At its most recent meeting, the Hudson Board of Selectmen approved a proposal to use a portion of the Town’s unassigned fund balance to help reduce the 2025 property tax rate. The decision followed a discussion on maintaining fiscal stability while easing the tax burden on residents.
Finance Director Laurie May explained that the upcoming tax rate is projected to be higher than last year’s.
“If the Board of Selectmen use $1,100,000 of the Town’s $10,057,373 Unassigned Fund Balance, the tax rate will be approximately $17.15 per thousand,” May wrote in a memo to the Board. “This tax rate represents a 4.3 percent or a 70¢ increase over last year’s tax rate of $16.45 per thousand.”
The tax rate includes contributions from the Town, School District, and County.
May noted that using $1.1 million from the surplus would leave a remaining balance of $8,957,373 — equal to 8.8 percent of Fiscal Year 2025 gross appropriations. “This percentage meets the requirements of our fund balance policy,” she wrote.
Hudson Town Administrator Roy Sorenson reminded the Board that they had pledged to use $1.1 million from the fund balance last year to help stabilize the tax rate.
“I would hold it there,” Sorenson said, adding that the Town has avoided sharp spikes in its tax rate and has maintained steady growth.
Board of Selectmen Chair Dillon Dumont proposed increasing the amount to $1.3 million, saying he believes it’s important to level off the rate while preserving a healthy fund balance.
Sorenson acknowledged that the unassigned fund balance has grown in recent years. “We’ve done very well there,” he said.
Selectman Heidi Jakoby agreed with Dumont’s proposal, supporting the use of up to $1.3 million to further reduce the tax rate.
It was noted that the additional $200,000 would lower the tax rate by four cents, bringing it to $17.11 per thousand.
The Board of Selectmen unanimously approved the use of $1.3 million from the unassigned fund balance to offset the tax rate.
Sorenson noted that tax bills are expected to be mailed within the next two weeks.
