The mayor and senior finance officials presented Newton’s five‑year financial forecast and capital improvement plan to the City Council, outlining revenue assumptions, cost drivers and multi‑year risks.

The presentation, led by the city’s CFO Maureen Lemieux and Chief Operating Officer Jonathan Yeo, said property taxes account for about 83% of ordinary revenues and projected ordinary revenue growth of roughly 4.4% for fiscal 2027, slowing to the mid‑3% range in later years. Lemieux recommended the council consider transferring $10,000,000 of certified free cash into the Newton Public Schools (NPS) educational stabilization fund to reduce a projected 2030 funding shortfall.

Lemieux said the administration projects a recommended NPS increase of roughly $14.7 million (about 5%) for FY27, and set a planning “floor” of 3.5% for subsequent years. She noted ordinary revenue growth will be reduced by debt‑excluded project financing tied to major school projects and that ordinary revenue, excluding those penny‑for‑penny debt items, will be nearer 4.4% next year.

The presentation identified major cost pressures including health insurance (Medicare quotes up more than 20% for January 2026), pension and OPEB liabilities, and capital needs such as extensive paving and stormwater/phosphorus controls tied to the Charles River permit. Lemieux said the city’s OPEB liability in the forecast is roughly $465 million and the pension unfunded liability about $278 million (67.8% funded as of 01/01/2025).

COO Jonathan Yeo presented the capital improvement plan (CIP), saying the five‑year CIP lists about 602 projects totaling roughly $1.4 billion, with water, sewer and stormwater projects making up a significant portion. He described near‑term school projects (Lincoln‑Elliott, Horace Mann, Countryside, Franklin) and other priorities including Cooper Center, public safety equipment, and a multi‑year paving program that listed roughly 290 roads over five years.

Both presenters stressed uncertainty from the national and state economic outlook, federal budget disruptions and a weak commercial real estate market, and urged conservative budgeting and attention to one‑time versus recurring funding sources.

The administration recommended the council weigh adding $10 million to the NPS stabilization fund to blunt a projected spike in school funding needs in 2030 if no additional action is taken.

The mayor and staff did not propose specific council votes during the presentation; they offered the forecast and CIP for council deliberation in the coming months.