Beverly council approves $285,000 transfer to cover firefighterscontract; finance officials warn reserves will be strained

The Beverly City Council approved a $285,000 transfer into the Fire Department budget on a 6-0 vote to fund costs under a recently negotiated memorandum of agreement with the firefightersunion covering fiscal years 2025 through 2027.

Brian Ailes, the city finance director, told the council the transfer covers both rank-and-file firefighters and the fire departmentsuperior officers and is retroactive to July 1 of the current fiscal year. "This represents ... the terms of FY '25 through FY '27," Ailes said, and recommended using two reserve accounts to cover the cost: $153,038 from the reserve for union negotiations and $131,062 from the reserve for unforeseen expenses.

The move will draw the reserve for union negotiations to zero and reduce the reserve for unforeseen from $250,000 to $118,038, city officials said. Jerry Perry, the city council budget analyst, recommended adoption and flagged follow-up budget pressure: "I recommend adoption of the proposal. We have the money there," he said, but added that other deficits (notably snow-and-ice costs) will likely require additional adjustments before the fiscal year ends.

Chief O'Connor, representing the Beverly Fire Department, answered council questions about operational changes and training embedded in the agreement. He said the department is shifting from the long-used National Fire Incident Reporting System to the National Emergency Response Information System; staff will need to input more detailed incident and patient-care data. On personal protective equipment, the chief said, "the gear is good for 10 years," noting that actual replacement cycles vary by usage and that the department maintains backup sets to minimize risk.

Councilors pressed staff about the effect on other budgets and what funding sources might cover remaining deficits. Perry said the city will continue to review line items and that free cash is a legal option but not the preferred initial remedy. He said final decisions about how to address projected shortfalls will likely come in May or early June when year-to-date figures are clearer.

There was one member of the public listed on the hearing sign-in sheet for this item (Brian Riddle); no substantive public comment was recorded during the hearing on the transfer. After discussion the council moved the order to committee and later took a final vote approving the transfer 6-0.

The council approved the transfer during the public hearing on the MOA and instructed staff to continue monitoring year-end budget status and potential additional transfers or other corrective steps if deficits persist.