Mayor proposes $322.6M budget, warns of future funding challenges

By Barbara Taormina

The Revere City Council referred Mayor Patrick Keefe’s $322.6 million city budget proposal to the Ways and Means Subcommittee.

Keefe introduced the 2027 budget at this week’s council meeting and CFO Richard Viscay ran through the numbers. He said he was pleased to introduce the budget, which he described as “a culmination of good governance and fiscal prudence.”

“We will not live above our means,” said Keefe, who stressed the budget represents a meager 1.8 percent structural increase, the smallest increase in the Boston area.

“We all know that with inflation, we are doing more but spending less,” he added.

Keefe credited new technology, a strong work ethic and efficiencies across the board for a successful budget.

Viscay then took over and took the council through the money coming into the city and the amounts Revere is expecting to spend. Viscay began with $332.6 million in revenue. The city estimates it will collect $133.2 million in property taxes, which includes $3.6 million in new growth.

“We can’t raise taxes any higher than they are,” said Viscay. “We tax to the levy limit.” Viscay said that is important for residents to understand, and there is no truth to the talk that taxes are going to increase significantly.

Local receipts are estimated to add $23.7 million to the revenue total, a .6 increase over 2026. Local receipts include $7.5 million in motor vehicle excise tax, $3.4 million in hotel room tax, $1.3 million in meals excise tax, $3.7 million for licenses and permits and $3.0 million in investment income. According to Viscay, local receipts are expected to increase 2 to 3 percent per year.

Revere is expecting an estimated $125 million in state aid based on the State Senate’s 2027 budget. The city estimates it will receive $108.4 million in Chapter 70 funding for the Revere School district. Also included in state aid is $13.3 million in unrestricted general government aid, or UGGA.

The Water & Sewer Enterprise Fund accounts for $37.7 million in revenue, while the Solid Waste Enterprise Fund brings in $390,000.

Viscay then moved on to the city’s expenses. The city estimates spending $10 million on general government uses and needs.

The budget calls for $35.2 million in public safety spending. Although Viscay did not break that total down according to departments, he did mention that the Police Department will hire two new uniformed officers. Chief Maria LaVita will restructure the civilian workforce, and a part-time position for body cam administration was created.

The Fire Department will hire two new uniformed officers, and three new fire trucks, one ladder and two pumper trucks are scheduled to be delivered in 2027.

The 911 emergency call center is level funded. Viscay noted that the addition of Chelsea to the regional call center will lead to future savings.

The full-time staff at the Parking Department was reduced and replaced with part-time staff. Viscay said parking enforcement has become a 24-hour-a-day job.

The city expects to spend $133 million on the school district. This is the minimum contribution that the city can make to comply with Department of Elementary and Secondary Education (DESE) regulations. The $133 million represents operating costs only for Revere Public Schools.

The city expects to spend an additional $4.9 million to support regional schools, especially Northeast Metropolitan Regional Vocational High School. Revere students make up 20 percent of the Voke’s student population.

Expenses for the Department of Public Works were listed as $5.1 million. Viscay said the DPW will take over all facilities management. The snow and ice deficit is being raised to approximately $1 million. And staff will be cut by one full-time employee — replaced by a part-time worker.

The Health & Human Services budget is estimated at $2.2 million and includes expenses for the Department of Public Health, Elder Services, Veterans Services and the Commission on Disabilities. No significant changes are expected in those programs. The Culture and Recreation budget is $2.4 million and includes funding for the library, the Parks and Recreation Department, the Haas Health and Wellness Center, workforce development and youth engagement.

Debt service is estimated at $12.6 million. The city’s FY2027 debt schedule reflects all current debt service requirements, including the new high school, the McKinley School renovation and the rehab of McMackin Field. The city will continue to issue short-term bonds as the construction of the new High School continues.

The 2027 budget includes $22.3 million for state assessments. Charges to the city from the state include $2.9 million for Retired Teachers’ Health Insurance, $4.6 million for the MBTA, $875,000 for special education and tuition assessments, School Choice, $13.5 million for charter schools, $60,000 for Mosquito Control.

The budget also includes $53.2 million in fixed costs. Health insurance is estimated at $31 million, a .7 percent increase, $1.7 million for Property & Casualty Insurance, Retirement Assessment, $ 18.4 million. There is an increased COLA for all retirees in FY2027 from $14k to $15k. FICA – Medicare: $ 2.1 million.

The budget calls for $34.2 million for the Water & Sewer Enterprise Fund, with $1.9 million going for salaries, $1.4 million for expenses, $7.2 million for long-term debt principle, $2.9 million for long-term debt interest, $7.3 million for MWRA water assessment, $13.4 million for MWRA sewer assessment. The Solid Waste Enterprise Fund was estimated at $4.7 million, with salaries at $340,000, $2.4 million for waste collection, $380,000 for recycling disposal and $1.7 million for solid waste disposal.

Councillors did not have any objections or problems with Viscay’s numbers for 2027. However, Viscay’s repeated warnings about lean years and budget gaps raised concerns. Councillor-at-Large Michelle Kelley asked when the city would see a big jump in debt for the new high school.

Viscay said debt payments for the school are $3.12 million for 2027, $6.1 million for 2028 and $15 million for 2029. One of the final ideas presented in Viscay’s budget handout for councillors was the following: Challenge – How will we close the funding gap during the years or construction of the new RHS while we wait for the tax revenues from new growth to catch up?

Viscay offered several suggestions that have failed to gain any traction in the past. He said the Community Preservation Act (CPA) would allow the city to tack on a 3 percent surcharge to property taxes and would fund affordable housing, historic preservation and open space. But the CPA raises taxes, which residents were told would not occur as a result of the new school. Viscay also suggested a cannabis excise tax would increase revenue. A 50/50 split of the Community Improvement Trust Fund was also suggested, but Ward councillors objected to sharing those funds, which are controlled by councillors and used for neighborhood improvements. Viscay also mentioned the sale of city property.

The council left the question of future budget gaps on the table.

“The budget is balanced, it’s in your hands,” Viscay told the council.

The hearing on the 2027 budget will continue with the Ways and Means Subcommittee, which will meet on Tuesday, June 9, 9 a.m. to 3 p.m. and Wednesday, June 10, 9 a.m. to 3 p.m. and Monday, June 22, 5 to 6 p.m. The council will vote on the budget on Monday, June 22, at 6 p.m.