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Worcester closes FY25 with revenues slightly above expectations, permit fees and interest income cited as drivers
Summary
Timothy McGurthy, chief financial officer for Worcester City, told the municipal and legislative operations subcommittee on Oct. 28 that fiscal year 2025 finished "strong."
Timothy McGurthy, chief financial officer for Worcester City, told the municipal and legislative operations subcommittee on Oct. 28 that fiscal year 2025 finished "strong." "Our revenues were at about a 101% of expectations," McGurthy said, and "our expenses were about 99% of expectations." He added that, overall, revenues exceeded expenses by a small margin.
McGurthy said several local revenue categories outperformed expectations. He told the committee that interest income has risen because bank rates moved higher and that "permit fees were actually higher than we anticipated" — permit fees were about 123% of budget, producing roughly a $2,000,000 differential from the estimate. McGurthy also cited motor vehicle excise as a contributor to stronger local receipts.
The chief financial officer told members that enterprise funds finished largely on target: the golf enterprise posted about $230,000 in excess revenue and water and sewer ended "right on target." He said departments remained within budget and that year-end transfers approved by the council covered shortfalls.
During questions from councilors, McGurthy described the three primary revenue categories: property tax (the bulk of local funding), state aid (largely chapter 70 education aid), and local receipts (motor vehicle excise, permit fees, hotel and meals taxes, fines and similar receipts). He cautioned that some elevated receipts reflect temporary factors and said the city is budgeting more conservatively for FY26.
Committee chairperson Morris Bergman moved to file the financial updates for March through June (items 3a–3d). The roll call recorded Councilor Donna Calorio, Councilor Luis Ojeda and Chairperson Bergman voting yes. The motion to file carried.
Councilors exchanged questions about the outlook and possible federal or economic developments that could affect revenues, and McGurthy said staff will continue to monitor and report to the council.
