Town officials outlined, at a joint-committee meeting on November 13, a financial landscape shaped by major upcoming capital projects, tight debt limits, uncertain state reimbursements and unexpected infrastructure needs, all of which are reshaping Swampscott’s long-term revenue forecasting.

While the meeting focused on the five-year capital plan, the discussion repeatedly underscored how the town’s future revenue picture is tied to looming decisions on schools, public works, facilities and utilities.

Town Administrator Nick Connors highlighted that Swampscott is “in a much better position than many communities” due to years of disciplined planning, including keeping debt between 5 and 7% of the budget, with 10% as a hard ceiling. He warned, however, that rising costs and upcoming projects will force difficult choices.

“Each piece works together so that we can make the most informed contextual decisions possible,” Connors said.

Among the largest pressures is the Swampscott Middle School, where major heating, ventilation, and air conditioning (HVAC) as well as electrical, accessibility, and technology systems are reaching the end of life. A full window replacement is planned for the middle school during the summer of 2027.

Facilities Director Max Kasper said the town must soon decide whether to pursue a multi-million-dollar overhaul or seek state partnership for a comprehensive renovation through the Massachusetts School Building Authority (MSBA).

The latter path, however, also carries revenue uncertainty, according to Kasper.

“There are two things that are working against each other,” Kasper said, noting the town’s new elementary school could hurt its chances from securing the partnership but that the strong project performance could also help. “I don’t really know how that shakes out.”

If denied by MSBA, the town would face the cost alone. With the authority’s support, though, there could be 40 to 50% state reimbursement.

Unexpected costs also threaten the financial picture. Gino Cresta, the director of the Department of Public Works, cited the Upper Jackson track, which was recently deemed unsafe for meets, as an example of an unplanned expense. 

“It’s beyond repair right now,” Cresta said, estimating replacement at around $1 million. 

He also warned of aging water and sewer systems, including pumps dating back to 1992, the water tower last painted in 2001, and a 2.5-mile sewer force main that now requires evaluation.

The town is seeking a $3.5 million State Revolving Fund loan for sewer work, uses Massachusetts Water Resources Authority (MRWA) interest-free water main program and expects utility incentives for HVAC improvements.

“We’re always looking at that and leveraging that,” Kasper said.

Connors noted previously in the meeting, however, that the town’s approach with free cash is a benefit. While “there’s a lot of communities out there that only use free cash,” Swampscott has taken a more formal planning and debt policy approach to put the town in an overall stronger position.

The next joint meeting is expected early next year, when the committees will begin prioritizing which projects move forward with and how to pay for them.

Connors said that the town will assemble a plan of expenses.

“We will put it together and share it with everyone,” Connors said.