With planning underway for the 2014 town budget, Rochester officials are breathing a sigh of relief that the town is in good financial shape.

Next year’s budget is calling for increases to the previous year’s budget to meet a number of rising costs including education, said Town Administrator Richard LaCamera.

Rochester Memorial School’s budget will be increased by $53,000, just one percent, in 2014 to meet staff contractual obligations.

LaCamera said he was confident that the final draft of the budget would not call for a reduction in staff or programs in the town.

To offset the increased costs, the town will draw money from the Free Cash fund. Additionally, Rochester has seen some savings in the last year, which included completing the Rochester Memorial School renovations $920,000 under budget.

While budget discussions are still in the early stages, it is a far cry from the difficulties the town faced while drafting the 2013 budget.

Last year, officials were left scrambling to fund a number of shortfalls in the budget including an additional $417,000 needed in the Rochester Memorial School budget to account for rising costs of special education, utilities, and the number of students attending a vocational school.

LaCamera said he will continue to prepare the budget with the town’s Finance Committee until Town Meeting.

“We’ll all be spending time over the next few months deciding where we want to go,” LaCamera said. “Overall, we are in very good financial shape.”