational briefing on the city's proposed fiscal year 2026 budget and the items that will appear on the municipal ballot, including a proposed 1% local option tax and authorization for a ladder truck purchase.

The presentation, led by Kelly (city staff) with Sarah (finance director) on the line, said the FY26 general fund budget is roughly $18.1 million, an increase of about 4.7% year over year, and that the amount to be raised by property taxes is about $12.2 million, a 3.52% increase from the prior year. Kelly said non-tax revenues are projected at about $5.9 million, up roughly 7.6%.

The briefing highlighted several ballot items voters will decide. Staff described Article 5 as a 1% local option tax projected to yield roughly $500,000'$600,000; the presentation said the first $50,000 would go to Montpelier Live, the next $100,000 to infrastructure projects, and the remaining balance would return to the council for allocation. Staff said the downtown improvement district (Article 6) is printed this year with a dollar amount ($62,000) tied to increased property valuations resulting from a reappraisal, though the city said the underlying formula and rate are unchanged.

Kelly also described a single bond item to authorize purchase of a new ladder truck, estimated at $2.2 million. Staff said the city does not expect debt service to hit the operating budget for a couple of years because of procurement and delivery timing; authorization would allow the purchase to proceed. Other items noted in the briefing include a proposal to increase ambulance no-transport fees and regional ambulance fees (staff estimated additional ambulance revenue of roughly $100,000), and elimination of a commercial sprinkler tax credit (staff estimated the credit at about $71,000 in FY26, down from about $92,500 the prior year).

Staff presented capital funding numbers and staffing notes: the capital program was presented at about $2.6 million (up about 9.2%), including roughly $1 million in projects, $1 million in debt and about $484,000 in equipment; the FY26 FTE total was shown as about 12.96 positions after several reductions and realignments. Using the city's average home value example ($370,000), staff said the municipal portion of the typical residential tax bill would increase by about $166 annually (roughly $13.83 per month); when an estimate of the education tax is included, the presenter said the combined number used in the slide set would be about $91 per month (about $758 annually).

Councilors and staff invited questions from the public and discussed where portions of the budget will be presented for further review; staff said many of the operational items will return to council agendas through the fiscal year. Kelly also flagged several grant timelines and federal opportunities the administration is monitoring, including a Northern Borders grant application with a March 7 deadline and a congressional directed spending portal with a March 28 deadline.

The informational session was not a formal vote; staff said it was intended to inform voters and to help the council signal support as staff pursue additional matching funds and grants.