By Linda Scott
Watertown Resident
A Quick Look at Watertown’s Proposed Fiscal Year 2026 Budget
I’ve been looking at ourFiscal Year 2026 Budget. First, I’d like to thank our City Manager for. presenting us with a very well laid out document. These are some of my observations and some questions that I’d like answered as we continue to look at this very lengthy and detailed document.
Let’s look at some City departments that actually bring in revenue. Some may surprise you. This information is on pages 44 and 45 of the budget.
But first, on pages 42 and 43, you’ll see the categories where our City’s revenues come from. You’ll see that our taxes fund almost 78% of the budget for 2026. That’s, in effect, the lifeblood of our City’s operations.
Under Other Financing Sources:
As you can see, (in the light blue section) this is called “Other Financing Sources.” This includes fees, licenses, permits, fines and forfeits. I believe that this money goes into the General Fund for the City Manager and City Council to spend as they see fit. Let’s start with a look at where the income is generated, from highest to lowest.
*What is included in the categories of “Rentals” and “Costs”? Does the increase in the Rentals category reflect any money spent by the City to rent the space or is it all private rental sources?
Now let’s do a 5 year look back. The 2022 numbers are taken from pages 13 to 15 of the Fiscal Year 2023 Budget Overview.
The top five earning categories (Inspections, Fire Department, Parking and Police and Rentals) are still the same in 2022.
As you can see, in terms of fines and fees, etc., Watertown Fiscal Year 2026 promises to be far less lucrative, with the exception of the Fire Department, Rentals, Health Department, the Town Clerk’s Office, and the DPW. According to these projections from the City Manager, we will have $5,769,267 coming in. That’s 59.3% of what we had in 2022, or a 40.7% decrease.
If you’d like to look at local receipts (meals and hotel taxes, excise tax, etc.), you can find that for FY 2022 on page 12 of the Fiscal Year 2023 Budget Overview, and on page 44 of the. Fiscal Year 2026 Budget. Local Receipts look a bit better. Mr Proakis’ projection is that compared with 2022, we’ll be making $16,760,104, or $636,717 more. That would be an increase of 3.8 % over 5 years.
Other Revenues:
To see the entire revenue picture in detail, see pages 43 to 45. There you can see the rest of. the projected revenue. This section includes terms, like ESCOS that may be confusing. Here is an explanation of an ESCO:
And, here is a very good on-line resource to explain the difference between a City’s General Fund and a City’s Enterprise Fund (click in the middle of the images to get the arrow to start):
Noted Continuing City Budget Revenue Problems:
On page twelve of the budget, the City Manager lists eight life science buildings that are partially filled or empty and seven approved projects that are on hold to be built, awaiting tenant commitments. That means no taxes from life science businesses and no linkage fees yet for those construction projects, which have been a tremendous boon to our bottom line.
Note: in contrast with the projections from experts a few years ago, the newest predictions are that, given the outsourcing of lab work outside of the US and the reduction of federal grants to NIH, etc., the Life Sciences industry is in danger of not fully rebounding. See this April 14, 2025 Boston Globe Article. In this article, the consequences of those slowdowns and cuts are discussed.
It is mentioned in the Watertown budget pages nine and ten that we don’t have a lot of Federal moneys coming in, but since the state depends on that money, and we depend on the state for this money, we could be indirectly negatively impacted. “A reduction in federal support for state programs could result in the state reducing aid commitments to local government, and that could have an impact on Watertown.”
On page ten, the City Manager writes about the negative effect a recession could have on economic development in Watertown, which could in the near future negatively impact programs and services in the City.
Questions:
The City has used the previous year’s numbers to project FY 2026 numbers. Can they reliably use the revenue numbers of the previous year for FY 2026, when we’re in a very different fiscal and political situation?
If these projections turn out not to be in the ballpark, given that many Watertown residents have already been “served up” a significant tax increase, what’s “Plan B” to keep all programs and services fully operational?
On page thirteen, City Manager Proakis outlines various strategies that we have to control residential taxes. Will those strategies, like residential exemptions, hold if this crisis deepens?
Here’s a table produced by The Watertown Assessor’s office comparing us to other local communities. The data is from 2024. As you can see, our tax rate is the highest, but our average tax bills are sixth out of seven. To see the whole document with explanations: https://watertownma.portal.civicclerk.com/event/5634/files/attachment/1455
So, in 2024, of these seven communities, Watertown ranks:
First (Highest) in Residential Tax Rate: 11.70%
Sixth in Residential Property Value $840,331
Sixth in Average Residential Tax Bills $6,587
Also notice that the communities paying the highest tax bills do not have a residential exemption.
