Town Manager Presents Proposed FY25 Budget

By Adam Swift

Town Manager Tony Marino is proposing a Fiscal Year 2025 budget that sees a 2.68 percent increase in the general fund over the current fiscal year.

Marino is encouraging residents to attend town finance commission meetings in the coming weeks to take part in the budget discussion, where it will go for recommendations before a final town council approval later this spring.

The total proposed general fund budget is $61,205,014, an increase of about $1.5 million over the current fiscal year. The proposed budget breaks down to $35.9 million for the school department, $17.6 million for town departments, and $7.6 million for non-departmental expenses.

In his budget message, Marino cautioned of the potential need for an override prior to the FY26 budget to handle escalating school costs.

The school committee is currently working on the finishing touches on its own budget proposal, committee member Gus Martucci said at this week’s meeting. In the past, the school department has typically presented both a needs-based budget and a level-funded budget.

Marino stated that the proposed budget is balanced and honors the town council’s theme and mandate of a conservative approach to both revenues and expenses.

“This budget also continues our commitment to consolidation, maintaining a commitment to resident services, public safety, and public works, all of which fit within the Council’s goals for the Town, and still maintaining a commitment to responsible spending,” stated the town manager.

Marino’s budget message, which is available on the town’s website, is separated into four major categories: Revenues, Expenses, Capital Spending, and Long-Term Financial Planning.

“Fiscal Year 2025’s revenues are forecasted responsibly and conservatively; given the rebound in the new and used vehicle market we have level funded excise tax receipts for FY25,” Marino stated. “We continue to keep our receipts at levels designed to support continuous free cash.”

The town’s projections for state aid use the figures supplied on the Cherry Sheet for the Governor’s proposed budget.

“However, if the state aid numbers come in lower than what we budgeted for, we have already identified areas where we can cut and adjust the budget after the Town Council votes on it,” Marino stated.

Overall, property tax revenue is projected to increase by the allowable 2 ½ percent in FY25, with an increase in the estimate for new growth, the tax revenue that comes from new construction.

“The new growth estimate of $550,000 is larger than average for Winthrop but is consistent with the recent increase in new residential construction that we have experienced,” Marino stated. “We anticipate that this number will stabilize and be reduced in future years as our Assessing Department finishes entering the building permit data.” Local receipts are projected to remain consistent with the last fiscal year.

On the expenses side, Marino stated that the proposed budget reflects a commitment to preserving residents’ quality of life by providing and maintaining adequate financial resources necessary to sustain a sufficient level of educational and municipal services.

“It also responds to changes in the economy, governmental and non-governmental organizations’ priorities, and other changes that may affect our financial well-being,” Marino stated. “It fulfills the core value of supporting education, public safety, and public works while balancing fiscal responsibility and fulfilling the Town Council’s financial goals.”

Winthrop saw a nominal increase in Chapter 70, school state aid funding, for FY25.

“The continued strain on the school budget due to contractual obligations and increased expenses will need to be addressed in the near future,” Marino stated. “The increases allowed with Proposition 2 ½ and new growth is not enough to sustain this budget and an override will need to be considered before we start the FY26 budget.”

The budget Includes a 9.6 percent increase for health insurance through GIC, providing funding for the town’s 85 percent share of the health insurance costs. Salary increases for most unions and non-union personnel are calculated at 2 percent for FY25, and non-union personnel receive a 2 percent cost of living adjustment (COLA).

The general fund budget includes trash and recycling expenses totaling $600,000.

“This is the same budget number we carried last year; to lower this number in the long term, we will need to consider adjusting the trash fee and the pay-as-you-throw bag revenue,” Marino stated. “With increased trash costs on the horizon, we must pay close attention to this enterprise fund to ensure proper funding sources and control expenses.”

The proposed budget also Includes a $60,000 subsidy or budget transfer for the Park and Recreation and the Rink enterprise funds. “Annual increases in our health insurance, charges from Northeast and Essex Technical Schools, union contracts, building and vehicle insurance, and retirement and pension funding take up most of our 2.5 percent tax increase per year,” stated Marino. “As a result, it is challenging to honor new staffing requests, new software and upgrades, and other new initiatives. Moving forward, we will look at each department and see if there are any reorganizations that we can put in place to maximize our current staffing levels.”

Marino’s budget document also contains sections on the capital plan and long-term financial planning for the town.

The town council is expected to vote on the final FY25 budget at its June 18 meeting.