On April 15, Rochester City Manager Katie Ambrose presented the proposed operating and capital budgets for Fiscal Year (FY) 2026 at the City Council workshop meeting. Click here to watch.
The City Manager’s proposed budget, inclusive of City, County, and School appropriations, comes in $337,280 below the tax cap and reflects a continued commitment to strong fiscal health. The proposed budget is based on the allowable FY 2026 tax effort of $79,552,624, an increase of $3,447,725 (4.5%) over FY 2025, calculated per City Charter requirements by applying 2.95% CPI and 1.58% Net New Construction to the FY 2025 tax effort of $76,104,899.
The proposed FY 2026 budgets break down as follows:
- City & County Budget: $176,260 below the tax cap
- School Budget: $161,020 below the tax cap
- Total: $337,280 below the tax cap
In developing the budget, departments were directed to limit Operating & Maintenance (O&M) budget increases to 3%, exclusive of salaries and benefits. Any budget increases beyond this threshold required a formal “Issues & Options” (I&O) submission. Departments submitted 23 I&O requests totaling $1,526,719, of which 13 were included totaling $586,320, and 10 were excluded totaling $940,399.
The FY 2026 Capital Improvements Plan (CIP) Budget is proposed at $34,731,602, supporting a variety of long-term infrastructure and departmental needs, and ensuring strategic investment in the City’s future.
The FY 2026 General Fund is supported by revenues of approximately $56.7 million for City services and $78.4 million for the School Department. A full breakdown of revenue sources and expenditures is available in the budget documents.
City Council will host a Budget Retreat at City Hall on Friday, May 9, beginning at 9:00 AM. During the retreat, the Council will review information related to the operating and capital improvement budgets for various municipal departments.
There will be opportunities for public input on May 13 and May 20. Community members are strongly encouraged to participate, either in person or by submitting written comments in advance. Visit www.rochesternh.gov/getinvolved to learn more about providing input.