Milton town manager introduces Fiscal Year 2026 budget

Milton’s Fiscal Year 2026 draft budget features a $15,000 surplus, a new five-year capital improvement program and a 3.35% property tax increase.

Town Manager Kristy Rogers presented the first draft at a July 21 meeting. 

Overall, the budget estimates $5.5 million in projected revenue and $4.9 million in expenses, but when restricted revenue is factored in, the overall budget surplus is $15,000. 

Rogers said the town is in a much better position than it was the year before, with the main improvement being the town’s reserve fund. Rogers said building up the reserve funds – which the town had used often in the past to balance the budget – will enable the town to mitigate financial risks, and have cash on hand, and will help the town’s bond rating in the event that it needs to borrow money. Overall, she said the town’s most recent audit shows Milton has 11 months’ worth of operating expenses in its general fund and 16 months’ worth of operating expenses in its utility fund. 

The budget calls for a 3.35% property tax increase, which, if passed, would be the third straight year the town increases property taxes. But this increase is in keeping with an ordinance passed last year that tied property tax increases to the consumer price index and the employment cost index. Town council passed that ordinance after FY 2025’s 30% tax increase, which was aimed at keeping services to the level residents are accustomed to and helping build up the reserve fund. It’s a way to avoid large increases in the future.

Property taxes are the town’s primary source of revenue, accounting for 66% of revenue. The increase will bring the town an additional $75,000. Rogers said general fund revenue does not include real estate transfer tax revenue, which is set aside as reserves. Part of the rationale for weaning the town off transfer tax revenue is because it can be unpredictable, and Rogers pointed to data showing home buying within town slowing down. 

Besides the property tax rate, the only other increases for residents are the trash bill rising from $80 per quarter to $83 per quarter, and the debt service fee, which is going from $8.50 per quarter to $12 per quarter. 

Rogers was particularly proud of the new five-year capital improvement plan, which she said will provide a road map for better planning and financing of improvements. Rogers said this plan is much more in-depth, as it is categorized by department, and projects are given a priority ranking based on a scoring system. She said this will be much more efficient, as decisions on spending for capital improvements will be based on data. 

Among the capital improvements planned for FY 2026 is a proposed renovation to town hall that would add four to five new offices for staff, a new meeting room, an office for mayor and council, and improved security. 

Also included is planning for the new police station and municipal building on Magnolia Street, land the town purchased earlier this year. Rogers said demolition of existing structures on the property is part of the plan. 

Other capital projects include the purchase of two new vehicles for the police department, a new salt spreader and utility trailer for the streets department, and a new equipment trailer for the water department. The plan also includes replacing water mains on Boxwood and Hemlock streets, both located off Bay Avenue. 

Police and public safety account for 48% of expenses, and the town is expected to enter into negotiations with the Fraternal Order of Police on a new contract this fiscal year. With the new contract, the budget plans for an 8% increase to the town’s pay scale. Of the other expenses, 20% is in administration, streets makes up 14%, code enforcement is 11% and parks are 7%.

The town has a separate budget for its utilities, primarily water but also trash collection, which the town contracts with an outside vendor. The utility budget is $1.7 million for FY 2026, but revenues raised by utility fees are restricted in their use, so the town splits them off into their own budget. 

Town council will make its first comments on the budget at its Monday, Aug. 4 meeting. While council is looking at the budget, it will also be reviewed by the finance committee, which will hold its first meeting Tuesday, Aug. 5. The plan is to have a public hearing on the budget at council’s Monday, Aug. 18 meeting, and then vote on it Monday, Sept. 8. By town code, the budget must be in place before the new fiscal year begins Oct. 1.