Town Administrator Nick Connors suggested that if the town moves forward as currently thought, Swampscott will need an override in 2029.

“The bottom line is…we’re already in deficit spending, this is year two. We get to a point where there’s now a delta to make up as opposed to the excess levy that is available in ‘29 when it’s just under $500 under current projections,” Connors said. “To be clear, this is a snapshot. Everything is not going to go as we expect. This is based on assumptions.”

A budget override is when a municipality asks voters to permanently increase property taxes above the 2.5% limit set by Proposition 2 ½ to fund operating expenses like the school, public safety services and other town initiatives. An override is often used to bridge structural deficits caused by rising costs.

Towns like Arlington, Stoneham, Belchertown, Boxford, Dunstable, Essex and Hanover have voted to approve overrides in recent fiscal years, according to the Massachusetts Department of Revenue. Swampscott neighboring town Marblehead is facing a $7.7 million deficit. The Marblehead Select Board and School Committee have approved a multi-year, tiered approach to an override. 

Connors’ override statement was part of a presentation around having a longer-range financial plan. He also reviewed a projected 10% increase in health insurance costs and following policies around local receipts, like the Hadley Hotel’s anticipated food and beverage numbers as well as occupancy tax, in the five-year projection.

“This is something I plan along with Patrick (Luddy) to regularly update,” Connors said, suggesting there will be a presentation to the Select Board quarterly. “It’s a little hard when we’re looking year to year when we’re talking about deficits.”

Connors said the chart will change every quarter, “up or down, as we move forward and get a better understanding, certainly on the revenue side, of where this will land.”

“It is a snapshot, a moment in time that we will come back to repeatedly so that we can have informed discussions about ‘27 right now but also ‘28, ‘29 and whatever going forward,” Connors said.

Connors said the projections are based on what information is currently available but the further out the timeline goes, the “less specific it is.”

Select Board Chair Katie Phelan said the document should be “dynamic and we are constantly evaluating it, we are constantly updating it.” She said the chart can provide context when the Select Board discusses issues like a feasibility study and upgrades for the middle school.

Connors will also be talking about the projections with the Finance Committee on Thursday, April 9. 

“We had bits of starting points but nothing this concrete, as we have more information, some of this will become solid but there will always be that squishiness in the further out years,” Phelan said. “This is the first time that we’re seeing this but this won’t be the last time, and we will continue to have conversations.”