City Manager Eric Batista Explains Worcester’s Tax Strategy, Infrastructure Challenges, and Winter Shelter Response

By-Hank Stolz

Photo-Radio Worcester

WORCESTER, MA-On the Talk of the Commonwealth, Hank Stolz spoke with Eric Batista, Worcester’s City Manager, about a range of issues facing the city, including tax policy, aging infrastructure, water main breaks, and the city’s response to homelessness during the winter months.

The conversation began with the Worcester City Council’s recent decision to set the lowest possible residential tax rate, a move that still resulted in higher tax bills for homeowners due to rising property values. Batista explained that while the council determines the tax rate, the city’s revenue options are limited almost entirely to property taxes, local receipts such as excise taxes and fees, and state aid.

Batista noted that Worcester currently has approximately $26 million in unused tax levy capacity — one of the highest amounts in the state. While this provides flexibility and a form of financial cushion, it also limits the city’s ability to expand services. He said past councils have deliberately chosen to preserve that capacity to reduce the tax burden on residents, a decision that presents both benefits and challenges.

As an example, Batista explained that recent new growth exceeded projections by roughly $2 million. Rather than applying those funds entirely toward tax relief, the city reallocated the money to Worcester Public Schools to help offset reductions in state aid. That decision increased the average residential tax bill by roughly $40 to $45 more than it otherwise would have been, but helped stabilize school funding.

Batista also addressed the broader debate over Worcester’s dual tax rate system and its impact on economic development. He said that while residents understandably prioritize lower residential taxes, higher commercial tax rates can discourage business investment and increase pressure for tax incentive financing agreements (TIFs). According to Batista, commercial tax policy directly affects job creation and long-term economic growth.

Turning to infrastructure, Batista discussed the recent series of water main breaks, including a major incident involving a 24-inch main. He explained that Worcester is managing an extensive, aging water system, some of which dates back more than a century. The city follows a long-term integrated infrastructure plan and used federal ARPA funds to accelerate water and sewer improvements, but unpredictable soil conditions, corrosion, and pressure changes can still trigger failures.

Batista said the city has adjusted how it manages water pressure following repairs to prevent cascading breaks and is preparing a public report outlining what happened, how the response unfolded, and the steps being taken moving forward.

The discussion concluded with an update on homelessness and winter shelter capacity. Batista explained that Worcester opens overflow shelters annually based on projected need, which varies year to year. The city was unable to use the former Registry of Motor Vehicles building this winter due to its deteriorating condition and ongoing negotiations with the state over potential acquisition.

Instead, the city opened a temporary overflow shelter at a hotel property off Lincoln Street, providing 36 individual beds. Intake and triage are handled through existing shelter networks, with transportation provided to the site. Batista also addressed recent enforcement and outreach efforts near downtown encampments, emphasizing that responses involve coordinated work between police, outreach teams, public works, and social service providers, balancing neighborhood concerns with access to services for unhoused individuals.