By Adam Swift
Town Manager Tony Marino and Finance Director Sarah Johnson reviewed the proposed $66.4 million Fiscal Year 2026 budget at last week’s spring forum.
The town manager’s budget, which the town council is expected to vote on later this spring, comes in at $66,405,382, which matches the expected total revenues coming into the town for FY26.
The FY25 budget came in at $61,425,014.
In addition to the 2.5 percent increase in the property tax limit allowed under Proposition 2-½, as well as the $350,000 Johnson said the town anticipates in new growth for FY26, the budget will be aided by the $3.5-million override for the schools that was approved on April 5.
“This was a little bit different of a budget year as … we were obviously waiting for the April 5 election for the overrides,” said Marino. “We normally are a little further along in union negotiations, as we’ve got five union contracts that are coming up on June 30. But without knowing where we stand with school funding and what we were going to need, it’s been going at a turtle’s pace.”
Marino said that the contract negotiations are picking up now with the approval of the budget overrides.
“I want to say thank you to the community; it was certainly a team effort and the community rallied around not only the debt exclusion (for a new fire station), but for the override questions,” said Marino. “We thank you for that and we promise to be good stewards with the money.”
Johnson noted that the majority of the revenue for the FY26 budget comes from the town’s levy limit, which is almost $40.5 million. In addition, she said the town and schools are estimated to receive about $14.5 million in state aid, and local receipts through motor vehicle excise taxes and other avenues is estimated at just over $7.5 million.
The school department budget accounts for just over 60 percent of the operating budget, at $40,158,042, while the municipal budget is $26,254,540.
One of the biggest factors driving budget increases for FY26 is health insurance, Marino said.
“We have been averaging, prior to last year, anywhere from 5 to 7 percent increases with the GIC (municipal insurance provider),” he said. “Last year, that number changed and jumped up to almost 10 percent.”
This year, Marino said the increase is even more drastic, coming in at just over 15 percent.
The town manager said the town will be looking at multiple ways to try to control those increased health insurance costs in the coming year, noting that the town’s contract with GIC is up next year.
“We are going to be talking to GIC about a plan mix, and maybe talking to the unions,” Marino said.
Marino noted that there is an insurance committee made up of the heads of the town’s unions where there could be further discussions about insurance rates and plans.
“One of the things we have been talking about is moving forward with new hires, and maybe we change the split,” he said.
Currently, there is an 85-15 split with the town covering 85 percent of the costs for its employees. Marino said a number of towns have adjusted rates so that new hires pay 25 percent of the health insurance costs.
“We are going to look at ways to get that number down and try to get creative,” said Marino. “It’s not just here, it’s everywhere.”