GREENFIELD — After hearing the details of Mayor Ginny Desorgher’s nearly $67.93 million fiscal year 2026 budget proposal Wednesday evening, Ways and Means Committee members agreed to positively recommend it to City Council, as long as no potential reductions can be found before this month’s meeting.

Desorgher’s proposal reflects a roughly 4.7% increase over the current budget of nearly $64.87 million, primarily due to employee health and life insurance costs, which both jumped by 20%, representing a $1.8 million increase for the city. Health care premiums have risen by 4% annually over the last 10 years.

In a presentation to the committee Wednesday evening, Desorgher and Finance Director Stephen Nembirkow explained that a retirement assessment jump of 7%, or $462,860, was another cause of the budget increase. Nembirkow added that the rest of the increases came from collective bargaining and cost-of-living increases.

After the city sent a letter to department heads in November asking for level-funded budgets, Nembirkow said expenses were reduced by more than $500,000.

“Everyone worked very, very hard to reduce their expenses and line items in the areas where they had some discretion to reduce,” Nembirkow said. “That’s where our money is going this year — health insurance, retirement and collective bargaining.”

Nembirkow said conservative budgeting and finding creative ways to mitigate bonding are essential going forward. The loss of future federal grants is also anticipated in the months and years ahead.

“Every single entity in the state has said you need to budget conservatively and reduce costs wherever you can,” Nembirkow explained. “This is the beginning of the cuts in grants that will have an effect going forward.”

Nembirkow suggested the city find ways to bring down its debt by reducing bonding. He suggested using the ambulance revolving fund to help pay for the Fire Department’s new truck and cutting back on department spending.

Ways and Means Committee Chair Michael Terounzo agreed that the budget had been “pared down well,” given the city’s financial restraints.

“It’s tight across the board and everyone’s feeling it,” Terounzo said. “I’m not sure that we’re going to come up with any magical solution by looking at these, but we’ve got to find something.”

City Council is expected to vote on the FY26 budget at its May 21 meeting.

Anthony Cammalleri can be reached at acammalleri@recorder.com or 413-930-4429.