Next Steps:
See Part Two of this series, called “Where Does Our Money Go?”
Attend the Meetings/ Send your thoughts to your councilors.
There will be hearings on the departmental budgets coming soon. My understanding is that each department’s budget will be reviewed individually. Keep an eye out for those City Council meetings.
In another budget-related matter, there’s also a second meeting of the Budget and Fiscal Oversight Committee to continue the discussion of the cost/benefits of a second ambulance for the Watertown Fire Department. That meeting is on April 29, 2025 from 6:00 – 8:00. Here are more meeting details: meeting details
And if you’re interested in a particular department’s budget, here’s the link to the whole budget again: Fiscal Year 2026 Budget. On pages one and two you can find the table of contents to quickly access the department(s) that you’re interested in.
Watertown Budget 101: Where Does Our Money Go?
A Quick Look at Watertown’s Proposed Fiscal Year 2026 Budget
I’m on pages 46 – 48 of the 246 page Fiscal Year 2026 Budget. Here I’m looking for trends… where did cuts occur? Are there common areas that got cut, for instance? Please keep in mind that department percentage cost cuts are all relative. A 10% cut in a department with a $100,000 and a 10% cut in a department with a $200,000 budget are different, for instance.
Okay, here’s what I found:
The Departments that Received Cuts and What Percentage:
Senior Services -14.55%
Health Department -8.81%
Veterans -8.31%
Library -6.43%
Constituent Services -4.43%
City Manager -3.04%
Procurement -1.78%
There’s a department under the Health and Human Services category, called “Human Services” that doesn’t have comparison data, since it’s new this year, so there’s no percentage change. That new department, Human Services, has been allotted $531,635 in the FY 2026 budget.
In an area where all other departments under the Health and Human Services category (Health,
Senior Services, and Veterans) received the largest cuts, this new department’s budget brings the overall total for the Health and Human Services category up to a 17.85% increase.
That seemed very odd to me, until I read further and found that this new department, Human Services, is absorbing:
Staff from Senior Services (the Food Pantry Coordinator)
From the Health Department: Contracted social services provided by Wayside
From the City Manager’s budget: ($5,000) will also go to the Human Services Department, earmarked for the Human Rights Commission.
Personnel (the Wellness Team) is also being taken out of the Department of Community Development and Planning (DCDP). That is the only department contributing to this new Department (Human Services) that does not sustain a budget decrease. That budget increases by 4.99%. (See below)
Details on Other Departments with Budget Decreases:
To see cuts to the Veteran’s Department, see pages 147 -149 of the budget.
To see cuts to the library, see pages 154 – 158. It looks like custodians and utilities are moved to other departments.
To see Constituent Services cuts, see pages 94 – 97.
To see cuts to the City Manager’s budget, see pages 57 – 62.
To see Procurement cuts, see pages 66 – 68.
Here are Watertown Government Departments that are planned for increases in FY 2026.
Departments with Percentages of Budget Increases:
Public Buildings 36.66%*
Health & Human Services 17.85
Ryan Skating 10.63%
City Attorney 9.9%
Waste Disposal 7.54%**
Human Resources 7.4%
Public Works 7.22%
Police 6.65%
City Council 5.29%
Elections 5.88%
DCDP 4.99%***
City Clerk 4.45%
Education 3.67%
Recreation Dept. 3.49%
Treasurer/Collector 2.77%
City Auditor 2.22%
Fire 1.50%
Parking Lots/Meters 1.10%
Information Technology 0.84%
Emergency Management 0.71%
City Assessor 0.28%
Snow and Ice Removal 0.00%
*See pages 98-102 in the budget for details, which include switching library and school custodial line items to this department.
**Waste disposal costs are going up significantly!
***As noted above, DCDP received a budget increase of 4.99%, despite losing personnel and a lull in building projects.
And on Page 48, I Have Some Questions about Pensions:
In the Pension row, I noticed that we’re up 242.20%. What can you attribute that number to? Is this a function of all of the new hires (see Kounelis Letter) and the raises given to staff as a result of the Classification/Compensation Study? In July of 2021, we had fully funded that pension obligation. Are we back in the hole again?
The Watertown Square Stabilization Plan gets $1,500.000 in 2026? This looks different from what I’m seeing on page 20, where it says that if you add the $1,500,000 this year, that fund will have a total of $6,400,000. What do you plan to spend this year on Watertown Square?
