Town manager outlines FY2027 municipal budget, proposes up-to‑2% commercial tax bump while keeping residential rate unchanged

Town Manager Ralph Mullis presented the municipal portion of the FY2027 public hearing and described the overall budget as "over $130,000,000," emphasizing the presentation was a summary and that the town's detailed budget booklet is available online. He said the municipal administrative budgets total $11,749,408 and highlighted that OPEB funding has improved to about 25% from 4.3% in 2018.

Mullis said the largest municipal increases are concentrated in public safety: "These 5 budgets totaled $24,986,990 and resulted in a 5.39% increase" that he attributed almost entirely to personnel and benefit costs, noting a sharp rise in healthcare premiums. He also described projected debt‑service increases tied to approved school and public‑safety bonds and warned those payments could push significant pressure on tax rates in coming years.

On the budget shortfall created since the preliminary budget, Mullis described combined town and school gaps driven by an approximately 17% increase in health‑insurance premiums. To address the school's shortfall he proposed revising the remote net‑metering agreement and adding $134,721 to the town appropriation for schools, raising the school allocation to $66,156,544 (a 3.7% increase). He summarized the net effect as a town shortfall of roughly $753,650.46 and said, "I am going to recommend that that be funded via ... a not to exceed 2% increase in the commercial tax rate. The residential tax rate will remain at $11.04. No tax increase."

Mullis repeatedly urged residents to review the full budget booklet online for detailed line‑items and emphasized fund‑balance strength—investment revenue and bond‑rating benefits—was one of the reasons the town could hold the residential rate steady. The council will have another opportunity to act on April 27 when it will deliberate additions and consider passing the budget.