Beverly council approves $333,750 in transfers to cover settled contracts; advances ordinances and selects new auditor

The Beverly City Council on Monday approved transfers totaling $333,750 from the city's FY2025 reserve for collective bargaining to cover recently ratified labor agreements and advanced several ordinances to later final votes.

The council approved a $218,000 transfer to the police department to fund a newly agreed memorandum of agreement with the Patrolmen's union and a $115,750 transfer to cover increases for members of the Beverly Municipal Employees Association. Both transfers were the subject of public hearings and passed committee and full-council votes (committee votes 3-0; full council votes recorded 9-0).

Why it matters: Council budget analysts and finance staff said the transfers are affordable within the current fiscal year but will contribute to estimated deficits in coming years, making longer-term contract costs a subject of continued attention in budget planning.

City finance director Bridal Ailes and council budget analyst Jerry Perry told the council the transfers will be paid from the FY2025 negotiated-reserve account; Perry estimated that after the two transfers and other recently approved contracts, about $153,038 would remain in that reserve. "I recommend adoption of the mayor's proposal," Perry told the council during the public hearing on the police transfer.

Councilors pressed staff on how some contract changes would be implemented. Finance staff said the municipal-employee contract replaces certain vehicle-use stipends with IRS-style mileage reimbursement, a change the administration said benefits employees because reimbursements are non-taxable and align pay with actual miles driven. On policing, a council question about who pays higher detail rates drew an administrative reply that the entity requesting private police details would cover any increases.

Officials also discussed longer-term budget risk. As Perry briefed the council on the broader outlook, he said the city's financial forecast currently estimates a roughly $3.9 million deficit for FY2026 and that FY2027 could pose greater challenges because the city expects to lose excess levy capacity used in earlier years. Finance staff said they are planning for those pressures and have tools they can use, including reserves and operational adjustments.

Other votes and committee actions - Ordinance restricting sale of animals in pet shops (Order 40): Councilors voted 9-0 on a first vote to amend Chapter 117 to prohibit pet shops from selling live amphibians, reptiles, birds or mammals; the ordinance allows pet shops to display animals available for adoption but bars a fee for providing display space. The ordinance is scheduled for a second and final vote at the council's next regular meeting.

- Parking ordinance amendments (Order 41): Councilors approved a first vote, 9-0, to revise Chapter 270 to extend no-parking zones on Water Street and parts of Wellman Street to improve emergency access and traffic flow. That amendment is set for a second vote at the next meeting.

- Indemnification ordinance (Order 43): The council approved a first vote, 9-0, on an amendment to insert an indemnification provision in Chapter 69 allowing the city to defend and indemnify elected or appointed municipal officers acting within the scope of their duties, subject to exclusions for criminal charges and certain civil-rights or ethics matters. Final passage is scheduled for the next meeting.

- Audit firm recommendation (Order 58): The council's finance committee recommended, and the full council approved, moving away from the incumbent firm and engaging Roselli Clark and Associates as the city's auditor. Committee members said Roselli Clark was chosen for its technical experience and for an audit rotation that brings a fresh perspective after many years with the prior firm.

- Grants, appointments and other housekeeping: The council's finance and property committee approved several grants and gifts, including a $25,000 firefighter safety-equipment grant from the Executive Office of Public Safety and Homeland Security/Department of Fire Services, a $4,929.42 equipment gift for the Council on Aging from the UMass Digital Equity Partnership, and an $8,500 Clean Vessel Act grant for seasonal pump-out service. The council also approved a slate of reappointments and a residency waiver for one appointee.

What did not change tonight Councilors noted that body-worn cameras were not part of the recently ratified police contract and that the matter is expected to be addressed later by the state Peace Officer Standards and Training (POST) Commission and by local post-implementation bodies rather than in the current MOA.

The council set public hearings for two National Grid duct-bank petitions in mid-February and scheduled follow-up committee meetings on capital expenditures and neighborhood traffic concerns. The city maintained that the contract transfers will cover amounts retroactive to July 1 as specified in the memoranda of agreement.

The council will take second and final votes on the first-reading ordinances and on the indemnification ordinance at its next regular meeting, scheduled for Feb. 18 (a Tuesday meeting because of a Monday holiday).