Essex Junction previews FY26 budget with 3% spending rise, new stormwater utility proposal

Essex Junction City officials presented the proposed fiscal year 2026 general fund and capital budgets at a public meeting on Jan. 25, 2025, saying the draft would raise overall spending 3% and increase the city tax rate about 2.5% if approved.

City Manager Regina Mahoney told attendees, “so what you see today may not necessarily be the exact same thing once you get your, once you vote,” and that the meeting was an opportunity for public input before the council’s Feb. 12 public hearing and the Feb. 26 meeting to set the ballot.

Why it matters: The draft budget would shift some programs out of the general fund, create a new stormwater utility, and move more money into capital and reserves. The tax-rate change shown in staff slides would raise the tax burden on a home assessed at $280,000 by about $69 compared with FY25; staff said that $280,000 reflects the city’s current median assessed value and will change after an upcoming reappraisal. The city also plans a near-15% aggregate increase to utility charges (staff said the utility-rate work will continue through the spring and be finalized later).

Key budget numbers and programs - Overall proposed general fund increase: 3%; staff tied that to council guidance from last spring. - Projected tax-rate change: about 2.5%; example given: $69 annual change for a $280,000 assessed home. - Employee compensation: a proposed 4% salary/wage increase for employees and an additional $50,000 proposed for public works to address vacancies. - Health insurance: a projected 17.9% increase in premiums was cited; a recently negotiated…