Each year, the Town of Montague develops a municipal budget that funds essential services such as public safety, public works, libraries, parks, senior services, and general government operations. This page explains how the FY27 budget is developed, who is involved, and how residents can participate.
Fiscal Year 2027 (FY27) runs from July 1, 2026 through June 30, 2027.
Guiding Principles
The FY27 budget is developed in accordance with the Town’s Financial Management Policies, which require that the budget be:
Balanced: Total spending cannot exceed available revenues, as required by state law
Realistic: Revenues are conservatively estimated and expenses are carefully reviewed
Sustainable: Ongoing costs should be supported by recurring revenues
Transparent and collaborative: Multiple boards review and vote on the budget before it goes to Town Meeting
The Town also seeks to avoid one-time fixes that create future problems and to maintain appropriate reserves for emergencies and long-term stability
Who Is Involved?
Several elected and appointed bodies play distinct roles in building the budget:
Town Administrator – Coordinates the overall budget process and prepares recommendations
Department Heads & Committees – Submit operating and capital budget requests
Town Accountant & Financial Team – Prepare revenue estimates and technical budget documents
Finance Committee – Reviews requests in public meetings and makes recommendations to Town Meeting
Selectboard – Sets budget policy direction and votes on the recommended budget
Capital Improvements Committee (CIC) – Reviews and prioritizes capital projects
Annual Town Meeting – Final authority to approve or reject the budget
The FY27 Budget Context
The FY27 budget process is taking place during a period of significant financial pressure.
Health insurance, with projected increases of approximately 20%
As a result, departments were asked to submit:
A Level Services Budget (maintaining current services), and
A Level Services Minus 2% Budget, identifying potential reductions in discretionary spending
These steps help Town officials understand tradeoffs and options before recommendations are finalized
How the Budget Is Built: Step by Step
Fall: Planning and Requests
Departments submit operating and capital budget requests
Preliminary revenue estimates are developed
Capital project proposals are reviewed by the Capital Improvements Committee
Winter: Review and Deliberation
The Finance Committee holds public meetings with departments
The Selectboard reviews overall budget direction
Capital projects are prioritized and funding options evaluated
School district assessments are reviewed jointly with other communities
Late Winter / Early Spring: Final Recommendations
The Selectboard finalizes its recommended budget
The Finance Committee votes its recommendations
The Annual Town Meeting warrant is prepared and posted
May: Annual Town Meeting (Montague is a Representative Town Meeting)
Elected Town Meeting Members consider and vote on:
The operating budget
Capital projects
Special financial articles
The FY27 Annual Town Meeting is scheduled for Saturday, May 2, 2026
Capital vs. Operating Budgets (What’s the Difference?)
Operating Budget: Day-to-day expenses such as salaries, utilities, supplies, and routine services. These appropriations last one year.
Capital Budget: Major, non-recurring investments (generally $25,000 or more) such as vehicles, building repairs, and infrastructure projects. These are reviewed separately and planned over a six-year horizon.
Only capital projects that go through the annual review process are eligible for funding, except in true emergencies
How Can Residents Participate?
Residents are encouraged to:
Attend Finance Committee and Selectboard meetings
Talk with the Town Administrator
Review posted budget materials and explanations
Ask questions before Town Meeting
Engage with your Town Meeting Precinct Representatives
Budget discussions occur in public meetings, and all final decisions are made by Elected Representative Town Meeting voters.
Budget Documents
Key FY27 budget documents will be posted here as they become available, including:
Budget summaries
Finance Committee reports
Capital Improvement Plan
Annual Town Meeting warrant and background materials
A Note from the Town Administrator
Developing the annual budget involves difficult choices, especially during years of rising costs. The Town’s goal is to maintain essential services, protect financial stability, and be transparent about tradeoffs, while giving residents the final say through Town Meeting.
