From the Town Administrator's Desk

General Fund Impacts for FY27
By Tony Barletta
April 7, 2026

In just three weeks, on April27, residents of Manchester-by-the-Sea will convene at the Annual Town Meeting to vote on important Town business such as the 2027 Fiscal Budget. Over the past month, we have discussed several capital exclusion infrastructure projects that need to be addressed: the Lincoln Street Well PFAS facility, Central Street culvert preparations, Rotunda preservation, harbor dredging, and Tappan Street water and sewer replacement.

However, there are some important updates this year in the General Fund, specifically in health insurance, OPEB, and sanitation. A General Fund is the primary operating fund for municipalities in the Commonwealth, accounting for all financial resources except those required to be in a separate fund. It finances day-to-day operations using property taxes, state aid, and local receipts. (Source: Mass.gov)

OPEB
One proposed budget approach to combat the increased expenses we are facing is to retire our OPEB (Other Post Employment Benefits) liability earlier than originally planned which will allow the Town to use those funds for other expenses rather than seeking additional revenue from taxpayers.

For over a decade, the Town has annually funded an OPEB Trust Account for retiree health insurance.   These annual appropriations combined with strong market gains in the trust account have achieved earlier than anticipated funding goals. Voters at the Annual Town Meeting will be asked to approve the next installment of $420,000 which is $60,000 more than the FY27 planned installment to fully fund the OPEB Trust. As a result, there will be approximately $6.4 million in the OPEB Trust, and the Town will reach fully funded status next fiscal year. This is a major milestone for us as only three communities in the state have fully funded their OPEB liability: Colrain, Stockbridge, and West Newbury. (Source: Mass.gov)

Since retiree health insurance payments and OPEB contributions are paid for through the General Fund, the Town will be able to use the OPEB trust to pay for the retiree health benefits on an annual basis once fully funded. Essentially, this means the General Fund will no longer contribute an annual installment, which totaled $330,000 in FY26.

We will continue to fund the required $100,000 for the future benefits of active employees but the Town’s contribution to retiree health and life insurance premiums (about $450,000) will be paid from the Trust. As a result, about $700,000 of the General Fund budget, per year, will be available for other budget needs beginning in FY28.

Health Insurance
Health insurance costs continue to rise nationwide and are projected to be the highest yet in 2026 due to rising medical costs, use of high-cost drugs, utilization, and high employer costs. The Town is also not insulated from these increased costs. Pensions and health insurance benefits are offered to all current and retired Town employees who work more than 20 hours a week per the requirements of Massachusetts General Laws.  In FY21, the Town’s annual health insurance costs were $1.450 million and have steadily increased to $2.073 million in FY27 which is a 43% increase over the past 5 years.   This year, the Town is facing a 15% increase over last year and we expect this trend to continue.

Sanitation
The Town’s five-year trash and recycling contract, that began with JRM and later acquired by Republic Services, will end in June of this year. Republic is responsible for weekly curbside trash collection, recycling collection and disposal, and dumpster service at Town facilities. Market conditions have significantly changed industry wide over the past few years due to increased disposal costs, labor costs, and health insurance premiums and most companies are moving towards an automated process. As a result, the Town will face increased costs in the next collection contract.

The annual sanitation budget also includes a $35,000 contract with Black Earth for curbside compost and leaf collection and a $96,000 contract with Winwaste for trash disposal. The FY27 sanitation budget will increase in FY27 by $280,000 which is a 73.44% increase. The budget increase is reflective of the market adjustment in the cost of disposal and the transition costs to move to an automated system.

The Town is currently exploring all vendors and options. The state gives municipalities an exemption from procurement laws to solicit their own bids in the interest of public health. Any changes to sanitation operations will be widely communicated to the public once they are finalized.

Over the last several weeks we have discussed the proposed zoning articles, capital needs, and General Fund updates. Next week we will provide an overview of the FY27 Budget and Annual Town Meeting preparations.

