Burlington mayor and administration present FY26 budget that trims staff, keeps municipal tax change under 1%

The mayor and city administration presented the proposed fiscal year 2026 municipal budget on June 2, telling the Burlington Board of Finance the plan reduces spending, trims positions and keeps the municipal portion of the property tax increase to less than 1%.

Officials said the budget reflects a multi-year effort to close a structural gap in the general fund after federal grant revenue that supported recent budgets has declined and personnel costs rose. The administration said program and staffing changes — including eliminating 25 city positions and consolidating middle-management roles — reduce the budget gap by nearly $4 million and avoid a larger municipal tax increase.

Administration officials emphasized affordability and targeted investments. The presentation said the budget maintains pay and health benefits for employees, reduces the general fund compared with recent years and includes new or expanded spending for community health, the community safety system, housing staff, the Howard Center street outreach team and Burlington Police Department needs. City leaders said rate-payer affordability programs for BED and water remain part of the plan.

Officials used examples to show the proposed revenue approach is modest: administrators said the $4 million in avoided spending would otherwise have required roughly a 6.5-cent municipal rate increase — translated in the presentation as about $325 on a $500,000 home if those cuts were not made. The administration also said most taxpayers could see a net reduction in their overall property tax bill this year because preliminary state actions could lower the education portion of the tax bill; the city said it is still awaiting final state education figures.

Councilors pressed administration officials on transition planning for programs affected by the cuts. Councilor Carpenter and others urged targeted transition funding for older-adult services and asked for specific accounting of costs and timelines. Administrators said the CORE program is winding down with a runway to September and that the city is coordinating partners on transportation and other supports; they also clarified that Age Well provided meals at a city location rather than the city directly operating the meal program.

Several councilors raised the disproportionate local cost of responding to homelessness, noting prior estimates the city has borne millions in related costs. The administration acknowledged the issue and cited a recently passed state bill (H.91) that provides a small amount of state aid but said it is not sufficient to cover Burlington's full costs.

No formal vote was required by the Board of Finance on the presentation. Administration staff said further budget deliberations and formal votes are scheduled through June as part of the city’s normal adoption process.