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South Burlington manager proposes FY27 budget with 2.51% tax-rate increase; council can add optional items
Summary
City Manager Jesse Baker presented a FY27 proposed budget calling for a 2.51% property-tax rate increase for continuing services, optional policy additions that would raise the rate to 3.51% if adopted, and a set of one-time funding options. The presentation included projected impacts on average condo and homeowner bills.
City Manager Jesse Baker on Dec. 1 presented South Burlington’s proposed fiscal year 2027 budget, framing it as a three-part package: a current-services baseline, optional policy additions, and a menu of one-time projects to soften tax impacts.
"This is really meant to paint the big picture of where we are," Baker told the City Council as he introduced departmental staff and the finance team. The current-services budget in the proposal would result in a 2.51% tax-rate increase; turning on two recommended policy items would raise the rate to about 3.51%, Baker said. Using the documents provided with the budget, Baker said the average condo owner would pay about $40 more next year and the average homeowner about $60 more under the baseline proposal.
Baker outlined key assumptions underlying the numbers: a 1.5% growth in the citywide grand list, contractual cost-of-living and step increases, a 10% health-insurance premium increase, and anticipated wholesale cost increases for partners — notably a roughly 5% increase from Champlain Water District and a 6% rise in the Green Mountain Transit assessment. He said staff launched a new NetSuite finance system the morning of the presentation to improve future analysis.
Councilors asked for detail on non-property-tax revenue assumptions and potential fee changes. Baker said recent reviews of building inspection and zoning fees are underway but were not yet built into the FY27 baseline: "If we are going to increase our fees to take on new work, it would be paired with the person to do that work," he said. The council also discussed using one-time funds from the general fund balance — staff estimated roughly $533,000 available above the 16.6% target — for specific projects such as economic development supports and library equipment.
Baker said major enterprise fund capital projects are driving utility costs: recent investments in Bartlett Bay and a second water tower, combined with higher wholesale water rates, could add roughly $75 to average homeowner bills on top of property-tax changes. He reminded the council that the proposal is a starting point: the council has six weeks and several scheduled work sessions and hearings to adjust line items before the budget is recommended to voters.
The council took no final budget votes on Dec. 1; staff will return with department-level presentations, further cost and revenue breakdowns, and the public hearing schedule through January and February.
