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Barre City manager outlines FY27 budget adjustments, projects 6.6% tax proxy increase
Summary
City Manager Nicholas told councilors the proposed FY27 general fund budget is about $15.8 million, a 7.24% year‑over‑year rise in expenses that translates to roughly a 6.6% increase in the amount to be raised by taxes; staff identified $323,000 in new non‑tax revenue and $113,000 in savings but added priorities including recreation and pothole repairs.
City Manager Nicholas presented updated budget figures and tradeoffs as the council considered priorities for fiscal year 2027. He said staff identified “$323,000 in new non‑tax revenues” and “$113,000 in savings and cuts,” but that new or reinstated priorities — notably restoring recreation programming and the city’s “bees” program — drove additional expense. “We end up in that 2 65 range,” he said, describing tax‑pressure metrics the city is using as a proxy for how much needs to be raised by property taxes.
Nicholas described the bottom‑line numbers: the general fund budget shown in the packet is “15 point almost $8,000,000,” a 7.24% increase in expenses compared with FY26. He said that, after accounting for new non‑tax revenue and savings, the city faces “a 6.6% increase in the amount to be raised by taxes,” which staff use as a more meaningful indicator than a projected tax rate during the reappraisal year. He stressed several revenue adjustments that reduce the tax burden, including a proposed increase in the rental‑registry fee from $60 to $100 per unit (estimated to generate about $82,000) and a conservative $150,000 increase projected for ambulance service revenue.
Councilors pressed for line‑item clarity. One councilor asked what the addition of the housing and homelessness liaison, Tessa, cost the budget; staff said the full office change that includes Tessa totals roughly $126,000 in the manager’s office (salary, benefits and associated office expenses). Nicholas emphasized contingency options: if the legislature extends state funding for Tessa’s position, the city would reduce its general‑fund obligation by roughly $85,000–$90,000 and move closer to a 5% target the council previously discussed.
The presentation also flagged planned uses of local special funds: staff asked the council to consider retaining proceeds from a Semper bond annuity and approving a $10,000 Bruce of Trust transfer to help fund recreation rebuilding. The council later approved both actions (see separate item). The manager said the budget remains a “living document” and that staff will return next week with detailed proposals for public works, fire and police departments.
