Understanding Your Town Budget

Your Guide to Hubbardston's FY26 Budget

Welcome to the Citizen's Guide to Hubbardston's FY26 Budget. This guide is designed to help residents understand the municipal budget process, where your tax dollars go, and how town finances impact the services you receive. Our goal is to provide transparent, accessible information that empowers you to participate in the budget conversation.

The town budget is more than just numbers—it's a reflection of our community's priorities and a roadmap for Hubbardston's future. By understanding the budget, you can make informed decisions about town initiatives and participate meaningfully in town meetings.

Get Involved in Hubbardston's Budget Process

Your participation in town government matters! By understanding the budget and getting involved in the process, you help ensure that Hubbardston's financial decisions reflect community priorities and needs.

Understanding Budget Terminology

Budget discussions often involve specialized terms that can be confusing. This glossary explains common budget-related terminology to help you better understand Hubbardston's finances.

Fiscal Year (FY)
The 12-month period used for accounting purposes. Hubbardston's fiscal year runs from July 1 to June 30 and is labeled by the year in which it ends (e.g., FY26 runs from July 1, 2025, to June 30, 2026).
Free Cash
Unrestricted funds from operations of the previous fiscal year that are certified by the Massachusetts Department of Revenue and available for appropriation.
Stabilization Fund
A special reserve fund set aside to provide financial stability for the town and help offset the impact of extraordinary expenses or revenue shortfalls.
Override
A vote to increase the amount of property tax revenue a town can raise beyond the limits imposed by Proposition 2½.
Proposition 2½
A Massachusetts law that limits the amount by which a municipality can increase its property tax levy from year to year. The limit is 2.5% plus new growth.
Capital Improvement Plan
A multi-year plan outlining major infrastructure investments, equipment purchases, and other significant expenditures.
Local Receipts
Revenue from various local sources such as motor vehicle excise taxes, permits, licenses, and fees for services.
Cherry Sheet
The official notification from the Massachusetts Department of Revenue of the amount of state aid a municipality will receive and the charges assessed for state and county services.

Frequently Asked Questions

Here are answers to some common questions about Hubbardston's budget process and financial management.

How are my property taxes calculated?

Property taxes are calculated by multiplying the assessed value of your property by the tax rate. The tax rate is expressed as dollars per thousand of assessed valuation.

For example, if your home is assessed at $350,000 and the residential tax rate is $16.75 per thousand, your annual property tax would be: $350,000 ÷ 1,000 × $16.75 = $5,862.50.

The tax rate is determined annually based on the town's budget needs and total property valuation.

Why does the budget increase each year?

Budget increases typically reflect rising costs for goods and services, inflation, contractual obligations for employee salaries and benefits, and investments in infrastructure maintenance or improvement.

The FY26 budget increase of 5.54% is driven by several factors, including:

  • Increased costs for essential services
  • Investments in road maintenance and infrastructure
  • Employee cost-of-living adjustments
  • Rising costs for health insurance and other benefits
  • Expanded public safety initiatives
What is "Free Cash" and how is it used?

Free Cash is the unrestricted funds from operations of the previous fiscal year that are certified by the Massachusetts Department of Revenue. It's essentially the town's "surplus" from the previous year.

This surplus can result from collecting more revenue than anticipated, spending less than budgeted, or a combination of both. Free Cash is typically used for:

  • One-time expenses rather than recurring operational costs
  • Capital improvements
  • Adding to stabilization funds (rainy day funds)
  • Reducing the tax rate

For FY26, Hubbardston is using $100,000 in Free Cash to help balance the budget while maintaining financial stability.

How can I participate in the budget process?

There are several ways to participate in Hubbardston's budget process:

  • Attend public hearings on the budget held by the Select Board and Finance Committee in March and April
  • Provide input during public comment periods at Select Board and Finance Committee meetings
  • Contact your Select Board members or the Town Administrator with specific concerns or suggestions
  • Attend the Annual Town Meeting in June, where you can ask questions, propose amendments, and vote on the budget
  • Consider volunteering for town committees or boards that have input in the budget process
Why does education make up such a large portion of the budget?

Education typically represents the largest expense category in municipal budgets across Massachusetts, including Hubbardston's. At 61.5% of the FY26 budget, education funding reflects:

  • Hubbardston's commitment to providing quality education
  • The inherent costs of maintaining school facilities, transportation, and educational programs
  • Contractual obligations for teacher and staff salaries and benefits
  • Hubbardston's assessment as part of the Quabbin Regional School District

As a regional school district member, Hubbardston's assessment is determined by a formula that accounts for student enrollment and other factors. The town has representation on the regional school committee but must meet its obligated assessment.

What is the Town Budget?

The town budget is Hubbardston's financial plan for the fiscal year, which runs from July 1, 2025, to June 30, 2026. It outlines expected revenues (income) and planned expenditures (spending), serving as a blueprint for providing municipal services and addressing community needs.

  • FY26 Budget Total: $11,777,323

    This represents a 5.54% increase over FY25, reflecting strategic investments in infrastructure, public safety, and resident services.

  • Projected Revenues: $11,669,789

    A 5.3% increase from last fiscal year, with revenues coming primarily from property taxes, state aid, and local receipts.

  • Strategic Use of Free Cash: $100,000

    Free cash supplements revenue to balance the budget while maintaining financial stability.

Why the Budget Matters to You

The town budget directly impacts your daily life in Hubbardston, from the condition of the roads you drive on to the services available at the library. Understanding the budget helps you:

  • Track Your Tax Dollars

    See exactly how your property taxes and other contributions are being invested in the community.

  • Participate in Town Decisions

    Engage in informed discussions at town meetings and provide valuable input on spending priorities.

  • Understand Future Planning

    Gain insight into Hubbardston's long-term goals and how current decisions affect the town's financial outlook.

Budget Principles

Hubbardston's budget is developed and managed according to these core principles:

  • Fiscal Responsibility

    Ensuring that spending aligns with available resources and maintains financial stability for the town.

  • Transparency

    Providing clear, accessible information about how public funds are collected and spent.

  • Strategic Investment

    Prioritizing spending that addresses immediate needs while building for the future.

  • Community Input

    Incorporating resident feedback and priorities into financial decisions.

The Budget Development Timeline

Hubbardston's annual budget follows a structured process that takes approximately 9 months from initial planning to final approval. Understanding this timeline can help you identify when and how to participate.

  • September-October: Initial Planning

    Town Administrator and department heads begin planning for the upcoming fiscal year, assessing needs and priorities.

  • November-December: Budget Guidelines

    Select Board and Finance Committee establish budget guidelines and priorities. Department heads prepare budget requests.

  • January-February: Review & Adjustment

    Town Administrator reviews department requests, makes adjustments, and presents a proposed budget to the Select Board.

  • March-April: Public Review

    Finance Committee and Select Board hold public hearings. Residents can provide input on the budget proposal.

  • June: Town Meeting

    Residents vote on the proposed budget at the Annual Town Meeting. This is your most direct opportunity to influence the budget.

  • July 1: Implementation

    The approved budget takes effect for the new fiscal year.

Where Your Tax Dollars Go

The FY26 budget allocates funding to provide essential services and meet community needs. Here's a breakdown of how your tax dollars are distributed:

Major Expense Categories

Education (Quabbin Regional)
61.5%
Public Safety
13.7%
Public Works
7.8%
General Government
6.3%
Liabilities & Assessments
8.5%
Debt Service
1.2%
Culture & Recreation
0.8%
Human Services
0.3%

Where the Money Comes From

Property Taxes
78.8%
State Aid
6.3%
Local Receipts
14.3%
Free Cash
0.9%