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Mayor previews FY26 general fund budget, flags pension bond peak and public safety hires
Summary
Mayor Tom Koch presented an overview of Quincy City—s proposed fiscal 2026 general fund budget at the May 5 council meeting, highlighting a peak pension obligation bond payment year, planned public safety hires supported by federal grant funding, an 8% healthcare cost assumption and continued investment in schools and infrastructure.
Mayor Tom Koch gave a citywide preview of the proposed fiscal 2026 general fund budget at the Quincy City Council meeting on May 5, saying the package is focused on maintaining services while absorbing a planned peak payment on a pension obligation bond.
The budget "continues to invest further into our schools and our public safety units," Koch said. He told council members the budget increase this year is "largely due to the pension obligation bond" and that the bond structure produces substantial multi-year savings: "the savings is approximately 168,000,000 over those years." He also said the city obtained a favorable rate on the bond at about "2.62%."
The mayor said public safety and education are the chief drivers of the increase, and listed other upward pressures including health care, trash and recycling, and energy costs. He told the council the administration built an 8% assumption for health insurance increases into the plan.
Koch outlined staffing and capital priorities tied to the budget: the fire department currently has recruits in the academy ("27 men and women in the academy," he said) and the city received a federal SAFER grant for 16 new firefighter positions; the police budget includes funding for four new officers, a senior investigative liaison and an evidence-control specialist. The mayor also described ongoing investments in roads, sidewalks, water and sewer work and school projects.
Why it matters: the general fund is the central operating budget that pays for public safety, schools, public works and most city services. The pension obligation bond payment is a known, scheduled cost that raises the near-term budget baseline and affects choices about new programs and staffing.
Details and context: Koch thanked municipal finance staff and outside advisors for structuring the pension transaction and said employees also contribute to the retirement system: "9% comes right out of the check and over 35,000 another 2% comes out of their check," he said. He said the administration used federal ARPA and ESSER funds in prior years for school-related projects and cited a $10 million award tied to the Southern Artery project secured through the city's grant team.
Council response and next steps: Councilors praised the administration—s investments. Councilor McCarthy called the presentation "a real positive feeling, that we're in a good place here." Councilor Campbell asked about federal funding risks; the mayor listed recurring federal streams such as CDBG and Title I and said the city continues to monitor programmatic and formula changes. The council voted to move the FY26 general fund appropriation into the Finance Committee for detailed review and departmental hearings.
Ending: The administration said department-level budget hearings and school-side deliberations will follow in the coming weeks. The Finance Committee will hold a public hearing and department presentations before the council considers final adoption.
