Coventry council approves $49.08 million FY2026–27 budget with cuts and $100,000 reserve use

The Coventry Town Council on June 15 approved appropriations for Fiscal Year 2026–27 totaling $49,080,123, with General Government at $13,093,736, the Board of Education at $32,489,696, Debt Service at $2,912,837 and Capital Expenditures at $583,854. The motion, made by Councilor Peter Larson and seconded by Councilor Robyn Gallagher, passed 5–1 with Councilor Julie Blanchard opposed.

Why it matters: Council members described the vote as an attempt to balance service preservation and tax impact after two failed referendums and extensive cuts. The adopted package reduces capital spending, delays certain hires and trims selected departmental operating expenses; the council reduced proposed use of reserves to $100,000 and projected a 0.45 mil increase (a 1.9% tax change) with a stated median-household impact of $113 per month.

What council discussed: Chairwoman Lisa Thomas and Finance Director Cherie Trahan presented Round 3 reduction options that included cuts to library funding, delayed hiring in Public Works, scaled-back capital projects (removing crack sealing for the BOE, eliminating summer road work outside grant-funded parameters, cutting half the funding for a BOE maintenance van), and further BOE appropriation reductions. Trahan summarized scenarios showing different reserve-use amounts: using $200,000 of reserves would reduce the mil increase compared with using only $100,000 or none.

Councilors debated trade-offs. Finance Chair Robyn Gallagher warned that deep capital cuts and reductions to the Capital Non-Recurring Expenditure Fund (CNREF) are hard to restore and could increase long-term costs; she emphasized the operational need for a reliable EMS vehicle to provide lifesaving care while ambulances are unavailable. Councilor Jon Hand and Councilor Peter Larson urged preserving a healthy CNREF and supported limiting reserve use to $100,000. Councilor Julie Blanchard advocated steeper reductions and proposed options including eliminating the planned EMS vehicle purchase and considering a negotiated furlough day to save roughly $14,000.

Public comment framed the council’s choices. Resident Richard Williams urged transparency and fiscal clarity, flagged an approximately $21,000 shortfall in school lunch accounts, and told the council, “taxpayers deserve transparency, accountability, and clear information before asking residents to approve additional spending or higher taxes.” Other residents urged turnout for referendums or proposed specific percentage ceilings on spending growth.

Formal action and next steps: The council’s motion to appropriate the FY2026–27 budget passed 5–1 (For: Hand, Kyer, Gallagher, Thomas, Larson; Against: Blanchard). The council authorized the town manager to correct any mathematical errors in the adopted budget. The Town Meeting was set for June 23 (to adjourn to a June 30 referendum); if voters approve the budget, the council will meet July 1 to set the mil rate and COVRRA (refuse) rates and staff expect tax bills to be mailed in early July with payment due Aug. 1.

Context and limits: Several councilors warned that repeated use of fund balance and cuts to CNREF can harm the town’s bond rating and increase borrowing costs. Finance staff noted that some line items (for example, negotiated contract impacts) remain uncertain because collective bargaining outcomes are not finalized. The council’s adoption reflects policy choices about preserving core services while keeping the proposed tax increase modest.

The council adjourned to scheduling and procedural items; the budget will next be considered at the Town Meeting and the subsequent referendum on June 30.