Burlington Announces Reduced FY27 Tax Impact and Unified Support for Public Safety Investment
Vermont Business Magazine Mayor Emma Mulvaney-Stanak today announced significant late-breaking budget news that will substantially reduce the projected municipal tax increase for Fiscal Year 2027, while highlighting unified support from public safety and municipal union leaders for the Police & Fire tax rate increase on the March 3 ballot.
After receiving updated actuarial data from the City’s retirement advisors, Burlington now anticipates a significantly lower retirement tax increase than originally projected. The City originally estimated the City’s retirement obligation to require a 10% increase in the retirement “splinter tax” by increasing it from $0.19 cents (FY26 rate) to $0.21 for FY27. Final figures from the City’s retirement advisors will require only the tax to be set at $0.18 in FY27 — resulting in a decrease in the retirement tax rate and an overall modified projected municipal tax increase of 6.1%, down from the previously estimated 9.4%.
“This is big news for Burlington taxpayers,” said Mayor Mulvaney-Stanak. “Because our retirement system significantly outperformed expectations last year, we’re able to lower the overall projected tax impact while still responsibly meeting our long-term obligations.”
The City’s retirement system assumed a 7.1% rate of return and achieved an actual 12.6% return. Burlington uses a five-year smoothing average to reduce volatility when calculating retirement obligations.
As a result, a home assessed at the City’s median value of $353,000 would now see an estimated municipal tax increase of approximately $186 next year — compared to the original projection of $285 annually.
At the same press conference, the Mayor was joined by leaders of Burlington’s public safety and municipal unions, who expressed strong support for the proposed $0.05 Police & Fire tax rate increase that voters will consider on March 3.
Joining the Mayor were:
- Padric Hartnett, President of the Burlington Police Officers Association
- Joshua Kirtlink, President of the Burlington Fire Fighters Association
- Colby Delaire, President of the AFSCME Local 1343
The proposed $0.05 increase would raise approximately $3 million to fund contractual salary and benefit increases negotiated last year with union members — agreements unanimously endorsed by the Burlington City Council. The proposed increase received bipartisan support from both the Board of Finance and the City Council before being placed on the March ballot.
“This proposal responsibly funds the growth in our police and fire budgets and invests directly in the workforce that keeps Burlington running safely and effectively,” said the Mayor. “Community safety has been my top priority since day one.”
The funding would also support two new firefighter positions and six new first responder vehicles.
Union leaders emphasized that stable, predictable funding is critical to maintaining high-quality public safety services and ensuring residents receive timely and effective emergency response.
“This investment is about both our people and our community,” Mayor Mulvaney-Stanak added. “It supports the officers, firefighters, and city staff who serve every day — and ensures residents get the help they need when they call.”
The FY27 budget process will continue through the spring, with department presentations to the Board of Finance in April and final budget adoption required by June 30.
“Our administration remains focused on delivering a balanced, responsible budget that protects essential services, strengthens Burlington’s long-term financial stability and creates a more affordable city for residents,” the Mayor said. “Today’s retirement update shows that careful financial stewardship matters — and that we can meet our obligations while minimizing impact on taxpayers.”
2.13.2026. BURLINGTON, VT – Mayor
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