Council passes $100M budget, tax cap-compliant without bonded debt

LACONIA — The city's new budget of $102 million passed unanimously on June 22, after thorough discussion by council. Conversation centered around tax cap compliance, new positions, and funding for infrastructure and downtown beautification.

After a public hearing for the fiscal year 2027 budget, which runs July 1, through June 30, 2027, Mayor Mike Bordes moved to adopt the budget resolution, amended to establish “a fiscal year 2027 budget for the general fund, Motorcycle Week fund, ambulance/EMS fund, sanitary sewer fund, Waterworks Fund, Internal Service Fund, Downtown TIF District, Lakeport TIF District, and Weirs TIF District.” After further thought, Bordes also included the Laconia Pumpkin Festival fund.

Council also amended the Downtown TIF budget at the meeting, to focus on investing in infrastructure and beautification projects. City Manager Kirk Beattie reported the budget of $414,000 includes for new lighting as well as funds for new security cameras in downtown parking garages and Rotary Park, to replace current cameras which are failing.

Beattie noted he had also been working with the Downtown TIF board, and bringing down the $95,000 budgeted on landscaping to $35,000. This will go toward upgrading Rotary Park’s irrigation system and the “fall into winter” downtown beautification plan.

Beattie said the approved budget is within the city's tax cap, adjusted by the Consumer Price Index for inflation, which is up 4.2%, and did not require a two-thirds override vote from city council. In order to successfully fit the budget within the tax cap, council exempted $2.6 million in bond debt service.

Councilor Eric Hoffman (Ward 3) voiced his concern over the budget.

“How do we service new construction when our budget isn’t moved? And does every dollar of new construction that happens in the city actually put the city government a step behind?”

Hoffman also noted allowing exceptions for principal and interest payments encourages council to bond more projects, instead of directly funding them, which would be in the best interest of the taxpayer. For the fiscal year 2027, the council also unanimously voted to increase the amount to be raised by taxes from $66.8 million to $67 million.

Another discussion centered around funding for two new city positions: an information technology manager and deputy city manager. A budget addendum proposed $200,000 to fund the new positions for six months.

“While I understand that new positions are farfetched in our budget situation, I do think we need to strongly consider a network-centric IT person to protect the city assets. We’ve seen what has happened in some other communities with ransomware, and things of that nature. I don’t think we want to wait and be reactive," said Councilor Mike Conant (Ward 6).

Council unanimously approved the new IT position, noting the current staff is overworked.

The proposed deputy city manager position was rejected. Councilors said details on the position’s responsibilities were lacking, and there was no formal request by Beattie for the new role. Bordes said it would be “a huge ask on taxpayers.”

“I would agree that maybe the deputy city manager is not appropriate for this budget, but I do think that we need to keep that on our radar. I think we are approaching a point where this might not be a job that one person can handle,” Hoffman said. “If it doesn’t make it into this budget, I just want to keep it in mind for the next few years.”