The Select Board of Danvers convened on March 15, 2025, for a crucial review of the Fiscal Year 2026 budget, marking a significant step in the town's financial planning process. This meeting, led by the Select Board, aimed to outline budgetary goals and address the financial pressures facing the community.

The budget process is a year-round endeavor, beginning with the approval of the previous year's budget and intensifying in the fall with departmental reviews. The Select Board adopted budget goals on February 4, which include maintaining current staffing levels and ensuring adequate funding for public safety and emergency services. The proposed budget reflects these objectives, with a focus on sustaining essential services while navigating financial challenges.

Key financial pressures highlighted during the meeting include a projected 8% increase in retirement contributions, translating to approximately $760,000, and a significant rise in healthcare costs, which are expected to increase by $1.45 million due to a 10.91% renewal rate. The Danvers Public Schools will see a contribution increase of nearly $2 million, while Essex Tech's funding will rise by about $177,000.

The budget review also emphasized the importance of balancing expenditures with revenues. The total expenditure is projected to increase by 4.24%, while the anticipated revenue growth is conservative, relying heavily on property taxes and state aid. The town's free cash, a critical component of its financial strategy, is projected at $13.8 million, although much of this is tied to one-time revenues, necessitating careful management to avoid future deficits.

The Select Board's commitment to public safety was underscored by plans to fully fund the police department, including the hiring of an additional officer, the first since 2008. The fire department will also receive increased funding to maintain staffing levels following the conclusion of a significant grant.

As the budget process moves forward, the Select Board will continue to seek additional revenue sources and make necessary cuts to ensure a balanced budget. The next steps include a warrant review in early April, followed by discussions with the Finance Committee before the town meeting in May. This budget review is not just a financial exercise; it reflects the town's priorities and its commitment to providing quality services to the Danvers community amidst ongoing economic challenges.