Residents will gather for the Annual Town Meeting at 7 p.m. on May 12 at Valley Chapel, 14 Hunter Road, as town officials present a $65.6 million preliminary budget shaped by rising costs and cautious revenue planning.

Town leaders say the FY27 proposal reflects a “level-service” approach—maintaining current services while managing significant financial pressures. The plan avoids using one-time revenues, aims to generate 2–3% in free cash, and steers clear of a structural deficit.

Rising Costs Drive Spending

Several major cost increases are influencing the budget:

•Employee benefits remain a key driver, with health insurance rising 11.5% for active employees and 12% for retirees. 

• Retirement assessments are up 9.5%, part of a state mandate to fully fund the system by 2034. 

• School-related expenses continue to climb, including a 31% increase in school choice assessments and higher out-of-district special education costs. 

Overall, the proposed budget represents a 4.29% increase, or $2.7 million, over the current fiscal year.

Education accounts for the largest share of spending at roughly 45%, followed by employee benefits at 19% and public safety at nearly 12%.

Revenue Picture Remains Tight

Uxbridge continues to rely heavily on property taxes, its largest revenue source. The tax levy is expected to rise by the allowable 2.5% under Proposition 2½, along with an estimated $500,000 in new growth from development.

State aid is projected at $12.27 million, a modest 1.57% increase. Officials note that Uxbridge remains a “minimum aid” community, with funding increases failing to keep pace with inflation.

Local receipts, including motor vehicle excise taxes, permits, and fees, are expected to total $4.47 million, reflecting a planned decrease tied to the creation of a new ambulance receipts reserve fund.

Financial Strategy and Stability

Town officials emphasize a conservative financial strategy. Free cash—generated from prior-year surpluses—will be reserved for one-time expenses and capital projects, rather than ongoing operations.

Current reserve levels remain strong, with stabilization funds exceeding recommended benchmarks. Combined reserves are above 12% of the general fund, providing a cushion against future uncertainties.

Ongoing Pressures and Unknowns

Several challenges remain on the horizon:

• All municipal and school union contracts are set to expire, with negotiations ongoing. 

• Aging town and school buildings continue to require increased maintenance. 

• State mandates, particularly in special education, add costs without corresponding funding. 

• Inflation continues to drive up fuel, materials, and service expenses. 

Officials also highlighted a growing gap between students leaving the district through school choice and those entering, further straining education finances.

What Residents Should Know

For the average homeowner, the impact of the budget is reflected in the property tax bill. Based on current estimates, a home valued at $537,392 would see approximately $6,814 annually, with the largest portion funding local schools.

Town leaders say the FY2027 budget is designed to balance fiscal responsibility with maintaining essential services.

Residents will have the opportunity to review and vote on the town meeting warrant at the May 12 Town Meeting.