Woburn Mayor Proposes 2.5 Percent Budget Increase

WOBURN, MA — Mayor Scott Galvin proposed a 2.5 percent increase to the city's budget for Fiscal Year 2021, bringing the total to $160.7 million.

The city is looking at over $8 million in lost revenues due to the coronavirus, Galvin said: $6 million in local receipts like meal and hotel taxes, and $2.5 million in state aid.

The budget, which came weeks later than typical years due to uncertainty related to virus, includes a 2.99 percent increase to the general fund—including a 3.8 percent increase for schools—and a 0.91 percent decrease to the sewer and water enterprise fund.

The combined $70.6 million school budget would be supplemented by $700,000 in grant and prepaid expenditures, Galvin said.

"In addition, the capital budget for FY21 nonemergency spending will be delayed by one year," Galvin said. "As we move through the FY 21 budget cycle, COVID-19 could create additional, unforeseen financial obligations."

Galvin noted that city officials have "serious concerns about ability of commercial and residential taxpayers to make timely payments" and expect the hit to local receipts to extend into Fiscal Year 2022.

The city will have to draw on reserves to make up for lost revenue, Galvin said.

"With the assistance of the city council we are well-positioned to weather that," he said.

Alderman Concannon said the Finance Committee would take one to two nights to review the budget with potential input from department heads.

Read the Mayor's full budget and his letter to Council here.

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.