Hampden leaders kick off FY2027 budget with ‘level service’ guidance amid rising school and benefits costs

The Town of Hampden on Jan. 12 opened its annual budget kickoff, with advisory committee members and department heads outlining department finances and early requests ahead of formal hearings this winter.

Doug, representing the advisory committee, told the board the town should prepare 'level service' budgets for FY2027 and warned residents that 'the coming year is gonna be equally difficult.' He said advisory will distribute the meeting schedule and standard budget sheets to departments.

Officials emphasized why the school district and personnel costs will dominate next year’s spending. A district representative cited improved student achievement and AP participation but said capital needs — especially at the middle school — and union contract settlements will create significant pressure on the town’s share of assessments. Town officials noted the town’s assessment share has shifted by about 1 percentage point, increasing Hampden’s allocation for regional school costs.

Select Board members identified two near‑certain budget drivers: rising employee benefits and a large county retirement assessment. Accounting staff and advisory members warned that even a 4–7% increase in benefits or higher retirement obligations could materially affect the town’s operating budget.

The board set an initial expectation that departments reporting to the select board (police, fire, building and others) arrange focused review meetings in late January–mid February, avoiding school vacation. Officials said they will refine a first full draft of the town budget over the coming weeks and work with advisory to prioritize capital projects.

What’s next: Advisory will publish the meeting schedule and budget templates; departments will deliver level service budget requests, and the board will review draft budgets in meetings leading up to town meeting.