Beverly officials begin FY26 budget hearings as analyst warns budget is not balanced and FY27 faces structural shortfall

The Beverly City Council’s finance subcommittee opened its FY26 budget hearings June 4, as the city budget analyst told councilors the mayor’s proposal is “not balanced” and warned the city faces a structural deficit in FY27 unless new revenues are found or services cut.

The analyst, identified in the meeting as Perry, told the committee the administration’s proposed revenues total $173,716,413 and that the mayor is proposing $7,761,503 more than FY25 — an increase Perry said is roughly 4.7 percent. “In my opinion, the FY26 budget isn’t balanced,” Perry said, adding that the administration’s use of limited one‑time reserves and a more generous Chapter 70 state aid assumption mean the city will have fewer options next year.

Why it matters

Perry and other officials told councilors decisions this spring — including using remaining excess levy capacity and reducing the overlay reserve — will ease pressure this fiscal year but make FY27 more difficult. Perry said Beverly may need $2.5 million to $4 million in new revenue to maintain level services for FY27 and urged the council to begin long‑range conversations now.

Key numbers and near‑term pressures

- Proposed general fund revenues: $173.7 million (administration estimate). - Proposed increase in mayor’s budget vs. FY25: $7.76 million (about 4.7 percent). - New growth used in levy calculation: about $1.2 million; administration proposes using $150,000 of overlay this year versus roughly $250,000 last…