Essex Junction council advances FY26 budget discussion; staff recommends stormwater utility with phased capital start

Essex Junction City Council members held a public hearing Feb. 12 on the proposed FY26 general fund and capital budgets and discussed a staff proposal to shift the city’s stormwater program into a dedicated stormwater utility.

Regina, a city staff member presenting the budget, said the draft FY26 general fund shows a roughly $400,000 increase over FY25 (about a 3% rise) that translates to a 2.5% change in the tax rate and would add about $69 in property tax for a $280,000 home. Regina said utility bills and other changes together translate to an approximate 8.6% increase (about $250) for a typical household.

The nut graf: city staff told the council that stormwater compliance and long-term fairness argue for an enterprise fund that bills parcels by impervious surface rather than property value, while also offering credits for on-site mitigation. The council discussed phasing capital spending to soften a steep first-year increase for large parcels.

Staff said three-quarters of general fund revenue comes from residential property taxes, 11% from business property taxes, 8% from miscellaneous fees and 6% from GlobalFoundries property taxes. Regina walked the council through…