Acton administration presents FY26 budget book, flags health insurance and pension pressure

The Town of Acton administration and finance team presented the town manager's proposed fiscal 2026 operating and capital plans at a joint Select Board/Finance Committee budget workshop, outlining a balanced ALG-driven budget and key areas of pressure, including health insurance, retiree obligations and staffing levels.

The budget book presented Monday and discussed at the workshop shows the ALG plan producing a balanced budget with a net surplus of $54. Finance staff told the boards that FY24 ended with a general fund "turnback" of about $70,000, or 0.19% of appropriations, well under the 1% target set by the boards.

Why it matters: the presentation frames FY26 as largely stable but subject to near-term changes in school budgeting and known cost pressures that affect operating budgets across departments. The town will transmit a warrant for town meeting and meet statutory and local deadlines through March and April as articles are finalized.

Key details and metrics

- Ratings and borrowing: Finance staff said Acton retained its A (Bria'/A) rating in March 2024 and recently borrowed at roughly 2.74%. - Turnback: FY24 general fund turnback was reported at $70,000 (0.19%); the town uses a 1% turnback goal as a performance measure. - Health insurance: staff budgeted an 8% increase for FY26 based on vendor guidance; retiree health for Acton Public Schools retirees was adjusted up 24.05% after the town reconciled actual retiree counts. - FTE accounting: the administration presented an FTE chart showing current year staffing by department and proposed FY26 changes; staff also provided a supplemental sheet listing positions funded outside the general fund (ambulance enterprise, sewer, transfer station, CPA, building revolving fund, stormwater apportionments, etc.). - Pension/OPEB: Acton's assessment to the Middlesex County Retirement System is programmed to increase through FY28 and then stabilize, with full funding projected around FY2036 in the town's actuarial schedule; staff noted the system's funded ratio is improving but remains materially below 100%. - Interest income and cash management: Treasury staff moved town cash tactically to take advantage of higher short-term yields and implemented lockbox services and online payments; cash invested rose substantially between 2022 and 2024, producing higher general fund interest income.

Program and department highlights

- Administration & Finance: Mary Anne Fleckner, Director of Administration & Finance, and her budget team highlighted GFOA certificate achievements and plans to submit the FY26 budget book for GFOA certification for the first time. - Budget division: Ellie Anderson, budget manager, described creation of the budget division to centralize forecasting, rate-setting and long-range plans for enterprise and revolving funds. - Accounting and payroll: Kristen Coette, interim town accountant, explained a migration to time entry for payroll and described efforts to reduce manual hours and improve reconciliations. - Treasurer/Collector: Brandy Rando, assistant treasurer/collector, said the office processes roughly 80,000 bills per year and reported real estate tax collection at about 99.6%; staff implemented lockbox services to speed processing and reduce staff overtime. - Assessing: CJ Carroll, principal assessor, explained a new recurring data-collection plan (proposed to move to 10% of parcels annually rather than a periodic large project) to improve parcel data, accelerate capture of new growth and enhance valuation equity. - Human resources: Marybeth Sabeck, HR manager, reported heavy hiring activity in FY24 (about 60 new positions filled plus 71 seasonal hires) and said the department plans a compensation study and a part-time benefits coordinator to support the transition after the town insurance trust changes.

Open questions raised by board members

Board members pressed for more detail on tax collection declines (small and attributed to graph scaling and minor data variations), how the town will manage increases in retirement assessments and the operational impact of proposed staffing changes. Finance staff said more answers on some items would be provided at follow-up sessions next week.

Votes at a glance

- Motion to adjourn the meeting: moved and seconded; voice vote in favor; outcome recorded as approved. (Procedural vote taken at end of the session.)

What's next

Staff will continue budget workshops through the January/February schedule, transmit the budget to the finance committee by the March deadline described in the timeline, and return with additional clarifications on FTE accounting, pension cash-flow assumptions and the school's budget when it is published.

Ending note: officials emphasized the budget book's expanded data and the administration's aim to increase transparency by pursuing external certifications for reporting.