The Annual Town Meeting will be held on Monday, April 27 at Memorial School at 6:30 PM. Public Forums will be held on Tuesday, April 7 and Tuesday, April 14 at 6:30 p.m. on Zoom or in Town Hall to ask questions and learn more about the warrant articles. Additional information related to Town Meeting can be found at manchester.ma.us/503/Town-Meetings-and-Elections.

March 27. 2026
Capital Necessities Part 4: Library Bathroom Renovation
 By Tony Barletta

The historic Manchester-by-the-Sea Public Library needs a public restroom upgrade that accommodates all visitors. The Town will request a capital exclusion approval to fund an ADA (Americans with Disabilities Act) compliant restroom at the Annual Town Meeting on April 27.

The library was originally gifted to the Town by Thomas Jefferson Coolidge who was the great grandson of President Thomas Jefferson, US Ambassador to France, and an accomplished businessman. The building, constructed of New England ashlar stone, was dedicated in 1887 and carefully maintained to this day. The library is on the National Register of Historic Places and serves as an important part of Manchester’s history.

As some may know, the Manchester Public Library’s single existing bathroom is small, not ADA compliant, lacks a changing table, and is difficult for many to use. An ADA study was completed in 2021 on accessibility in Town buildings and confirmed the need for a new bathroom in the library. Over the past 5 years, Town Meeting has approved multiple forms of funding that have supported library capital efforts. These appropriations included match funding for grants that sought to evaluate the existing conditions of the building, study the feasibility of expansion, and design the ADA bathroom. The library and the Town made multiple attempts to secure grants but were unfortunately unsuccessful. Thus, the Town and the Library decided to focus on the existing facility. The 2025 Annual Town Meeting approved $70,000 to fund the design of the bathroom and minor updates to the archive space on the second floor needed to accommodate its new use as the Director’s office.

Three locations were originally explored within the existing library. However, due to several factors and through this analysis, converting the existing Director’s office was determined to be the best option.  As a result, approximately one third of the existing Director’s office will be used for administrative use and the remaining two thirds will be converted to the new bathroom. The new bathroom will include standard ADA accommodations and an adjustable-height universal changing table. Construction of the new ADA bathroom is anticipated to begin in late summer and will take several months to complete. The library will remain open during construction and the old bathroom will be utilized for storage in the future.

This year’s Annual Town Meeting will seek voter approval for a $250,000 capital exclusion in the FY27 budget. If approved at Town meeting, the funding will also need to be approved at the Town Election on May 19. A capital exclusion is a 1-year tax bill impact, different from a debt exclusion that includes multiple years of debt service. For this project, if approved, the 1-year tax bill impact on a property valued at $1 million would be approximately $62 depending on final project costs.

All information on capital requests can be found here. The Annual Town Meeting will be held on Monday, April 27 at Memorial School at 6:30 PM. Public Forums are planned on April 7 and April 14 at 6:30 p.m. on Zoom or in Town Hall to ask questions and learn more about all the warrant articles.

March 20. 2026
Capital Necessities Part 3: Central St. Culvert & Tappan St. 
By Tony Barletta

The conversation on capital continues as we approach the Annual Town Meeting on April 27.  The next topics in this series dive into the Central Street Culvert and Tappan Street water and sewer replacement projects.

Central Street Culvert

History
 The Central Street Culvert discussion began in May 2006, after the infamous “Mother’s Day Storm”, concerning the need to upgrade and protect critical Town infrastructure. Since then, it is evident that parts of Manchester-by-the-Sea are susceptible to flooding from storms, sea level rise, and the increasing frequency of these events. Through multiple studies, site inspections, analysis, and public meetings, the Central Street Culvert Replacement and Central Pond Restoration Project were identified as a priority.

Built in 1850, the Central Street Culvert has sustained damage from multiple flooding events that have eroded the integrity of the bridge, tide gate, culvert, and pond retaining walls over time. In 2016, the Town made temporary repairs to the culvert that had an expectancy to last 3-5 years.

