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Candidates differ on how Montpelier should spend potential local option tax revenue
Summary
Candidates discussed a proposed 1% local option sales tax on the March ballot and debated priorities if the measure yields roughly $600,000 in fiscal 2026 revenue.
Montpelier City Council candidates at a Rotary forum outlined differing priorities for a potential 1% local option sales tax that will appear on the March ballot and could yield about $600,000 for fiscal year 2026 if passed.
The council has said it will direct $50,000 of that revenue to Montpelier Alive and $100,000 to infrastructure; speakers at the forum discussed options for the remaining $450,000. Pelin Khan recommended dividing the remaining funds across services and reserves rather than placing it all in a single use, citing suggestions from residents and district listening sessions. "It is important to use the rest of the money in different places, not like use all of it in the one bucket," she said.
Ben Doyle said the city should prioritize replenishing reserves depleted this year — including paying expected severance costs — and then invest in water infrastructure, calling for purposeful, long-term allocation rather than spreading funds thinly. He also noted that the state “takes 30% right off the top” of local option sales tax revenue and suggested municipalities could seek exemptions or targeted state policy changes to keep more local funds if linked to resilience projects.
Mark Gwynn urged the council to engage downtown business owners in deciding uses for the tax proceeds, saying that many merchants felt left out of the conversations leading to the ballot measure. Jim Sheridan questioned whether $100,000 for infrastructure would go far and suggested prioritizing public safety and core services, and said he would seek to direct funds to the senior center and to basic public works needs.
Clarifying numbers and process: The forum record states the $600,000 estimate is for fiscal year 2026 and that $50,000 is already directed to Montpelier Alive and $100,000 to infrastructure; the allocation of the remaining $450,000 was the subject of discussion but no council decision was recorded in the forum text. The transcript also records candidates’ concerns about the late timing of the ballot placement, the need to refill reserves and to partner with downtown businesses on spending priorities.
