Richmond board approves FY2026 budget, proposes 6.83% municipal tax-rate increase to voters

The Richmond Select Board voted to send the proposed fiscal year 2026 municipal budget to voters after discussing reserve usage and the town’s exposure to recent flood costs.

Board members said the final package cuts roughly $45,000 from overall spending compared with FY25, but the municipal tax rate would rise because the town has far less unassigned cash on hand to roll into the next year. Staff presented the figure the board will send to voters as a 6.83% municipal tax-rate increase and stated the tax-rate estimate shown in the packet is $530.83 in taxes per $100,000 of property value, an increase of $33.90 per $100,000 compared with FY25; that works out to roughly $135.60 a year for a $400,000 home if the municipal rate change alone is applied.

Josh, who led the budget presentation, told the board that while spending for FY26 is budgeted modestly lower than FY25, “the reason why the tax rate is going up is based on the amount of unassigned funds” available to offset taxes. He said the town used nearly $2 million from reserves for flood response and noted FEMA reimbursements from 2023 and 2024 are expected but timing is uncertain, so staff was cautious about relying on those receipts when setting the FY26 plan.

Board members reiterated the town policy, implemented on auditor advice, to retain 15% of the budget in unassigned funds for cash flow rather than as an emergency-only reserve. Chris (a board member) pressed whether Richmond should pursue a separate highway or disaster-specific reserve to smooth future flood costs; staff replied that existing highway and bridge reserves were tapped this year and that other financing options—short-term lending, bonding—exist but carry interest and procedural complexity.

Members also reviewed payroll and benefit drivers: staff reported an estimated increase in health-insurance costs (presented in the packet as a rise from about $242,000 to $266,000, roughly 10%) and a small $800 adjustment to the deputy town manager line. The budget as presented reclassifies an assistant-town-manager role into a deputy town manager with increased hours while a temporary ARPA-funded assistant position authorized for flood work will end on July 1.

After discussion the board member Jade moved to approve the budget as presented and send it to voters; Bart seconded the motion and the board announced the motion carried on a voice vote.

Next steps: staff will finalize the warning and post supplemental materials and the town report online. The board also scheduled informational meetings to explain the budget to voters before ballots are distributed.