City leaders allocate money for master plan update, new hires, Pumpkinfest in upcoming budget

LACONIA — City councilors will hold their second public hearing on the manager’s proposed budget at their next meeting at 7 p.m. on Monday, June 23, following the first reading Monday night. 

“What this first reading and resolution is, is exactly how I presented it in April,” City Manager Kirk Beattie said Monday. “We will have updates for you that will be coming for your consideration before you pass the full budget that does include Pumpkinfest.”

No action was taken on the budget Monday; it was the first opportunity for public input. According to the city charter, councilors must hold a public hearing before the budget can be adopted. 

“The proposed budget includes estimated revenues and expenditures for the general fund, Motorcycle Week fund, ambulance EMS fund, sanitary sewer fund, water works fund, internal service fund, Downtown TIF District, Lakeport TIF District and Weirs TIF District, as well as anticipated grants" for fiscal year 2025, Mayor Andrew Hosmer said.

The budget, when adopted, would fund the city’s operations between July 1, and June 30, 2026.

Beattie presented a preliminary budget in April, which is compliant with the city’s tax cap, and anticipated a slightly reduced municipal tax rate. 

Tax rates are determined by the New Hampshire Department of Revenue Administration, but Beattie’s initial estimate would see the city’s tax rate reduced by $0.09, down from $13.63 last year to $13.54 in fiscal year 2025.

The city’s tax rate decreased five times between 2020 and 2024, and property valuation increased each year.

“These numbers are not final until DRA does their evaluation,” Beattie said in April. “These are estimates, I think we’ve done a nice job of not over-valuating [sic] on our conservative part.”

In recent meetings, city department heads have presented their respective budgets to the city council. Monday night, councilors heard details of the police and code enforcement department budgets. They’ll have ample opportunity to request more information from department heads or suggest revisions to the city budget as the process moves along.

Councilors must pass a budget by the end of July, one month into fiscal year 2025-26.

The total dollar amount proposed to be raised by taxes for the city, the school district, the county and state education is $61.54 million, 4.09% more than in fiscal year 2024. 

Each department director submits an itemized estimate of expenditures for fiscal year 2025 to Beattie, who works with Finance Director Glen Smith to compile a comprehensive document submitted to the council for their review, debate and eventual approval. 

The budget for the upcoming fiscal year includes several new positions: a community paramedic in the fire department, a crime analyst in the police department and a project manager in the planning department.

The budget also proposed $100,000 to fund an update to the city’s master plan, which hasn’t occurred since 2018.

In November 2005, councilors adopted a tax cap to limit increases in future budget years. The tax cap limits spending for the city, county and the school department by restricting increases to changes in the urban federal national consumer price index and to the value of new building permits between April 1 and March 31, less the value of demolitions, multiplied by the tax rate from the previous year. 

Councilors can override the tax cap by a two-thirds vote. 

Based on the tax cap, the total allowable increase in the amount to be raised by taxes for fiscal year 2025-26 is $2.42 million.