You’ve got an RFQ (Request for Quotation) out right now to get consulting services for studying traffic rerouting in Watertown Square.
Do you plan to use money in the Watertown Square Stabilization Fund to pay for these consultants? If not, what “pots of money” would that be coming out of, and how much do youanticipate spending for such services?
I was curious, so I looked on the Procurement Page of the Watertown City Government website and was able to see the “RFQ,” (Request for Quotation) for that consultant project.
I was pretty surprised when I saw the criteria for Watertown awarding this contract in this RFQ:
9. Awarding of Contract
This is not a price competition, but rather the City’s decision will be based upon qualifications and experience. The City will initially evaluate and score all proposals. The City may schedule interviews with the highest scoring individuals/firms. The City will rank the finalists based on consideration of the minimum criteria/qualifications, the comparative evaluation criteria, and the interview (if applicable).
I’m all for qualifications and experience, but I’m curious that price doesn’t even come in third, after qualifications and experience in the decision for who will be hired to do this Watertown Square project. Doesn’t this arrangement accrue to the benefit of the consultant, not the City?
Comments, Questions, Opinions:
It has been mentioned numerous times by residents that circumscribing the Watertown Square area with cones and barriers to test out the realities of this new traffic plan might be a cheap and efficient way to gather data before hiring expensive consultants, who would then be able to use this data in their plans. That suggestion has been met with a flat “No!”
I believe this has been done in other communities, such as Somerville. This effort would realistically play out scenarios in our already traffic overtaxed square. And given the fiscal uncertainty of the next few years, wouldn’t that be both heading in the right direction while saving this community a large expense (consultants) until the project could reasonably and financially be able to be undertaken?
I see this particular Watertown Square Stabilization (rainy day) Fund, and I ask myself, “Is it raining yet? And if it is, why doesn’t the City show any signs of feeling the drops?” Funding an expensive project like this in these fiscal hard times, seems to be a bit tunnel-visioned and short sighted and could put us in an untenable position in the near future.
What are the rules guiding a Stabilization Fund? If we actually needed that money to keep our employees and services operational, could it be accessed? Or once it’s put in there, is it then unaccessible for operational necessities?
As one frustrated resident told me, “I want residents to clearly see that Watertown is on a path to becoming a high tax to value community. As taxes continue to vigorously grow, less of a percentage of the revenues will ever reach the direct resident services.”
Shouldn’t there be a concerted effort to find uses for the hundreds (thousands?) of square feet in this City (for business and for residences) that is new and unoccupied? We see it all over town.
At the April 22, 2026 City Council Meeting, City resident, Rita Colafella, had this to say in public forum after praising the City Manager for his budget and the use of best practices: “I think that we need to look at ways to grow the revenues. We should look for other avenues, other industries …”
She also mentions (I’m paraphrasing):
1. That 1.5% had come from the residential, but we shouldn’t give up on the commercial side.
2. That labs aren’t going to come back anytime soon
3. We have a lot of space to rent … maybe to hospitals and universities?
To see Rita’s full remarks: http://vodwcatv.org/CablecastPublicSite/show/3841?site=3 minutes 6:00 – 7:30.
Revenues are down by a lot, and they don’t look so rosy for a few years to come. I’m not sure how hospitals and universities will help, though, since most have a non-profit status, but I agree in principle with Rita’s assessment that we should be looking for other possible industries to fill our empty commercial spaces.
One other kind of strategy a resident has studied is to enforce the auto excise tax law, which he estimates would bring in about $1,500,000 a year.
One of the City Council’s Cost-Savings/Revenues guidelines to the City Manager was to actively seek payment in lieu of taxes (PILOT) agreements from non-profits. In the 2026 budget, the City Manager projects that those payments will decrease by $9,460, or 10.73%.
Given these “facts of life,” could we please concentrate on filling the empty commercial space that we have, which will build revenues and assure that we have the capacity to maintain and improve direct services to the community? In these stressful times, it would really help keep us all safe, sane and dry!
Thanks again to the City Manager for making this important City document much more transparent and to the City Council for working so hard on the City’s priorities. I hope that residents will respond to your hard work with their thoughts and ideas.
Excellent summary Linda.
There is a concern with all the new city employees whether we can keep our budget balanced along with a decrease in dollars from the continued development of our commercial areas. Your concern over the keeping up with employee retirement monies is quite important. Mr. Driscoll and the Council work so hard to pay this off and save the City millions of dollars in interest.
Looking for to Watertown Budget 201.
