Milford’s finance director presented a first‑look 2026 budget forecast Monday that estimates a roughly 5.53% increase over 2025 and outlined key cost pressures including additional debt service, higher insurance premiums and health‑care costs.

The packet distributed to selectmen flagged several factors driving the estimate: an added DPW truck debt service line the director expects to add, an anticipated 3% cost‑of‑living adjustment, layered increases in health insurance (modeled at about 9% above current premiums with conservative buffers) and higher utilities and building maintenance costs. The director said the town’s preliminary estimate for a 2026 operating budget is about $20,367,840 with further refinement expected as department head requests are received and the finance director incorporates another vehicle payment into debt service projections.

Selectmen discussed what guidance to give department heads and whether the board should target a budget close to the default or a modest percentage above it. Selectman Paul Darje and others urged caution given limited projected surplus and the potential for large increases in health‑care premiums. Selectman Dodger (name in transcript uncertain) suggested targeting a budget above the default but not far beyond it; another member recommended a modest buffer so the town can meet likely cost increases without excessive use of fund balance.

Board members asked for additional materials: a revenue breakdown (property tax vs. non‑property tax revenue), a prioritized list of postponed capital projects, and clearer estimates of expected fund balance at year end. Finance said revenue collections year‑to‑date are roughly within $300,000 of projections and that unreserved fund balance remains within New Hampshire guidelines (roughly 7½ percent of the budget). The director told the board he will aim to provide departmental prioritization lists and a revised TA budget for the board’s July review.