Hampstead council introduces FY2027 budget and a proposed 8% water-rate increase

Mayor Nedvin told the council the town has introduced the fiscal year 2027 budget and asked council members to begin the public-review process. The mayor said the town's proposed tax rate will remain at 22 cents and the budget package was formally introduced for consideration and a future public hearing.

Council members also introduced Resolution 2026-02, a proposal to raise water rates by 8% to fund PFAS capital treatment and related operating costs. Town staff said the increase is tied to ongoing capital work on granulated activated carbon filters and other PFAS mitigation steps, and that higher operating costs for specialized treatment media are expected.

The council moved and seconded the ordinance and the resolution at the meeting and indicated both would proceed through the standard public-notice and hearing process before final adoption. Mayor Nedvin and staff did not provide a final adoption vote tonight; the council scheduled public hearings next month for formal approval.

Council members and staff framed the rate proposal as part of long-term utility planning rather than an immediate penalty, and noted the PFAS treatment will increase operational expenses. The town manager said the overall capital work has been "ahead of schedule and under budget," but cautioned that running activated carbon is expensive.

Next steps: the town will hold public hearings on the budget and the water-rate resolution at upcoming meetings and provide full budget documents to council and the public before any final votes.