A lot to digest, Linda, which I mean as a compliment. My thoughts boil down to something I’ve said before and, sadly, probably will have cause to say again. If town residents need services, put money budgeted for those services TOWARD those services—not to new staff to administer those services. It’s a little tricky to follow the numbers, but if Seniors, Veterans and Health departments lose money in order to create a Department of Human Services (led by a Director to be paid $115,808, acc. to Angie Kounelis, as well as money toward a DHS “cabinet” and a DEI director to follow), how does that help Seniors, Vets, etc.? Any dollar budgeted and spent was earned by someone else and contributed through taxation. No matter how noble the job title may sound, a dollar spent on anything but its intended recipient is a dollar wasted, therefore a dollar stolen. That goes for the entire budget, chair massages included, but most people don’t begrudge their tax dollars helping seniors and veterans. They do, or might, wonder how those groups are helped by devoting hundreds of thousands of dollars toward upper management. Especially when the town is facing both near and long term revenue challenges.
PS: While I’d like to see commercial spaces rented out, aren’t these privately owned properties? Are their owners not already incentivized to fill vacancies? If they were built as bio-labs, they may not be suitable for other businesses. How can the town help?
FYI – ICYMI – SALARY CONFIRMATION
VACANCY ANNOUNCEMENT
HUMAN SERVICES DIRECTOR HUMAN SERVICES DEPARTMENT
The City of Watertown seeks a highly qualified, skilled candidate to fill the position of Human Services Director for the newly formed Human Services Department. Appointed by the City Manager and reporting to the Deputy City Manager, the Human Services Director will oversee the planning, direction, management, and operation of Watertown’s human services programs and referral pathways, including services that address housing, food, and economic insecurity as well as migrant supports. The Director will be responsible for developing a Human Servies Strategic Plan in their first year, drawing from the recently completed Health & Human Services Study. The Director will also administer and manage partnerships with Watertown’s community-based organizations, including overseeing the City’s Social Services Resource Specialist (SSRS) program, currently operated by
Wayside. As part of coordinating Watertown’s initiatives to combat food insecurity, the Director of Human Services will promote food assistance programs and oversee the Watertown Food Pantry. The Director would also supervise the Live Well Watertown team, including the Farmers Market, Opiate Task Force, Eat Well, and
other Live Well programming.
MINIMUM QUALIFICATIONS: Bachelor’s degree in a related field and a minimum of seven years of human services related experience or an equivalent combination of education and experience. Progressively responsible
experience in human services or social work, including experience in a leadership or management role. Knowledge of local, state, and federal regulations impacting human services programs and how to apply them to individual situations. Proven ability to manage budgets and financial resources. Strong leadership,
communication, and interpersonal skills, with commitment to community engagement and collaboration with internal and external customers. Experience working with diverse populations and understanding of cultural competence in human services is essential. Ability to navigate complex problems and develop innovative solutions. Strong proficiency with Microsoft Office computer skills, including word processing, spreadsheets,
databases, and the ability to use specialty software where applicable.
TERMS/HOURS: The work week is 37.5 hours (Monday, Wednesday and Thursday: 8:30 a.m. to 5:00 p.m.; Tuesdays: 8:30 a.m. to 7:00 p.m.; Fridays 8:30 a.m. to 12:30 p.m.). This position could be eligible for up to one day of remote work and flexible work hours.
SALARY: This nonunion position has a starting salary of $115,808 annually. Hiring above Step 1 is dependent upon qualifications and experience.
BENEFITS: Health insurance (80% employer paid) through the Group Insurance Commission (GIC),
dental/vision coverage, three weeks’ paid vacation, personal and sick time, pension plan enrollment, flexible spending account, and deferred compensation plans.
TO APPLY: Candidates must submit a City Application, along with a cover letter and resume, to
recruiting@watertown-ma.gov.
AFFIRMATIVE ACTION/EQUAL OPPORTUNITY EMPLOYER
Angeline Maria B. Kounelis
Retired District A, East End, City Councilor
Thank you again, Ms. Kounelis. Not that anyone can say they’re surprised: this is exactly what the town said it would do, exactly what the commissioned report (which also came at some cost) recommended. The DHS “cabinet” and DEI Director should be along shortly (sooner than a No. 71 bus, that’s for certain). That’s $115,808 (PLUS benefits) LESS for seniors, vets, migrants—which must be how town management wants it. The few comments I’ve read here agree. I’m not used to being on the left of my Watertown neighbors, but on the issue of services for those actually in need, I’m a regular Abbie Hoffman.
