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Manager presents FY27 draft budget; council debates rental‑registry increase and use of fund balance
Summary
City staff presented a FY27 draft budget of about $15.8M, proposed increasing the rental‑registration fee from $60 to $100 (projected $82,000) and discussed using part of an estimated $2.1M fund balance to reduce the tax rate while retaining a 10% undesignated reserve. Council debated funding for a homeless liaison, a junior‑planner or contracted capacity, and transit support.
City Manager Nicholas (S6) and finance staff presented the proposed fiscal year 2027 budget and answered council questions about near‑term tradeoffs.
Manager (S6) said the draft budget carries about $15.8 million in expenses and noted the challenge of projecting a tax rate in a reappraisal year. "We were looking at right now a 7.4% increase in year‑to‑year expenses," he said. Staff proposed three principal open items: (1) a reduction proposal in local support for Green Mountain Transit; (2) raising the rental‑registration fee from $60 to $100 per unit to raise an estimated $82,000; and (3) choosing how much of an estimated $2.1 million cumulative fund balance to allocate to lower the tax rate while maintaining a 10% undesignated reserve.
Councilors discussed alternatives and tradeoffs. One councillor suggested a tiered rental fee to give discounts for landlords offering below‑market rents; staff responded that such a structure would require verification and ongoing administration. The manager and finance staff recommended retaining roughly 10% of the general fund as undesignated reserve (about $1.4M under current estimates), leaving around $676,000 as an undesignated balance that could be used strategically. Councilors pushed for clearer cost estimates for stormwater work and for explicit plans to build capacity (either via a renewed junior planner position, contracted project management, or targeted hires) to deliver anticipated capital projects.
The council did not finalize these items and scheduled further budget meetings. Several councilors signaled support for preserving transit service funding at requested levels while asking for clearer performance and fair‑share data from the transit provider.
