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Manager and finance director outline FY26 budget, warn of health‑care and aid pressure
Summary
Staff presented the FY26 financial position: a $14.8M expense budget with roughly 70% of costs in wages/benefits, a 6.3% municipal tax increase last year driven in part by a $1M one‑time state aid reduction, and a January–April schedule for baseline, department and final budget work ahead of the May 12 town‑meeting ballot.
City staff presented a year‑to‑date FY26 budget update and a timeline for developing the FY27 budget. The manager said the FY26 expense budget is $14.8 million and about 70% of that is wages and benefits; roughly 72% of revenue comes from property taxes.
The manager noted staff had recorded $10 million in revenue year‑to‑date (about 68% of the revenue budget) and spent about $5.7 million (≈38.6% of the expense budget). He cautioned that health‑care cost increases, contractual wage steps and the absence of a prior one‑time $1 million state aid contribution will squeeze future budgets. Christina, new to the finance office, will present a baseline budget at the council’s Jan. 6 meeting; staff outlined a sequence of department and partner presentations in January and February ahead of a warned ballot on April 7 for town‑meeting day on May 12.
Councilors asked staff to provide a clear breakout of what the presentation categorized as discretionary spending versus fixed costs and to consider infrastructure priorities and options for replenishing deferred‑maintenance reserves. Staff also discussed recruitment and staffing constraints as a cross‑cutting budget consideration, noting some positions remain difficult to fill because of regional housing and labor market conditions.
