Center Harbor tax bills increase 10.8% despite using reserves

CENTER HARBOR — Residents will see a 10.8% increase in their tax bill in 2026, despite using $200,000 from the town’s reserves to lower the rate to $11.84 per thousand.

The selectboard unanimously voted on Nov. 12 to use the fund balance money to drop the tax rate from $12.10 to $11.84, still a $1.16 increase from 2024. The fund balance is now at $762,108, or 7.91% of the total budget, which sits comfortably between the state Department of Revenue Administration recommended amount of 5% to 17% retained in the account.

“The tax rate is broken up into four different areas, all of which went up this year,” Selectboard Administrative Assistant Robin Woodaman said. “But there are things that are out of selectmen control.”

The town portion of the tax rate increased 7.61%, from $4.33 to $4.64; the local school tax went from $3.95 to $4.63, an increase of 17.22%; state education had an 8.53% increase from $1.29 to $1.40; and the county portion increased 4.46%, rising to $1.17 from $1.12.

The appropriation to be raised also increased nearly $1 million, from $8.2 million to $9.1 million.

Town leaders only control the town portion of the rate, which is about 39% of the total.

One area driving the rate increase includes the road repairs and maintenance appropriation increasing from $311,000 to $450,000 in 2026.

The fire department also had a $100,000 wage increase proposal. Woodaman said while there are no full-time firefighters in Center Harbor, the town is trying to compete with surrounding towns for their employees. She said it is the chief’s preference to have two firefighters or EMTs in the station each day, especially during the busy summer months.

Three new expandable trust funds are being added in 2026. One is for the ambulance service with Stewart's, as the town is part of an intermunicipal partnership with four other communities. Each town opted to put money into the fund for emergency purposes.

The two other funds are for sidewalk repairs and maintenance in the village area, and restoration and maintenance of Dr. Morrill Park.

There were also two lease purchases of about $52,000 which decreased the debt service total.

The initial proposal for the tax rate was $12.10 per thousand, but the use of the fund balance money dropped it $0.26, for a 10.8% increase, rather than 13.2%.

The tax rate had increases of roughly 9% in 2024 and 2023, but from 2021 to 2022 the rate decreased drastically — 70% — going from $15.27 to $8.99. Woodaman said this was a revaluation year, and that typically when the property values increase, the tax rate will decrease. The next revaluation year in Center Harbor is 2027.

The tax bills were approved by DRA staff and have been sent out to homeowners. The deadline for a 2% discount is Thursday, Dec. 12, and bills must be paid in full by Monday, Dec. 22. Tax bills can be paid through the town website at centerharbornh.gov.