Falmouth presented a $22.11 million proposed municipal budget, up 4.88% from this fiscal year.
The financial plan was developed to maintain current levels of service by “preserving the outstanding workforce that will bring its best,” maintain existing infrastructure and sustain a strong fund balance in the name of financial resiliency, according to budget documents.
The budget was presented to the finance committee on March 11. Falmouth’s municipal and school budgets will be presented to the Town Council on March 30. On April 27, the Town Council will decide whether adopt the municipal budget.
Here are the top budget takeaways:
BUDGET DRIVERS
The $1.03 million in new costs arise from higher personnel expenses, increased costs of services and supplies and more funds toward debt service and capital improvement projects.
The wages and benefits of personnel make up 61% of the budget and are up by 3.41%. This is driven by a 3% cost-of-living increase and 12% increase in health insurance costs.
The town is losing $450,000 in excise taxes in the year ahead, as Lucas Tree Experts will be moving out of town and registering its fleet of vehicles elsewhere. Falmouth Finance Director Heather L’Hommedieu Perreault said town staff put in additional work last month to refine the budget to reduce the impact of this loss, which would have doubled the 4% municipal tax increase that was initially drafted.
As a result of this financial challenge, the town is reducing staff, with plans to lay off a sustainability coordinator and eliminate an empty operator position in the public works department. The budget also reduces per diem staffing in the fire department who are paid on a daily as-needed basis.
A fifth of the budget goes toward services and supplies, the cost increasing by 4.39%. The reduction of an energy credit that lowered the town’s electricity costs means the municipal electric bill will be higher. Other costs in this category include partially covering the cost of the tri-community mental health liaison that was previously paid for by a federal grant.
While payments to debt service and capital improvement projects are only 11% of the budget, they are up 14.28% in fiscal year 2027.
“A successful capital improvement program will avoid substantial fluctuations in the impact on the mil rate,” said the proposed budget.
TAX IMPACTS
Of the $22.11 million in expenditures, $12.1 million is set to be raised from property taxes. The projected municipal tax rate increase is 5.52%, up to $3.06 per $1,000 of valuation.
For a Falmouth home assessed at $850,000,homeowners would see an increase of $136 on the town portion of their tax bill. Overall, Falmouth residents with that median home value would pay $2,600 in municipal property taxes.
L’Hommedieu Perreault shared that this tax bill equals “less than $225 per month to support having roads plowed, EMS and fire response, police and public safety, hundreds of acres of parks, trails and open space and many other services.”
This tax rate assumes an increase in property value of 0.7%, or approximately $27.7 million in increased value across Falmouth. The final tax rate will be based on the determined valuations as of April 1, which are expected to be released in August or September.