Town Meeting Night One, What Happened

Town Moderator Michael McClung leads the meeting Monday night || Monica Sager

Swampscott held its first night of the Town Meeting on Monday, and 15 articles were voted on. Here’s a look into what happened. 

Article No. 1

The first article allowed community members and town leaders to present updates on their respective committees and organizations.

Tara Gallagher gave a report on the Tree Committee and its efforts to provide more canopy coverage to Swampscott.

Swampscott also received updates on upcoming events, including a parade on June 29, the start of the farmers market on June 8, and a town-wide reading of Fredrick Douglass’ Independence Day speech on July 2. 

Article No. 2

Article No. 2 passed unanimously, authorizing the payment of bills accumulated in the past fiscal years, totaling $1,313.31.

“This is a routine, recurring article we have typically every year for a handful of invoices we have come in after the end of the fiscal year from last year,” Finance Chair Eric Hartmann said.  

The breakdown of the bills is:

  • ConvergeOne for equipment maintenance service agreement with the Police Department for a total of $839.50
  • Safety-Kleen for used automotive oil recycling with the Department of Public Works for a total of $349
  • Gowrie Claims service for 111F medical to pay for incapacitated employees  for $124.81

Article No. 3

This article was also passed unanimously. Article No. 3 amended various line items within the fiscal year 2025 budget, as recommended by the Finance Committee. 

“Most years we carry certain dollars in the budget in a salary reserve line item, knowing that we have contracts to be negotiated and approved in the upcoming fiscal year,” Hartmann said. “This year’s no different.”

The amendments to the general fund budget do not result in any net increase or decrease.

Article No. 4

Article No. 4 took up the most time at the first night of Town Meeting.

Much of the discussion focused on reallocating funds within the town budget to provide an additional $130,000 for the school district. The new motion was from the Select Board, and the Finance Committee did not support all of the board’s last minute suggested decreases.

“I’m proud of the work we’ve done to support essential services while planning responsibly for the town’s future,” said Select Board Chair Katie Phelan.

That said, members of the school district and school board spoke out about how if the $130,000 re-allocations were not approved it could have meant a staff reduction. 

The $130,000 budget changes were approved by a standing vote. School Committee Chair Glenn Paster requested the recount after the outcome of the typical hand vote appeared unclear.

“I’m incredibly happy,” Paster said. “It’s great for the students. It’s great for the teachers and faculty, and it allows us to do what we need to do.”

Article No. 5 

The vote approved transferring $200,000 from the free cash to the utility reserve line of the Swampscott Public Schools operating budget.

Finance Committee Member Erik Schneider noted that the new elementary school’s costs to operate are higher than it was to operate the three old schools. The exact costs, however, are unknown. 

Outside revenue from after school programs are being used to offset some of the costs, he said. There will also be an offset by the solar panels on the school’s roof.

“We do not have 12 months of operational data or building data,” Schneider said. “This has made it hard…to accurately estimate operating costs.”

As the costs seem to be temporary, Hartmann said it “did not make sense to increase the school budget by the temporary additional costs” rather than using the free cash to pay for the expenses.

Article No. 6

This article was approved to transfer an additional $400,000 from the free cash. This money is to go to the special education reserve fund, which was established at the 2023 annual Town Meeting to fund unanticipated or unbudgeted costs for the program.

“(The special education) fund is mostly funded with free cash and supplemented by Medicaid reversement,” Schneider said. “The school department applies for and receives on account of services they provide for eligible students.”

The free cash funds are accessible after the school department’s own special education circuit breaker funds drop below $600,000. 

“These funds will allow the school department to address large scale funding needs,” Schneider said. “These needs could result from outplacement services and other intensive services.”

Article No. 7

The vote was carried to fund a transitional audit. 

The Select Board had called for an indefinite delay to the audit, prior to the vote.

Gerry Perry, a Swampscott resident in Precinct 1, led the push for the transitional audit. Perry serves as the budget analyst in Beverly and was previously part of the Massachusetts Department of Revenue, according to his LinkedIn. 

“I did do a deeper dive and came up with one page recommendations for the interim town administrator,” Perry said. “The bottom line is folks, in this industry, this is considered a best practice.”

Perry did note he’s “not aware of anything really wrong,” however the “drop off of the fund balance of the enterprise funds does catch my attention.”

He said the audit would help eliminate risks and “improve internal controls.” 

Liz Smith, the chair of the Water and Sewer Committee, did note that the town still does not have its fiscal 2024 audit, which is now multiple months overdue. 

The audit has not taken place historically at transition points, according to Amy Sarro, the director of finance and administration, during a Select Board meeting last week.

Article No. 8

Article No. 8 was approved to raise the base amount used to calculate the cost-of-living adjustment (COLA) from $14,000 to $16,000 starting July 1.

The Swampscott Contributory Retirement Board had asked for $18,000.

“I think it’s a good statement from our town to support retirees,” said Tom Driscoll Jr., the chair of the Swampscott Contributory Retirement Board. 

Swampscott’s COLA was last increased at the May 2021 Town Meeting from $13,000 to $14,000. Now, $16,000 is the state average. 

The Swampscott Contributory Retirement Board indicated it might need to request additional funding in the near future.

Articles Nos. 9, 10, 11, 12, 13, 14, 15

These articles were approved as a lump consent agenda, all at once.

Article No. 9’s approval was for an increase to the 41C exempt amounts to 100% of the CPI, with the COLA. Clause 41C of section 5 of chapter 59 of the Massachusetts General Law provides an additional real estate tax exemption for seniors surviving spouses and surviving children, people who are blind and veterans.

Article No. 10 was in support of the HERO Act, which was signed into law in Massachusetts on August 8, 2024 for the welfare of veterans. The act lays out a variety of benefits, including behavioral health treatment, protections to access of sales tax exemption, a modernization of statute language for gender-neutral and inclusive language, and an insurance that the cost-of-living adjustment (COLA) in Social Security does not affect veterans’ eligibility for benefits in the middle of the year.

Article No. 12 approved a minimum value of personal property subject to taxation. The article put the minimum at $10,000 of the fair cash value on personal property accounts, effective at the beginning of fiscal year 2026.

Article No. 13 now allows for a petition to the General Court for special legislation around real estate tax exemptions for people with disabilities ages 69 or younger who have lived in Swampscott for a minimum of 10 consecutive years prior to the time of application.

Article No. 14 approved the amended general bylaws around revolving funds. It established an annual spending limit change for the public library, raising the current limit from $3,500 to $5,000.

Article No. 15 appropriated $300,000 to repair, construct and reconstruct streets. 

Article No. 11

Article No. 11 was removed from the consent agenda  for an individual vote. There was a proposed amendment that failed, and the article was approved as written after discussion.

The article allows an increase to the current eligibility requirements for local property tax deferrals under the Massachusetts General Law. 

Under Clause 41A in chapter 59, section 5 of the Massachusetts General Law, seniors may be able to delay payments on their property taxes. 

The deferral does not discharge them of tax obligations, though. The taxes accumulate interest, which is paid to the town when they come out of deferral. The approved article allows for a 4% interest rate rather than the current 8%. 

Once the senior does die or the property is sold, and the taxes are not paid immediately, the interest rate rises to 16% by statute.  

In 2025, there are four properties that are tax deferred in Swampscott, equating to $21,983.

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