City Council

CITY OF SALEM, MASSACHUSETTS Salem City Council & Mayor FY2025 Budget Retreat Meeting Minutes April 22, 2024, 5:00 p.m. City Hall Annex, 98 Washington Street, Salem Present: Mayor Dominick Pangallo, Councillor-at-Large Ty Hapworth, Councillor-at-Large Kyle Davis, Councillor-at-Large Alice Merkl, Councillor-at-Large Conrad Prosniewski, Ward 1 Councillor Cynthia Jerzylo, Ward 2 Councillor Caroline Watson-Felt, Ward 3 Councillor Patricia Morsillo, Ward 4 Councillor John Harvey, Ward 5 Councillor Jeff Cohen, Ward 6 Councillor Megan Stott, Ward 7 Councillor Andy Varela, Director of Finance Anna Freedman, Chief of Staff Lisa Peterson The Mayor called the retreat to order at 5:00 p.m. Attendees discussed goals of the retreat: review and discuss shared goals established at the strategic retreat earlier in the year, review budget challenges and opportunities, and gather feedback on FY2025 budget priorities. Attendees reviewed the City’s fiscal year calendar and the budget timetable. Following a discussion on challenges, trends and opportunities, attendees reviewed new growth and levy limit calculations. The conversation also included a review of revenue projections for all categories of revenue: property taxes, local receipts, state aid, and other revenues. In addition to discussing revenues, attendees looked at categories of expenditures for FY2025, including general government, schools, fixed costs, debt and capital, assessments, enterprise activities, and snow and ice. Attendees then more closely reviewed Chapter 70 (education aid) analysis as well as an overview of the general fund and enterprise funds. Attendees also examined capital improvement plans and reserves. Councillors and the Mayor discussed plans for the city’s remaining ARPA (“American Rescue Plan Act”) funds, as that program begins to move toward a conclusion. Councillors and the Mayor discussed positive trends including strong reserve levels, good bond rating, new growth and economic development opportunities, rising valuations, and consistent and prudent fiscal policies and practices. Challenges and trends to monitor were also identified, including community challenges and financial trends and pressures on government. The Mayor and Councillors then discussed shared priorities for the FY2025 budget. The retreat adjourned at 7:25 p.m. Minutes prepared and respectfully submitted by: Lisa Peterson, Chief of Staff, Office of Mayor Dominick Pangallo Know Your Rights Under the Open Meeting Law, M.G.L. c. 30A §18-25, and City Ordinance Sections 2-2028 through 2-2033