FY27 Budget Presented to Town Council: Water and Sewer Rate Increases Are Coming
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Report on the Meeting of the Amherst Town Council, May 4, 2026
This was a hybrid meeting held in Town Hall. It was recorded.
Present
Mandi Jo Hanneke (president, at large), Jill Brevik and Cathy Schoen (District 1), Amber Cano Martin and Lynn Griesemer (District 2), Hala Lord and George Ryan (District 3), Pam Rooney and Jennifer Taub (District 4), Ana Devlin Gauthier and Sam MacLeod (District 5), and Andy Churchill and Ellisha Walker (at large).
Staff: Paul Bockelman (town manager) and Athena O’Keeffe (clerk of council).
Accomplishments and Challenges for FY27 Budget
In introducing the $107 million FY27 budget, Finance Director Sean Mangano and Town Manager Paul Bockelman said the budget was balanced without the need for a property tax override and reflects the community values of education, equity, and sustainability, balancing immediate community needs with the town’s future financial health. “The budget prioritizes investment in public schools, public works, and public safety as specified in the guidelines set forth by the Town Council.”
The overall increase over FY26 is 4.5%. The top two expenses are education (47%) and public safety (12%). The capital assessment is increased by 1 percentage point, to 10.5%, to pay for four major capital projects, two of which will be completed in FY27: the Jones Library and Amethyst Brook Elementary School. The town is already paying debt service on those two projects and is beginning to plan for a new Department of Public Works building. However, the town will not be able to finance a new central fire station with debt because its borrowing capacity will be consumed by the other projects, so money is being placed in the capital stabilization fund to eventually replace the fire station without borrowing.
Initial guidance called for each department to increase its budget by 3.85% over FY26. Exceptions included an additional $200,000 to hire two Fire/EMS employees (one a previously frozen position); most of that expense will be covered by fees paid to the ambulance fund. The regional school assessment came in below the 3.85% increase due to the state formula for apportioning costs among the four towns in the region. The $29.48 million elementary school budget includes $69,000 originally allocated to the regional schools and $270,000 added from free cash to last year’s base, resulting in a 5.1% increase in funding — about $500,000 short of the 5.87% increase requested by the School Committee.
The budget allowance for capital expenditures increased by 6.4%, and the DPW budget is 7.9% higher than the previous year, reflecting an anticipated collective bargaining agreement and increased operating expenses. Funding for road and sidewalk repairs will meet the $5 million allocation in the five-year plan, thanks to funds remaining from older capital projects.
Other highlights include a one-third-time aquatics program director; $200,000 for the Planning Department to determine the future use of Wildwood School and possible rezoning of the Hampshire College campus; and two new DPW employees, one at the water treatment plant and one at the wastewater treatment facility. Four hundred thousand dollars from the water enterprise fund will go toward replacing the roof at the Atkins Treatment Plant.
Many long-in-process projects are scheduled for completion in FY27: the Amethyst Brook Elementary School, the Jones Library, and the new track and field at the high school. The Centennial Water Treatment Facility will also be coming online. The Portland Loo public restroom at Kendrick Park should be complete in June, and designs for a new DPW facility and reconstruction of the War Memorial bathhouse are expected to be finalized as well.
Mangano said the major challenge for the town is that expenses are outpacing revenue growth — a gap that has widened with the higher inflation of the past few years. He said the gap between revenue and expenses cannot be closed solely by new revenue and will likely require cuts to services.
Mangano said the major challenge for the town is that expenses are outpacing revenue growth — a gap that has widened with the higher inflation of the past few years. There are also further financial ramifications from the closure of Hampshire College. He said the gap between revenue and expenses cannot be closed solely by new revenue and will likely require cuts to services. Plans call for increasing ambulance fees by 5% to 10% a year and bringing building permit fees more in line with those of neighboring towns.
