Mayor and finance director preview Pittsfield fiscal 2026 budget; reserves, health care and retirement costs flagged

Mayor and municipal finance officials presented a preliminary fiscal-year 2026 budget outlook to the Pittsfield City Council and School Committee under City Charter section 7-2, highlighting a tight revenue picture driven by possible health-insurance increases and rising retirement and debt-service costs.

The mayor and Director Kerwin framed their guidance around a set of core facts: a certified free cash balance, constrained excess levy capacity and a range of drivers that could widen or narrow the city’s budget gap. “We win some, we lose some,” the mayor said, noting that the governor’s proposed Chapter 70 education aid increases could be offset by higher health-insurance premiums.

Why it matters: Officials said that a projected health-insurance increase—figures cited at the MMA conference ranged from 9 percent to 19 percent with an average near 14.8 percent—could add several million dollars to city and school costs and absorb recent state aid gains. Director Kerwin said the city’s retirement contribution is set to increase by about 5.2 percent and long-term debt service is expected to rise roughly 9.5 percent in FY26.

Major revenue and reserve points - Reserves: General stabilization balance was reported (asset figure given in presentation slides). Public-works stabilization was low following a previous appropriation; free cash certified for the year was reported at about $8.18 million. - Local receipts: As of late January, real-estate and personal-property tax collections and state-aid receipts tracked to expected pacing; motor-vehicle excise typically posts its largest commitment in March. - Cannabis excise: Officials said cannabis-related excise receipts have declined from earlier levels and are below prior benchmarks; the city should not expect that source to grow substantially.

Major cost drivers - Health insurance: Municipal health-insurance increases for FY26 were presented with the MMA/Maya Health Trust forecast range (9–19%); Director Kerwin said the city’s claims experience runs slightly under premium now, and he hoped the city’s increase would track nearer the low end of the range. - Retirement: The city’s pension/retirement contribution was…