The Salem Town Council continued its review of the proposed 2027 Town Budget on Wednesday, October 14, 2026. The Council discussed several outstanding budget items, approved additional changes, and reviewed updated budget figures before the budget moves forward for Budget Committee review.
Residents can watch the October 14, 2026, Town Council Budget Meeting. Video timestamps are provided below to help viewers find each portion of the discussion.
Employee Cost of Living Adjustment
Video timestamp: 6:45
The proposed 2027 budget originally included a 4 percent cost of living adjustment for non affiliated employees. The Council voted 9 to 0 to reduce the adjustment to 3 percent, lowering the budget by approximately $17,367.
Recycling Follow Up
Video timestamp: 19:39
The Council revisited its October 7 decision to discontinue the Town’s recycling program at the transfer station. Council members requested updated information comparing recycling and solid waste disposal costs. Staff explained that final costs are not yet available because the solid waste contract is still out to bid. Staff will provide updated figures when available.
Human Services
Video timestamp: 22:29
The Council voted 7 to 2 to add $30,000 to the Town’s Direct Assistance budget. The additional funding is intended to provide greater flexibility for residents who may need assistance with costs such as heating and utilities. Outside agencies removed from the operating budget may seek funding through separate warrant articles for voter consideration.
Fireworks Funding
Video timestamp: 28:21
The Council voted 7 to 2 to use $45,000 in charitable gaming revenue received during the prior year for a Town fireworks display.
Staff noted that an initial estimate of approximately $20,000 did not include all associated costs and that the Town will seek bids.
Unassigned Fund Balance and Capital Purchases
Video timestamp: 31:33
The Council voted 9 to 0 to use $300,000 in unassigned fund balance for the equipment replacement account as a one time capital expense. The Council also discussed using additional unassigned fund balance for the future South Fire Station project. That funding was not approved as part of this vote and is expected to be considered during a future warrant article discussion.
Updated Budget
Video timestamp: 39:15
At the conclusion of the review, staff reported an updated overall budget of approximately $73.27 million, including enterprise funds.
Staff also reported that the revised operating and capital budget comparison showed a decrease of approximately 3.35 percent from 2026 when certain items, including enterprise funds and the road program, were excluded. Outstanding collective bargaining agreements and warrant articles may still affect the final budget.
During the discussion, staff also referenced the Council’s October 7 vote to increase the roadway improvement program from $2.5 million to $3 million. That increase was approved 8 to 0 and is reflected in the broader budget discussion.
Budget Review Moves Forward
The October 14 meeting concluded the Town Council’s current review of the proposed 2027 Town Budget. The budget will next move to the Budget Committee for review.
Additional changes may occur as the budget continues through the public review process.
Learn More
Residents can use the following resources to learn more about the meeting and the proposed 2027 budget:
- View the Full Meeting Agenda
- View the Proposed 2027 Budget and Supporting Documents
- Read the What You Missed at October 1, 2026, Town Council Budget Meeting Article
- Read the What You Missed at October 7, 2026, Town Council Budget Meeting Article
Residents with questions about the proposed budget may email budget@salemnh.gov.
