The board’s financial forecast presentation highlighted several key areas of concern. Health costs are anticipated to increase significantly, with a 12% rise projected for 2027, translating to approximately $5 million. This increase is set against a backdrop of ending federal American Rescue Plan Act (ARPA) funding in December 2026, which previously supported essential town services. Town Administrator Charles Carey emphasized the difficulty in navigating these budget constraints while maintaining essential services. The deficit is attributed to efforts to sustain level services and honor collective bargaining agreements, with particular stress on the school budget, which requires revisions such as updating the science curriculum.

The anticipated budget shortfall has prompted discussions on potential operating override ballot questions. There was a consensus that addressing the override by March would be too late, with suggestions for the dialogue to occur by January or February to allow adequate time for community education on the matter. The urgency of this timeline is underscored by concerns that delays could decrease the likelihood of passing an override, which is crucial given the financial requests from the town and schools.

Further complicating the town’s fiscal landscape is the reliance on property taxes as the primary revenue source. The property tax levy is expected to increase to its full limit with improved new growth assumptions, yet this may not suffice to cover rising expenditures. The structural deficit is projected to grow significantly, reaching $42 million by 2031, due to revenue growth lagging behind expenditure increases. This highlights the need for strategic financial planning to address long-term fiscal challenges.

There was a push for timely information from the schools to inform the town’s financial planning, with the aim of ensuring a transparent and stable financial outlook for the future.

The potential impact on town services was another focal point, with discussions on the possibility of eliminating over 20 positions from the approximately 700-strong workforce. While this represents a small percentage of the total staff, the qualitative impact on community services could be significant. The board acknowledged the necessity of communicating to the public how these reductions would affect service delivery, emphasizing the importance of transparency in budgetary decisions.

The meeting also touched on the challenges of managing benefits costs, with an anticipated 10% increase amounting to $9.5 million. Discussions highlighted the need for a comprehensive approach to labor negotiations, factoring in the town’s contribution to employee health care costs alongside salary adjustments. The current contracts lock in certain costs, further complicating the budgetary landscape and necessitating a long-term strategy to address rising health care expenses.

As the board navigates these financial complexities, there is an ongoing emphasis on strategic planning and community engagement. The necessity of developing a comprehensive economic development plan was discussed. Additionally, members highlighted the importance of aligning infrastructure and climate goals with existing plans.