Hillsborough Selectmen present $11.0M 2026 budget as residents press on police coverage, capital purchases

Selectwoman Iris Campbell opened the Hillsborough Board of Selectmen’s public hearing on the 2026 operating budget on Feb. 11, presenting an $11,025,344 proposal that includes an extra pay week, 3% wage increases for most employees (2.75% for police/dispatch), step increases where eligible, and an 11% rise in health insurance premiums effective July 1.

The budget matters because it funds core town services and several large capital requests and because a separate, multiyear contract under consideration with neighboring Deering could shift personnel demands and revenue flows. Residents asked detailed questions at the hearing about staffing, interlocal contracts, and whether revolving and surplus funds could offset tax increases.

Town Administrator Laura Buono walked through line items and answered resident questions about specific payroll lines, explaining that an increase shown for the Town Clerk/Tax Collector area reflected the deputy being at top-of-scale and adjustments applied across positions. Buono also confirmed the Treasurer is a stipend role with $5,000 budgeted.

Police Chief Chris Parsons described Hillsborough as the only 24-hour local agency in the area with full dispatch capacity and said that mutual-aid arrangements influence how neighboring Deering’s needs are handled. The Deering contract amounts cited at the hearing were $275,000 in year one, $285,000 in year two and $295,000 in year three. Buono said revenue from interlocal service contracts is recorded in the general fund.

Residents and board members raised several operational and fiscal questions: whether insurance reimbursements for damaged cruisers go to a revolving fund or the general fund (Buono: general fund), the impact of Deering calls on cruiser wear and maintenance, and the contractual terms for Windsor mutual-aid arrangements. Brett Taber asked whether liability changes when the town receives reimbursement for services; Buono said the town is reimbursed for time spent and that existing mutual-aid contracts with other towns do not raise rates for services provided elsewhere.

Teen Center Director James Clough outlined program operations — drop-in services for grades 7–12, homework help, community projects and an evening meal — and said about 20 youths attend daily. The teen programming requests include a proposed 7% increase and staffing for about 10 additional weekly hours to support policy and program work. Clough said program expenses are paid from a revolving fund; officials noted Parks & Rec and program revolving funds together total about $66,000 and asked whether those funds could offset taxation, subject to how each fund was established.

The general assistance line was reduced by 47% in the proposed budget; Buono said the 2025 appropriation was $108,000 with $66,000 spent and defended lowering the 2026 request on that basis. Karen Pellicano of the Grapevine warned that community needs for rent and utilities are rising and expressed concern the cut could result in overspending the welfare account.

On capital requests, Road Agent Ernie Butler said Beard Road is scheduled for reclamation. The board discussed a proposed sidewalk tractor priced at $208,500 on a five-year lease; some residents questioned the purchase cost and expressed a preference for less expensive alternatives. Fire Chief Kenneth Stafford described a proposed heavy rescue pumper priced at $1,500,000 that would take about 32 months to build and be used as a multi-purpose truck; Stafford said the town handled 1,367 calls in 2025 and that he prefers new apparatus because used units typically do not meet the town’s workload needs.

Granite VNA requested $18,000 for home-health services; Buono said 4,403 Hillsborough residents received services in 2025 totaling $890,652 and noted representatives would attend Town Meeting to answer questions. Buono also reported an audit figure of $2,325,685 for the unassigned fund balance and said the Selectmen could elect to use part of that balance to lower tax-funded capital requests, though maintaining a reserve helps cash flow and coverage for county/school obligations.

Votes at a glance: earlier in the meeting the board approved the consent agenda, authorized manifests and payroll signing, and approved minutes for Jan. 28 and Feb. 2 (motions were moved by Selectwoman Iris Campbell and seconded by Selectman Richard Pelletier; recorded outcomes: approved). The public hearing closed at 9:08 p.m.

The board will present the warrant articles at Town Meeting; several items discussed (the heavy rescue pumper, sidewalk tractor, and Granite VNA appropriation) were flagged by residents as likely subjects for discussion and possible amendment at that event.