By Geena Monahan—For the North Star Reporter
North Attleborough officials have unveiled a $121 million fiscal year 2027 budget aimed at maintaining core services while absorbing rising costs and preparing for long-term obligations.
Presented by Town Manager Michael Borg on Monday, April 13, the proposal reflects what he described as a “structurally balanced” plan that preserves current services while addressing increases in health insurance, pensions and debt.
“We’re maintaining stability today while building the foundation for tomorrow,” Borg told the Town Council at its meeting.
The proposed budget of $121,014,415 — an increase of about $7.7 million, or 6.8%, over the current fiscal year, is driven largely by voter-approved borrowing for the high school project.
Health insurance remains the most significant pressure point, with projected increases approaching 20%. Borg said the town is managing a structural deficit for health costs expected to reach about $2 million.
Debt service is also set to rise sharply, nearly doubling to $7.74 million, as payments tied to the high school project come online. Pension costs are also climbing steadily, increasing nearly 8% in FY27. Combined, non-departmental expenses — including health insurance, retirement and debt — total more than $34 million, limiting flexibility across the rest of the budget.
High school project debt
Much of the growth in the budget is reflected in the tax levy, projected to rise 9.2% in FY27. About $4.18 million stems from the debt exclusion that will begin appearing on tax bills in January, with the remainder coming from the allowable 2.5% increase and new growth.
The average single-family home in North Attleborough is now valued at $626,633 — up roughly $70,000 from the previous year — a shift Borg said contributes to the higher property tax revenue.
“If you stripped out the debt exclusion, the budget increase would be closer to about 3%,” he said.
State aid is projected at $26.7 million, while local receipts — largely motor vehicle excise tax — are expected to reach about $9.8 million. While local receipts continue to rise, state aid remains relatively flat, increasing by about 1% to 2%.
“How do we make state aid more representative of what North Attleborough contributes to the overall commonwealth?” asked Borg. “You can see the costs year over year are increasing more than what the commonwealth is providing.”
Nearly $60 million will be allocated to school-related costs in FY27, including a $53.35 million school department budget — a 4% increase over the current fiscal year. Additional expenses, such as transportation and regional assessments, bring the total higher, though the Tri-County assessment is expected to decline slightly.
“This reflects the town’s continued commitment to students, families and long-term community success,” he said.
Capital demands outpace available funding
The budget underscores a widening gap between capital needs and available resources.
Officials identified about $34.9 million in capital requests for FY27, far exceeding the roughly $4.4 million available through the general fund.
Approximately $5.43 million in requests come from general government departments, spanning 26 projects across nine departments. Parks and Recreation accounts for the largest share at about $2.46 million, followed by schools at roughly $940,000 and public works at about $845,000.
Only a portion of those projects will move forward this year, with priority given to infrastructure, equipment and facility needs.
Funded projects include smaller improvements — such as about $30,000 for downtown signage — alongside larger, long-term efforts, including the continued work on the High Street Fields project, supported in part through bonding to bring it to completion.
Enterprise-funded capital projects, including water and sewer infrastructure, make up the largest share of total investment, exceeding $23 million across 10 projects.
To help bridge the funding gap, the town is relying on reserves, including stabilization funds and free cash, which together total more than $16 million.
“This is our strategic leverage and how we absorb future projects while the high school debt exclusion constrains our ability to borrow,” Borg said.
Planning for the future
Despite ongoing pressures, Borg said the town enters FY27 on solid financial footing, citing consistent revenue performance, strong reserves and an AA+ bond rating.
Still, he warned of continued uncertainty, particularly around health insurance, collective bargaining and broader economic conditions.
The town is also monitoring potential reimbursement tied to this winter’s severe storms, which exceeded snowfall totals from the previous three years combined. About $680,000 will be drawn from free cash to cover snow and ice costs, with roughly $300,000 potentially reimbursed through federal disaster relief.
“That’s a check we won’t be able to cash anytime soon,” Borg said.
Ultimately, Borg said the FY27 budget reflects a deliberate effort to balance immediate needs with long-term planning.
“We’re in a position of stability,” he said. “But we’re operating in an environment where costs continue to outpace revenue growth.”