NAHANT— The Nahant Select Board recently reviewed the first draft of the FY27 budget, presenting both a level-services plan and a $1 million operating override option.
“On December 26th, I sent out budget templates to each of the department heads to complete,” Alison Nieto, town administrator, said, noting the forms included historical spending data and current-year budgets. Requests were due Jan. 20, followed by individual meetings through Feb. 2. After compiling submissions, it became clear they exceeded Proposition 2½ limits.
“As I spoke to the board last week, the request … was not going to fit in our normal proposition, 2.5 % increase on taxes,” Nieto stated. As a result, Nieto prepared two presentations “One, I termed as a level services budget, and one as an over operating override budget.”
The 2.5% tax levy increase would generate about $285,000, with an estimated $70,000 in new growth. Water and sewer debt payments will drop by roughly $55,000, and the FY27 school override debt, which was $295,800 in FY26, will be fully paid off in FY27.
However, free cash has declined from $810,000 in FY26 to just over $300,000 for FY27, resulting in a net revenue decrease of about $81,000.
The level-services budget totals $16.9 million and funds contractual increases: 2.5% for DPW, police, and fire unions (final year of contracts), 3.5% for teachers, and 2.5% for non-union staff. It also includes a projected 12% increase in health insurance.
“My level services budget includes a 12% increase in health insurance,” Nieto said, explaining the town is exploring lower-premium options after employees absorbed an 18% hike this year.
The plan does not include a stabilization transfer due to limited capacity.
The override budget totals $17.9 million and would fund expanded staffing in the schools and fire department, salary adjustments for five under-market non-union positions, larger part-time wage increases, higher utility budgets, and a $56,000 stabilization transfer.
The school department has requested increasing a .37 FTE ELA/math specialist to full-time and boosting professional development funding. The fire department has requested four additional full-time firefighters.
In a letter read into the record, Fire Chief Austin Antrim wrote: “One significant reason for the proposed general override is the fire department seeking more full-time staffing.” He added, “ Nahant fire department does not have sufficient staffing to be able to safely extinguish a fire in a low-hazard occupancy based on current national firefighting standards.”
He concluded, “It is my sincere hope that you will join me in providing this information to the residents of Nahant, so they can make an informed decision about the level of fire protection they are willing to fund.”
“…We need a little more time and information to make an informed decision,” Vicechair Eugene Canty said in response.
Under the override scenario, the tax rate would increase by an estimated $68 per $1,000 of valuation. For the average single-family home valued just over $1 million, that would mean an annual increase of about $730. Nahant’s current residential tax rate ranks 49th statewide.
Chairman Robert Tibbo informed the board of a potential new out-of-district special education placement that could cost approximately $382,000 annually, though details are still being finalized and are not included in either budget version.
Enterprise funds will also see increases. Water and sewer rates are projected to rise 3.9%, reflecting contractual raises, outside assessments, and indirect costs. Trash fees could increase 6%, pending negotiations with Waste Management, bringing the annual rate from $429 to an estimated $455 per household.
Board members emphasized the limited flexibility within a level-services plan and declined to consider tapping stabilization funds. “I would not support taking funds from the stabilization account,” Tibbo said.
The board voted unanimously to forward both budget versions, including a $350 increase for Planning Board supplies, to the Advisory and Finance Committee for review. Town Meeting is scheduled for May 16. If an override is approved there, it would proceed to a ballot vote.
“We’ve got 9 weeks to do it in,” Recording Secretary Patrick O’Reilly stated. “Looking forward to the debate.”
