City Manager Presents FY27 Budget Ahead of May 5 Council Meeting
Information for this article was sourced from the City Manager’s official agenda update, “The Buzz with City Manager Batista,” published May 1, 2026, and supporting materials from the City of Worcester.
By Jerry Filmore
WORCESTER, Mass. — Worcester City Manager Eric D. Batista’s agenda items for the Tuesday, May 5, 2026 City Council meeting include one of the city’s most significant annual items: the proposed Fiscal Year 2027 operating and capital budgets.
According to the City Manager, the proposed FY27 operating budget is more than $1 billion, marking the first $1 billion operating budget in Worcester’s history. The city said the increase is driven largely by state aid through the Student Opportunity Act, rising property values, and new private investment.
The proposed operating budget represents a $50.8 million increase from the FY26 final budget. Batista said much of the funding is already committed, with $612 million, or 61 percent, directed toward Worcester Public Schools, charter schools, school choice, and special education. Another $172.5 million is listed as fixed costs, including health insurance and pension obligations.
Batista said the City Council will review the proposed budget and has the authority to reduce items, but cannot increase the budget without a recommendation from the City Manager.
The administration’s FY27 budget theme is “Funding the Future: Smart Spending, Stronger Outcomes.” Batista said the city is facing financial pressures similar to other municipalities, but remains in stable financial shape because of prior budgeting decisions, including limited new spending in FY26 and a $5 million contingency budget.
The proposed budget includes a 2 percent cost-of-living adjustment for unrepresented employees. It does not include net new positions, but does shift funding from previously unfilled positions to support priority needs, including new plumbing and gas fitting and electrical inspector positions, as well as a position in the Business Development Division.
The administration is also proposing a $46 million, or 41 percent, increase in the FY27 capital budget over FY26. The city said the capital plan includes infrastructure investments, including an $11 million, or 66 percent, increase in Department of Public Works borrowing for streets and sidewalks, snow equipment, equipment purchases, and building improvements.
Public safety infrastructure is also included, with $25 million proposed for a new South Division Fire Station and $5 million for upgrades to Worcester Police Headquarters. The city also said the budget includes increased operating funding for the Worcester Fire Department related to the end of the SAFER grant, which had supported expanded academy class sizes.
School-related capital investments include a $10 million increase for Massachusetts School Building Authority projects, including closeout costs for Doherty Memorial High School, the start of the Burncoat Feasibility Study, and accelerated repair projects at Belmont Street Community School and Rice Square School.
The May 5 agenda also includes a proposed FY27 water and sewer rate report from Department of Public Works Commissioner John Westerling. According to the City Manager’s update, the proposed water rate would remain at $3.85 per hundred cubic feet, while the sewer rate would increase to $10.22 per hundred cubic feet, a 73-cent increase from FY26. The administration said the average single-family home sewer bill would increase by $36.21.
The agenda also includes pavement restoration items related to trench work on city roads. According to the update, trench permits made up nearly half of the 5,210 permits issued by the DPW Engineering Division in 2025. Westerling is recommending a change to the pavement restoration ordinance that would extend the warranty period for pavement restoration from 24 months to 60 months.
Other agenda notes include the appointment of Joseph Kahoro to the Board of Health, the appointment of Susan Ledoux to the Election Commission pending City Council confirmation, and recognition of Aaron Green, an asset manager in the Department of Public Works, as the Paul J. Moosey Employee of the Year.
🔎 W.U.W. Verification Box
Sources reviewed: City of Worcester announcement on the proposed FY27 budget and “The Buzz with City Manager Batista” agenda update for May 5, 2026.
Confirmed: Proposed $1 billion operating budget, $50.8 million increase from FY26, $612 million for education-related costs, $46 million capital budget increase, proposed sewer rate increase, and pavement restoration ordinance recommendation.
Not yet known: Final City Council budget actions. The budget still requires Council review and approval.
About The Author
Where’s the budget item for increased shelter beds for winter 2027? 2026 saw the need for emergency shelter at St John’s. What is the cost for increased accommodation for 2027?