This response is from Linda Scott:
Hi Josh,
Thanks again for your compliment. I try hard to delve into things, and as I’m learning, presenting what I find to others for their review and comments. Even though this was long, I’m hoping it serves as a sort of shortcut for helping others to get on board quickly on an issue or two so that they feel that they can participate in the discussion.
When you refer to money put toward actual delivered services, I can relate. I come from a family that goes back at least three generations, who dedicated their lives
to human services.
The work didn’t pay much, but the rewards came in the satisfaction of helping others live a better life and knowing that you made a difference. At the meeting reviewing the Human Services Report, I questioned adding another layer of
bureaucracy, bringing services farther away from those who actually needed them.
It would seem to me that because of this position, as you said, money spent on the bureaucracy is money not spent on providing services. Thanks, retired City Councilor Kounelis for your update on the salary offered for the Human Service position.
We’ve now hired a full-time grant writer. He should come in handy helping to grow these services, although it looks like the City has put the onus on City department heads to find these opportunities, not the grant writer.
As far as private business goes, you’re right. We have very little say over what they do with their properties. But, like it or not, we’re all in the same rocking boat. I think that the City could encourage businesses to look at different options for their spaces.
The City could work on a campaign (Watertown Works?) to attract businesses to town and encourage match ups with properties. Perhaps our 3 newly hired communications people could collaborate on that?
Did you know that the City recently hired a Senior Economic Development Planner? It would seem that this project would fall under her purview as well. Here’s the latest copy of her newsletter: Economic Development Newsletter. https://www.watertown-ma.gov/583/Connect-With-Us
As a matter of fact, there are multiple newsletters that you can sign up for here:
Watertown Newsletters. https://www.watertown-ma.gov/583/Connect-With-Us
The Watertown Business Coalition (WBC) would be a great resource and partner in this, I’d think. It’d be an interesting time for incubator startups as well. The most shining example to date of Watertown bio lab property being used for other purposes is the very successful transition at the old Sasaki building. It lay remodeled and vacant for a long time. As a matter of fact, the City used this space for the Watertown Square meetings.
Then a Watertown bio lab located in another building produced a clean energy product. They rented space in the Sasaki building (64 Pleasant Street) to manufacture that product (Via Separations). (I hear that they have expanded their manufacturing to a space down south as well). It’s no longer a bio lab space. It’s a manufacturing space.
And I just noticed that a company called “Culture Pop Soda” is using more of this building for office space. See: https://www.watertownmanews.com/2024/09/30/culture-pop-soda-leasing-part-of-former-sasaki-building/
An added bonus these businesses seem to provide is diversified jobs for our diversified community.
On another bright note:
It looks like the requests for increasing quality ambulance services for Watertown residents were heard, and we will be working toward two city-funded ambulances, as well as decent working hours for our EMT’s in the foreseeable future. See the April 29th meeting of the City Council Budget and Fiscal Oversight Committee: http://vodwcatv.org/CablecastPublicSite/show/3853?site=3 ).
Fire Chief Nicholson, Council President Sideris, the Budget and Fiscal Oversight Committee (Councilor Piccirilli, Councilor Izzo and Councilor Gardner), as well as City Manager Proakis are to be congratulated for listening and responding to the direct needs of this community.
And the residents who came out to participate in this process and contacted their councilors in other ways to advocate for the ambulance and for their community are especially thanked.
More details to come.
Hi Leo,
Thanks for your kind comments! Unfortunately, I (inadvertently) threw Charlie a curve ball. “Money Coming In” was supposed to be Part One and “Money Going Out” was Part Two. Sorry!
I will say that in my research I have found a phenomenon that is on-going in local governments in the United States and around the world called, “Citizen or Participatory Budgeting.”
Let me give you some of the stated benefits:
Benefits of Citizen Involvement:
Improved Budget Alignment:
Citizen engagement helps ensure that public spending aligns with community needs and priorities.
Increased Transparency and Accountability:
Open and accessible budget information fosters trust between citizens and government, according to Number Analytics.
Greater Public Support for Budget Proposals:
When citizens feel informed and involved in the budget process, they are more likely to support proposed spending plans.
Enhanced Democracy:
Citizen participation in budgeting strengthens democratic processes and empowers citizens to have a say in how their money is spent.
Improved Public Services:
By ensuring that budgets are aligned with community needs and priorities, citizen engagement can lead to better and more effective public services.
The format that City Manager Proakis used to present his budget is, by his own admission, a work in progress, but he is to be credited for making the budget a lot more readable for Watertown residents.
Please see last night’s Budget and Fiscal Oversight meeting for citizen participation and the results that it can achieve!