by Burlington Mayor Emma Mulvaney-Stanak
Dear Neighbors,
I’d like to speak openly with Burlington residents about the City’s finances as we begin building the Fiscal Year (FY) 2027 budget.
As with any fiscal year, we are facing some difficult choices – but this is also an important moment to shape a strong, affordable future for our community.
The Work Ahead
First, let me get right into the problem. Burlington is facing another structural budget gap, which we estimate will be roughly $10-12 million for FY27.
I want to emphasize that this is not an anomaly. A structural budget gap means that, year after year, the City’s expenses cost more than the money we bring in, even when there are no emergencies or surprises. The gap can’t fix itself, and closing it requires long-term solutions, not temporary fixes.
Burlington’s recurring budget gaps point to a long-building problem in the City’s general fund operating budget. The challenge is three-fold:
- Significant growth in the city workforce and services prior to my administration.
- Increased reliance on temporary funding sources to support ongoing costs.
- Slow growth in the City’s grand list (average of 1% in recent years) combined with limited taxable land.
Simply put: We need to continue to right-size our government for the long-term health of our City, all while we grow our grand list and activate our local economy in new and strategic ways.
Right-sizing means making sure the City’s structure, staffing, and spending match the revenues we can sustainably support. It requires thoughtful decisions about which services matter most, how we invest in our workforce, and how we plan for the future. While this work is challenging and takes time, it is essential to building a Burlington that is strong, effective, financially stable, and affordable for both current and future residents.
December 11, 2025 - Mayor's Monthly Press Conference on the FY27 Budget
Planning Today for a Stronger Tomorrow
As we prepare the FY27 budget, we are exploring solutions across these broad areas:
- Being strategic and disciplined in our investments as a city, based on our three priorities of community safety, affordable housing, and climate resilience.
- Considering revenue options that are sustainable, affordable, and realistic for our city and our taxpayers.
- Continuing to right-size our city services and being clear on what are essential services for residents, businesses, and our visitors.
And we are leaving no stone unturned, partnering closely with our Department Heads, City staff, City unions, and City Councilors to bring as many creative solutions to the table as possible.
One solution I brought to City Council on December 15 is a responsible, strategic public safety tax increase for voters to consider on Town Meeting Day in March. The proposal for a 5-cent Police and Fire Tax would raise $3M and cover some, but not all, of the growth in our Police and Fire Department budgets over the past year due to necessary investments in the core functions of our police, fire, and alternative response programs.
I look forward to more detailed discussion with the Board of Finance in the weeks to come; the next step is for City Council to vote on whether to approve it for the Town Meeting Day ballot.
Keeping Burlington Within Reach
Affordability remains a top concern for my administration. This is why I am proposing an advisory question on the March 2026 Town Meeting Day ballot asking voters whether Burlington should pursue a universal homestead tax exemption of $30,000. An advisory question is used to measure public opinion, not to create or change law directly; it allows residents to voice their opinions on an issue before the Mayor and City Council take action.
The universal homestead tax exemption is one of several policy proposals we are exploring that came from the Tax Fairness Working Group I convened one year ago. The tax exemption would reduce the taxable value of primary homestead residences in the city by $30,000, which would provide critical tax relief for an estimated 2/3 of homeowners in the city and begin to address inequities in our property assessment process.
Tax rates set by the City Charter would be adjusted so that the proposed $30k homestead exemption would be revenue neutral. This means that non-homestead properties would see a 3.1% increase in their annual municipal tax bills. This is not expected to significantly increase rents in the city; you can read this memo for analyses of the impacts of the proposed exemption on homestead and non-homestead properties and by city ward.
Similar to the public safety tax increase, the next step will be for City Council to vote on whether to approve placing this advisory question on the Town Meeting Day ballot.
At the state level, we are advancing legislative priorities to improve affordability and protect renters, including voter-approved charter changes for just cause eviction and advance notice of rent increases. We are also urging the state to raise the outdated income threshold for municipal property tax credits and to strengthen the renter credit program to better support moderate-income renters.
Stay Connected
There are many ways to stay engaged in the weeks ahead:
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Tune in to the next City Council meeting on January 12 for more about the budget, public safety tax increase, and tax advisory question.
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My administration will also be speaking about these topics at our Neighborhood Planning Assemblies (NPAs) in January and February.
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Keep an eye out for educational materials on the Mayor’s webpage.
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And always feel free to bring questions and ideas to my monthly Mayor Meet Ups.
I want to close by acknowledging that these budget challenges are real, but so is Burlington’s ability to meet them together. By being clear-eyed about our finances and focused on the long-term health and affordability of our city, we can build a stronger, more stable future. I’m grateful for the partnership of our residents and confident in what we can accomplish together.
In solidarity,
Emma Mulvaney-Stanak
Mayor
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