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Newton manager previews 2026 budget, urges steady mill levy and sets timeline for pay study decision
Summary
City Manager Daniella told commissioners the 2026 budget process will prioritize maintenance, parks and public engagement, keep a steady mill levy and complete a classification-and-compensation study before finalizing personnel costs.
City Manager Daniella said Thursday that the City of Newton will present a draft proposed budget in July and is planning to hold the line on the mill levy while adopting a strategic plan-driven approach to spending. "It is my North Star," Daniella said of the strategic plan, which she said will guide priorities for sustaining services, creating a welcoming community and planning for growth.
Daniella told the commission the budget calendar depends on assessed valuation and other revenue estimates: officials expect assessed valuation numbers on June 15 and a draft proposed budget in July. She also reminded commissioners that the "revenue neutral rate is still on the books" and that following that legal step typically lengthens the process through October.
The manager said the city's 24-month strategic plan will shape line items in the coming budget, with specific emphasis on sustaining maintenance budgets, funding public engagement and parks, preserving the city's bond rating and maximizing public-private partnerships and grants. "We will leverage every partnership we have and any grant opportunity before we hit our budget," she said.
Daniella also previewed the classification-and-compensation study the city has conducted with a consultant and said the immediate next question for the commission will be to decide a compensation philosophy. "What is the compensation philosophy for the city?" she said the consultant Malena will ask the commission: whether Newton should pay at market, above market or target a different percentile tied to strategic goals.
Finance Director Donna (addressed later in the session) and staff explained the practical timing: departments submitted budgets earlier this year and staff are compiling capital budgets now, but final revenue inputs will await the assessed valuation. Daniella said the city aims to preserve the bond rating and is considering inviting rating agencies for an on-site review next year.
The manager said some pay-study implementation details will be settled after the consultant presents market results to department heads and then to the commission in the next two weeks. She outlined an employee survey to let staff rank benefit priorities such as tuition reimbursement or family leave, and said benefit changes requiring extra funding will come to the commission through the budget process.
Next steps: staff will return with a draft budget in July and the consultant is scheduled to meet with the commission on June 12 to discuss pay-study findings and the compensation-philosophy decision that will shape 2026 personnel-service estimates.
