Woburn mayor presents $191.0 million FY2026 proposed budget, cites maintenance-year focus

Mayor Michael P. Concannon on Tuesday presented the City of Woburn’s proposed fiscal year 2026 annual budget to the Woburn City Council, saying the $191,045,008.49 general fund plan is intended as a "maintenance year" to preserve last year’s investments while limiting new programs.

The proposed budget, Concannon said, represents a 7.66% year‑over‑year increase and is funded primarily by the tax levy and water and sewer fees, with additional support from locally generated receipts and state Chapter 70 school aid. "This year's proposed budget is a result of an intentional and collaborative effort," Concannon said, acknowledging city department heads and the city auditor for help preparing the plan.

Why it matters: Schools and labor contracts drive the increase. The largest single component is school-related spending — including Woburn Public Schools, the Northeast Regional Vocational School and the Essex North Shore Agricultural and Technical School — which together approach $100 million; Woburn Public Schools alone was described as roughly half of the city’s operating budget. The mayor said the school operating budget rises by about $5.6 million year over year, primarily to cover contractually obligated collective bargaining increases (about $4.0 million), special-education transportation (about $900,000) and state‑required staff (about $550,000). Concannon said the city also anticipates a roughly $400,000 increase in regional vocational school assessments and a small decrease in the Essex Agricultural assessment.

Key drivers and details: Outside of schools, Concannon attributed roughly $7.5 million in additional costs to settled contracts (about $2.7 million for six of seven unions), a sharp rise in employee health insurance costs (about $2.9 million), increased retiree costs (about $670,000), Medicare tax commitments (about $200,000) and $700,000 in maturing debt for a recently approved fire‑station bond authorization. He said the city has set aside funds in the mayor’s salary adjustment account to address unresolved negotiations with the police patrolmen’s association. Concannon also noted planned addition of seven firefighters tied to staffing a second aerial ladder truck expected to arrive in December, and said ambulance BLS receipts would offset some of the related cost.

Concannon singled out Woburn’s financial profile: conservative revenue projections, a reaffirmed AAA bond rating from S&P Global tied to bond issuance for Fire Station 4 in East Woburn, and cautious optimism about modest increases in unrestricted state aid based on preliminary state Cherry Sheets. He warned commercial and industrial valuations may be flat and urged continued smart‑growth to expand the tax base.

What happened next: The council voted to receive the budget and place it on the permanent record, and referred the matter to the council’s Committee on Finance for detailed review and hearings with department heads. Council President Dillon moved the referral; the motion passed on an aye vote.

Clarifying details: Concannon presented water and sewer enterprise figures separately: a proposed direct‑charge budget of $22,839,833.48 (a $697,169.29, or 3.15% increase). He characterized the FY2026 request as intended to maintain services without adding nonessential staffing or new programs."This proposed FY 2026 annual budget reflects those values and priorities and is based on an honest and transparent assessment," Concannon said.

Looking ahead: Concannon said he will submit an updated FY2026 capital budget to the council at its June 3 meeting and looks forward to finance committee review. The council will hold finance committee hearings in the coming weeks to scrutinize line items and consider reductions.