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Revere City committee recommends $297.6 million FY27 operating budget
Summary
The Revere City Committee as a Whole voted unanimously June 22 to send a favorable recommendation to the full City Council to adopt the fiscal year 2027 operating budget of $297,566,962 after questions about high-school bond timing, projected investment income, the Community Preservation Act and the city's bond rating.
The Revere City Committee as a Whole voted June 22 to recommend that the full City Council adopt a fiscal year 2027 operating budget of $297,566,962.
The committee'level review included questions about revenue assumptions and debt-service pressures tied to a bond-financed high school project. Richard Biscay, the city's chief financial officer, said about $3 million of the budgeted investment income reflects proceeds from recent borrowings for the high school and the budget also assumes roughly $3 million in ordinary investment returns, which Biscay said will decline as construction drawdowns reduce investable cash.
"We borrow the money and while the bills are getting paid down, we actively invest it," Biscay said, explaining that investment income is expected to "tail down" to near zero by 2030 as the project is permanently bonded. He told the committee the city modeled a long-term rate of about 4% and a short'term assumption of 3.25% ahead of a July bond sale that will set final rates.
Committee members also asked about the Revere High School stabilization account and other revenue options. Biscay said the city currently dedicates 10% of free cash to the stabilization account and directs any energy credits from the new high school there; he added the city may dedicate other recurring revenue sources to the fund within Massachusetts General Law.
On a separate revenue option, Biscay described the Community Preservation Act (CPA) as a state program that lets municipalities place a levy surcharge of up to 3% on the property tax levy for limited purposes, including historic preservation, open space and affordable housing. He said state matching that once approached dollar'for'dollar has fallen as more communities joined the program and was around 18% in 2025, and noted CPA revenues do not flow into the general fund but could free general-fund capacity if used on eligible items.
Biscay said the city recently completed a bond rating call and expected to remain at a double-A rating with a stable outlook, though he said the final draft rating was pending.
After the discussion the committee moved and then, by roll-call vote, unanimously voted to forward a favorable recommendation to the full City Council to adopt the FY27 operating budget as presented. The committee did not record any "No" or abstention votes in the transcript.
Next steps: the favorable recommendation will be considered by the full Revere City Council on its upcoming agenda.
