Budget and Bond Public Hearing

Waterville Valley Holds Public Hearing on 2026 Budget and Bond Articles

Waterville Valley’s Select Board convened a public hearing on February 11, 2026, to discuss the proposed 2026 operating budget and various bond authorizations. The meeting, chaired by a Select Board member, provided an overview of the town’s financial history, current status, and future fiscal strategies, followed by detailed presentations on proposed capital projects and the operating budget.

The Chair outlined the meeting’s structure, noting separate hearings for bond issues and the budget. Attendees were encouraged to ask questions directly without lengthy preambles. The Board also acknowledged the Town Manager’s first time leading this process following a recent passing, asking for patience and commending his work. (link)

Town’s Fiscal History and Future Resiliency

The Town Manager presented an overview of Waterville Valley’s financial history, describing it as fiscally conservative with a focus on maintaining stability in core functions. This approach, however, led to deferred capital projects and modest increases in user fees for services like water, sewer, and trash, contributing to escalating tax rates and operating budgets in recent years. (link)

Currently, the town’s total valuation stands at $742 million, with a municipal tax rate of $6.86 and a total tax rate of $9.96 per thousand. A chart illustrating the town’s tax rate and valuation trends showed relative stability in the tax rate until a spike in 2021 due to revaluation, followed by a drop in 2022. Valuation, however, has seen sharp increases since 2021. (link)

To ensure long-term operational resiliency, the Town Manager highlighted several key areas for focus:

• Building Capital Reserves: Continuing to contribute to capital reserves and establishing a policy for their tactical use. (link)
• Staffing Issues: Addressing challenges in recruiting and retaining staff by remaining competitive with benefits and salaries, and exploring technology to reduce staffing needs. Housing solutions for employees were also identified as a critical need. (link)
• Revenue Diversification: Exploring external funding sources like grants and low-interest loans, and reviewing user fees. (link)
• Good Governance: Ensuring transparency and public awareness of revenue generation efforts. (link)

Bond Authorizations for Infrastructure Projects

The public hearing then shifted to proposed bond authorizations. The Town Manager clarified that voting on a bond authorization grants the Board and town the authority to spend money on a project and seek bonds or grants, not necessarily to immediately borrow the full amount. Municipal bonds, particularly through the New Hampshire Municipal Bond Bank, have historically offered low interest rates. (link)

The proposed bond authorizations include:

• Wastewater Treatment Plant: An additional $75.2 million for the wastewater treatment plant project. A separate public information session is scheduled for tomorrow to discuss this in detail. (link)
• Snow’s Mountain Road: Just over $5 million for rebuilding Snow’s Mountain Road and introducing a new water line. (link)
• Snow’s Mountain Road Sewer Line: $1.8 million for the sewer line on Snow’s Mountain Road. (link)
• Valley Road Engineering: $221,000 for engineering work on Valley Road. (link)
• Lost Pass, Cascade Ridge, Beanbender Road Engineering: $190,000 for engineering work on these roads. (link)
• Tripoli Road Repairs: $120,000 for road repairs on Tripoli Road due to storm damage. (link)
• West Branch Road and River Road Sewer Line Engineering: $50,000 for an engineering study to address freezing issues in the sewer line. (link)

The Public Works Director provided further details on the road projects:

• Snow’s Mountain Road: Requires full depth reconstruction due to severe pavement deterioration and the need to replace an aging water line and potentially add another utility. (link)
• Valley Road: Engineering is proposed to address a large culvert failure and sinkhole between Packard’s and Village, bringing the infrastructure up to modern standards. (link)
• Lost Pass, Cascade Ridge, Beanbender Road: Engineering is needed to assess damage from freeze-thaw cycles and water infiltration, determining the best approach for repairs or resurfacing. (link)
• Tripoli Road: Significant potholes and heaving require a reclaim and repave project to reinforce the base material and improve safety. Although a forest service road, the town is obligated to maintain it as an alternate exit route. Previous grant applications for this road were denied due to ownership. (link)
• West Branch Road and River Road: Engineering is sought to identify the cause of persistent sewer line freezing, which has impacted full-time residents. Issues stem from poor installation practices and low usage, leading to freezing. Solutions could range from internal heat tracing to a gravity sewer system. (link)

Residents raised questions regarding the transparency of road plans, the environmental impact of drainage on Snow’s Mountain Road, and the overall cost of road projects relative to miles completed. A Resident expressed concern about the lack of oil/water separators in drainage plans, citing environmental risks. The Board clarified that such separators are not a New Hampshire requirement and that the plans focus on managing water volume. (link)

