SWAMPSCOTT — Town Administrator Sean Fitzgerald believes his preliminary town budget strikes a balance between prudent investments and affordability.
Fitzgerald, Assistant Town Administrator and Town Treasurer Ron Mendes, and Town Accountant Cheryl Herrick-Stella broke down the recommended $68,741,643 fiscal year 2020 budget at Wednesday night’s Board of Selectmen meeting.
The budget is a 2.39 percent increase over last year’s and the biggest changes included a new tax policy guideline, the elimination of the use of free cash, and a 2 percent school budget increase, far below the five-year historical averages of 3 to 3.5 percent.
“This budget aligns with the goals and visions that we want to achieve over the next year,” said Fitzgerald. “It helps us to continue to keep taxes down and helps us build a better future for Swampscott.”
The recommended budget meets the new guidelines instituted last October by the town’s Board of Selectmen and Finance Committee. The guidelines seek to balance the budget by using only a 2 percent tax levy increase, plus an additional $425,000 (representing new growth), and by not using any free cash or one-time revenues, according to Fitzgerald.
The proposed budget limits spending to an increase of 1.9 percent for general fund municipal departments, funding not only municipal services but also key services, such as some facilities costs and employee benefits, that are shared by both the school and other departments. Fitzgerald said this is the second annual town budget that doesn’t propose spending up to the maximum tax levy increase allowed by law.
The Enterprise (Water and Sewer) Funds have been materially level funded over the last five years, said Fitzgerald. For FY 2020, he recommended an increase of 5.6 percent in order to adequately fund water and sewer infrastructure work and properly represent the cost of water and sewer operations.
Also included in the recommended budget is $15,000 to retain a consultant to help advocate for additional equity with how Chapter 70, the state’s major aid program for public elementary and secondary schools, is allocated.
“We are not going to sit as a victim to underfunding,” said Fitzgerald. “We are going to actively seek a solution.”
The vision behind the proposed budget is to begin investments identified in the town’s FY 2020-2024 Capital Plan. Included in those hopeful investments is redesigning beachfront entrances and purchasing new playground equipment, fleet upgrades, upgraded Department of Public Works equipment, tech upgrades, life-saving equipment, electric cars, seawall repairs, tactical gear for the fire department, new street lights, resurfacing damaged roads, and traffic safety equipment.
“The Capital Plan is really the sizzle to the budget,” said Fitzgerald. “We can’t cut our way out of problems. We need to start thinking about investments.”
Fitzgerald also proposed a discussion about a separate warrant article about stabilization accounts and free cash. Board of Selectmen Chair Peter Spellios said it was a little counterintuitive for the town to tap into the stabilization funds.
“We know a rainy day is coming when we will need those funds,” said Spellios. “This is a dialogue to have over the next couple of months.”
The proposed budget also includes investments for the relocation of the DPW property and ways to effectively use the space at Town Hall to increase service to residents, such as consolidating the Community & Economic Development and Building departments and adding a customer service center.
Through March and April, the Board and the Finance Committee will complete a detailed review of the budget, and the Capital Plan, before the Finance Committee’s final recommendations, which will be presented at Annual Town Meeting on May 20.
“The town administrator tells me often that you have to clean your room before you can save the world and, Sean, that is something you have been doing for us,” Spellios said. “By having our financial house in order, we are confident to look more into things like community building and making investments.”