Property taxes account for 69% of town revenue, an increase of 3.3% over the prior year. Local receipts represent 8% (an increase of 9.4%), and state aid is 18% (an increase of 2.7%). Mangano cautioned that the actual state aid figure probably won’t be known until fall; the amount reflected in the budget is what the governor has recommended, but the House wants to decrease state aid to municipalities while the Senate wants to increase it.
Mangano estimated that the new private dormitory on Olympia Drive — which burned during construction — along with the neighboring completed building that also burned down, would have added between $300,000 and $500,000 to tax revenue. At the Finance Committee meeting on May 5, he said the new building is being rebuilt as permitted, but the earlier building may need to be redesigned and re-permitted before it can be replaced.
Looking ahead, plans call for adding three Fire/EMS employees in FY28 and another two in FY29, so the department can staff three ambulances and one fire truck at all times; most of this expense will be funded by ambulance receipts. Mangano also hopes that sustainable energy rebates for Amethyst Brook Elementary School will be realized and can be used to update the HVAC system and roof at Crocker Farm Elementary School in coming years.
Mangano stressed that in the next few years, no new capital project will be undertaken unless it is an emergency. The proposed budget was referred to the Finance Committee, which will hold meetings every Tuesday at 1 p.m. and Thursday at 3 p.m. in May to evaluate it. A public hearing on the budget is scheduled for May 11, and one on the capital improvement plan for June 1.
Water and Sewer Rates to Rise
Water rates are proposed to increase from $6.45 to $6.75 per 100 cubic feet, a rise of 4.65%. The new rates account for the anticipated revenue loss from the closure of Hampshire College and include debt service on the new Centennial Facility. With the increase, revenue is expected to rise from $7 million to $7.3 million.
Sewer rates are proposed to increase from $6.95 to $7.30 per 100 cubic feet, a rise of 5.04%. These rates also account for the anticipated revenue loss from Hampshire College, the addition of one new operator, and debt service on the new gravity belt thickener. A comprehensive wastewater management plan study is currently underway and may indicate the need for additional capital improvements. Sewer revenue is projected to increase from $6.986 million to $7.3 million.
Amherst water and sewer rates are roughly average compared to those of similar-sized communities, although Mangano noted that direct comparisons are somewhat difficult because some towns rely heavily on private wells and septic systems.
Cameras on School Buses to Catch Drivers Who Fail to Stop
State law allows school buses to be equipped with cameras to photograph drivers who fail to stop when a bus has its red flashing lights activated. Council President Mandi Jo Hanneke introduced a motion to adopt school bus cameras last year; the council defeated it. She brought the motion forward again at this meeting and asked that it be referred to the Town Services and Outreach Committee (TSO).
TSO Chair George Ryan said he did not understand what the committee was expected to do with the proposal and suggested the impetus should come from the School Committee. The referral was defeated, but a motion to accept the state law passed 12-0-1 (Sam MacLeod abstained). There are no plans to install cameras at this time, but they will now be permitted if the school system determines they are needed and can provide the funding.
Three Proclamations Unanimously Approved
The following proclamations were approved on the consent agenda:
- Proclaiming May as Jewish American Heritage Month
- Recognizing June 2026 as Migraine and Headache Awareness Month
- Declaring May 2026 as Amyotrophic Lateral Sclerosis Awareness Month
Public Comment Centers on Elementary School Funding
Parents and educators again urged the council to increase the elementary school budget to the level passed by the School Committee. Speakers stressed the harm — particularly to vulnerable students — resulting from the potential loss of special education teachers, interventionists, and “specials” teachers in music, art, technology, and physical education. Elementary school budgets will be discussed in detail at the May 7 Finance Committee meeting.
Bob Newcomb, Aaron Evans-James, Carrie Bernstein, and John Nunnelly spoke in favor of the thoughtful use of the Hampshire College campus, emphasizing the importance of retaining its recreational facilities for the Amherst community. Bernstein is part of Hampshire Next, a group working to raise money to continue Hampshire College’s educational and community mission.
Evan Naismith strongly advocated for building housing on the Hampshire campus as a way to address housing needs across income levels and generate revenue for the town.