In a recent government meeting, officials delivered concerning fiscal updates that could significantly impact the town's budget and services over the coming years. The Plymouth County retirement system has announced an extension of its funding schedule, pushing the timeline for full funding from 2029 to 2031. This delay is attributed to updated mortality tables reflecting increased life expectancy, faster-than-expected payroll growth in various communities, and the lingering effects of poor market performance in 2022.

As a result, the town anticipates annual increases of 7-8% in retirement contributions for an additional two years, which will strain financial resources. This situation complicates the town's budgeting process, particularly as officials had planned to draw down reserves from stabilization funds and free cash to support operations and capital projects.

Moreover, concerns were raised regarding the potential impact on the town's credit rating. Bond advisors have warned that continued reliance on reserves could lead to a downgrade, affecting future borrowing costs. The town's ability to fund new positions across departments, including police, fire, and schools, is now in jeopardy, as officials brace for tighter budgets than previously expected.

Additionally, the treasurer collector highlighted a projected 10% increase in health insurance costs for fiscal year 2026, driven by rising usage of expensive medications like Ozempic. This increase could add between $450,000 to $500,000 to the budget, further complicating financial planning.

Overall, the meeting underscored the challenges ahead for the town as it navigates a tighter fiscal landscape, making it increasingly difficult to maintain service levels and competitive salaries in the face of rising costs and constrained resources.