GREENFIELD — The mayor presented her proposed fiscal year 2023 operating budget of $58.3 million on Monday, a figure that represents a $3.9 million or 7% increase over the current fiscal year’s operating budget.

“This was, so far — in my brief tenure as mayor — one of the hardest things I’ve ever done,” Mayor Roxann Wedegartner said of the budget development process. “And I’ve done a lot of hard things since Jan. 2, 2020. … But putting together this budget … on the heals of FY21 and FY22 — both of them challenging budget years, both of them tight budget years — unfortunately, FY23 is the same way.”

During Monday’s Ways and Means Committee meeting, Wedegartner and Finance Director Liz Gilman provided an overview of the operating budget and a review of the executive budget, as proposed by the mayor.

“What you see is a balanced budget that we can run the city on, beginning July 1,” Wedegartner said. “We are ready to do that, and I can tell you that each and every department put their effort into that. … It’s a good budget; it’s just not the budget we all wanted to have for FY23.”

Gilman explained that the $58.3 million budget is comprised of appropriations for general government, public safety, public works, human services, culture and recreation, and the Franklin Regional Council of Governments (FRCOG). The largest direct appropriation is for education at 38.2%, followed by fixed costs at 31.2%.

“We asked each department, as much as possible, to level fund,” Wedegartner said.

Gilman informed city councilors that the major drivers of the proposed 7% change include increases in salary and wages, debt services, health insurance and retirement assessments, and most significantly, education.

“Your department heads … were to be entered at 3%, and I say that because that is still less than most of the negotiated contracts … and because from FY21 until today, your department heads … had been taking 1% increases,” Wedegartner told councilors. “It was time for them to actually be … recognized for the work they do and paid for the work they do. If we’re going to remain competitive in the general marketplace … we need to be able to pay these folks.”

Breaking down the sources of revenue for the city — with property tax, which makes up about 60% of revenue, state aid at 30% and local receipts at 7.4% as the main sources — Gilman noted cannabis “is doing quite well.”

Since 2019, she said, the cannabis industry has brought in $575,096 in local receipts and $551,825 toward OPEB (other post-employment benefits) stabilization through stipulations outlined in host community agreements as well as a 3% local charge to retailers and another 3% in sales tax.

“That’s pretty good for a revenue source that appeared; it was not something initially here,” Gilman said.

In general, Gilman echoed Wedegartner’s sentiment that it was a challenging budget to put together.

“It wasn’t easy,” she said.

The full City Council is expected to hold a public hearing on the operating budget — as it is recommended by the Ways and Means Committee following the next month of meetings — on May 18.

Reporter Mary Byrne can be reached at mbyrne@recorder.com or 413-930-4429. Twitter: @MaryEByrne