Geena Monahan
For the North Star Reporter
After a nearly three hourlong Town Council meeting on Monday, Feb. 10, Town Manager Michael Borg ended the night with a harsh reality — over $4.6 million of the town’s operating budget will need to be cut for next year.
Borg’s preliminary FY26 budget and brief began with a rundown of North Attleborough’s main sources of revenue that brought in $112,374,418, with the tax levy accounting for about 66% of that number. Over $26.1 million was brought in from state aid and general government funds. Local receipts and enterprise indirects accounted for $8.5 million and $746,000, respectively. This preliminary budget comes in slightly higher than the FY25 total revenue of $109,204,912.
An explanation of projected expenses was also presented, totaling $116,999,425. Education topped the list of expenses at over $56 million, followed by administration costs at just under $38 million. Public safety looks to spend $15.6 million. While last year’s delta between revenue and expenses came in at $3.3 million, this year’s delta is about $1.3 million greater.
Borg pointed to numerous major cost considerations, starting with a projected 15% increase in healthcare leading to a forecasted deficit of approximately $1.3 million by June 2025. The option of leaving Blue Cross Blue Shield as provider was presented as a possible way to reduce healthcare costs. Property liability coverage, driven by national factors, is also forecasted to increase by 10%.
Rising insurance costs were not Borg’s only budget concerns; the retirement board recently approved an 8% increase in pension obligation payments, while cost of living adjustments (COLA) look to fund a 1.5-2% increase. Ten upcoming collective bargaining agreements and wage adjustment negotiations are also something Borg is keeping on his radar.
There were a few positives that Borg called out, such as the town’s plan to only borrow for enterprise funded projects, at a lower interest rate than other nearby municipalities because of North Attleborough’s AA+ bond rating. He also noted being pleasantly surprised that electric rates haven’t gone through the roof, and that fuel costs have not significantly increased.
Borg outlined a timeline for the rollout of the new budget that goes as follows:
- April 15, 2025 – final budget presentation
- April 16 – Jun. 5, 2025 – finance subcommittee deliberation
- May 12, 2025 – public hearing
- June 9, 2025 – town council budget vote
“Between tomorrow (Feb. 11) and the 14th of April, I will be fully engaged with all the departments, working hard with them to trim $4.6 from the budget,” Borg said. ”We’ll always work very hard to revise and get every penny out of that revenue and if we can increase that, we will figure out how.”
