The Northborough Select Board convened on March 25, 2025, for a public hearing focused on the proposed fiscal year 2026 budget. The meeting highlighted key financial strategies and challenges facing the town as it prepares for the upcoming fiscal year.

Finance Director Jason Little presented a balanced budget that maintains current services without introducing new staff. The budget includes provisions for ongoing contract negotiations and anticipates a tax increase in line with Proposition 2½, utilizing excess levy capacity. Notably, the budget allocates $600,000 to the open trust fund and contributes $200,000 to the stabilization fund, while also establishing a special purpose stabilization fund aimed at hiring additional firefighters.

Little emphasized the importance of careful financial planning, noting that the budget process began with a financial summit in August 2024, where long-term needs were assessed. The town has faced significant challenges, particularly with health insurance costs, which have risen sharply. Initial estimates suggested a 10-12% increase in premiums, but the actual renewal rate was projected at nearly 20%. This unexpected rise has prompted discussions about potential overrides or cuts to balance the budget.

The budget relies heavily on tax receipts, which account for 82% of revenue, and anticipates a 10.66% increase in this area. State aid is projected to rise modestly, while local receipts have been adjusted slightly upward. The use of free cash remains a critical component, with $500,000 allocated to the operating budget.

In terms of property values, the average home value in Northborough has increased by 6.34%, leading to a projected average tax bill of approximately $10,553 for FY 2026, reflecting an 11.5% increase from the previous year. The board discussed the implications of these figures, particularly in relation to the town's commercial and industrial property values, which have not increased at the same rate as residential properties.

The meeting concluded with a commitment to continue monitoring financial trends and to engage with residents about the budget's impact. The Select Board will reconvene to finalize the budget and address any further community concerns.