Melrose City Council Reviews First Full Budget Since $13.5M Override

MELROSE, MA — Mayor Jen Grigoraitis’ proposed Fiscal Year 2027 budget is now in front of the Melrose City Council as the city moves through its first full budget cycle since voters approved a $13.5 million Proposition 2 1/2 override last fall.

The $126.7 million general fund budget is a 4.6 percent increase over the revised FY26 budget, according to city budget documents. It funds city departments, schools, public safety, employee benefits, capital needs and other municipal services for the fiscal year that begins July 1.

Grigoraitis framed the proposal as a turning point after years of constrained budgets and service cuts.

“This is my third budget, and the first one without cuts, thanks to the override, which Melrose residents resoundingly supported this past November,” Grigoraitis said in her official budget remarks.

The largest single allocation is for Melrose Public Schools. The city’s FY27 school appropriation is listed at $49.3 million, including an anticipated $332,180 increase in Chapter 70 state education aid, according to a May 28 memo from CFO and City Auditor Kerriann Golden. The School Committee had previously voted a budget based on a $49 million city appropriation.

Grigoraitis said the school allocation is the largest in Melrose history and adds another 6.5 percent to the school operating budget after a supplemental budget at the end of 2025 increased school funding by nearly 9 percent. She said the budget restores 17 school positions, reduces class sizes, restores the team model at the middle school and supports new instructional materials across the district.

The school investment follows several years of budget pressure. Local coverage from The Melrose Messenger reported that about 40 school positions were cut between FY24 and FY26, with 17 restored through override funding. The same coverage described the school budget as a major improvement from what Melrose likely faced without the override, while noting that the district remains lean in several areas.

The city side of the budget also includes restored or expanded services tied to the override. Grigoraitis said the plan restores two police officer positions, DPW overtime for Saturday City Yard hours, summertime flower baskets in commercial areas, Sunday hours at the Melrose Public Library, partial library staffing, funding for road paving and sidewalk repairs, and operating support for the Recreation Department.

The budget also creates or supports several targeted service changes. Those include overtime for code enforcement on noise, dumpsters and other violations; a regional animal control officer shared with Wakefield and Stoneham; a full-time school nurse who can float among public school buildings; access to Language Line translation services for city departments; and a dedicated budget line for ADA public accommodations.

The proposed operating budget lists the police department at about $6.6 million, up 5.9 percent from the revised FY26 budget, and the fire department at about $6.1 million, up 2.6 percent. Employee benefits are budgeted at about $18.5 million, a 9.3 percent increase.

Grigoraitis said the city is also putting money toward capital needs that have gone underfunded, including public safety equipment, a police cruiser, a new gas pump at the City Yard, masonry and electrical work in city and school buildings, and school security technology.

The broader public safety facilities project remains separate but connected to the city’s long-term financial picture. Grigoraitis said the first phase, which includes Engine 2 on Tremont Street and the new Melrose Police Station on West Foster Street, is under construction and more than $5.7 million under budget.

Melrose’s FY27 budget comes after voters approved the $13.5 million override in November 2025. CommonWealth Beacon reported at the time that voters approved the measure 54 percent to 46 percent after rejecting a smaller override the year before. The override was intended to help restore cuts and stabilize city finances after years of rising costs outpacing the limits of Proposition 2 1/2.

Grigoraitis said the city is no longer relying on free cash to close operating budget gaps, a practice she said had been used in prior years to help balance the budget. She also pointed to Melrose’s AA+ bond rating and said the city is trying to maintain stable finances while preparing for future costs.

Still, the mayor warned that Melrose continues to face pressure from employee benefits, collective bargaining agreements, vocational and charter school assessments, utility costs, and uncertainty in state and federal funding.

“Melrose is not immune to the rising costs that we are seeing across municipalities, but thanks to the override, the city can meet those costs,” Grigoraitis said.

The City Council’s Appropriations & Oversight Committee is reviewing the budget through a series of hearings. The city listed budget hearings for June 8 and June 11 in its official weekly notice.

Councilors are expected to vote on the full budget before the new fiscal year begins.

See Also:

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