SOUTH HADLEY — Town Meeting members will be asked to approve an annual operating budget of $54.27 million, an increase of 4.6%, when they gather May 10.

The spending plan includes proposed general fund expenditures of $24,348,907 and a school budget of $24,526,460, along with a $1.66 million appropriation for the wastewater treatment plant and $1.4 million each for the Ledges and the landfill.

The town proposes to cover most of the $2.4 million increase with a $1 million hike in taxes and an $800,000 increase in state aid.

Major increases in the 2024 budget are seen in the Police Department and Department of Public Works, where union contracts were recently settled. Town Administrator Lisa Wong said those increases — $352,915 or 11.13% for police, and $197,537, or 12.93% for public works — reflect two years of wage increases.

Another substantial increase appears under public building maintenance with the addition of a director of building operations at a cost of $100,000. Wong said the position was added to the budget as a result of an agreement between the Select Board and the School Committee to create a joint department to serve the town and the school department.

Wong said a priority for the director will be to develop short- and long-term capital and maintenance plans.

The town’s retirement expenses take an 8% jump to $4,343,569, and group health insurance is expected to cost almost $5 million, $253,378 more than this year. Wong said the increase in retirement expenses should be smaller starting next year.

Wastewater treatment plant expenses are increasing by 10%, or $154,000, and landfill costs are rising by $73,000, or 5.48%.

The Select Board approved the Town Meeting warrant at its April 18 meeting. The Appropriations Committee will hold a hearing on the budget April 25 at 5.

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