Council approves $260,000 to cover firefighter contract, rejects one‑time reserve amendment

The Concord City Council approved a $260,000 appropriation to fund wage and benefit increases in the new contract with Local 1045 firefighters, voting to raise the amount in the general‑fund tax rate rather than using one‑time reserve balances.

City staff said contract terms negotiated with the union created the need for the additional funding in FY26. Councilors including Brown asked whether the city could instead draw on the unassigned fund balance to avoid increasing taxes this year. City management cautioned that using reserve funds to pay recurring wage increases delays the obligation and would likely require the council or its successor to address the gap next year.

Councilor Brown moved an amendment to use the unassigned fund balance to cover the $260,000; supporters argued this avoided an immediate tax increase and that the balance was sufficient. Several councilors, and the city manager, said using reserves to fund an ongoing expense is fiscally imprudent. The amendment was defeated on a roll call vote after debate.

The original motion — to appropriate the $260,000 and increase the amount to be raised in taxes for FY26 — carried, with the chair announcing the motion passed unanimously by the necessary two‑thirds majority. Public commenters urged using reserves and suggested pursuing recoupment from individuals involved in prior insured losses; the administration noted legal and labor limits to unilateral pay docking.

Councilors asked staff to provide a more detailed fund‑balance report to the Fiscal Policy Advisory Committee in November so the council can consider longer‑term implications.

Outcome: appropriation adopted; amendment to use fund balance failed on roll call.