Peterborough presents $20.48 million FY2027 budget and recommends multiple warrant articles including trust funds and tax changes

Town Administrator Nicole MacStay presented the proposed FY2027 budget to a joint meeting of the Peterborough Select Board and Budget Committee on March 3, saying the administration’s primary objective was a 0% tax increase while maintaining services.

Ms. MacStay outlined the budget’s structure and fund types (General Fund, Water and Wastewater enterprise funds, Recreation revolving funds, PEG revolving fund, and the Pay-As-You-Throw special revenue fund) and said the amount to be raised by taxation would remain $10,872,981 while the gross appropriation across general, water, and sewer funds totals $20,475,996 for the July 1, 2026–June 30, 2027 fiscal year. She identified major cost drivers including a 7.5% increase in health insurance, a 14% rise in workers’ compensation, a 9% rise in property-liability insurance, and a budgeted electricity supply rate of $0.185 per kilowatt hour to buffer market volatility. Personnel costs include a 1% cost-of-living adjustment and a 2% merit increase, and staff set aside about $100,000 to cover retirement payouts associated with the departures of the Police Chief, Fire Chief, and a long‑term police officer. Ms. MacStay also said administration costs decreased roughly 18% after bringing assessing services in-house.

The Select Board recommended Article 3 (the FY2027 budget) 3–0 and the Budget Committee recommended it 9–0. Committee members then reviewed and recorded recommendations on a slate of warrant articles. Highlights include the Pay-As-You-Throw special revenue fund (Article 4, $127,400), several capital reserve fund deposits for police and fleet management (Articles 5–7, $100,000; $400,000; $400,000), a Bridges/Culverts/Dams expendable trust funded in part by repurposed Main Street Bridge funds (Article 8, $200,000 total), Adams Pool improvements (Article 9, $45,000), and an Ambulance Service Revolving Fund deposit totaling $375,000 that combines interest from a bond and $100,000 from taxation (Article 10). Additional proposals included deposits to fire apparatus and other capital reserves (Articles 11–15), creation of expendable trust funds for accrued benefits and health/dental costs (Articles 15–16), establishment of a Peterborough Community Power expendable trust (Article 17, up to $250,000 from a discretionary reserve), and the placement of Tax Increment Finance district collections into Greater Downtown and South Peterborough expendable trust funds (Articles 18–19, $751,488 and $1,129,634 respectively).

Article 20 would increase the Optional Tax Credit for Service-Connected Total and Permanent Disability (RSA 72:35) from $4,000 to $5,000 effective for the property-tax year starting April 1, 2026; staff said this is intended to prevent a net loss of benefit for veterans after New Hampshire House Bill 99 (effective July 13, 2025) prohibited simultaneous receipt of two separate veterans’ tax credits. Article 21 would amend town code to prohibit keno operations after a change in state law requiring towns to opt out; Article 22 is a citizen petition to add a two‑minute “Blank Time” at Deliberative Sessions and Town Meetings, which the Select Board recommended against by a 2–1 vote. Mary Clark asked how much would remain in Fund Balance if all articles pass; Mrs. Gilligan said the Fund Balance would be about $1.1 million if every warrant article passes.

The public hearing was opened at 5:30 p.m. and closed at 6:27 p.m.; the body then approved past minutes and adjourned. With key recommendations recorded, the warrant will proceed to the town’s deliberative session and Town Meeting for final votes.