Laconia City Council Meeting – February 23, 2026

The Laconia City Council met on February 23, 2026, at 7:00 PM. The meeting included a public hearing on proposed short-term rental zoning amendments, a presentation on the new Laconia Community Power aggregation program, debate over the use of a health insurance rebate, and several other items. Council voted 4-1 to refer the short-term rental ordinance to the Planning Board, approved the health insurance rebate allocation, and set public hearings for March and April.

Consent Calendar

• The minutes from the February 9, 2025 meeting were accepted as distributed with no corrections or changes.

Public Comments & Testimony

Citizens’ Comments (Matters Not on Agenda)

• A resident (speaker 1) expressed concern that too many committee appointments go to long‑time members, discouraging new volunteers. She questioned a potential conflict of interest with one person serving on both the Planning Board and Zoning Board.
• Diana Sack urged councilors to attend a recent presentation on property taxes and school costs, noting a follow‑up event on March 5 in Gilford.

Public Hearing on Ordinance 2026‑235‑410 (Short‑Term Rental Zoning)

• Marcia Hayward (Zoning Board member, speaking personally) supported the proposed changes, stating the current language allows too many out‑of‑state buyers to take homes off the market and disrupts residential character.
• Carol Varney described dangerous fireworks from a short‑term rental on July 5, 2025, and argued the property (landlocked, with an absentee owner) was never intended for vacation rentals. She urged adoption of the new rules.
• Steve Faye expressed initial skepticism but later concluded the revised ordinance was thoughtful and a good step forward.
• Dr. Robinson opposed the changes, calling the restrictions an overreach on private property rights. He argued for better enforcement of existing rules rather than new limits.
• Diana Sack cited a year‑long battle with a Texas‑based short‑term rental on Gale Avenue, saying the current ordinance is insufficient and needs strengthening.
• Kelly Dion described noise and disruption from the same Gale Avenue property, supporting the new regulations.
• Mark Burrow, a former short‑term rental host, argued the city should enforce existing noise and nuisance ordinances instead of imposing new restrictions. He claimed he had never received a complaint.

Discussion Items

Presentation on Laconia Community Power

Howard Plant of Freedom Energy Logistics presented the city’s community aggregation program, which will launch on April 1, 2026. The fixed rate is 10.286 cents per kWh—a savings of about 1 cent per kWh (roughly 10%) compared to Eversource’s current 11.303 cents/kWh (effective February 1, 2026 to July 31, 2026). Residential customers are automatically enrolled unless they opt out. The opt‑out postcard was mailed February 20, 2026; customers can also opt out online or by phone before their April meter read. The program runs seven months (April–November 2026). Councilor Hildreth noted the estimated monthly savings of about $15. Mayor and councilors clarified that the program provides stable pricing and is not a new utility.

Mayor’s Report

• The mayor is still assembling an ad‑hoc homeless subcommittee, emphasizing that the right members are needed to avoid past failures.
• The mayor had a productive two‑hour meeting with the CEO of Lakes Region Hospital. He confirmed the hospital is reinvesting in the Laconia facility and that some services are being sent from Concord to Laconia (e.g., robotic surgery). Councilor Hildreth requested the hospital be invited to speak to the council in the future.

Councilor Reports

• Councilor Hildreth reported that the Laconia Motorcycle Week Committee is progressing, with discussions on traffic patterns.
• He also noted a meeting of the Parks and Rec Fund Committee, which had no significant issues.

Citizens’ Requests to Comment on Agenda Items

• A resident requested the city review the winter parking ban (November 1 – May 1), noting that this year the first significant snowfall was December 3, meaning 33 days of ban with no snow. She suggested selling permits for on‑street parking during winter.
• A brief discussion followed on the Community Power program from a resident questioning the small savings; Councilor Hildreth and a planning staff member explained the 10% reduction and long‑term stability benefits.

