Sudbury Finance Committee reviews FY27 budget, proposes $5.99 million in Free Cash allocations

Town Manager Andrew Sheehan presented the Town of Sudbury’s FY27 proposed operating budget at the Finance Committee’s virtual meeting on March 2, joined by Assistant Town Manager and Finance Director Victor Garofalo and department heads. The presentation outlined revenue projections, departmental guidance, education assessments and proposed uses of Free Cash.

Sheehan and Garofalo said the town could present a non-override FY27 budget primarily because of higher-than-expected new growth—largely attributed to the Eversource transmission line project—and stronger investment income. Staff noted real estate and personal property taxes account for about 84% of total revenue and that investment income rose as interest rates increased.

The recommended budget guidance percentages were 4.17% for Sudbury Public Schools, 3.97% for town departments and 3.98% for the Lincoln‑Sudbury Regional High School assessment; committee members noted the LS guidance includes benefits and OPEB while the SPS and town guidance do not. Assistant Town Manager/Finance Director Victor Garofalo told the committee the guidance was increased by $325,000—$200,000 of which was earmarked for the Sudbury Public Schools Smile program—with the full $325,000 to be funded from Free Cash for an OPEB contribution.

Staff reported the town generated approximately $9.4 million in Free Cash for FY26 and proposed allocating $5,989,379 at Annual Town Meeting as follows: $4.79 million for capital projects; $300,000 to the General Stabilization Fund; $275,000 to the Capital Stabilization Fund; $200,000 to a proposed Vocational Stabilization Fund; $325,000 to OPEB; and $100,000 for transportation.

Committee members emphasized longer-term budget pressures, including a projected 9.39% increase in employee benefits to nearly $20 million in FY27, rising debt service and education assessments. Staff warned that, despite avoiding an override this year, current projections indicate a Proposition 2½ override could be necessary as early as FY28.

Members asked for more detailed line-item information in the budget book to support deliberations. On specific program details, staff said vocational education enrollment adjustments reflect nine students across three programs; the human services line increased about 17% due to adding an Assistant Health Director; and the transportation pilot will continue at $100,000 in FY27 with grant support. The committee also discussed public safety vacancies, recreation fee restructuring to move programs toward revolving-fund support, and a snow-and-ice deficit estimated at $750,000 that the town may seek reimbursement for from MEMA or state legislators, though reimbursement was not guaranteed.

Co-Chair Michael Joachim reviewed the schedule for remaining Finance Committee budget and warrant-article reviews and assigned report sections; the committee invited citizen petitioners and representatives related to the solar panel warrant article (including the Combined Facilities Director and consultant) to upcoming meetings. The meeting adjourned following a unanimous roll-call vote, 9–0.

The Finance Committee’s next regular meeting is scheduled for March 9, when members will continue budget and warrant-article reviews prior to Annual Town Meeting.