Budget

The budget is a financial plan for the fiscal year (July 1-June 30). Hillsborough uses a three‐year format to better see any fiscal or operational challenges. The budget's first year is legally binding. Years 2 and 3 show needs to plan for.  

The budget contains:

• An estimate of proposed expenditures.
• The proposed means of financing the expenditures.
• Goals and objectives of the expenditures.

The Budget Division is responsible for preparing the town's budget. When possible, the town applies for federal, state and other grants to cover some of the cost of town projects.

Manager's Recommended Budget

• Fiscal Year 2027 Budget and Financial Plan
• Fiscal Year 2027 Budget Message
• Fiscal Year 2027 Budget at a Glance

Current Budget

• Fiscal Year 2026 Budget Ordinance
• Fiscal Year 2026 Budget and Financial Plan
• Fiscal Year 2026 Budget at a Glance
• Fiscal Year 2026 Fees and Charges Schedule
• Fiscal Year 2026 Budget Message

The budget process takes nearly eight months.

November — Town staff begin working on budget proposals for the next fiscal year, which starts July 1.

January-March — The mayor and commissioners meet with key staff members in a retreat during the winter to plan for the budget. The retreat gives staff guidance on the priorities and direction for the budget.

May — The town manager presents a recommended budget to the town board. The community is invited to review and share comments on the budget at a public hearing later in the month. The board also conducts a work session to discuss the budget at the same meeting.

June — A second work session occurs in June if needed. The board votes on the budget at a regularly scheduled meeting in June.

July — The approved budget goes into effect on July 1. 

The town’s three budgetary funds are the General Fund, Stormwater Fund, and Water and Sewer Fund.

• General Fund — Primarily funded with property and sales tax revenues and pays for services like police protection, residential garbage collection and building and maintenance of recreation facilities.

• Stormwater and water and sewer funds — Enterprise funds that rely on user fees to pay for their specific services. No profits are made in enterprise funds, and the revenue is used for no other purpose.

The town uses a strategic plan to align available resources with priorities. The plan is used in coordination with the budget and the Comprehensive Sustainability Plan. 

• Strategic Plan
• Comprehensive Sustainability Plan

The Annual Comprehensive Financial Report is a complete set of the town's financial statements for the previous fiscal year (July 1-June 30). 

The Financial Services Department oversees preparation of the annual report.

• The town's most recent annual financial report
• Past reports in the town's archives

Two of the town's appointed boards have activities supported by tax proceeds.

• Tourism Board activities are supported from a 1% tax on prepared food and beverages. 
• Tourism Development Authority activities are supported from a 3% room occupancy tax.

Budgets

• Tourism Board Budget
• Tourism Development Authority Budget

Financial Statements

Annual financial statements are prepared for the two boards. 

• Tourism Board Financial Statements
• Tourism Development Authority Financial Statements