Current Status
 The Central Street Bridge connects Manchester-by-the-Sea to the rest of Cape Ann via Route 127 and houses an underground electrical service line that provides electricity to all of Cape Ann. Additionally, Central Pond provides the only natural habitat for the Rainbow Smelt in the area. MassDOT annually performs inspections of the culvert to ensure the safety of the traveling public. A closure or limit on use of the roadway due to a failed inspection or storm damage would create significant disruption to our residents and the downtown area. A similar scenario occurred in Beverly when MassDOT closed the Hall-Whitaker Bridge connecting downtown to Ryal Side. Consequently, plans for this critical infrastructure have been in the works for ten years and we anticipate receiving the final permits needed to start construction. Even though work on the culvert will come with some inconvenience, the Town’s goal is to complete the project as planned and to minimize disruption to the best of our ability.

While the path to a fully permitted project has become clearer, project funding is a bit murkier. Due to permitting delays, the status of the awarded $4.48 million FEMA BRIC (Building Resilient Infrastructure and Communities) Grant is uncertain due to the initial grant completion date of April 30, 2026. However, in coordination with MEMA, the Town has requested an extension to December 30, 2027, and is awaiting a response.  As a backup plan, the Town has pursued alternative state grants such as the Commonwealth’s Municipal Vulnerability Program. The Town may not receive notification of these funding options until after Town Meeting so we can’t yet confirm if the project will begin in the fall of 2026 or 2027. Our approach is to complete this project as soon as possible by using grant funding for the construction.

Despite the funding uncertainty, The Town continues the necessary preparations to make the project “shovel ready” including the procurement of precast concrete arches that typically require a six-month lead time. The arches will be delivered by mid-summer and stored until the construction begins. This will allow the contractor to condense the construction schedule, reduce the duration of the road closure, and mitigate any potential delays on the most critical component of the project.   

At the Annual Town Meeting, residents will be asked to vote on a $5 million debt exclusion that will only be used if the grants fall through. The annual tax impact on a property valued at $1 million would be approximately $94.50 depending on final project costs.

Tappan Street

The Tappan Street project is next on DPW’s schedule of water and sewer replacements and follows recently completed Pleasant Street, School Street, Forest Street, and Mill Street. Tappan street was identified as a priority because of the existing 120-year-old cast iron water main, and undersized sewer and stormwater utilities. In addition, National Grid is anticipated to replace the gas main.

Water Main
 Comparable to the recently completed water main projects, the tuberculated pipes reduce pressure and capacity leading to discolored water when bits of debris break off. The project will replace the existing 6” cast iron pipe with new 8” CPVC pipe, which is/has been used in our ocean adjacent streets such as Ocean St, Raymond St, and Boardman Ave.

Storm Water
 Another significant change will involve redirecting stormwater to a new 24” PVC pipe installed on Sea and Tappan Streets versus its current path under the old storage building and through the wetlands between the MBTA tracks at Harbor Point and Tappan St. This will greatly reduce the amount of debris and sediment entering the drainage line, which diminishes capacity and performance.  A check valve will also be installed on the drainage outfall between Masconomo and Reed Park to mitigate tidal inundation during peak high tides.

Sewer
 On the sewer side, the DPW previously attempted to cure-in-place pipe (CIPP) line the sewer main on Tappan to eliminate infiltration and inflow (I/I), as required by DEP to decrease the amount of groundwater treated by the wastewater treatment plant. However, due to the deteriorating condition of the sewer main, CIPP lining was not feasible. As a result, a new 8” PVC sewer main will be installed as part of the project to eliminate inflow and infiltration.

Roadway
 Surface treatments will include new asphalt sidewalks and curbing, new post top streetlights, and reconstruction of the roadway. Upon approval at Town Meeting, work would start in fall 2026 with final paving and restoration in the spring of 2027.  

At the Annual Town Meeting, residents will be asked to vote on a $4.1 million debt exclusion. The annual tax impact on a property valued at $1 million would be approximately $84 depending on final project costs.

All information on the Central Street Culvert project can be found on the Town website at  manchester.ma.us/825/Central-Street-Culvert-Replacement and information on Tappan Street at manchester.ma.us/223/Public-Works. Join the Annual Town Meeting Public Forums on April 7 and April 14 at 6:30 p.m. on Zoom or in Town Hall to ask questions and learn more about all the warrant articles.