BURLINGTON WEATHER

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For most Burlington residents, town budgeting happens quietly in the background. But the decisions being made this spring could determine whether familiar services — from school transportation to trash pickup — remain unchanged in the years ahead.

At a February 11 meeting, Town Administration presented its fiscal year 2027 budget plan to the Ways & Means Committee, outlining a proposal to slow the pace of annual spending — and tax — increases while preserving current service levels.

Burlington’s fiscal year 2026 budget — which covers both municipal and school operations — totaled $186,997,456. That figure includes operating expenses for town and school departments, such as personnel costs and program delivery, as well as debt service for capital projects, pension obligations, local transportation, and other fixed costs.

These expenses are offset by revenues, which in Burlington are largely made up of property taxes, state aid, and local receipts such as meals taxes, hotel/motel taxes, and excise taxes.

Each year’s budget sets the tax rate for that fiscal year. In Burlington, that rate is split between residential properties and Commercial, Industrial, and Personal property (CIP). Although about two-thirds of the town’s property is residential, the split tax rate means businesses fund approximately 62% of the total tax levy.

In FY26, this looked like $8.69 per $1,000 in assessed value for residential property and $25.78 per $1,000 for CIP, according to a presentation by Assistant Town Administrator Patrick Lawlor. For the average single-family home, valued at $820,300, that translated to an annual tax bill of $7,128 — an increase of $355 over the previous year.

The town aims to generate 1.5% of levy growth from new development each year — a target that was easily achieved in the past but has become increasingly unpredictable in recent years.

Costs continue to rise annually, from construction materials and health insurance to solid waste disposal. To maintain current service levels for residents — including free bus transportation and sports participation in the town’s schools, free trash pickup, and subsidized, nationally recognized recreation programming — both the budget and the tax rate must generally increase.

However, state law limits how much a municipality can raise property taxes in a given year. Historically, Burlington’s strong commercial tax base and steady new growth have allowed the town to remain under that cap. Currently, the town has approximately $15 million in “excess levy capacity,” meaning it could raise taxes beyond the standard limit without a town-wide override vote. But rising costs continue to erode that cushion. Without adjustments, the town may eventually face a choice: reduce services to stay within the state cap or ask voters to approve an override.

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Lawlor described the administration's approach to budgeting this year: "Let's look at what the plan is to maintain service levels, to minimize property tax impacts for all types of property [and] the key measures for projecting revenue."

He noted that a 4.5% annual increase in the operating budget — the norm in recent years — is becoming difficult to sustain while maintaining a balanced budget. The guidelines presented would gradually reduce that growth rate to 3.75% over the next several years, beginning with a 4.25% increase this year.

Can the town continue providing level services without budget growth in line with past increases? Ways & Means Committee member John Iler raised that concern directly.

“This [chart] implies not level services,” he said, asking whether the administration would prioritize maintaining service levels or limiting tax increases. Lawlor expressed optimism that the town could achieve both, citing more moderate wage growth and cooling costs as potential offsets.

He also emphasized a collaborative, long-range planning process underway with town departments. “If we develop a long-range financial plan with assumptions that the community, Select Board, and School Committee have significant buy-in, that is a very big tool,” Lawlor said.

During budget season, Ways & Means subcommittees meet with individual departments to review their requests and ensure they align with established guidelines and the town’s overall financial plan. In the coming months, the Select Board and Ways & Means Committee will conduct final reviews in advance of May’s Town Meeting.

At that annual gathering, the operating budget and most capital projects will be reviewed and voted on by the 126 Town Meeting Members representing the town’s seven precincts. Town Meeting approves each municipal department’s budget individually but votes only on a top-line figure for the School Department, which develops its budget independently.

Several months after Town Meeting approval — once free cash and new growth are certified — the Select Board will set the FY27 tax rate.

The numbers presented this month are only the beginning of a longer conversation — one that will ultimately involve elected officials, Town Meeting Members, and potentially voters town-wide.

How Burlington balances service expectations, tax impacts, and long-term stability will define more than just the FY27 budget. It may determine what residents can expect from their local government in the years ahead.

Stay tuned to Burlington Buzz for continued coverage of the town’s financial planning process as budget season moves forward.

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