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Mayor previews Leominster—s largely level-funded FY2027 budget, highlights school share and pension discipline
Summary
At a finance subcommittee meeting, the mayor and comptroller presented a largely level-funded FY2027 budget that raises roughly $8 million from levy capacity, growth and new local aid; schools account for about 62% of the budget and leaders said steady pension funding and grant-seeking have helped avoid new city positions.
The mayor presented an overview of Leominster—s proposed FY2027 budget to the finance subcommittee on Monday evening, saying the plan is essentially level-funded and that the city—s current financial position reflects years of conservative pension contributions and grant success.
"It's an awkward process," the mayor said, describing how tax bills are estimated in July before the tax rate is set and flagging the limits imposed by Proposition 2———f. The presentation included slides showing that local aid has not kept pace with inflation since 2008 and that the city would have received an additional $2.4 million this year if local aid had been inflation-adjusted.
The administration reported an $8 million net increase in the general fund for FY2027 that is explained largely by three sources: $2.5 million from the Prop 2—— levy capacity, $1.5 million from new growth and $3.4 million in additional local aid, with a $250,000 overlay contribution closing the gap. Officials said the school district accounts for 62.26% of the general fund, while public safety is about 13.4%.
Comptroller (unnamed in the transcript) described the city—s approach to capital and operating priorities: "We budget a very, very slim budget, and then if we need to, we come back for additional appropriations," the comptroller said, adding that the city uses free cash for one-time capital purchases rather than bonding whenever possible.
Officials highlighted steps the city has taken to strengthen long-term finances: aggressive pension contributions have reduced annual pension payments from more than $9 million to a lower, more manageable level, and the city reports its pension fund is over 100% funded. The comptroller said this discipline has lowered long-term liabilities and allowed more predictable budgeting.
Presentation materials also detailed grant-funded capital projects: officials said roughly $30 million in capital grants is underway and that FEMA and MassDOT flood projects are in various stages (engineering, appraisals, bids). The city said it used a $3.6 million state allocation strategically to leverage additional federal and state funds for surveys, appraisals and takings for flood work.
Councilors asked for clarification on particular lines: a councilor asked why the levy ceiling figures read oddly on a slide; another asked the administration to explain why strong pension funding matters. The comptroller answered that setting conservative actuarial assumptions (for example, a 5.5% expected actuarial return) reduced volatility and long-term liability for taxpayers.
The chair and council president reminded residents there is a public hearing scheduled for Monday and encouraged people to review the budget book, which officials said will be posted to the city—s website. The subcommittee took no vote; it is a preview meeting with the formal public hearing set to follow.
Next steps: the administration will provide additional detail requested by councilors at the public hearing and the council will consider formal actions after public comment.
