Lowell officials outline FY26 budget process, warn of rising fixed costs and infrastructure needs

Lowell City Manager Tom Golden and finance staff briefed residents at a public budget listening session on the city’s FY26 planning process and fiscal constraints, emphasizing rising fixed costs, state aid uncertainty and major capital needs.

The presentation explained how the city develops a balanced budget at the department level before the city manager and finance staff forward a recommendation to the City Council; officials said they expect to present a first reading to the council on May 13 and hold the public hearing on May 27 at 7 p.m. in City Council Chambers. "We are in the very beginning stages of putting our budget together for FY26," said Austin Ball, deputy chief financial officer.

Why it matters: Lowell relies on a mix of property taxes, state aid and local receipts; officials said state funding formulas and federal grant programs materially affect the city's ability to deliver services. Finance staff warned that rising retirement and health-care obligations, charter-school assessments and debt service are shrinking discretionary budget space.

City finance staff described the main revenue and expenditure categories residents are likely to see. Deputy CFO Austin Ball said the general fund, which covers public safety, schools and other core services, is funded primarily…