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Chelsea treasurer outlines modest budget rise, highlights investment gains and liability costs
Summary
The treasurer-collector presented a proposed FY26 operating plan that keeps staff levels steady, highlights recent investment income, and notes a roughly 3% rise in the city's liability insurance allotment; councilors asked about how residents file claims and about investment practices.
The treasurer-collector presented a proposed fiscal 2026 budget for the office of about $786,000 and described efforts to increase investment income, keep payroll operations electronic and to manage the city's liability insurance program.
The budget presentation said most of the office's costs are salaries (about $571,000) and that the operating budget is down, in part from reduced printing and professional-service needs. The treasurer-collector also said the city's liability insurance allocation is rising roughly 3% to about $1.0 million for FY26.
The budget matters because the treasurer-collector manages cash, investment income and the insurance pool that pays for claims; changes affect the city's ability to sustain services and to respond to liability claims.
Councilors asked how the office generated the investment returns and how residents file claims against the city. Councilor Taylor praised the office's work and cited an investment-income figure in the meeting records, and the treasurer-collector described a monthly practice of shopping term rates across banks to place funds in 3-, 6- and 9-month instruments timed to the fiscal year. In the meeting the treasurer-collector said, "On a monthly basis... last year, we did about 5,000,000. This year, we're up to 3,000,000 and it's not over yet." Councilor Taylor said that proactive investing helps the city.
On liability insurance, the treasurer-collector said the premium estimate is based on the city's vehicle inventory and property holdings and that deductible payments often are covered by departments. The treasurer-collector and Councilor Recupero clarified that school buildings owned by the city carry insurance paid by the city but funded in part by school contributions.
Councilors asked about the claims process for property damage, construction impacts and similar claims. The city solicitor's office handles written claims filed by residents; the treasurer-collector said claims are routed to the solicitor and then to the insurance company as appropriate. The treasurer-collector advised residents to keep before-and-after photos, written estimates and other documentation when filing claims. The treasurer-collector also noted that many construction harms are ultimately the contractor's responsibility because the city contracts out that work and requires contractors to carry insurance and to name the City of Chelsea as additional insured.
The presentation covered payroll and employee self-service upgrades as part of the treasurer's portfolio; the payroll unit is staffed by two positions that support city and occasional school payrolls and the office reported digitizing pay stubs and tax forms and implementing an employee self-service module with Human Resources and the deputy city manager of operations.
Councilors did not take a formal vote on the treasurer-collector budget at this session.
Looking ahead, councilors pressed staff on outreach about claims procedures and on continuing the practice of actively managing short-term investments to maximize income for the general fund.
