GREENFIELD — Mayor Ginny Desorgher unveiled her nearly $67.93 million fiscal year 2026 budget proposal this week, emphasizing that while department cuts are necessary, the city will have to get “crafty and creative” to stay afloat in the years ahead.

Although Desorgher’s proposal reflects a roughly 4.7% increase over the current budget of nearly $64.87 million, the increase is primarily centered around employee health and life insurance costs, which both jumped by 20%, representing a $1.8 million increase to the city budget. Historically, health care premiums have risen by 4% annually over the last 10 years.

Desorgher, in an email sent to department heads in November, noted that the city has to be fiscally conservative this year, as it works to pay back $74 million in outstanding debt accrued through large infrastructure projects, such the new fire station, library and high school.

“I would go through every single line item and if we hadn’t been using something, or if we under-used that, we would reduce that in the expenses,” Desorgher said of her budgeting process. “I’m not happy to do reductions, I’m just looking at the overall [cost] increases from one year to another. … It was a tough year.”

In an interview Wednesday, the mayor referenced the Department of Government Efficiency’s freezing of federal funds as a cause for concern for the city’s financial future.

“I’m worried about the federal grants — that’s what everybody’s worried about. We’re already getting some inklings, truthfully, about the federal grants, so you want to be as smart as you can and hold on,” Desorgher said. “If we have cuts for the federal grants, that’s going to affect the state.”

Despite the mayor’s November email to department heads advising them to submit level-funded budgets, the School Committee presented a $25.59 school budget to Desorgher in February, roughly $1.89 million higher. In her FY26 budget, the mayor funded the schools at nearly $23.7 million instead.

Outside of the spike in employee health and life insurance costs, another key change in the FY26 budget proposal comes from a 42% increase in the Health Inspection Services line item, an increase from $219,820 in FY25 to $312,090 in FY26. Desorgher said this increase accounts for the hiring of an individual in a part-time clerical position, as well as the continued employment of a previously grant-funded health inspector.

When asked whether she believed the city’s financial challenges would result in an increased tax rate in the fall, Desorgher noted that the tax rate would ultimately depend on Greenfield’s new growth. Given the recent opening of a new Starbucks on the Mohawk Trail, along with other businesses such as Aldi expected to open later in the year, she expects these developments will bring the city a significant increase in tax revenue.

“A lot of it is just getting crafty and creative — that’s something in Greenfield we do well,” Desorgher’s Communications Director Matthew Conway said. “We’re not the most affluent community in the world, but we’re crafty and we’re always working hard. The departments are all doing a great job of maximizing the resources they have, while continuing to accelerate their individual growth and the overall growth of the city.”

City Council is expected to vote on the proposed budget at its May meeting, after it passes through three separate public hearings hosted by the Ways and Means Committee on April 15, 23 and 30.

Anthony Cammalleri can be reached at acammalleri@recorder.com or 413-930-4429.