The Londonderry Town Council and Budget Committee began discussions on the proposed FY2027 operating budget during a kickoff meeting last weekend.
“So the FY2027 budget is $48,364,762,” Town Manager Shaun Mulholland explained during the meeting.
He said the proposed budget reflects a 6.9% increase, “representing a $3.1 million increase.”
The FY2026 budget is $45,211,389.
Mulholland noted that the FY2027 Default Budget is $47,490,987, which is 5% higher than the FY2026 budget.
He explained that the projected tax rate increase for FY2027 won’t be known until this year’s tax rate is set. The tax rate is determined by the State Department of Revenue Administration, not calculated by the Town.
Of the total $3,153,373 increase in the FY2027 proposed budget compared to FY2026, Mulholland said about $1.4 million is for wages.
Mulholland explained that last year voters approved several collective bargaining agreements, and most of the increase reflects those commitments.
“Those represent those increases,” Mulholland said during the meeting.
In total, the FY2027 budget calls for a $1,403,923 increase for wages.
For benefits, including health and dental insurance, the Town expects a smaller increase compared to other communities.
Mulholland said health insurance is projected to rise about 3% and dental about 4%, which he described as “really good” in the current climate. He noted some communities are seeing increases between 15% and 30%.
Mulholland said those rates are based on claims and “will continue to fluctuate,” noting that the total proposed FY2027 increase for benefits is $567,697.
For solid waste collection and disposal, the proposed increase is $432,930. Mulholland said negotiations began before he joined the Town, starting at a 20% increase but ultimately reduced to about 8–9%.
For IT, software, and other management services, the FY2027 budget includes an increase of $280,584 compared to FY2026. Mulholland expects $180,000 of that to come from a grant for the Fixed Asset Management Program and additional revenue from building fees.
The proposed FY2027 budget also calls for a $283,939 increase for retirement system payments.
Out of the $3,153,373 increase in the FY2027 budget, 94% is accounted for from wages, benefits, retirement system payments, solid waste collection/disposal, and IT, software, and other management services.