WILLIAMSTOWN, Mass. — The Finance Committee on Wednesday began its review of the town's fiscal 2017 budget, which calls for an overall increase of about 2 percent.

 

Town Manager Jason Hoch told the committee the biggest factor in the increase is a 14 percent hike in the cost of health insurance, which adds $110,000 to the bottom line. The town also is budgeting a 2 percent increase in wages for non-union employees.

 

Those hikes are offset, in part, by a projected increase in revenue, savings due to a change in the benefit plan for retirees and a small dividend from the mild winter of 2015-16.

 

Hoch is projecting $120,000 in new revenue — an increase of 160 percent from last year's $45,000 figure. The bulk of the $75,000 jump is due to the new developments at Cable Mills and Highland Woods, which both will see their first tenants in 2016.

 

The health insurance premium increase follows two years without a jump and is weighed against a projected $30,600 savings in the cost of retiree health benefits.

 

Starting in July 2016, retirees will switch to a Blue Cross/Blue Shield sponsored drug program, Hoch told the committee.

 

"That saves both retirees and the town money," he said. "There's no change in benefits to the retirees they will find, other than a few vitamins that can be purchased over the counter."

 

As for the snow and ice removal line item, the town is seeing a saving there after three straight years of significant overages. To date, Williamstown has spent about $88,000 out of a budget of about $167,000, Hoch reported.

 

"This year, we're in great shape," e said. "[The lack of snow] is great for us."

 

The committee began its annual review of individual town departments by combing through the budgets of the Council on Aging, the Police Department, the Community Development office and Town Hall administrators.

 

Some of those budgets — like the COA and police — are projecting modest cost savings from lower energy prices. Hoch was asked by the committee at one point why he is budgeting for $2.50 for gasoline at a time when the oil prices are dropping.

 

"We've learned in the past that choosing your gas number based on what you're seeing in winter comes back to bite you in September," he said.

 

Other town departments, like public works, will be reviewed at the committee's Feb. 24 meeting. The three public school districts: Williamstown Elementary, Mount Greylock and the Northern Berkshire Vocational Regional School District (McCann Tech) will come before the Fin Comm in March.

 

It is worth noting that Hoch's budget includes a placeholder 2.5 percent projected increase in the school budgets, as the town has included in the past. But the elementary school's preliminary budget forecast a 4.6 percent increase in the assessment to the town.

 

Overall, the town's budget is balanced while contributing to the Other Post Employment Benefits fund, the Fin Comm reserve account, the compensated balance reserve fund and a town stabilization account that already stands at about $1.6 million

 

Hoch, who is going through his first budget season since occupying the corner office at Town Hall, credited Finance Director Janet Sadler and Accountant Donna Estes for guiding him through the process. He also paid tribute to his predecessor, Peter Fohlin.

 

"I'm hopeful that as you start looking through this [budget], you'll find our approach is consistent with the approach you've had working with Peter in the past," Hoch said. "You've had good stewardship in the past."