The Leominster City Council convened on September 22, 2025, to discuss the Massachusetts School Building Authority (MSBA) project funding agreement for the proposed Fallbrook School building project. Mayor Dean J. Malzarella urged council members to adopt the agreement, emphasizing the importance of moving forward with the project.

During the meeting, the mayor referenced a letter dated September 10, which outlined the project's scope and budget. He noted that a public hearing had already been held during the debt authorization process, making further public input unnecessary at this stage. The council's primary role now is to accept the motion to proceed with the project, with a deadline to return the signed agreement to the MSBA by September 29.

The mayor highlighted significant changes in the MSBA's reimbursement mechanism, stating that the city's estimated reimbursement rate is approximately 56.06%, despite an advertised rate of 79.93%. This discrepancy is due to new funding caps established by the MSBA for various project costs, which are set below market values to encourage cost-sharing by the district. The total project budget is projected at $114,821,932, with $30,007,915 of those costs deemed ineligible for reimbursement.

The city’s minimum share of the project is estimated at $50,453,691, contingent on the project's progression and final bidding. The primary funding source will be the current budgeted debt service of $2,400,000, supplemented by an anticipated $1,000,000 from a newly established meals tax. However, if these funds fall short, the city may need to consider additional financing options.

Councilor Tawasi expressed support for the mayor's recommendation to grant the order, noting the unanimous backing from the legal affairs committee. However, Councilor Freedom raised concerns about the lack of clarity regarding funding sources for the public, reflecting the complexities introduced by recent changes in the MSBA program.

The council's decision to move forward with the Fallbrook School project marks a significant step in addressing the educational needs of the community, although the financial implications remain a point of discussion among council members.