MONTAGUE — A preliminary fiscal year 2027 budget without the need for an override or staffing cuts is ready for the Finance Committee to review after the Selectboard unanimously approved the $31.9 million figure.
The Selectboard authorized a balanced preliminary budget on Tuesday to be reviewed by the Finance Committee. The figure consists of a level-services budget, minus 2%, though some departments whose services would be impacted by reductions were not tasked with bringing their requests down by 2%.
Town Administrator Walter Ramsey said the focus in the budgeting process has been on ensuring continuity of service and the “preservation of our long-term sustainability.”
The total FY27 budget is $31.9 million, which is a 7% increase from FY26. There are no plans for an override and the general fund budget is balanced, with an expected tax impact of an additional $150 for the average single-family homeowner. Additionally, Ramsey and Town Accountant Angelica Desroches identified $306,122 in closing out old Town Meeting articles that can be used to support capital and financial articles in FY27.
The presentation explained that the town faced some “budgetary headwinds,” including inflation, health insurance increases, limited state aid and grant opportunities, and revenue changes from the FirstLight Hydro Generating Co. payment in lieu of taxes (PILOT) agreement that is now in effect.
An early draft of the FY27 budget included a $263,694 deficit that has since been eliminated through the use of excess levy capacity and free cash, and by pausing some annual stabilization transfers. However, the increase in health insurance remains the largest unknown in the budget. A 16% increase is built into this budget as the Hampshire County Group Insurance Trust votes on an increase.
Although this framework of providing level services minus 2% has been built in for this preliminary budget, there are some exceptions. The Montague Police Department is looking at a $44,000 increase for a new police vehicle, new Tasers and radio batteries, and information technology (IT) improvements, along with three capital requests for another cruiser, equipment, and heating, ventilation and air conditioning (HVAC) system repairs.
Ramsey said one cruiser will come from the department’s operating budget, which entailed adding $17,000 to the original $60,000 budget line for a new cruiser, and $80,500 for a new cruiser comes as a capital request.
“We’re not talking about adding new services,” Selectboard Chair Matt Lord said. “We’re talking about maintaining the Tasers that we have. We’re talking about making sure that the radios that we have work. We’re talking about making sure that the cruisers … are available and ready for everybody.”
Lord asked Ramsey if the budget spreadsheet, as it exists now, makes the 2% reduction exception for the Council on Aging, Town Clerk’s Office, Cemetery Commission and Turners Falls Municipal Airport, which he confirmed is the case. These departments were flagged early on in the budget process as having limited reduction availability for the FY27 budget.
School impacts
As the town navigates its operating budget, the Gill-Montague Regional School District and Franklin County Technical School anticipate requesting higher town assessments. These include a $13.2 million assessment to Gill-Montague, which represents a 4.2% increase, and an additional $289,555 to Franklin Tech, which is a 34% increase from FY26.
For its assessment to Franklin Tech, the town has the option to use the stabilization fund to cover the entire increase, but it is planning to use $231,907 to limit the impact without depleting the account. Another loss in revenue comes from a $12,000 decrease in the amount that Franklin Tech contributes to Montague for providing its school resource officer, who is a Montague Police Department employee. Ramsey said the budget accounts for this loss, but it means more taxation.
Lord brought up the point that as Montague is seeing increases in its assessment to Gill-Montague, the town of Gill is, too, and he wishes to find creative ways in the budget to help Gill, which is nearing its tax levy limit.
Notably, Ramsey said there is money available within the Cannabis Impact Stabilization Account that could be put toward the Gill-Montague budget, with $162,000 available.
By the end of the discussion, the Selectboard voted unanimously to pass this preliminary budget along to the Finance Committee for its review. The Finance Committee will meet on Wednesday, Feb. 25, to discuss the budget and offer recommendations.