Municipal Budget

The CPI-U for September was 3.1% and November was 3.1%, October was not provided due to the Federal Government Shutdown. The Grand List is projected to grow by 1.0%. The anticipated growth in the grand list is $537,540, which provides $126,053 in anticipated new tax revenue. A penny on the tax rate raises approximately $542,916. The FY’ 27 Budget as proposed represents a net budget increase of $498,107 (+4.08%). The proposed budget is projected to increase the municipal tax rate $.0070 or (+3.08%).

FY'27 General Fund Budget Process & Timeline

Municipal Corner – Town Meeting and Budget

Australian/Paper Ballot: March 3rd is Town Meeting Day. Voters may vote on Australian paper ballot articles from 7am to 7pm that day at Stowe High School, or via absentee ballot beforehand. In addition to voting for elected officials (Moderator, two Selectboard members, and one Lister), you have the opportunity to vote on the municipal budget and a charter change which would increase local option taxes from 1% to 2%.

Budget: The FY’27 General Fund Operating Budget as proposed represents a net budget increase of $508,196 (+4.15%). The proposed budget is projected to increase the municipal tax rate $.0071 or (+3.12%). For an owner of a home appraised at $500,000, it is projected to increase your municipal (non-school) property taxes by $35. For a million-dollar home, it is projected to increase your municipal (non-school) property taxes by $71.

The budget maintains the existing level of services. It adds two Firefighter/EMTs. One would start in approximately July 2026, and the other would start in approximately January 2027. This is to help us meet the goal of always having four Firefighter/EMTs at the station to help provide surety of service in a timely manner.

The budget increases the annual transfer from the General Fund to the Equipment Fund by $75,000 to recognize the increased cost of vehicles. Similarly, the paving line item has been increased by $67,500 to recognize the increased cost of paving. Another area of increase is the Lamoille County Courthouse budget which is projected to increase by $57,454. By law the Town is required pay an assessment to the county based on our percentage of the county’s total grand list.

Charter Change regarding Local Option Taxes: In addition, Selectboard is also providing the voters with the opportunity to consider via Australian ballot increasing local options taxes on rooms, meals, alcohol and sales from 1% to 2%. It will be broken down into two articles. The first is to increase the local option sales tax from 1% to 2%. The second is to increase the local option rooms, meals, and alcohol tax from 1% to 2%.

This is being advanced to provide the voters with an opportunity to take pressure off from local property taxes. As Selectboard member Nick Donza stated, “Every dollar raised through local option consumption taxes is a dollar that doesn’t have to be raised with property taxes.” A resolution adopted by the Selectboard explaining the reasoning for their support of the articles states in part:

“One Selectboard cannot bind a future Selectboards or voters, but there are several reasons to consider adopting additional Local Option Taxes which may include, but are not limited to, reducing reliance on property taxes to fund municipal services and capital projects, supporting essential improvements to public infrastructure, such as road maintenance and flood mitigation projects, which benefit both residents and visitors; ensuring adequate funding for essential services like the fire department and rescue operations, including the transition to paid staff to maintain consistent, reliable service levels; and allocating funds for community priorities such as housing development and economic development initiatives.”

Click here to read the resolution.(PDF, 265KB)

It is also important to understand that any vote to amend Stowe’s Charter must also be approved by the Vermont Legislature. A strong turnout and positive vote may help with approval at the State level.

In-person Floor Voting: There are also two additional articles for voters to consider on the floor at Annual Meeting, which will start at 8am following the Stowe School District’s Annual Meeting.

Justices of the Peace Article: Voters will be first be asked on the floor during Town Meeting if they will agree to increase the number of people who serve as Justices of the Peace from 12 to 15. Among other responsibilities, they would provide the Town Clerk with additional help at the voting booths. If approved, this article would take effect for the November 2026 elections.

Housing Reserve Fund: Next on the floor, the voters will be asked to consider the following article: “Shall a Housing Reserve Fund be established pursuant to 24 VSA 2804 to receive funds to promote the development of safe and affordable housing and to be administered and expended by the Selectboard in conformance with those purposes and the Stowe Town Plan then in effect?” This article was recommended to the Selectboard by the Housing Task Force to essentially create a separate fund that can be carried over from year to year to help fund housing initiatives.

The Housing Reserve Fund may receive money from a number of sources, such as inclusionary zoning payment in lieu of fees, donations, and municipal tax appropriations. To be clear, no municipal appropriation is being requested at this time. As Selectboard member Ethan Carlson said, “this is simply asking the voters to set up a bank account.” The Town currently has the following reserve funds: Equipment, Capital, and Annual Leave.

Questions about registering to vote, absentee ballots, and voting may be directed to the Town Clerk’s Office (802-253-6133 or townclerk@stowevt.gov). All other questions may be directed to the Town Manager’s Office (802-253-7350 or csafford@stowevt.gov).