Budget Breakdown: Finance Department

As we approach Town Meeting Day, the City will be sharing a series of informational posts featuring the information provided in the FY27 Budget Book. Today we're featuring the Finance Department:

Finance Department

What We Do:
The Finance & Technology Department helps the City Council manage taxpayer money responsibly, keep operations running smoothly, and maintain transparency with residents. We provide the financial and technology systems that allow city departments to deliver essential services while staying accountable to the public.

Montpelier's municipal finances are complex. We manage:

• 25 separate funds
• 13 city departments
• Five labor contracts or employee plans
• About $107 million in assets
• 35 loans totaling roughly $40 million
• Annual operating budgets of approximately $33.6 million as of June 30, 2025
• We also collect and process tax payments on behalf of the Montpelier-Roxbury School District.

Our budget for the coming year follows Council direction to control costs while protecting core services. Budget increases are limited to documented cost increases, such as our annual audit contract, and targeted investments in staff training to maintain quality service and strong financial controls.

Our Team and Services:
The Finance & Technology Department handles accounting, payroll, bill payments, utility billing, budget preparation, audits, grant financial management, human resources, and citywide technology services.

Following recent staff reductions, we continue operating with a lean team. This year we'll focus on refining how the department is organized, making sure roles align with essential functions, and maintaining proper segregation of duties to protect city assets.

For technology services, we use a managed services provider and engaged a new vendor effective July 1, 2025. This approach supports the Council's focus on cybersecurity, operational reliability, and cost-effective infrastructure. Our cloud-based system means staff can access what they need consistently, supports flexible work arrangements, reduces long-term hardware costs, and strengthens protection against both physical damage and cyber threats.

Priorities for the Coming Year:

Managing Money Responsibly:

• Maintain strong accounting practices and internal controls even with a smaller staff
• Provide accurate, timely financial reports so the Council can make informed decisions
• Safeguard public funds across all city operations

Audits and Compliance:

• Successfully complete our annual independent audit under updated contract terms
• Meet all federal, state, and local financial requirements
• Continue improving how we prepare for audits and maintain documentation

Supporting Our Staff and Building Resilience:

• Invest in professional development to strengthen staff skills and cross-training
• Reduce risk by making sure multiple staff members can handle critical financial tasks
• Support staff retention and long-term organizational stability

Technology, Security, and Keeping Services Running:

• Continue overseeing our cloud-based IT environment and managed services provider
• Maintain strong cybersecurity protections aligned with Council priorities for risk management
• Ensure all city departments have reliable access to the systems they need

Transparency and Public Access:

• Create easy-to-understand financial reports, charts, and budget materials
• Make financial information accessible and clear for residents
• Find cost-effective tools that help the public stay engaged and informed

Looking Ahead:
Our budget reflects the City Council's priorities: fiscal responsibility, transparency, and building an organization that can serve residents well over the long term. By limiting budget increases to actual cost increases and strategic investments in staff development, we protect core financial and technology functions while controlling costs carefully.

Through strong financial controls, reliable systems, and a commitment to continuous improvement, we remain focused on supporting Council decision-making, maintaining public trust, and ensuring the city's financial and operational stability now and into the future.

Stay tuned as we count down to Town Meeting Day by spotlighting the dedicated teams working to serve our community!

To learn more about each department and their budget, check out the City's website at:
http://montpelier-vt.org