At Northborough’s annual town meeting, voters approved the town’s fiscal year 2026 operating budget after more than two hours of presentation and debate.

Town Administrator Stephanie Bacon and Finance Director Jason Little presented a balanced, level-service budget that they said stays within the limits of Proposition 2½ and uses $500,000 of certified free cash to avoid drawing on reserves. “We have a balanced fiscal year 26 budget,” Town Administrator Stephanie Bacon said during her presentation.

The budget matters because officials said it preserves current services while responding to large cost pressures. Finance Director Jason Little and Bacon told voters the plan funds the town’s OPEB obligation, moves $200,000 into the stabilization fund and proposes a new special-purpose stabilization account to help cover firefighter positions when a federal SAFER grant expires in three years. Bacon said the package results in an estimated average tax-bill increase of $966, or about 10.2 percent, raising the average bill from $9,463 to $10,429.

The budget presented was a “level service” plan, meaning it does not add new ongoing programs or staff beyond adjustments already negotiated or required. Bacon said the increase reflects several unavoidable items: a negotiated health-insurance renewal that was reduced from an initial 25 percent quote to a 17.9 percent renewal after negotiations, increased retirement/assessment costs, and debt service related to the recently approved fire-station construction. Bacon said the fire-station borrowing will add approximately $325 to the average tax bill.

Opponents on the floor raised concerns about the size of the tax increase and the use of free cash. Resident Michael Sciacca moved an amendment to reduce the town-side appropriation by 15 percent, saying the town relies too heavily on prior-year surplus and that many households cannot absorb the increase. “This is money that we paid in prior taxes,” Sciacca said. “If we buy an ambulance … we’re spending a million dollars. We’re not spending $500,000.” The amendment drew extended debate and questions about feasibility, the difference between discretionary and non-discretionary spending, and the practical effect of large cuts on services.

Members of the Appropriations Committee and other volunteer budget reviewers defended the budget process and the proposed numbers. Tim Kalin, a member of the Appropriations Committee, said the committee spent hundreds of hours reviewing department budgets and sought to limit the town-side increases earlier in the year. “We have very detailed discussions on how we can reduce budgets, how we can reduce the tax burden on residents,” Kalin said. Appropriations Committee members noted the committee did not recommend the budget unanimously and urged earlier work on targets for future years.

After debate, voters rejected the 15 percent across-the-board amendment and approved the town budget as presented.

What was approved and key numbers
- Town-side operating and capital plan presented in Article 5 was approved by a majority vote. (The motion before voters was the Article 5 warrant motion as printed in the meeting packet.)
- Officials said the budget uses $500,000 of certified free cash and proposes transferring $200,000 into stabilization and $400,000 into a special purpose stabilization account.
- The budget funds OPEB at $600,000. Officials said this contribution supports long-term obligations for retiree health benefits and helps maintain the town’s bond rating.
- The town’s projected levy capacity remaining for FY26 was stated at about $716,000; officials said that capacity will have limited effect on FY27 and that an override may be possible in FY27 or FY28 if revenues and costs continue on current trends.

Context and next steps
Finance officials emphasized that the FY26 budget reflects the town’s stated financial policies and that bond ratings remain strong; Bacon cited a recent Moody’s AA1 affirmation. Officials also stressed that health-insurance inflation, collective-bargaining cycles and large capital projects (notably the new fire station) are driving tax pressure. Several speakers urged earlier and more aggressive belt-tightening in future budget cycles; others warned that broad cuts now would necessitate layoffs or elimination of services such as senior-center programs, summer recreation and public-safety staffing.

The town now moves to implement the FY26 budget on July 1. Voters also approved the related school and regional assessments later in the meeting (see "Votes at a glance" article for the list of other approvals).