Waterville Valley, NH – The Select Board convened a special meeting on March 23, 2026, to finalize the town’s 2026 operating budget, ultimately approving it at $7 million. The approved budget reflects a $514,000 reduction from the Select Board’s initial proposal, following a directive from voters on March 10. After subtracting required debt service payments, the 2026 operating budget is essentially flat compared to 2025, with an increase of only $36,000 (link).

The Board outlined four guiding principles that shaped its approach to cuts:

  1. Estimated revenues cannot be counted against expense lines when building a budget for Town Meeting.
  2. The municipality exists to provide voter-approved services to residents, taxpayers, and guests; those services should be maintained to the greatest extent possible.
  3. Staff recruitment and retention are critical challenges for New Hampshire municipalities; proposed COLA, retention, wage, and benefit increases for staff were preserved.
  4. Efforts to fill two vacant wastewater operations positions and one public works position will be redoubled, supported by a dedicated recruitment budget line (link).

Cuts were concentrated on departmental costs related to parts, maintenance, supplies, fuel, and discretionary spending. The estimated impact on the municipal tax rate from the operating budget alone is approximately 5 cents per thousand — not including other approved spending on capital reserve accounts and special warrant articles, which add an estimated 7 cents per thousand (link).

The Board cautioned that this “tax increase holiday” is unlikely to be replicated in future years, citing ongoing inflation, rising labor costs, increasing insurance premiums, anticipated growth in debt service — particularly for the new wastewater treatment facility — and the potential need to restore some 2026 cuts. A strategic review of town services was described as imperative as the town approaches its bicentennial (link).

To address long-term financial planning, the Select Board announced it is forming a financial advisory committee comprising town management, a Select Board member, and three community members. The committee will examine municipal spending, current staffing structure, and alternative accounting approaches such as revolving accounts. It will also explore options including eliminating the tax subsidy for wastewater treatment in favor of full user-fee funding, scaling back solid waste disposal to residential properties only, and increasing permitting, connection, development impact, and program fees (link).

Departmental Budget Cuts

Administration Reductions were made to the IT services line ($8,000) and a planned post office carpet cleaning ($2,250). Postage and office supply budgets were also trimmed after discussion, with the consolidation of all departmental office supplies into a single administration line noted as a factor in the apparent increase (link).

Water Distribution A $9,500 cut was made to the water distribution system maintenance line. Staff indicated the Capital Reserve Fund (CRF), which holds approximately $27,000, could absorb emergency expenses, though the risk of water main breaks — estimated at roughly $7,000 per incident — was acknowledged (link).

Public Works The summer maintenance line was reduced by $15,000, eliminating road line striping for the year while retaining street sweeping. The Board expressed concern about the appearance and safety implications of skipping striping — including center lines, fog lines, and crosswalks — but agreed it was manageable for one year. Additional reductions included cold patch ($750), solid waste radio maintenance ($500), membership dues and training for solid waste ($7,300, offset by a scholarship), and dumpster repair ($1,000) (link).

Parks and Recreation The Parks and Recreation department made significant reductions, including: field trips for camps ($4,600), new youth programs ($1,000), Easter costs ($400), the Dunkathon fundraiser ($900), Packard’s Field soccer line paint, Earth Day funding and community gardens ($1,400), organizational memberships ($475), speaker series reduction ($1,000), a planned kiosk and sign for the recreation area, both port-a-potties at Packard’s Field, the town entrance winter lights, snow tires for a department van ($3,200), and the Fishing Derby ($6,000) (link).

The Fishing Derby generated extended discussion. Staff noted that $2,000 of the derby budget is used for fish stocking, which also serves a pond maintenance function by controlling the leech population in Corcoran Pond. The Board ultimately agreed to restore $3,000 to the fishing derby line — drawn from reductions elsewhere in the administration budget — to cover fish stocking and allow for a scaled-back event. Members of the public indicated willingness to organize additional elements through private donations, and staff confirmed that town personnel costs for running the event are carried separately in labor lines rather than in the derby budget.

Public Safety Reductions in public safety included: police special details ($6,000, aligned with prior-year usage), computer maintenance ($1,500, zeroed out as the expense is covered by Grafton County), uniforms ($2,000, deferring badge standardization), police patrol rifles ($6,500, deferring the 10-year replacement cycle), miscellaneous equipment and supplies ($1,500), community education ($1,000, leaving approximately $500 for stickers and child safety materials), EMS gear ($1,000), vehicle maintenance ($1,000), miscellaneous medical supplies ($2,000), fire gear ($5,000, reducing replacements from three to two sets this year to accommodate a new hire), and fire equipment ($4,000, with a new fire truck expected in June or July and a CRF available for emergencies) (link).

