Fitchburg Committee of the Whole Meeting: Budget Overview and Priority Discussion - August 26, 2026

The Fitchburg Committee of the Whole met on August 26, 2026, to discuss the 2027 municipal budget process and gather council priorities. Finance Director Misty Dodge provided an extensive overview of budget constraints, property tax calculations, levy limits, and the projected fiscal outlook. Following the presentation, the Mayor and council members shared their priorities for the upcoming budget. The meeting concluded with a tentative decision to move the November committee meeting to December 9, 2026.

Consent Calendar

• The minutes of the July 22, 2026, Committee of the Whole meeting were approved unanimously.

Public Comments & Testimony

• No members of the public spoke.

Discussion Items

• Budget Presentation (Misty Dodge, Finance Director):
  • Provided context for the 2027 budget process, including terminology and statutory constraints.
  • Reviewed the 2026 adopted budget: tax rate $5.4236 per $1,000 assessed value (down 6.44% from prior year); tax levy increased 2.46%; average home taxes $2,737; general fund budget $37.1 million; all funds total $48 million. Only 31.9% of the property tax dollar is retained by the city.
  • Projected 2027 budget outlook: TID-in equalized value $7 billion (4.4% increase); TID-out equalized value $6.51 billion (3.6% increase); TID increment $491 million (17.9% increase). Net new construction was $173 million (2.58%). CPIU projected at 3.2%.
  • If the council levies up to the full allowable amount, the total property tax levy increase would be about 3.4%, assessed tax rate $5.49, average home taxes $2,772 (increase of $35 annually). Equalized tax rate projected at $5.20, likely maintaining eligibility for the Expenditure Restraint Incentive Program (ERIP).
  • Explained the property tax calculation formula using a cake analogy, and discussed the five main budget constraints: taxpayer ability/willingness to pay, the optional expenditure restraint program, maintenance of effort requirements, financial guidelines, and levy limits.
  • Described the structural deficit facing local governments due to levy limits and inflation, emphasizing that the city must use one-time revenues for one-time expenses and fully fund decisions.
  • Presented the budget timeline: Mayor's proposed budget due September 18, 2026; special finance committee presentation September 29-30; public hearing October 13; amendments due October 14; committee of the whole discussion on amendments in October; council vote in November.
• Mayor's Priorities:
  • Maintain the two firefighter positions approved the previous night.
  • Provide a 2% cost-of-living adjustment and 1% merit increase for employees, and maintain current benefit levels.
  • Increase the legal budget by $50,000 for outsourced legal services to support the City Attorney.
  • Increase police training budget by $6,500.
• Council Priorities (in order of speaking):
  • Alder Logan Jetzer: Prioritize sustainable funding for the two firefighter positions; consider expanding bus routes 65/75 but noted concerns about Metro Transit feasibility; review programs for impact and consider reprioritizing low-usage recreation programs.
  • Alder Bill LaDace: Maintain firefighter positions and transit; support solar projects (three 20 kW installations at approx. $50,000 each) using a budget amendment.
  • Alder Jake Leper: Prioritize public safety and holistic approach (healthy neighborhoods); modest increase in fire wellness budget for staff.
  • Alder Gearhart: Support firefighter positions and transit; allocate affordable housing fund dollars; increase funding for the community well-being fund by diverting a larger percentage of court fines and forfeitures revenue.
  • Alder Donald Rigstead: Focus on transportation options for seniors, city connectedness, increasing housing supply, supporting public safety officers.
  • Alder Bill LaDace (additional): Proposed a $10,000 annual line item for public art.
• Council Response to “If money were no object” question: Members suggested a 24/7 mental health outreach team, teen center, youth council, workforce housing, land banking, road maintenance, true COLAs, business incubator, larger city festivals, more trees, additional communications staff, more finance/admin/HR support, a conservancy park, and a downtown area.

Key Outcomes

• The minutes of July 22, 2026, were approved.
• No formal votes were taken on budget items; the discussion set the stage for the upcoming budget process.
• The committee tentatively decided to move the November 25, 2026 committee meeting (day before Thanksgiving) to December 9, 2026, pending confirmation from Fitchburg Access TV.
• Next committee of the whole meeting is scheduled for September 23, 2026.