Sudbury officials present $131.85 million FY26 budget; warn rising benefits, insurance costs pose risk

Town Manager Andy Sheehan and Finance Director Victor Grama presented the Town of Sudbury’s proposed fiscal year 2026 operating and capital budgets at a joint Finance Committee and Select Board hearing Monday, March 3, 2025.

Sheehan and Grama said the combined town and school recommendation totals $131,851,238, including roughly $4.24 million in capital requests, and that the town’s AAA bond rating and a strong certified free-cash balance give Sudbury flexibility going into the May town meeting.

The proposed FY26 operating budget totals about $127.61 million, with the full package (operating plus capital) rising about 5.44% over FY25. Real-estate and personal-property taxes remain the single largest revenue source at $112,821,267 (a 3.23% increase), state aid is projected at $7,890,000, and certified free cash this year is a robust $7.2 million, Grama said. Sheehan and Grama cautioned that much of the free cash is nonrecurring and should be used for one-time or reserve purposes rather than ongoing operating expenses.

Why it matters: Sudbury’s budget choices this year emphasize maintaining reserve levels, advancing a modest capital program and keeping recurring operating growth near a level-service baseline while facing faster growth in employee-benefit costs and uncertain health‑insurance renewals.

Key revenue and spending figures presented

- Real-estate and personal-property tax (tax levy): $112,821,267 (projected +3.23%). - State aid (local aid):…