Hull Braces for Conservative FY26 Budget Amid Funding Uncertainties
Town officials anticipate 3% overall increase, with health insurance costs expected to rise 10%
HULL - December 11 - Town officials are taking a conservative approach to the fiscal year 2026 budget due to uncertainties in state and federal funding. The town is anticipating a 3% overall budget increase and a 10% increase in health insurance costs.
Town Manager Jennifer Constable presented a preliminary budget overview to a joint meeting of the Select Board and Advisory Board on December 11.
"We're approaching it differently this year. I've asked department heads to give me their budget. Basically, give me your wish list," Constable said. "I think that allows them to think through their budget. It communicates to me what their needs are."
Constable emphasized the need for caution in budget planning due to potential changes in federal funding.
"We're hearing everyone's preparing for clawbacks, which means that any federal money that was available, the new administration will either close those programs or just clawback unused or unspent or unawarded funds," she said.
The town is assuming a 1% increase in state aid for FY26, which includes Chapter 70 education funding, Chapter 90 roadway funding, and unrestricted government aid.
Health insurance costs are expected to rise by 10%, though Constable noted, "Of course, we hope it comes in under that, but that is what we've been advised to budget for right now."
Additional expenses for FY26 include debt from the seawall project and Fort Revere water tower, a 4% increase in pension liability, and costs associated with new collective bargaining agreements.
The town is also implementing new financial policies, which Constable presented in draft form to both boards. The policies cover areas such as financial planning, capital planning, debt management, and financial reserves.
"It's formalizing what we're doing now as well as some newer processes that would be in place or implemented over the course of the next couple of years," Constable explained. "It's also something that we're able to put out to the community. It's an educational tool also."
In other business, four new police officers were sworn in at the meeting. Anthony Bates, Thomas Bellow, Michael McDonald, and Thomas Walters completed six months of training at the police academy and will undergo ten weeks of field training before starting solo patrols in mid-February.
Police Chief John Dunn praised the new officers' dedication.
"Almost two years ago now they decided they wanted to be police officers. They're taking a state exam. It goes through a long, arduous process," Dunn said. "We're very proud of them. They've done a great job at the academy."
Select Board member Jerry Taverna noted the importance of bringing new talent to the force.
"What's really cool is you see a trend in the police department. You can see it. And people want now to join that force. There's a lot of good people there, and that's really good to see," Taverna said.
The meeting also included updates on ongoing projects, including the seawall construction and the implementation of online permitting and asset management software.
Constable announced that the annual bonfire will be held on Dec. 28, and invited community members to visit Town Hall to see holiday decorations created by staff.
The next steps in the budget process include refining the FY26 budget, advancing capital improvement planning, and holding department budget meetings. The final budget is expected to be presented to the boards before the annual town meeting scheduled for May 5.