Budget
The City Council approved the Fiscal Year 2027 budget, which calls for a 3.93% tax increase. That will amount to the City portion of Penacook taxes increasing by $163 for the year on a property valued at $400,000. The City Manager originally proposed a 5.5% increase, which would have called for a $224 increase on a property valued at $400,000.
Had wages and benefits not increased, Penacook would have been presented with a proposed tax increase of about 2.14% instead of 5.5%. Wages and benefits alone cost $4.1 million, representing 61% of the increase. Debt service costs on bonded Capital Improvement Program (CIP) projects are less, at $2.4 million, representing 35.6% of the increase. These increases are locked into our budget, based on decisions made last year that are due now.
Budget cuts were discussed and approved, resulting in a 0.5% tax reduction. There was unanimous approval to freeze funding for six vacant City staff positions, saving $187,953. Options for reduction in bagged leaf pickup service in the spring and fall, which is conducted by Casella for the City, were presented. Ultimately, City Council, acting as the Finance Committee, approved removing all bagged leaf pickup for a savings of $99,225. Some interest was expressed in resuming limited service should funds become available later in the year. Curbside collection of loose leaves by our General Services Department will continue as usual.
A motion to eliminate a vacant Deputy Police Chief position for $205,000 was approved, which further lowered the proposed increase by 0.25%. Approval was then given to lower the tax increase to 4%. The CIty Manager and Deputy City Manager for Finance were able to lower the increased amount to 3.93%.
CIP #252, paving for parking lots at three Concord Fire stations, was moved to next year's budget, removing $350,000 of bonded spending. Also approved for Penacook in the budget is maintenance overlay paving for the full length of Horse Hill and Blackwater Roads.
There was discussion about eliminating currently staffed positions with the exception of public safety personnel, but there was reluctance to move forward without a full understanding of the ramifications on providing services. The effects of such eliminations were recommended to be studied in advance of future budgets, along with examination of Tax Increment Financing Districts to determine ways to reduce General Fund spending. Next year's budget is likely to prove even more challenging.
Concord TV has published their recording of the meeting.
