WILLIAMSBURG — Voters will consider a balanced budget of $10.4 million on Monday evening during annual Town Meeting, set to begin at 6 p.m. in the Anne T. Dunphy School, 1 Petticoat Hill Road.

The proposed budget is a 4% increase compared to the current FY26 budget of $10.05 million. This increase is predominantly being driven by increases to fixed costs, including energy and health insurance, said Town Administrator Thomas Bernard, adding that the proposed budget does not feature deep cuts to town departments.

“Fixed costs are rising, but that’s the truth we see in every community,” he said. “You’re looking at energy costs, health insurance — those are the big drivers of budget increases.”

Health insurance costs are expected to spike 20% in the upcoming fiscal year, with a price tag of $905,000 compared to $750,000 in FY26.

Significant capital investments are being proposed, including $91,500 for a new police cruiser, $53,200 for a new tractor for the Highway Department, $55,000 for air conditioning at Meekins Library, and $19,500 to sandblast and coat Highway Department vehicles to extend their lifespan. These line items would be paid for with free cash.

Non-budget related articles include updates to the town’s accessory dwelling bylaws in Article 18, as well as bolstering the town’s energy code.

In Article 20, the town will vote on whether to adopt a Specialized Stretch Energy Code, a voluntary, opt-in building standard for Massachusetts cities and towns designed to accelerate the transition to net-zero carbon emissions by 2050.

Williamsburg is already a “Green Community,” and more than a decade ago voted to approve a less evolved version of the energy code along with 302 other communities of the state. The Specialized Stretch Energy Code would, pun intended, stretch these code requirements.

While requirements would be more stringent, grant opportunities from the state would also be more plentiful.

According to this code, new homes under 4,000 square feet would need to either be equipped with electrical energy, or at least be pre-wired to allow a smooth transition to electric in the future.

New homes with more than 4,000 square feet would need to have net-zero emissions, although very few homes in Williamsburg are this size. Multi-family homes over 12,000 square feet in size would require a passive house certification, which stipulates rigorous energy-efficiency standards.

The rule changes would not apply to existing homes, would not stipulate more than already existing regulations for renovations and would not outright ban any fuel type.

Adopting the Specialized Code would open the door to several grant opportunities, totaling as much as $1.2 million. Funding might include a solar array for the Anne T. Dunphy School, an HVAC system for Meekins Library, an energy study for Town Offices, or public access electric vehicle charging stations.

“It’s all about the Benjamins,” said Adin Maynard, chair of the Energy Committee, adding that less than 10 houses have gone up in Williamsburg over the past few years and that very few people would be impacted. “This is how we get money to fix our buildings. It’s as simple as that.”

Ashfield, Pelham and Shutesbury have already signed off on the Specialized Stretch Energy Code.