Questions were also posed about bond interest rates, with the Municipal Bond Bank’s January sale at 3.46% for a 20-year loan. The Town Manager noted that interest rates fluctuate and that the town would likely sequence borrowing for road and sewer projects over multiple sales. A Resident questioned the town’s historical policy of not building reserves, especially given the large bond amounts. (link)

The bond hearing concluded, with the Board emphasizing that residents could continue to raise concerns at future Select Board meetings. (link)

2026 Operating Budget Discussion

The public hearing for the 2026 operating budget commenced with the Town Manager outlining the budget packet, which includes summaries, detailed departmental breakdowns, revenue projections, and a six-year Capital Improvements Plan. (link)

Key drivers for the proposed budget increase include:

• Personnel Costs: A $296,000 increase, with $220,000 for wages. This includes a 4.1% COLA increase (CPI + 1%) and additional escalators for employees reaching five-year milestones. Increases are also seen in the Public Safety, Wastewater, and Administrative departments. A new $50,000 recruiting line is proposed to attract qualified candidates, particularly for town manager and wastewater positions, and a $26,000 increase for employee retention/merit programs. (link)
• Debt Service: An increase of $280,000, bringing the total debt service payment to $1.13 million, primarily due to a $2.6 million bond for road projects (Boulder Path Road) and a new ambulance. (link)
• Insurances: A $72,000 increase across health, dental, worker’s compensation (due to a lengthy claim), property, and liability. New Hampshire retirement system contributions and social security/Medicare taxes also increased. (link)

A Resident questioned the lack of competitive bidding for insurance plans, especially given a 60% increase in worker’s compensation. (link)

The Town Manager discussed the use of fund balance to artificially lower the tax rate, noting a historical approach of blending general taxation and fund balance for special warrant articles. The unaudited 2025 surplus is strong at $425,000, with the Board recommending using $205,000 to offset special warrant articles, keeping the town’s surplus at approximately $1 million, within state recommendations. (link)

The estimated tax rate impact for 2026, if all proposals are approved, is about an 85-cent increase per thousand, potentially reduced to 77 cents with an anticipated 8% school board reduction. This translates to an annual increase of $770 for a $1 million home and $385 for a $500,000 home. (link)

Capital Reserves and Special Warrant Articles

The town is proposing an additional $310,000 in Capital Reserves contributions, bringing the total balance to $775,000. Three existing accounts with low balances (Toxicity Corrective, Waterville Valley Capital Project, Cruiser CRF) are proposed for closure, with funds to be reallocated to broader municipal equipment and facilities accounts. (link)

New Capital Reserve accounts are proposed for:

• Corcoran Pond Maintenance and Repairs: $50,000 to help offset future dredging expenses. (link)
• Property Revaluation: $25,000 to save for future revaluation expenses, which occur every five years. (link)
• Public Safety Equipment: $25,000 to save for future ambulance, engine, and tower replacements, which are high-ticket items with long lifecycles. (link)

A Resident inquired about the investment strategy for capital reserve funds, noting the current 3% return in the NH PEDIP. The Town Manager stated that the Trustees of Trust Funds, who manage these investments, would explore other opportunities as balances grow. (link)

The proposed special warrant articles for 2026 include:

• Public Safety bay door replacement ($15,000)
• Third lease payment for the Recreation Department van ($17,335)
• DPW garage HVAC system repair ($20,000)
• Street sign replacement program ($20,000)
• Water distribution repairs ($25,000)
• Public Safety administrative vehicle ($25,000)
• Municipal Solid Waste dumpster replacement ($26,500)
• Final lease payment for the 2024 Dodge Ram plow truck ($41,000)
• Second annual payment for a new backhoe ($47,500)
• DPW garage door replacement ($50,000)
• Silt remediation project upstream of Snow’s Brook ($55,000, funded through general taxation)
• DPW utility pickup truck replacement ($65,000)
• Continuation of the Town Hall and Public Safety space needs project ($75,000, funded through fund balance) (link)

The Public Safety Director provided an update on the Town Hall and Public Safety space needs project, explaining that the $75,000 would fund the second phase of an assessment by the Turner Group. This phase will explore options for new or renovated facilities, considering future needs and available town properties. (link)

Residents expressed concerns about the high cost of the plow truck lease-to-own agreement and the shift to smaller dumpsters for municipal solid waste, given existing issues. A Resident also suggested that one-time recruiting costs should not be integrated into the ongoing operating budget and proposed forming a budget committee to enhance public involvement and oversight. (link)

The meeting concluded with a Select Board member acknowledging the significant proposed increases and urging reconsideration before the town meeting vote, highlighting concerns about long-term affordability for residents. (link)

The Select Board closed the public hearing for the 2026 budget. (link)