Swampscott Finance Committee Warned Levy Capacity Gone by Fiscal 2029

SWAMPSCOTT -- April 9, 2026, Swampscott's Finance Committee reviewed a first-of-its-kind multi-year budget forecast warning the town will exhaust its unused levy capacity within three fiscal years. Town Administrator Nick Maddox and Finance Director Patrick Donahue presented the document, shown to the Select Board the prior evening, projecting the town will draw down approximately $4.3 million in unused excess levy capacity across fiscal years 2027, 2028, and 2029, leaving a roughly $500,000 structural deficit in 2029 that grows in subsequent years absent an override or expenditure reductions. Healthcare costs are modeled at 10 percent annual growth, and debt service rises sharply in the early 2030s as a $60 million local share of a middle school project comes online. Committee member Sandra Nardone argued the panel needs to model a 5 percent expenditure cut scenario alongside the level-service baseline, saying, "I think we should consider by the time we're done evaluating it, whether or not we need to tighten our belt for the 27 budget." The committee also heard that the fiscal 2026 snow and ice budget carries a roughly $180,000 deficit, expected to reach $200,000, that must be resolved through free cash at the May 18 annual town meeting because the snow and ice appropriation was reduced at last year's meeting, eliminating the standard option of carrying the deficit to tax-rate setting in the fall.