Pembroke Faces Tough Choices in FY26 Budget

Town Manager Proposes Cuts, Explores Shared Resources to Address Fiscal Constraints

PEMBROKE - February 5 - Pembroke officials are grappling with significant budget constraints for fiscal year 2026, as Town Manager Bill Chenard presented a proposed budget that includes cuts across multiple departments while seeking to maintain essential services.

In a detailed presentation to the Select Board and Advisory Committee on Feb. 5, Chenard outlined the fiscal challenges facing the town and proposed strategies to balance the budget without resorting to a Proposition 2 1/2 override.

"We can't overspend our revenue," Chenard said, emphasizing the need for difficult decisions. "I have been forced to cut budget requests."

The proposed FY26 budget totals approximately $76 million, with a projected surplus of just $53,350. Chenard stressed that this slim margin is necessary to ensure the budget closes properly, given tax rate rounding requirements.

Key factors driving the budget constraints include rising pension costs, potential increases in health insurance premiums, and property and liability insurance costs. Chenard highlighted a projected $1 million annual increase in pension costs, which he said "eats up your proposition 2 1/2 increase, and it takes away from everybody else."

To address these challenges, Chenard proposed cuts to various department budgets, including the library, police, and schools. The school budget, while still seeing an increase over FY25, faces a substantial reduction from their initial request.

"Unfortunately, when you're 51% of the town's budget, if we gave that to you, we'd be laying off a significant amount of people on police, fire, and public works," Chenard explained.

The town manager also emphasized the importance of new growth to offset budget pressures. "New growth, under Proposition 2 1/2, is the lifeblood of communities," he said, urging support for potential development projects.

In response to staffing needs, Pembroke is exploring opportunities to share resources with neighboring towns. Chenard mentioned ongoing discussions about sharing grant writing and IT support services.

"We've actually explored that in most of those towns either don't want to share or don't have a grant writer," Chenard said, noting the challenges in finding willing partners.

The town is also looking to leverage internship programs with local educational institutions to address some staffing gaps. Chenard announced plans for a facilities intern this summer to conduct a comprehensive inventory of town buildings and systems.

"It gives you such a huge tool for capital planning," he said of the proposed inventory project.

Chenard cautioned against using stabilization funds to balance the budget, citing potential negative impacts on the town's bond rating. With Pembroke planning to borrow nearly $190 million over the next six years, maintaining a strong credit rating is crucial to minimize interest costs.

The town manager announced two upcoming public meetings to provide more detailed budget information to residents. The first will be held on Feb. 12 at 6 p.m. in the Select Board meeting room, with a second session planned for later in the month at the community center.

In other business:

- State Sen. Dylan Fernandes and State Rep. Ken Sweezey provided a legislative update, discussing potential changes to Chapter 70 education funding and transportation funding.

- The Select Board accepted a $55,000 donation from the Pembroke Library Foundation for architectural fees related to a proposed expansion of the children's room.

- Library Director Julia Nee presented a proposal for the library to utilize the former senior center building at 144 Center St. for additional programming and storage space.

- Residents expressed concerns about a potential reversal of the town's ban on single-use plastic bags, which will be considered as a warrant article for the upcoming town meeting.

The annual town meeting is scheduled for May 13 at 7 p.m.

Full meeting available via The Local Seen.