Nonprofit and Discretionary Funding

Rey Center The Rey Center’s funding was one of the most debated items of the evening. A member of the public raised financial data from the center’s 2024 tax returns, noting approximately $136,000 in retained earnings and a preschool program that costs roughly $57,000 to operate while generating approximately $41,000 in revenue. The speaker questioned why the center was not subject to the same transparency requirements applied to other nonprofits receiving town funds (link).

A second resident clarified that a substantial portion of the Rey Center’s reserves — believed to be approximately $100,000 from a prior legal settlement — cannot be accessed until approximately 2033 under a non-disclosure agreement, and is therefore not available for operations (link). That resident also emphasized the Rey Center’s role as a feeder program for the elementary school, noting that a majority of current K–5 families either moved to Waterville Valley because of the Rey Center or have children who came up through it. Losing the preschool, the resident warned, could cost the school three to four families in the next year alone.

After public comment, the Select Board settled on a $15,000 allocation to the Rey Center — reduced from the previously discussed $30,000 figure — with contingency increased to $80,000.

Waterville Valley Athletic and Improvement Association (WVAIA) and Historical Society Both organizations had faced the prospect of zero funding. The president of WVAIA addressed the Board, presenting documentation of the association’s trail maintenance work across 24 miles of trails, including bog bridge replacement, blowdown removal (260 trees over two years), trail relocations, and technical safety improvements such as step replacement on steep sections of the Mad River Path (link). He argued that WVAIA functions as the equivalent of a Department of Public Works for the town’s trail system, ensuring public safety on trails used by residents and visitors alike, and that the White Mountain National Forest increasingly depends on volunteer organizations like WVAIA as federal funding constraints grow.

The Board acknowledged that WVAIA holds approximately $50,000 in reserves and has ongoing project commitments. Members noted the difficulty of providing meaningful support given the overall budget constraints, and suggested that WVAIA consider a petition warrant article at next year’s Town Meeting to seek a dedicated funding line from voters.

The Select Board ultimately allocated $2,500 each to WVAIA and the Historical Society — a nominal amount intended to maintain an active funding line rather than fund specific projects.

Transit Service

A $73,000–$74,000 cut was made to the town’s transit service. Board members noted that a significant share of transit users are non-resident guests and lodge visitors, and expressed hope that the resort and lodges might maintain service to lodge properties independently. However, no firm commitment had been received from the resort at the time of the vote (link).

Fireworks Contract

The Board confirmed it would cancel the town’s existing contract with its fireworks vendor, citing the $73,000 budget reduction. A 10% cancellation fee applies, and the deadline to cancel without incurring the full contract cost is April 1, 2026. Board members noted that July 4th fireworks vendors are extremely difficult to secure and that canceling the contract effectively removes the town from future priority lists. Community members were encouraged to act quickly if they wished to organize a privately funded fireworks event; the town confirmed it would not be the contracting party if a private group moved forward (link).

The Board discussed the recruitment budget, which was set at approximately $23,411 after $9,000 had already been committed for current recruitment efforts — leaving roughly $14,000 for the remainder of the year. Members expressed concern that this amount might be insufficient to cover a signing bonus or relocation assistance for an incoming Town Manager, as well as recruitment efforts for vacant wastewater and public works positions. It was noted that filling the wastewater positions is particularly urgent: operators for the new wastewater treatment plant will need up to six years of qualifying on-the-job experience before the facility opens (link).

Zeroed-Out Line Items and Contingency

The Board confirmed that any line item reduced to zero would instead carry a nominal $1 placeholder, preserving the line on the town’s chart of accounts. This approach ensures the Select Board retains the flexibility to fund emergency requests through contingency and restore the line in a future budget year (link).

Electronic Billing

A resident raised the possibility of reducing postage costs by transitioning water, sewer, and tax billing to electronic delivery. Town staff acknowledged that some billing is already available electronically through the town’s website, but noted that many residents prefer paper bills, that the town does not maintain a comprehensive email address list for all property owners, and that certain notices — such as delinquency notices — may be subject to legal requirements for physical mailing (link).

Final Vote

After extensive discussion and public comment, the Select Board voted unanimously to approve the 2026 operating budget as presented, totaling $7 million. The Board noted that several of the cuts made this year may need to be restored in 2027, and that future budgets will face additional pressure from inflation, labor costs, insurance premiums, and dramatically increased debt service once the new wastewater treatment facility comes online.

Topics: Budget Town Services Community Programs Infrastructure Recruitment Fiscal Responsibility