Newton Mayor Ruthanne Fuller stressed the importance of the city’s long-term fiscal health in her FY26-FY30 Financial Forecast presentation at the City Council meeting Monday night.
“Here in Newton we can feel a sense of reassurance in our financial future, as this Long-Range Financial Plan and Five-Year Financial Forecast shows the financial health of the City of Newton is strong and stable with steady and predictable growth,” Fuller said.
Chief Financial Officer Maureen Lemieux, who assisted in the presentation, said Newton is seeing significant levels of free cash—unrestricted funds left over from the previous year’s budget—in its budget for this fiscal year.
“We have just had $23.6 million certified again, significantly more free cash than we typically have,” said Lemiueux.
For the first time in more than 20 years, however, the city will not be relying on free cash as a general revenue source this coming fiscal year and instead will be allocating these funds more largely to one-time funds.
According to Lemieux, $18.7 million in free cash is being allocated to Newton Public Schools (NPS).
“We are not holding back on providing services, either to the schools or to the citizens throughout the city,” said Lemieux.
The city is also allocating free cash to support one-time expenditures for municipal purposes, such as replacing HVAC systems in the Newton Free Library and making improvements to the fire station.
“This free cash really was incredibly important, and we turned what was one-time money, if you will, into multi-year benefits to the city,” said Lemieux.
Fuller also emphasized the financial plan’s focus on caution in the face of uncertainty.
“Being careful and conservative allowed us to be nimble and flexible when we faced the financial calamity of the pandemic in the recent past, and will allow us to do so again if we face something like a devastating hurricane or a deep recession in the future,” said Fuller.
Creating a long-term plan requires keeping in mind both financial goals and potential financial challenges, according to Lemieux.
“Headwinds,” or priorities for Newton’s financial department, include providing academic excellence, keeping Newton safe, and providing fair compensation and benefits, among other things, Lemieux said.
Lemieux explained that financial challenges such as interest rates, overseas wars, inflation, climate change, and extreme weather can all impact the city’s ability to achieve its financial goals, but noted that the city’s progress in pension funding is critical for future financial stability.
Fuller concluded her presentation by saying that the world’s political, social, and economic turmoil makes the community at Newton even more important.
“Drawing on the strength of our community is essential,” Fuller said. “As we observe a national scene where civil discourse is frayed, the strength of our community here in Newton and the relationships between us become paramount.”
Leave a Reply