In the heart of Northborough, Massachusetts, the Select Board convened on March 25, 2025, to discuss the town's financial future, revealing a landscape marked by both resilience and looming challenges. As the meeting unfolded, officials highlighted the town's adherence to financial policies, which have allowed Northborough to maintain a stable reserve despite the pressures of rising costs and potential budget overrides.

The discussion began with a stark comparison to neighboring towns, such as Hudson and Grafton, which are grappling with significant budget overrides of $4 million and $8 million, respectively. Northborough, however, has managed to keep its financial house in order, boasting a reserve of over $6.3 million, which represents about 8% of its $87 million budget. This figure aligns with the town's policy target of maintaining reserves between 5% and 10%.

Yet, the atmosphere was not entirely optimistic. Board members acknowledged that the town's excess levy capacity is nearly exhausted, raising concerns about the necessity of future overrides as early as 2027. The conversation turned to the implications of inflation and rising costs, particularly in health insurance and debt service related to ongoing projects like the new fire station. Health insurance costs alone are projected to rise by 17%, adding over $1 million to the budget.

The board also discussed the impact of these financial pressures on town departments. While the overall budget for town departments is set to increase by 6.3%, this figure includes provisions for union contract settlements, which have inflated the general administration budget by 14%. The board emphasized the importance of maintaining a level service budget, opting not to incorporate requests for new staff positions from departments, including the senior center and public safety.

As the meeting progressed, the focus shifted to the school budget, which is projected to increase by 2.99%. This figure reflects collaborative efforts to manage costs, particularly in light of the rising health insurance expenses that affect both town and school employees. The school department's budget discussions underscored the delicate balance between providing quality education and managing financial constraints.

In conclusion, while Northborough's financial stewardship has positioned it better than many of its neighbors, the looming specter of budget overrides and rising costs presents a significant challenge. The Select Board's commitment to transparency and fiscal responsibility will be crucial as the town navigates these complexities in the years to come. As residents await the outcomes of these discussions, the future of Northborough's financial health remains a topic of keen interest and concern.