Cabot council adopts 2026 operating budget, approves raises and boosts police/fire starting pay

The Cabot City Council on Dec. 15 adopted the city’s 2026 operating budget, a package council members and staff described as intended to continue recent progress on employee pay while keeping an eye on capital needs.

Council voted unanimously to adopt Resolution 30 of 2025 after a full work‑session review of department budgets. Council members and staff said the draft budget they reviewed projects roughly a $22 million total with about $15 million allocated to payroll.

The budget reflects a proposed 3% across‑the‑board increase in base pay, an item HR director Matthew framed as part of continuing efforts to catch up on compensation after years of underinvestment. “We did a 3% raise for everyone,” Matthew told the council during his presentation, adding that some departments also show targeted increases for promotions, retirements and payout costs.

City staff highlighted several personnel moves and starting‑pay goals intended to improve recruitment in high‑turnover roles. For example, the budget documents and staff discussion show an increase in starting pay for public‑safety hires to $45,000; councilors described that as a near‑term goal with a longer‑term aspiration to move starting pay higher. “Our next goal is to get that to 50,” a council speaker said during the discussion.

Department heads reviewed their individual budgets in turn. Police Chief Steely said the bulk of his department’s proposed increase is capital related — engineering and construction work tied to a planned firing range and vehicle replacements — and said the department is preparing to switch to a 9mm platform in 2027 after vendor changes. Fire leadership described mostly flat operating requests for 2026 but flagged equipment replacements, turnout gear and training and reporting systems as priorities.

Council members pressed staff on how the payroll numbers interact with overtime, recruitment, and retention. Several members and staff noted that the city’s benefit package and steps taken in recent years have improved competitiveness, while others urged continued progress on starting pay and retention. Staff said some overtime classifications reflect scheduled staffing models (particularly in fire), while police overtime includes both scheduled and reimbursed grant overtime as well as unscheduled hours tied to vacancies.

Council also approved other ordinances and resolutions during the Dec. 15 meeting, including rezoning and tax‑lien ordinances, and a parks‑and‑recreation appointment; those formal votes were recorded separately.

The budget adoption completes the council’s formal approval of the city’s operating plan for calendar year 2026. Staff said department heads will continue to refine line items as year‑end adjustments are processed and will return to council if material changes are required.