2001-05-29
Special Meeting of Beverly City Council May 29, 2001
Roll Call
:
Councilors present; Guanci, Martin, McGlynn, McMahon, Murray,
Smith, Troubetaris, Flaherty. Councilor Costa was absent
Pledge of Allegiance to the Flag
:
Led by Councilor Guanci
Communications from His Honor the Mayor
:
#145
May 29, 2001
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
It is my pleasure to present to you the operating budget for the Fiscal Year 2001-2002. The
new fiscal year is one of exceptional new revenue growth for the city, perhaps record new growth
estimated at $2,250,000. This new growth has been substantially aided by the inclusion for tax
assessment purposes of half the value created by the major investment at Cummings Center over the
past five years.
Yet despite the large new growth, this budget has been exceedingly difficult to balance. The
most significant reason is that on a budget year to budget year basis health insurance costs citywide
are estimated to increase by $1,700,000. Thus after paying these increased costs of health insurance
only $550,000 of the new growth will be available. The new year will also see an increase in debt
service costs of approximately $1,000,000 as the burden from the renovated schools and other
infrastructure improvements grows. This important increase has, of course, been anticipated as part
of our Capital Expenditure Program.
The schools have been and continue to be our number one priority. We have budgeted to
give the schools some $2,000,000 in new additional funds. The currently expected increase from the
Commonwealth, of $580,000 which is included in the $2,000,000, is a smaller increase than that of
last year, perhaps in part because of the reduction in the State Income Tax rate. It is possible that the
State Senate may yet raise that amount.
I had told the School Committee and the superintendent that I would try hard to find an
additional $200,000 for the school budget to raise the new money total to $2,200,000. I have not been
able to budget that money, while keeping the budget in balance, but I have found a way to accomplish
that goal with the Council’s help.
As you know, for the current year the expense budget has been under tremendous pressure
especially because of rising health insurance costs which has put several cities into serious financial
trouble. We will meet the expense budget for the current year, but it will be close. On the revenue
side, however, we have been fortunate and we will have a positive variance.
That will allow us to certify free cash during the summer and I will plan to put forward for your
consideration the appropriation of $200,000 as a one-time transfer to the school system. That will
allow the superintendent to lower his maintenance budget for next year by $200,000, hopefully with
respect to one-time improvements.
The General Fund budget for next year totals $77,273,609 with water and sewer bringing the
total to $85,847,117. The budget grows year to year by $4,400,026 or 6%. On the city side the
budget is essentially static with only two net new positions budgeted, that a clerk in the accounting
department and a police officer. Other than that we expect no net changes in staffing.
As previously advised, we intend to promote two individuals in the Police Department to
Captain bringing the total to three. This change will allow for a better division of responsibilities.
I will shortly bring to you several capital expenditure requests regarding the Hurd Stadium
stands, roofs at the Department of Public Services on Park Street, the North Beverly School on which
we have just received bids, open space acquisitions, the paving of roads and streets and the Golf and
Tennis Clubhouse. None of those will have an impact on the next year’s operating budget but will, of
course, have some impact on future debt service.
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Our situation remains good and we are committed to continually improving the quality of
life in our city. For years beyond next year we must hope that the runaway costs of medical car are
slowed after recent large increases so that we can continue the momentum of our Capital Expenditure
Plan.
Very truly yours,
William F. Scanlon, Jr., Mayor
Referred to Finance and Property
Communications from other City Officers and Boards
#144
May 24, 2001
Beverly City Council
191 Cabot Street
Beverly, MA 01915
Dear Councilors:
The committee on Finance and Property hereby calls for a Special Meeting of the City Council
for the presentation of the FY 2002 Budget at 7:00 PM in Council Chambers, 191 Cabot Street,
Beverly, MA.
Sincerely,
Joyce A. McMahon, Chairperson
For the Committee on Finance and Property
Receive and Place on File
Reports from Committees:
#145
The Committee on Finance and Property to whom was referred the matter of FY
2002 Budget have considered said matter and beg leave to report as follows, to
wit:
Submit the accompanying amended order and recommend its adoption
That the City Council of the City of Beverly will hold a Public
Ordered:
Hearing on Monday, June 4, 2001 at 7:00 PM in Council Chambers, Third
Floor, 191 Cabot Street relative to the FY 2002 Budget.
First Passage: May 29, 2001
Public Hearing: June 4, 2001
Final Passage: June 27, 2001
8-0 vote
Order read once and adopted
Meeting adjourned: 7:30 PM Frances A. Macdonald, CMC
City Clerk
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