Mayor Sean Reardon Releases FY2026 Budget
May 13, 2025May 13, 2025
Mayor Sean Reardon Releases FY2026 Budget
On May 12, 2025, Mayor Sean Reardon released the Administration’s budget proposal for the upcoming fiscal year, which begins on July 1, 2025. To view the FY2026 budget proposal, please visit: https://www.cityofnewburyport.com/budget
The proposed FY2026 budget totals $105,654,956 across all funds, an increase of $2,819,576, or 2.7 percent, over the current fiscal year. This includes a General Fund budget of $90,129,698, which represents an increase of $3,131,304, or 3.6 percent. The Enterprise Fund budgets total $15,525,259, reflecting a decrease of $311,727, or 2.0 percent, from FY2025.
While the City continues to face cost pressures, including a nearly 15 percent increase in health insurance premiums and the full-year impact of several collective bargaining agreements, this year’s reductions were part of a broader strategy to improve operations. Before accounting for the increase in health insurance premiums, we were able to limit the increase in the general fund to 1.8%. From the outset, we set a goal of producing a leaner and more focused budget. Working closely with department heads, we reduced positions primarily through attrition (that is, without layoffs), tightened non-personnel expenses, and looked for opportunities to streamline operations without compromising service delivery.
The administration is also excited to launch the FY2026–2030 Capital Improvement Plan (CIP). This five-year CIP reflects a more structured and transparent process, following the implementation of an updated and reworked Capital Planning Policy. Capital requests were submitted through a centralized portal and evaluated using a consistent set of weighted criteria. A cross-departmental review team assessed and calibrated project scores to guide final recommendations. The result is a more thoughtful, data-driven plan that supports long-term infrastructure needs while maintaining financial discipline.
Due to the uncertainty around federally funded grants, especially infrastructure funds, the City can continue to progress design and planning for our larger infrastructure projects in anticipation of grant funding freeing up in the future. The CIP also reflects the longer timelines needed to advance design on some of these more complex projects. Although some major initiatives remain in the planning or design stage, the FY2026–FY2030 CIP reflects a realistic and balanced approach.
The City Council has 45 days from the budget’s submission to approve or make changes to the budget. The Council will hold workshops over the coming weeks to discuss the proposal with department heads and other City staff and make a determination on whether to cut any of the budget lines. The Council cannot add to the budget, only reduce amounts. The workshop schedule can be found on the calendar widget on the page for the Committee on Budget and Finance, found here :https://www.cityofnewburyport.com/budget
