The Salem Town Council continued its review of the proposed 2027 Town budget on Wednesday, October 7, 2026. During the meeting, the Council examined department budgets and voted on several changes relating to operating expenses, staffing services, capital needs, and warrant article funding. The proposed budget is still under review and has not been finalized or approved. Items discussed or changed during the meeting may be revisited as the Council concludes its review.

Residents can watch the Town council budget meeting from October 7, 2026. Video timestamps are provided below to help viewers find each portion of the discussion.

Revenue Estimates and Unassigned Fund Balance

Video timestamps: 5:20 and 9:01

The Council discussed the possibility of increasing the 2027 revenue estimates by as much as $2 million. The primary focus of the discussion was on building permit revenue and the potential use of additional unassigned fund balance to reduce the amount raised through taxation. Staff advised caution against relying on one-time revenues to cover recurring operating costs. No final changes to the overall revenue estimate were made during the discussion.

Employee Pay and Elected Salaries

Video timestamps: 23:11, 35:09, 56:33 and 58:22

The proposed budget includes 4 percent cost of living adjustment for non-affiliated employees. Council members discussed the possibility of reducing or eliminating this increase, or alternatively, providing a one-time stipend instead of raising base salaries. Staff were instructed to calculate the total budget impact if employees who are not contractually entitled to a raise do not receive the cost-of-living adjustment. This information is expected to be presented to the Council as the budget review process continues. Additionally, the council voted to maintain the Town Clerk’s salary at $65,470 and the Tax Collector’s salary at $108,440 rather than applying the proposed 4 percent increase.

Community Development

Video timestamp: 59:42, 1:01:30, and 1:08:22

The proposed Community Development budget included $123,767 allocated for the Cooperative Alliance for Regional Transportation Services. However, the Council voted unanimously, 9 to 0, to reduce this amount to $93,640. This adjustment will allow for the continuation of regular service while limiting demand service to three days per week. Staff indicated that the reduced service level would need to begin on January 1 to remain within the revised budget.

During the meeting, the Council discussed the proposed position of Community Development Director, which is budgeted at a salary of $132,608. They also noted that the total cost of this position, including benefits, would exceed $206,000. Council members expressed concerns regarding the proposed role and requested an updated organizational chart. This chart should illustrate how Community Development, Planning, Building Inspection, and related functions would be structured before a final decision is made. No changes to the position were finalized during the discussion.

Additionally, in a separate vote, the Council removed a new $20,000 annual imagery subscription from the Community Development budget.

Recycling and Human Services

Video timestamps: 2:23:52 and 2:53:03

The Council discussed the rising costs of solid waste and recycling services. The proposed solid waste budget includes approximately $1.71 million for contracted services, which represents an increase of about $266,000 from the 2026 budget. The Council voted to reduce the solid waste budget by approximately $65,000 and to discontinue the Town’s recycling program at the transfer station. Staff was instructed to report back with the actual savings based on the timing of the changes and the upcoming solid waste contract.

The proposed budget also includes $96,510 for outside human services agencies. Council members engaged in an extended discussion regarding whether these organizations should continue receiving funding through the operating budget or seek voter approval through individual warrant articles. The Council voted 7 to 1 to remove $81,510 from outside human services funding while retaining $15,000 for Meals on Wheels. Council members expressed the need for additional information before deciding how to adjust the Town’s Direct Assistance budget.

Roadway Improvement Warrant Article

Video timestamp: 3:10:04

The Council voted 8 to 0 to increase the proposed roadway improvement warrant article from $2.5 million to $3 million. Council members described $3 million as a reasonable level compared to previous road funding.

Other Budget Changes

During its line-by-line review, the Council also approved several smaller departmental reductions and one-time funding changes, including using $36,500 in unassigned fund balance for the North Fire Station septic replacement.

Budget Review continues

Video Timestamps: 3:17:08

The Council is set to continue its budget review on October 14 at 6:00 p.m. The upcoming meeting will address unresolved follow-up items, including revenue assumptions, employee compensation, the reorganization of Community Development, and funding for Human Services.

Members of the public will be welcome to attend and ask questions about the items included in the budget book. Because several increases and reductions were approved during the October 7 meeting, a revised final budget total and updated tax rate were not established at that time.

Learn more

Residents can use the following resources to learn more about the meeting and the proposed 2027 budget:

• Watch the October 7, 2026 Town Council Budget Meeting
• View the Full Meeting Agenda
• View the Proposed 2027 Budget and Supporting Documents

Residents with questions about the proposed budget may email budget@salemnh.gov.