The Select Board on Tuesday kicked off the annual budget process by convening a joint meeting with the School Committee, the Appropriation Committee and the Capital Improvement Committee regarding the draft town budget calendar and message for the upcoming fiscal year.

Members received a grim financial overview from Kyla LaPierre, the town’s chief financial officer, about the fiscal year 2028 budget. At this time, the town hopes to achieve level funding.

In accordance with the town charter, the town manager must gain consensus on the budget timeline and issue the budget schedule before Oct. 1. The budget message to town departments will be presented for a vote at the Oct. 6 Select Board meeting.

$1M deficit projected

Town Manager Elaine Lazarus said this is an annual process that lays out important dates for the next several months. The calendar is a guide, and she expects some changes. All committees expressed approval for the calendar with minimal discussion.

LaPierre has been analyzing data from the past fiscal year and is “working on some assumptions for next year,” Lazarus said.

Based on this information, LaPierre said the town would incur a $1 million deficit in FY 28. This assumes that all town departments and the School Department will be level funded.

“Not level service,” she stressed. “Level funded.”

The $1 million deficit does not factor in contractual salary obligations, she added.

“For every 1% increase that we give to the departments, we add a million dollars to the deficit,” explained LaPierre.

She noted that state aid numbers would not be available until later in the process. Also, FY 26 actual numbers have not been solidified yet.

“This is still a work in progress,” stressed LaPierre.

Revenue shortfall anticipated

Because of large town projects over the past few years, LaPierre said the debt exclusion will go from $12 million to $19 million.

“We knew this was going to happen,” she said. “And we expect it to happen again in ’29.”

This amount is based on short-term debt being converted to long-term debt, LaPierre explained. It also assumes that there will be no new borrowing in FY 28.

Revenue estimates from excise tax, licenses and other local receipts is projected to be “slightly down,” according to LaPierre. Because the FY 27 numbers are estimated to be “right on the money,” there will be less free cash in FY 28.

For the operating budget, LaPierre said healthcare benefits will be “almost a $5 million hit” because the cost is increasing by 20%.

On a positive note, the FY 26 benefits expenditure was about $1.4 million under what was estimated. This likely will change the FY 27 and FY 28 estimates, LaPierre said.

“But we still have to forecast our FY 28 [amount] at 18-20% over FY 27,” she explained.

She added that the town was “scrambling” to make up a budget deficit in April.

School reps express concern

School Superintendent Evan Bishop said that without adding new positions, salaries and contractual obligations will amount to a budget increase of 5.12% for level-service funding.

This amount is before analyzing special education and transportation costs, as well as any new staff members for the Charleswood School, he added. Charleswood is under construction and will open for the next school year.

If the schools were level funded, “we would have to consider laying off quite a few people,” he continued.

“I think that’s the first time that we’ve ever heard level funded in the time that I’ve been working in any capacity with the town government,” said School Committee member Nancy Cavanaugh. “But it is concerning to think about what that’s going to do to the services.”

Select Board member Amy Ritterbusch asked the school representatives if enrollment was continuing to grow. She was told that it is, but not at the rapid pace that has been experienced over the past several years.

Ritterbusch added that going to a level-funded school budget “would be dire.”

Still early in process

“We have started at this point in the process with a deficit before,” noted member Joe Clark.

“We knew some tough years were coming,” he continued. “This is one of those first few years.”

The Department of Public Works is in desperate need of increased funding due to demands on its services and old equipment, Clark stressed. If the town is planning to connect with the Massachusetts Water Resources Authority system, it will need to improve its infrastructure.

Added Clark: “We all have to work together and figure out what’s best for the whole of Hopkinton.”

Member Brian Herr advised against talking about level funding, saying it will “stir up all kinds of hornets’ nests.”

“I do think that we’ve had similar challenges — maybe not quite this big — at the start,” he stressed.

Interest lacking in ATM

Ritterbusch gave a presentation on Town Meeting participation over the past 10 years. The finding showed little resident engagement, particularly for those under age 35.

She, Assistant Town Manager Lance DelPriore and Town Clerk Connor Degan worked on compiling information for this study. Survey findings showed a lack of participation as well as appreciation for improvements including electronic voting and a consent agenda to streamline routine article approval.

Ritterbusch said 87.1% of registered voters have not attended any Town Meetings between 2015 and 2025. The rest attended at least one.

She pointed out that the town has tried holding Town Meetings on various weeknights and, this year, on a Saturday. Attendance has varied, with the highest attendance in 2023.

“People often say, well, if there’s more articles, it takes more days to run Town Meeting,” said Ritterbusch. “But that’s not really statistically true.”

On the other hand, clicker use and consent agendas have not shortened Town Meetings.

The Saturday ATM was “a mixed bag,” she continued. Conflicts with youth sports and commitments prevented 75% of survey respondents from attending. Childcare was suggested as a help, but only 14.1% of respondents said they would use it.

Publicizing childcare and food options could help bolster attendance, Ritterbusch said.

An interesting statistic she shared was that the highest percentage of registered voters in town (29%) have lived in Hopkinton for less than five years. About 25% have lived in town for 5-9 years. Ritterbusch said these populations are the least likely to attend Town Meeting.

“It’s not a statistically accurate survey,” she added. “It’s just kind of the pulse of the community.”

Vice chair Matthew Kizner, who chaired the meeting in the absence of chair Shahidul Mannan, stressed that an improved town communications strategy discussed at the previous week’s Select Board meeting likely would impact attendance rates.

Elmwood study committee created

The board voted 4-0 to create a committee to study the future disposition of the Elmwood School building and property. The school will close when the Charleswood School opens.