SWAMPSCOTT – After weeks of detailed review, the Finance Committee voted on Thursday to advance the town’s operating, enterprise, and capital budgets — bringing the projected use of excess levy capacity down to just under $1.5 million ahead of Town Meeting.
Their vote reflects the committee’s recommended budget and follows a months-long process of line-by-line discussion and requests for more information from several department heads. That work brought the excess levy down nearly $300,000 from the Town Administrator’s initial proposed budget.
“We’ve gotten this down to 1.5 versus what the original starting number was,” Finance Committee Chair Eric Hartmann said. “I’m not happy about it, but I’m happier than I was when we first started the process, and I don’t feel there’s a lot of fat on this budget.”
The excess levy reflects savings from the town’s operating budget, which covers the day-to-day costs of town government, including salaries, public safety, and general services — things that are largely covered through property taxes. The enterprise budget, which was also approved by the committee, includes services like water, sewer, and solid waste, which are funded through user fees rather than the tax levy.
In addition to those votes, the committee also approved the town’s capital plan, which outlines longer-term investments in infrastructure and equipment. Among the projects included in the committee’s recommended plan are renovations to the track at Upper Jackson Park, a project for which Swampscott track supporters have passionately advocated during public comment at several meetings across town.
The final piece of the excess levy decrease came not from budget cuts, but from revisiting local revenue projections — particularly local cannabis receipts. Finance Director Patrick Luddy presented data that showed steady growth in cannabis revenue, with receipts increasing between 2023 and 2025, levelling out at around $72,000 per quarter thus far in 2026.
“It does seem to be a little different than some other categories of revenue,” Hartmann said. “It seems a little more predictable.”
The town’s initial estimate placed cannabis revenue near $200,000 — a figure that the 2026 actuals have already surpassed through quarter three. The committee elected to raise that projection by about $60,000 — the final push to reduce the excess levy usage.
The town’s policy for revenue projections is conservative by design. Figures are meant to be based on either a 3-year average or 90% of the previous year’s actuals. Some committee members have questioned whether such a policy is still appropriate in tight budget years, but Hartmann said those conservative estimates have helped the town stay well-positioned amid regional budget issues.
Even with those adjustments, members repeatedly warned that relying on excess levy capacity, even at reduced levels, carries long-term implications.
“I mean, if we use a million-and-a-half of the levy capacity, it’s kind of like if we were up against it right now, we’d be asking for a million-and-a-half override,” committee member Cinder McNerney said. “It’s the same concept.”
Some emphasized that while an excess levy avoids a ballot vote, it still results in higher taxes for residents. At the start of their meeting, the projected expense resulted in a 70-cent property tax increase for every $1000 in property value.
“All that means is we don’t have to ask the townspeople to use it — it’s just Town Meeting members,” Hartmann said. “We’re still asking for more money in taxes.”
The discussion also reflected previous concerns on the ceiling of that excess levy use and what comes next when it’s all used up. While committee members agreed that the current budget reflects a slim cut delivery of level services and maintains all personnel, they were cautious about what the budget process might look like in the coming years.
“I think the sooner we tighten our belt, the better off we’re going to be as we go forward,” McNerney said.
With the votes, the operating, enterprise, and capital plans now move forward in the approval process, with the finance committee expected to send its recommendations — including the revised cannabis revenue estimate — back to the Select Board ahead of Town Meeting in May.
