BEVERLY — The city will spend $1.9 million more this coming fiscal year under a budget submitted to the City Council by Mayor Bill Scanlon last night at City Hall.
If you're wondering exactly what all that money will buy, Scanlon had a short answer — health insurance and pension increases for municipal employees and retirees.
"The sobering fact is that this entire sum (of $1.9 million) is almost exactly the same as the total cost increase in health care and pension funding," Scanlon told councilors.
Scanlon submitted a budget of $97.9 million for fiscal year 2011, which begins July 1. Nearly half of that total, or $46.7 million, is for the schools.
Scanlon said the city will provide the schools with $1.05 million more in city funding. The city side of the budget will not increase, he said, but services will look the same "from the viewpoint of the citizens of Beverly."
"They will see the libraries open the same hours as now with similar staffing," he said. "Police presence in the streets will be unchanged. Fire Department response will be unchanged with round-the-clock manning and response from each of three stations. Public services will also continue with the same resources.
"I do wish to emphasize," he added, "that this budget is extremely lean with no reserves for unforeseen events and no salary increases for non-union employees."
The biggest portion of the city side of the budget is the $18.3 million for health insurance and pension costs. Scanlon said the state Legislature is debating a measure that would give local communities more control over health costs but not in time to help out in fiscal year 2011.
Scanlon praised the city's finance director, John Dunn, for refinancing $24.2 million of the city's debt at a lower interest rate, saving "at least" $200,000 per year over the next decade.
Scanlon said the city could bring in more money during the year through the sale of the former McKay School, the collection of overdue taxes and the recovery of the $600,000 owed to the city by Manny Barros, the former operator of the Beverly Golf and Tennis Club.
Scanlon said he expects to begin collection proceedings against Barros "soon."
The City Council will hold budget hearings with city department heads over the next few weeks before voting on the final budget.
Staff writer Paul Leighton can be reached at 978-338-2675 or by e-mail at pleighton@salemnews.com.
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