The Town of Ayer faces a projected shortfall of $1,011,707 in fiscal year 2027, according to the town management’s presentation to the Finance Committee on Thursday, Nov. 20th. These are preliminary numbers, as the town has not yet received its school assessments and other final costs.
One of the biggest drivers may be employee health insurance costs. These are expected to rise at least 20 percent – which would be a $500,000 impact. The town will learn more in February. However, the town has a good indicator; costs for retired employees have already risen 20 percent.
FY2027 begins on July 1, 2026. The town management projected the FY2027 Omnibus budget will be $21 million. This is based on a 5 percent increase. Here are next steps in the FY2027 process:
- Dec. 1, 2025: The town management will send out the FY’ 27 budget directive on Dec. 1.
- Dec. 29, 2025: Departments will have to respond by Dec. 29.
In coming months, the town will renegotiate new personal services contracts with three non-union employees and a new contract with the town’s clerical employee union.
Another key step is the town will receive its final assessments from Ayer Shirley Regional School District and the Nashoba Valley Technical High School.
The town management mentioned the Nashoba Valley Medical Center closure, saying the hospital was assessed at about $18 million as an operational hospital. Now it’s vacant and the town anticipates the assessment could be cut in half, to about $9 million which could translate into about a $250,000 loss in tax revenue.
The town management also recognized the ongoing stress to the town’s Emergency Response System and taxpayer/voter fatigue in the budget process.
The town management said the challenge and opportunity this year is for the town to continue with providing the highest level of municipal services with a responsible and sustainable budget.
In addition, the town management advised the Capital Planning Committee will begin work on Dec. 10th.
The Senior Center project just approved at Town Meeting was not reflected in the Omnibus budget discussion because taxpayers will not incur those costs next year and that is a project cost.
WATCH
Ayer Public Access Channel Video: Nov. 20, 2025. Watch from about 3 min.