The Watertown City Council unanimously approved the fiscal year 2026-27 operating budget on May 21st, adopting an 8.14% tax levy increase that translates to an 8.38% property tax rate increase. The budget incorporates several cost-cutting measures decided during executive session, including elimination of two fire department positions through attrition, one codes department position cut, and a freeze on management wage increases that saves approximately $26,000 in the general fund. Refuse sticker prices will remain at $5 following Councilmember Shane Garrabrant's proposal to block a planned increase to $5.25.
Mayor Sarah Pierce expressed concerns about the management pay freeze's potential impact on employee morale, though no other council members commented on the issue. The council also approved the five-year capital program budget, annual fees and charges schedule, and management pay rates. The fund balance appropriation was reduced by roughly $226,000, dropping to approximately $1.67 million as the city faces significant financial pressures from increased pension costs, fire department overtime, and debt from recent renovations. Finance Director Mills noted that the city has approximately one more year of fund balance draws remaining before reserves reach minimum levels.
The council unanimously approved an ordinance updating water and fire service charges. A proposed local law amending sewer service charges was introduced and scheduled for public hearing on June 1st at 7:15 PM in City Council chambers, giving residents an opportunity to comment before the measure advances further.