Salem council refers $225 million FY27 budget to finance committee, approves $250,000 for Horace Mann study
May 15, 2026 | Salem City, Essex County, Massachusetts
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The Salem City Council on May 14 voted to refer the mayor's proposed FY27 operating budget and five-year capital plan to the Committee on Administration and Finance (co-posted with the Committee of the Whole) and advanced several capital funding measures for committee review.
Councillor King told the council the proposed operating budget totals about $225,000,000 and noted an approximately $1.7 million, or 8.2%, year-over-year increase in the city's health insurance costs. King said department heads will appear in the upcoming hearings to explain operating and capital requests and urged the public to view the budget documents on the city website.
Councilors referred a slate of capital items and bonds to committee, including a $7,862,000 bond for general fund CIP, a $7,660,000 bond for water and sewer CIP, a $5,723,341 pay-as-you-go short-term CIP appropriation, establishment of FY27 revolving funds, and transfers of $1,080,000 from water and sewer retained earnings and $1,000,000 from free cash into capital accounts. All referral motions carried.
On a separate vote the council approved a $250,000 appropriation to fund feasibility and schematic design work for an accelerated repair project at the Horace Mann Laboratory School. Councillor King said the Massachusetts School Building Authority (MSBA) would fund roughly half of the feasibility work and that the council's $250,000 share would come from a GreenWorks school grant rather than general tax dollars; King added that the MSBA requested the city indicate interest by June 1.
The council also accepted a $4,000 donation from Friends of the Salem Common for a park bench and moved several departmental and licensing items to committee for further review.
Next steps: the Administration and Finance committee will hold hearings on the FY27 budget and the referred CIP items over the coming weeks; staff will report back with department-level details and refined cost estimates.
Councillor King told the council the proposed operating budget totals about $225,000,000 and noted an approximately $1.7 million, or 8.2%, year-over-year increase in the city's health insurance costs. King said department heads will appear in the upcoming hearings to explain operating and capital requests and urged the public to view the budget documents on the city website.
Councilors referred a slate of capital items and bonds to committee, including a $7,862,000 bond for general fund CIP, a $7,660,000 bond for water and sewer CIP, a $5,723,341 pay-as-you-go short-term CIP appropriation, establishment of FY27 revolving funds, and transfers of $1,080,000 from water and sewer retained earnings and $1,000,000 from free cash into capital accounts. All referral motions carried.
On a separate vote the council approved a $250,000 appropriation to fund feasibility and schematic design work for an accelerated repair project at the Horace Mann Laboratory School. Councillor King said the Massachusetts School Building Authority (MSBA) would fund roughly half of the feasibility work and that the council's $250,000 share would come from a GreenWorks school grant rather than general tax dollars; King added that the MSBA requested the city indicate interest by June 1.
The council also accepted a $4,000 donation from Friends of the Salem Common for a park bench and moved several departmental and licensing items to committee for further review.
Next steps: the Administration and Finance committee will hold hearings on the FY27 budget and the referred CIP items over the coming weeks; staff will report back with department-level details and refined cost estimates.
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