6.4.26_City FY27 Budget Submisson Presentation (26-0950) — File 26-0950

City of Somerville FY27 Budget Mayor Jake Wilson June 4, 2026 Chris Devers Photography

Agenda • Overview • Navigating a Challenging Economy • Closing the Budget Gap • Investing in Schools, Core Services, and Our Values • Update from Budget Director Michael Mastrobuoni • Mayor Wilson: Conclusion

A budget designed to deliver results, strengthen core services, and uphold our values with action .

A Multi- Month Process

Driven by community priorities

Investing in Our Schools The largest dollar investment increase in Somerville Public Schools in the history of this district

Supporting Students and the Schools They Learn In • 5 new special education teachers • 6 new instructional coaches & interventionists • $600,000 in additional funds for substitute teachers • Expanded funding for the School's equity formula • Expansion of Working on Womanhood • Preserving expansion of free T- pass program for grades 7 - 12 • City investments in school building upgrades

Amid a challenging economic picture

Closing a $5.4 million budget gap • Worked to increase revenues • Raised some fees • Shifted large permit timing • Sought support at state level • Used $14 million in reserves: Bought down debt with and moved some capital projects to stabilization funds • Cut non-personnel, level-service budgets citywide by roughly 5% • Moved some staff and expenses onto settlement funds, grants, and other designated funds • Cut 16 vacant Positions • As a last resort, undertook layoffs: 13

Delivering Quality Core Services • Street safety • Rodent control • Road paving & maintenance • Website upgrades & City app • Sidewalk repairs • Public tree care • Fire response "Green Wave" • Public Safety • Improved permitting processes • Facilities maintenance • Measuring progress with SomerStat Division

• Emergency co-response • Civilian oversight • Affordable housing creation • Housing & immigrant legal supports • Language & Communications Access Office • Engagement & Neighborhood Services Division • Open door policy • Equity and Belonging Division Upholding Our Values Through Action

Grounding All of Our Work in Equity & Belonging Public Safety for All Project Manager in Mayor's Office Police Accountability Program Director in Mayor's Office Engagement & Neighborhood Services All City Teams ADA Coordinator in People Operations Equity & Belonging Division Immigrant Advancement (SOIA)

Sustaining Progress • Taking on the housing affordability crisis • Aggressively advancing leading-edge affordable housing creation • Generating the next wave of projects in the housing pipeline • Fighting displacement • Sustaining strong immigrant services & legal supports • Supporting tenant legal rights • Delivering the Davis Square Neighborhood Plan • Overhauling permitting for businesses and home owners • Advancing Climate Forward goals

Anchoring Our Work in Responsible Fiscal Management $394 million 3.7% increase year over year

Getting the Most Out of Slowing New Growth

Reductions in New Growth make budgeting difficult 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 (est) 2028 2029 2030 Annual Residential & Commercial New Growth RO Growth CIP Growth

Closing the gap & investing in our departments Mike Mastrobuoni, Budget Director

How we closed the gap Reserve strategy $.9M in Debt Service Revenue cost recovery $750k in Revenue Operating budget reviews $1.7M across Ordinary Maintenance Workforce Restructuring & Reductions $2M across Departments Tool Contribution

Using reserves to pay down or avoid debt creates recurring budget capacity 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Stabilization Fund Balance Special Purpose Stabilization Fund Balance Target ✓ Creates recurring budget capacity ✓ Preserves flexibility ✓ Avoids future structural problems

Public Schools was the City’s biggest investment in FY27

Municipal finance necessitates a long view Chris Devers Photography Chris Devers Photography Schools Infrastructure Fiscal Sustainability Chris Devers Photography

Thank you Chris Devers Photography