Council trims proposed levy increase; votes to adjust budget and move warning language

St. Albans City Council on Tuesday reviewed the proposed fiscal year budget and approved adjustments intended to reduce the proposed property tax levy increase.

Councilors and staff discussed an originally proposed levy rise near 9.6% driven largely by a sizable police-department compensation increase. Sarah, the finance director, presented options that would lower the levy by one percentage point (to about 8.5%) by removing a $20,000 annual debt-reduction contribution for the Wellman Theatre, canceling unused telephone/alarm lines (about $4,800 annually), and increasing expected recreation revenues by $50,000. With council direction to retain the $20,000 payoff, the practical levy after the chosen adjustments was presented at about 8.9% on the tax levy and a 4% bottom-line operating increase.

Councilor Marie expressed concern for constituents on fixed incomes and said timing of an increased levy could strain lower-income households. “I represent probably not the wealthiest part of town,” Marie said, urging the council to look for additional efficiencies. Other councilors argued the adjustment year was necessary to restore competitiveness in police compensation and that the city’s long-term bond and grand-list trends could help spread the cost. Councilors also noted that municipal contributions to police remain lower than before the town merger in some respects.

After discussion, a motion was made and seconded to apply the three budget adjustments proposed by the finance director except to keep the $20,000 Wellman payoff (i.e., remove the other two items and retain the $20,000). The motion passed by voice vote. The council then moved to adopt the town-meeting warning incorporating the adjusted budget numbers and approved it by voice vote.

Councilors also directed staff to continue looking for nonrecurring savings and to consider messaging about homestead and education tax credits for taxpayers concerned about bill changes. The finance director said the average impact to a home assessed at $200,000 would be approximately $180 for the year under the adjusted levy scenario presented to the council.

Votes at a glance: council voted to adjust the proposed FY26 budget as described (motion carried by voice vote) and approved the town-meeting warning including the amended levy figures (approved by voice vote). The council later moved into an executive session to discuss a real-estate purchase option and negotiation strategy; that motion was also approved by voice vote.