Tom Quigley: Laconia’s budget for next year would exceed city’s tax cap

To The Daily Sun,

As Laconia residents review the proposed fiscal year 2026-27 budget, one fact deserves attention: the budget would exceed the city's tax cap by more than $2.5 million unless debt-service costs are excluded under a provision of the City Charter.

The charter's tax cap, approved by voters in 2005, limits annual growth in property tax revenue based on inflation and net new construction. For FY27, those factors allow tax revenue to increase by $2.7 million.

The proposed budget would raise $66.8 million in total property taxes, approximately $2.52 million above the cap target of $64.3 million. To comply with the charter, the city manager proposes excluding $2.5 million in bond principal and interest payments, a provision specifically allowed under Charter Section 5:03.5. After that adjustment, the budget falls only about $10,000 below the cap.

Other notable changes include:

• City property taxes increase 9.81%
• Local school taxes increase 9.78%
• Belknap County taxes increase 6%
• State education taxes decrease 1.71%
• General fund non-tax revenues decline by $1.49 million, shifting more of the burden to property taxpayers

The estimated total tax rate rises from $12.98 to $13.42 per $1,000 of assessed value, an increase of 3.39%. For a home assessed at $400,000, that equates to roughly $176 more per year. Final figures will depend on assessed valuations completed later this year.

I offer these numbers not to support or oppose the budget, but because informed discussion begins with understanding the facts.

Tom Quigley

Laconia