LEBANON — The city budget for next year includes funding for a new downtown fire station, a seasonal emergency shelter and additional staffing to better assist residents in need of support services. On Wednesday, the City Council voted unanimously to support a total operating budget of $115.6 million for next fiscal year, with $25.6 million to be raised by property taxes — approximately a 4.6% increase from last year.
The budget increases operational spending by nearly 6%, some of which is attributable to a 2% cost-of-living increase in employee wages and significant increases in health and dental insurance and contributions to the public employees retirement plan.
The new estimated city portion of the property tax rate would be $9.39 per $1,000 of assessed property value, or the equivalent of $2,347 in taxes on a $250,000 home.
“To me, this budget allows us to continue the good work that our city is doing and to make targeted investments in needed areas,” said Councilor Karen Liot Hill said at Wednesday’s meeting.
The budget authorizes bonds for capital projects of up to $25.4 million, most of which will cover the construction of a new central fire station — an estimated $22.6 million project that will involve demolishing the existing station and rebuilding a new facility in the same location that meets modern operating and safety standards.
“This (may be) one of the most important projects in the city’s history,” City Manager Shaun Mulholland told the councilors.
The fire station replacement is intended to create safer working conditions for city firefighters — who are at high risk of cancer due to their occupational exposure to carcinogenic materials. The existing facility, built in 1954, does not provide adequate protection of the firefighter living quarters from vehicle fumes that emanate from the apparatus floor or an isolated decontamination area to clean firefighter clothing and equipment.
Capital expenditures comprise $53 million of the total budget. This includes the fire station replacement and the construction of a child care facility that the city plans to operate in partnership with The Boys & Girls of Central New Hampshire. Construction of the center is estimated to cost $22 million, which will be funded through donations and grants.
The Council also passed three amendments that added a combined $287,000 to the general fund.
The Council, by a 8-1 vote, also amended the budget to add $60,000 in funds to the Department of Human Services to make the assistant director a full-time position.
Councilor Devin Wilkie, who proposed the amendment, said that increasing the assistant director’s staffing hours is needed to address the growing demand for services and support.
Director of Human Services Lynne Goodwin told the council in November that the number of residents seeking assistance has risen exponentially since 2021. In addition to about 100 households who receive direct aid to afford rent, medication, utilities or other needs, the department also has seen a surge in requests from people seeking help accessing federal and state assistance programs.
“Last year we discussed a need to increase the capacity of that department, so (increasing staff hours) addresses an urgent need and is a lower hanging fruit (than creating a new position),” Wilkie said.
Councilor Douglas Whittlesey cast the lone vote in objection. Whittlesey said the spending priority should be to fund the services and resources needed by residents. The department budget for 2024 includes an increase of an additional $45,000 in direct rental assistance, $37,000 to the Listen Center to support its assistance to city residents and $210,000 to fund the operation of a 15-bed seasonal emergency shelter on Mechanic Street — which is expected to open on Jan. 6.
Whittlesey recommended the use of a strategic plan to determine how to address the department’s future staffing needs.
Mayor Tim McNamara supported the amendment, despite his reluctance to add staffing in next year’s budget.
“I am hopeful the additional staffing will free up staff ability to find other outside funds to (offset) taxpayer funds to address these issues,” he said.
A second amendment approved by the Council adds $165,860 to fund a contribution to a matching grant from the state Department of Environmental Services, which recently awarded the city $2.9 million for the purchase of two electric street sweepers — which will replace two city-owned sweepers that run on diesel fuel.
A third amendment adds $61,000 to the Planning and Development Department budget. According to Mulholland, this amount was accidentally omitted from the original budget proposal.
The new fiscal year begins on Jan. 1.
Patrick Adrian may be reached at padrian@vnews.com or 603-727-3216.
