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City manager pitches 'spend less, grow more' plan and urges zoning votes to attract development
Summary
Chelsea's city manager told councilors the FY28 strategy will combine cuts to backfills and operational efficiencies with aggressive pursuit of development to boost new growth; he said zoning changes are needed and highlighted near-term projects that could deliver millions in new revenue.
The city manager told the Chelsea City Council that the city's FY28 budget strategy centers on two priorities: cut discretionary spending where possible and accelerate new-growth projects that expand the tax base.
"We have to spend less," the city manager said, "and we have to grow more." He said the city is constrained by Proposition 2½ and that, because growth multiplies through permits, inspection fees and related revenues, attracting development is the only realistic way to increase the annual budget limit. The manager told the council several zoning votes are likely within the next 30 days and asked councilors to be partners in approving measures that would allow larger development projects.
Administration described recent outreach to developers, including tours that showcased available sites in West Chelsea and proximity to the new soccer stadium. Staff said developers repeatedly flagged zoning as a barrier. The manager identified near-term projects that could materially affect revenue if executed: the Flat Iron project (estimated to generate about $2,000,000 in new growth when online) and an Eastern Avenue parking garage projected to generate roughly $3,000,000.
On city finances, officials discussed other revenue and cost items tied to the capital and operating budgets. Administration said the enterprise lease has generated close to $20,000,000 a year in motor-vehicle-excise tax revenue for the city; the battery-storage microgrid project at City Hall and the police station is expected to save about $300,000 annually (the administration described this as an estimate). Officials also described progress on pension funding and cautioned that market swings could affect actuarial numbers.
Councilors stressed concerns about displacement and said growth should include protections for longtime residents. "With growth comes displacement," Councilor Teneri Garcia said, urging the administration and developers to ensure benefits are shared. The city manager acknowledged the risk and said negotiations with developers should include community benefits.
The manager said staff will be "bulldoggish" in pursuing growth and will couple that with tighter spending discipline (fewer backfills, program reviews and selective means testing for fees) to manage the FY28 baseline. No formal votes were taken; the council will consider the FY28 budget at its June 8 meeting.
