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City Council passes $107 million budget: What was cut to make it balanced?
City Council passes $107 million budget: What was cut to make it balanced?

Yahoo

time07-07-2025

  • Business
  • Yahoo

City Council passes $107 million budget: What was cut to make it balanced?

Burlington City Council has passed the fiscal 2026 budget, locking it in just before the fiscal year begins July 1. Councilors voted unanimously to pass the $107,093,396 budget, a budget 1% smaller than FY25 which was $107.8 million. These first two budgets for Mayor Emma Mulvaney-Stanak have not been easy ones to manage, as she has faced large deficits - $13 million for fiscal 2025 and $9.8 million this upcoming fiscal year. The attempt to close the gap, the end of one-time COVID-related federal funding, rise in costs and other financial adjustments have resulted in tough decisions, according to Mulvaney-Stanak. 'After closing a $14.2 million gap last year, we knew that this year would require making painful decisions,' Mulvaney-Stanak said. One of those decisions was to cut 25 city positions. Mulvaney-Stanak said eliminating those positions, as well as eliminating some city programs, will save the city nearly $4 million. She said the city had structural challenges that negatively impacted annual budgets, including one-time funding positions that continued to operate long-term. Muvaney-Stanak and Chief Administrative Officer Katherine Schad have both stated that a priority of the budget was to not significantly raise taxes. The Municipal Tax rate will increase 2%, or by $0.02. That includes the one cent Public Safety Tax that voters approved March 2024. Gross receipts taxes have been a point of contention between businesses and the city. The 0.5% increased non-lodging tax is applied to admissions, alcohol, amusements, meals and rooms. It was implemented in Fiscal 2025 and was recently extended until August 31. Mulvaney-Stanak proposed that it will remain at 2.5% until September 2026 to allow time for the Council and administration to build a budget for FY27. Mulvaney-Stanak also wanted to remind that a 4% hotel rate currently exists to 'ensure that visitors of Burlington also contribute more to the budget,' and will continue. Mulvaney-Stanak opted to forgo her salary cost of living adjustment increase, or COLA for the next fiscal year, as did department heads until quarter three of the fiscal year. That will save the city $37,000. The budget reflects the mayor's commitment to investing in community safety. That includes funding various initiatives and organizations that focus on public health work, including mental health, drug and addiction treatment and homelessness. A new position within the Community and Economic Development Office (CEDO) will lead new strategies for housing production in the city. The mayor also wanted to make it clear that the city has used up the last of the American Rescue Plan Act (ARPA) funds. Councilors seemed content with the budget, although Ward 1 Councilor Carter Neubieser and Ward 7 Councilor Evan Litwin both made last minute motions to amend parts of the budget. Neubieser moved to remove an allocation of $100,000 to the Visiting Nurses Association, stating that while it's valuable work, the University of Vermont Health Network should supply the funds to pay those employees. While other councilors agreed with his sentiment, they said it was a point that should have been addressed previously to avoid a potential for the program being cut by UVM if the city does not provide funds. Litwin moved to remove $7,500 in funding for the Howard Center and instead move that money to the Turning Point Center. Both motions failed. Other councilors expressed some concern over the Gross Receipts Tax negatively affecting local business, and brought up the point that much of the general fund is going to public health work, and that neighboring municipalities and the state need to be investing more in public safety initiatives as well. This article originally appeared on Burlington Free Press: City Council passes FY 2026 budget

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