Berlin Mayor Zack Tyndall

By Tara Fischer

Staff Writer

(April 23, 2026) The Town of Berlin is considering a modest property tax increase for the first time in several years as officials work to close a projected $412,000 shortfall in the fiscal year 2027 budget.

During a budget work session this week, Mayor Zack Tyndall proposed raising the town’s property tax rate by 1.25 cents per $100 of assessed value. The increase, if approved, would bring the current rate of $0.8275 up slightly and generate additional revenue to stabilize the general fund.

Tyndall suggested the tax increase, citing the town’s shaky financial situation heading into the next fiscal year, which begins on July 1.

The town’s economic uncertainty stems from a nearly $412,000 difference between revenues and expenditures in the general fund, with no contingency. The lack of a safety net fund leaves the municipality in a vulnerable financial position in the event of unanticipated expenses related to economic volatility, severe weather damage, or emergency infrastructure repairs.

“In addition to the almost $412,000 deficit in the general fund, we have no contingency in the general fund, which is not a good position to be in,” Tyndall said. “In the event of anything unexpected, we have no backup plan for that.”

The town’s main source of revenue is real property tax. The current rate will generate $328,000 for the municipality. However, in light of the $412,000 shortfall, Tyndall would like to see the rate increased to provide additional income to the town.

The mayor said that on a $500,000 house, the suggested property tax rate would yield about a $60 increase.

Finance Director Natalie Saleh added that each penny added to the tax rate generates about $63,453 in revenue. The proposed increase would help chip away at the deficit but would not eliminate it entirely, meaning additional adjustments may still be required.

Tyndall maintained that he doesn’t take the boost, however modest, lightly.

“I think we ran some numbers on a $500,000 home and $60 for the year,” he said. “$60 is $60, I don’t want to discount that. I know that if you folks that are living paycheck to paycheck or worried about whether I buy my medication or whether I do something else, we certainly understand those things, and we know $60 goes a long way. However, we’re looking at these price increases that we’re facing.”

The mayor argued that an increase may be necessary to offset rising costs the town has been subjected to since the COVID-19 pandemic, when prices first began to soar. He added that the municipality has maintained the property tax rate for a few years to avoid passing these expenses on to ratepayers, but noted that a nominal shift could reduce the current fiscal strain.

“We understand that costs for every single person have gone up,” Tyndall said. “Costs for all residents across the board. We’re seeing more at the grocery store, more when we go out and buy different goods in other places.
“Service contracts are coming in at much higher rates. Whether you’re doing things for your home or going out and buying something, it’s not uncommon to see that price increase. Well, those things that you see on the residential side, we see the same thing here at the town level.

“They go back to the start of the COVID-19 pandemic, when prices really went up. Over those five fiscal years, what we’ve tried to do is hope that there’s going to be a downward trend in some of that pricing. We’ve not really seen that. Equipment costs and pricing overall have remained high. We are continuing to draw year over year from our reserves in areas where we shouldn’t be drawing from reserves.”

Tyndall added that a slight increase now could prevent a drastic spike in future years. He pointed to May 2019, when the council adopted an 18% property tax rate increase for FY20, raising the rate from 68 cents to 80 cents per $100 of assessed value to counter a debt of several million dollars.

Council members also raised concerns about the impact of potential future rate increases, particularly for utilities.

Councilman Jay Knerr noted the possibility of rising water and sewer costs, warning that “when you double down on these increases, it hits people hard.” Tyndall responded that utility rate hikes are not for FY27 but could be considered in future years following formal rate studies.

Officials also debated restructuring how room tax revenue is split. In March, the council discussed using funds secured through a countywide policy that increased the hotel room tax on all short-term rentals (four months or less) in Worcester County from 5% to 6%.

Through talks this week, the town will likely allocate 10% of room tax revenue to parking and 90% to the general fund to create a more consistent funding stream for expensive lot repairs.

The proposed tax rate is expected to be formally introduced on April 27, followed by a public hearing scheduled for May 11. The town plans to hold the first reading of the FY27 budget on May 26, with final adoption set for June 8.

Tyndall emphasized that the proposal is not final and could change as more information becomes available and public input is considered. The council will have the final vote on the mayor’s tax rate proposal.