The Millis Finance Committee received a broad FY26 revenue and budget overview on April 9 showing municipal and school budgets that rise roughly 6 percent, built to include recently ratified collective bargaining contracts and higher benefit costs.

Town staff told the committee that the FY26 package includes a 6 percent funding level for the school department — described as level‑service plus about $72,342 — and a comparable 6 percent increase for municipal departments. The budget assumes all five collective bargaining agreements have been ratified and built into the FY26 figures, and committee members were told there are no planned layoffs tied to this budget.

On personnel and services, staff said the municipal budget includes funding for a full‑time highway laborer in the Department of Public Works, an increase of five weekly hours for the IT director and 2.5 hours for the recreation director. Staff also described a planned overhaul of human resources staffing (separate article) and said monies have been identified to add two full‑time HR positions, upgrade a benefits administrator to an HR generalist and add an 18‑hour‑per‑week department assistant. The select board supported adding the HR positions for FY26 and staff said start‑up equipment and other one‑time costs will be absorbed this year; any adjustments would be considered at the fall town meeting if needed.

Finance staff reported the town’s new growth estimate for FY26 is $600,000 and that state aid is expected to remain essentially flat; the presentation noted that Chapter 70 and other state reimbursements have been relatively stagnant for the past decade and do not keep pace with local inflationary pressures. The town is taking a conservative view on new growth while monitoring several active but slower projects.

The presentation noted benefit and pension cost pressure: the town’s health insurance renewal and Norfolk County retirement assessment produced notable increases. Staff reported an approximate 9.28 percent increase budgeted for employee benefits overall; the Norfolk County pension assessment rose roughly 11 percent for the coming year and the town’s GIC health‑insurance increase was reported near 11 percent. The town said it intends to study options this summer, including a potential health‑insurance opt‑out/buyout discussion with unions and a review of alternative carriers.

On revenue sources and reserves, staff said FY26 does not rely on free cash to support recurring operations. Instead the budget includes earmarked HCA/Cannabis Community Impact funds ($182,909) for specific items and uses a conservative approach to local receipts (5‑ and 10‑year averages) when estimating non‑tax revenues. Free cash and stabilization remain part of the town’s longer‑term fiscal planning.

Committee members asked about enterprise and reserve funds and were told the sewer, water and stormwater enterprise budgets were still being finalized and would be available before the select board’s next meeting. Finance staff also described transfers from the ambulance revolving account used to support fire personnel costs; the presentation listed transfers from ambulance receivables near $957,673 in FY26 to cover certain fire department salaries and staffing costs. Staff provided historical ambulance‑revenue figures for FY21–FY25 showing an upward trend in receipts.

Board members and staff discussed capital and warrant articles (see separate summary). No formal vote was taken by the finance committee on FY26 totals at the April 9 session; the committee is scheduled to review final recommendations ahead of town meeting.