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- Courtney Lamdin ©️ Seven Days
- Mayor Emma Mulvaney-Stanak (right) and chief administrative officer Katherine Schad
Burlington city councilors unanimously approved a $107.8 million
spending plan for fiscal year 2025 on Monday that closes a significant budget gap while also investing in public safety.
The budget uses a mix of tax and fee increases and spending cuts to close a $14.2 million shortfall caused largely by inflation and expiring federal coronavirus aid. No staff will be laid off, though more than a dozen positions will be left vacant.
Despite the budget pressures, the plan still earmarks money to hire 10 police officers and 11 "community service officers," who respond to quality-of-life calls, in keeping with Mayor Emma Mulvaney-Stanak's pledge to improve community safety.
It wasn't initially clear how Mulvaney-Stanak — the city's first Progressive mayor in 12 years — would mesh with a Democrat-controlled council on matters of spending and on public safety in particular, given past partisan squabbles. But before the vote, the mayor and councilors from both caucuses praised one another for collaborating in what they agreed was a transparent, bipartisan process.
"I'm particularly proud of this," Mulvaney-Stanak said. "I think that bodes well for a stronger local government where we can work through different opinions and approaches and find compromise."
The budget is about 7 percent higher than the current year's spending plan. The $0.83 tax rate represents a 10.7 percent increase for the new fiscal year, which begins July 1.
Owners of a home assessed at $500,000 will pay about $33.50 more in municipal property taxes every month. Adding in school taxes and costs for utilities and recycling service, the same homeowner will pay a total of about $101.50 more every month, according to city estimates.
The budget was a tough process for Mulvaney-Stanak, who took office in April anticipating a $9 million shortfall — and then
quickly learned of a clerical error that brought the number closer to $13.1 million. Another mistake grew the total shortfall to $14.2 million, city officials announced earlier this month.
Mulvaney-Stanak's plan raises $5.8 million in new taxes, with $1.35 million from a higher public safety tax, one of several levies that make up the municipal tax rate. Voters approved a 3-cent public safety tax increase — which would have created about $1.8 million in revenue — but Mulvaney-Stanak is only raising the rate by 2 cents so as not to overburden property tax payers.
To make up the additional revenue, the city will raise the gross receipts tax on meals and alcohol sales from 2 to 2.5 percent, a hike that will sunset after a year. The tax on hotel stays will double, from 2 to 4 percent. Together, the increases will generate about $1.72 million next fiscal year, with minimal impact: A $100 restaurant bill, for example, would see a $2.50 surcharge instead of $2. The change will take effect August 1.
The budget also uses $3.4 million in one-time funds, a strategy Mulvaney-Stanak recognized isn't sustainable. The total includes opioid settlement money ($256,000) and the last gasp of the city's coronavirus relief funds ($2.1 million).
The city will save about $1 million by leaving 18 positions vacant, a third of them from the office of Racial Equity, Inclusion & Belonging. Mulvaney-Stanak's original plan called for keeping 22 positions vacant, but councilors asked to bring several back into the budget. They include three community service officers, who will help patrol downtown, and a housing program administrator, who will help enforce city ordinances.
Overall, the city will spend an additional $2.47 million on policing, including a $100,000 chunk negotiated by council Democrats to be used for recruitment efforts such as advertising and sign-on bonuses. An extra $1.4 million for the fire department will ensure it can continue running the successful community response team, which dispatches EMTs to revive people from overdoses. Another $150,000 will pay for additional security services and a social worker at Fletcher Free Library, where
staff have struggled to manage more aggressive patrons and frequent drug use.
The mayor's office will also hire a senior adviser on community safety, a position Mulvaney-Stanak first proposed during the campaign. And the city will spend $50,000 to bring portable toilets, water and sharps containers to three homeless encampments in the city.
Councilors had few critiques of the plan, mostly expressing wariness about budget votes to come. Several councilors noted that they're keen to review an "operational efficiency study" that analyzed staffing levels in several city departments. The study, which is due back in a matter of days, is expected to identify millions of dollars in potential savings.
"Once we have the final version, it won’t just be lying around," Councilor Melo Grant (P-Central District) said. "We're going to be looking at this as soon as possible so that we can really have a plan in place for next fiscal year."
Councilor Joe Kane (P-Ward 3), who serves on the council's Board of Finance, said he looks forward to brainstorming new revenue streams to ease budget pressures in fiscal year 2026. On the top of his list: higher parking fees and penalties for owning a vacant building.
Those discussions will begin soon. Mulvaney-Stanak is convening a "budget summit" in August.