City Manager’s Report

• Spring road projects are under review; the capital improvement budget will be presented in April.
• The OPG Loop project at the bottom of the second page of the report includes remaining funds for ADA improvements and sidewalk posts.
• The Winnipesaukee River Basin project update: two state bills are in place—one to reduce the annual replacement fund subsidy, another to form a commission. Councilor Bogart and the mayor are working with the state.
• The Pillsbury school group is scheduled to present to the council on March 9, though the sale has not closed. The group is aware of the natural gas moratorium, which will require propane tanks.
• Monthly economic development report: unemployment rates for Laconia, Belknap County, and New Hampshire are in line; January CPI‑U was 2.4%.

New Business – Resolution 2026‑03 (Health Insurance Rebate)

The city received an $86,316 rebate from a former health insurance provider after a buying group folded. The city manager recommended depositing the entire amount into the health insurance stabilization reserve fund.

• Councilor Hildreth proposed using $20,000 of the rebate to help the Belknap Mill with foundation repairs (two deteriorating supports). The mill has raised most of the needed $78,000 from grants and donations but requested $20,000 from the city. City Manager Biotti expressed comfort with the request and noted a representative from the mill could attend the public hearing.
• The friendly amendment to split the funds was accepted: $66,316 to the reserve fund and $20,000 to the Belknap Mill.
• The motion passed 5‑0.
• A separate motion to schedule a public hearing on March 9, 2026 for input on the resolution also passed 5‑0.

Ordinance 2026‑221‑36 (Winter Parking Ban Change)

• Council voted unanimously to waive reading and give first reading to an ordinance shifting the winter parking ban from November 1 – May 1 to November 15 – April 15.
• A public hearing was scheduled for March 9, 2026. Councilor Hildreth will share copies of parking bans from 13 other cities for comparison.

Agenda Item 21C – Clay Street One‑Way and No Parking

• The motion to schedule a public hearing on April 6, 2026 to consider making Clay Street one‑way (from Bowman Street to Fair Street) with no parking on the right side passed 5‑0. The city manager noted that garbage service would move to the opposite side. District maps will be highlighted prior to the hearing.

Agenda Item 21D – 1467 Lakeshore Road Soil Contamination

• The council authorized City Manager Kirk Biotti to send letters of support to state and federal agencies regarding soil contamination at a former gas station in Gilford. Ben Crawford (Laconia Water Superintendent) explained that contamination levels have dropped 70% but remain 90 times acceptable limits. The state will not fund further remediation until the private property owner replaces a culvert. The motion passed 5‑0.

Ordinance 2026‑235‑410 (Short‑Term Rental Zoning) – Referral to Planning Board

• After the public hearing, Councilor Hildreth moved to refer the proposed ordinance (with the council’s changes) to the Planning Board for review and approval.
• Councilors debated: Councilor Conant opposed, arguing the city should not restrict private property rights and that second‑home owners contribute through taxes and tourism. Councilor Bogart supported the measure, stating that residential neighborhoods should not be turned into “weekend hotels” and that property rights do not include infringing on neighbors’ peace and quiet. Councilor Hildreth emphasized that non‑owner‑occupied rentals change neighborhood character and reduce housing for year‑round residents. Councilor Hoffman praised the ordinance for allowing owner‑occupied short‑term rentals in appropriate zones and for tightening controls on non‑owner‑occupied ones.
• Planning staff confirmed that currently permitted short‑term rentals would be grandfathered; the 120‑day rental cap remains in the new ordinance. Owner‑occupied rentals in RS zones would require a variance (not a special exception) under the new rules.
• The motion passed 4‑1, with Councilor Conant voting against. The ordinance will go to the Planning Board on March 3, 2026, and return to council for final adoption as early as March 9.

Key Outcomes

• Health Insurance Rebate: $66,316 allocated to the health insurance stabilization reserve fund; $20,000 to Belknap Mill for foundation repairs (approved 5‑0). Public hearing set for March 9, 2026.
• Winter Parking Ban: First reading approved; public hearing March 9, 2026.
• Clay Street One‑Way: Public hearing scheduled for April 6, 2026.
• Soil Contamination Letter: Authorized city manager to send letters of support (approved 5‑0).
• Short‑Term Rental Zoning Ordinance: Referred to Planning Board (4‑1). Planning Board will hold a public hearing on March 3, 2026, then recommend back to council for potential final adoption on March 9, 2026.
• Meeting adjourned without a formal motion, per Robert’s Rules.