By Tara Fischer

Staff Writer

The Town of Berlin’s fiscal year 2026 budget passed this week. The document includes a $17.4 million general fund, a $8.8 million utility fund, and a flat property tax rate.

The Berlin Town Council unanimously adopted the municipality’s FY26 budget on Monday, June 9. The spending plan consists of a balanced general fund budget of approximately $17.4 million and a balanced electric budget of about $8.8 million.

A few changes were made to the budget between its passage this week and its review on May 27. For instance, according to Berlin Finance Director Natalie Saleh, the $50 Food Lion gift card provided to employees each year around Thanksgiving was combined with the $300 one-time payment, also given during the holidays.

This move was discussed at last month’s budget review, during which the council agreed that combining employee appreciation line items made the most sense.

“I like it,” Councilman Steve Green said at the time. “I think some people don’t like shopping at that particular grocery store, and it’s easier…I just can’t imagine it not being well-received.”

Additionally, Saleh said $50,000 had been added to the Worcester County Unrestricted Grant.

Councilman Jack Orris noted that the comprehensive plan update budgeted for FY26 is estimated to cost around $100,000 but worries its price tag could be north of that amount. Orris inquired if the additional $50,000 from the county could be used for the comp plan upgrade, if it requires more funding.

“In the planning for the comprehensive plan update, we have budgeted for $100,000,” Orris said. “I understand there is some concern from some of us that that is not enough…I’m not saying all of it, but some of the $50,000 grant from the county could get us to where we would like to be for the comp plan update. I’m just throwing that as an option to do at another time.”

Berlin Mayor Zack Tyndall agreed that $100,000 may not be enough.

“We think $100,000 may do it, but it could be upwards of $130,000 or $160,000,” he said.

Town Administrator Mary Bohlen argued that “it’s hard to judge.” She noted that the City of Cambridge’s comprehensive plan cost around $168,000, but that document covers a larger area

“I was thinking that after the Cambridge discussion, $120,000 or $130,000 might get us to where we want to be,” Orris said.

Tyndall reminded the council that the budget does carry about $44,000 in contingency, which could also help the town with additional comprehensive plan expenses if needed.

“If it comes in at $160,000, we might have to relook at the scope of the work … But I think having a little lever to pull in contingency … I feel comfortable with it,” he said. “It might come in north of $100,000, but if we had a contingency of $18,000 like last year, I would be more concerned.”

Also of note is the council’s decision to remain at a flat real property tax rate of $0.8275 per $100 of assessed value for FY26, despite staff concern that an incremental increase is needed to keep up with rising costs.

Accounting for an increase in property value, even with the unchanged rate, the town projects additional property tax revenue of around $350,000. Still, Saleh pushed for an incremental property tax rate increase throughout the budget process to no avail.

“We are going through the same routine that we go year after year after year…without an incremental increase,” she said last month. “Every three years, the property is reassessed. When the new reassessment hits, it will be higher, and for you to say, ‘now we’re going to do an incremental increase,’ plus the assessed value will go up, it will get harder. The more we wait, it’s going to get harder.”

Tyndall did say that Berlin residents are likely to see some movement in the property tax rate next year, despite Green’s argument that the unchanged rate helps to relieve financial strain on struggling families.

“Our job, I look at it as balancing that with what we’re hearing from people out on the streets, and that is that people are struggling,” Green said in May. “Families are struggling … We must balance that with what we hear from people, and families, working families, are struggling.”

Furthermore, the FY26 budget includes capital expenses, such as $2.5 million for Town Hall renovations, $216,000 for restrooms at Stephen Decatur Park, and $2.8 million for a new public works facility at Heron Park, as well as some carryover initiatives from departments like water resources.

Saleh noted last month that these expenses have forced the town to pull from reserves, initiating a discussion that this practice cannot continue.

“There are some carry projects from fiscal 2025 that are not completed,” Saleh said in May. “The heavy lifter is water resources, they have major projects that they have been doing for several years and American Rescue Plan Act (ARPS) funds have been almost depleted…most of the biggest projects have been funded by ARPA, but also we have advanced some monies from capital reserves to continue and the prices of the project and the cost of equipment, supplies, and operations have been increasing recently.”

Tyndall added at the May meeting that the finance department has worked on building up the municipality’s reserves, resulting in a projected $285,000 in interest income. Still, the mayor agreed with the finance director and said that to maintain Berlin’s strong financial position, the town cannot continue to pull from reserves.

Despite the few concerns, town officials believe the adopted budget is monetarily sound.

“The budget has been a solid work of our departments…I think it’s solid,” Tyndall said this week. “We have kept the tax rate the same, we have invested in some significant projects for FY26, and I think it’s a pretty good package all around.”

The full, adopted spending plan can be viewed on the Town of Berlin’s website.