The Salem Budget Committee held its first preliminary review of the proposed 2027 municipal budget on Thursday, October 29. Town Manager Joe Devine and Finance Department staff presented the budget recommended by the Town Council, providing an overview of projected expenditures, revenues, and potential impacts on taxpayers.
Key Budget Highlights
The proposed total budget is approximately $76.27 million, including municipal operations, water and sewer enterprise funds, and the proposed $3 million road improvement program.
The general fund operating and capital budget totals $60.84 million, a 2.44% decrease from 2026. However, officials explained that an approximately $3.4 million reduction in anticipated revenue, largely related to expiring grant funding, is contributing to an increase in the amount that would need to be raised through property taxes.
Based on current projections, the municipal portion of the property tax rate would increase from an estimated $4.21 in 2026 to $4.35 per $1,000 of assessed property value in 2027, an increase of 14 cents. This estimate includes the proposed $3 million road program but does not account for all potential warrant articles.
Officials emphasized that these figures remain preliminary, as additional warrant articles and ongoing labor negotiations could affect the final budget and estimated tax impact. Individual property tax impacts may also vary following the Town’s recent property revaluation.
Major Topics Discussed
Committee members reviewed departmental budgets and discussed several significant expenses, including:
- Rising employee health insurance costs, with rates increasing approximately 13%.
- Debt payments associated with the new Police Department facility.
- Anticipated increases in solid waste disposal and collection costs, including discussion of recycling expenses.
- Water and sewer expenses, including additional water purchases from Manchester.
- Proposed warrant articles and their potential impacts on taxpayers.
Several proposed projects would utilize existing Town funds, grants, or utility revenues rather than directly increase the municipal property tax levy.
What Happens Next?
No final decisions on the proposed budget were made during this initial review. The Budget Committee will continue examining expenditures, reviewing revenue projections, and considering potential adjustments as the budget process moves forward.
The municipal budget process will continue toward the January 30, 2027, Deliberative Session, followed by Town Meeting voting in March. Residents are encouraged to stay informed and follow upcoming Budget Committee meetings as the review process continues.
Stay Connected
Town Meeting Calendar: https://www.salemnh.gov/calendar.aspx
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