Town manager says 39¢ town tax rate driven by contracts, capital reserves and $200,000 master-plan warrant

Town Manager Paul Macali opened the budget hearing by describing a “needs-based” budget and explaining why the town portion of the proposed tax rate rises to 39¢. Macali said about 11¢ of that increase represents contractual costs already approved by voters in prior years; the remainder reflects inflationary pressures and capital decisions the council must consider.

Macali told the council that four of six municipal unions already have contracts accounted for in the budget and that two additional contract votes are expected on this year’s warrant. He said capital-reserve deposits in the manager’s proposal would increase roughly $300,000 — about 7¢ on the tax rate — to build savings for vehicle and equipment replacement.

He flagged a separate $200,000 warrant article to fund a new master plan; if voters approve that article, Macali estimated it would add about 4¢ to the town portion of the tax rate. He emphasized that the master plan and capital-reserve deposits would be separate warrant items and would require voter approval.

Macali also described the timing and process ahead: two more departmental hearings next week, council deliberations the following week and an expected publication of a default budget estimate around Feb. 1. He urged the council to help communicate the breakdown of the 39¢ figure to residents so they do not conflate the town share with the larger school and county portions of a tax bill.

The council asked Macali to produce a clear web and social‑media summary that shows how much of the 39¢ stems from contracts, capital reserves and proposed warrant articles so voters can better understand what they would be asked to approve.

Next procedural steps: the council will continue departmental hearings, deliberate on Jan. 20, and prepare warrant-article language and staff materials for public review ahead of the town meeting schedule.