MARLBOROUGH – While municipal officials are pleased with the city’s tax rate and overall financial health, the president of the City Council said there may be challenges once Marlborough begins planning its budget for the 2026 fiscal year.
During the City Council meeting on Monday, Dec. 2, President Michael Ossing presented his version of the “State of the City.”
He noted that the city has obligations to provide funds for its pension fund and Other Post-Employment Benefits (OPEB) liability. Health-care costs continue to rise, and the city has a current debt service of $14 million. There’s also the likelihood of increases in the city’s water and sewer rates, he said.
Ossing also said that Marlborough will soon begin negotiations with the following unions – Marlborough Police Patrol Officers Association; Marlborough Police Command Officers Association; Local 1714 International Association of Fire Fighters, AFL-CIO, CLC; Marlborough Municipal Employee Association; Marlborough Public Works Equipment Operators Association; Marlborough Foreman’s Union Local 888; and Marlborough Engineers Union Local 272.
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Ossing noted two projects that could soon appear on the city’s horizon – the West Side fire station, and a new (or renovated) Richer Elementary School.
Add in the uncertainty of state and local receipts (“They’re not keeping up,” said Ossing), and the city may have some tough decisions to make once it begins planning for fiscal 2026.
However, Ossing said there are also opportunities for the city.
Among other things, Marlborough continues to maintain a AAA bond rating, its overall financial health is strong and, thanks to one of the lowest tax rates in the region, the city continues to attract businesses.
“TIF (Tax Increment Financing) is not a bad thing,” he said.
The council approved a tax shift of 1.45, meaning a residential rate of $9.86 per thousand, and a commercial/industrial/ personal property (CIP) rate of $16.96 per thousand.
