$1.1M Budget Gap Shrinks to $222K as Hingham Nears FY27 Balance

Related Topics: Center for Active Living FY27 Budget

Key Points

  • Projected FY27 budget shortfall plummets from $1.1 million to $222,000 following updated revenue and healthcare figures.
  • Select Board rejects alternative Hitchcock Shoe building site for senior center citing $14 million in potential delay and renovation costs.
  • Contract amendment of $462,672 authorized for Broad Cove Pump Station after crews find unforeseen underground concrete.
  • Citizen petitions for a Youth Commission and a High Street land transfer receive "No Action" recommendations over bandwidth and jurisdictional concerns.
  • Governor Healey signs Article 97 legislation, clearing the final state-level hurdle for the Hingham Center for Active Living land swap.

The Hingham Select Board moved significantly closer to a balanced budget for the upcoming fiscal year during its Tuesday night meeting, as Town Hall officials revealed that a once-daunting $1.1 million deficit has been slashed to just over $222,000. Finance Director Katie Ierardi credited the turnaround to a confluence of favorable financial shifts, including updated state aid figures from the Governor’s budget, robust motor vehicle excise tax receipts, and lower-than-expected health insurance costs. Ierardi noted that the Group Insurance Commission (GIC) provided premium guidance of 10%, coming in under the town’s conservative 12% estimate.

Ierardi explained that the combination of those provided us the revenues... in order to be able to have the shortfall from 1.1 million down to the current forecast of a little over $222,000. The update was met with optimism from the board, which has been navigating the town's Sustainable Budget framework. Chair William Ramsey expressed confidence in the current trajectory, stating, I think we're in really good shape to be at 220 at this point in the process. Board member Julie Staley highlighted the strategic use of town funds, noting that the result of putting in the funding from this stabilization fund each year means that we're paying less in debt service... it is taking away from the annual tax bill. Town Administrator David Mayo cautioned that while the numbers are improving, the town’s discipline is the true driver of stability, reminding the public of the importance... of the spending caps that we put in place.

The board also addressed a major milestone for the Hingham Center for Active Living (HCAL). Special Real Estate Counsel Susan Murphy announced that Governor Maura Healey signed the critical Article 97 legislation on February 6, finalized the land swap required for the project at Bare Cove Park. With local permits from the Zoning, Conservation, and Planning boards now in hand, the town also took time to formally dismiss a persistent suggestion: acquiring the Hitchcock Shoe building at 225 Beal Street as an alternative site. Murphy explained that shifting to the private building would trigger a mandatory RFP procurement process, as the senior center does not qualify as a unique acquisition.

David Mayo detailed the financial fallout of such a pivot, estimating that design delays alone would cost between $1 million and $1.5 million per year due to inflation. The design delay would cost... roughly a 2 and 1/2 year delay thereabouts, Mayo said, adding that the town would also lose $61,000 in annual property tax revenue if the building were taken off the tax rolls. Resident Joshua Ross supported the current path, noting that we have already spent roughly $2 million on design fees already... $14-plus million to switch midstream right now I just don't think is viable. Other residents remained curious about the building's potential, with Hillary Hosmer suggesting it looked to me like it would be much easier to expand this building if needed than it would be to expand the building that is proposed at Bear Cove Park. However, Avette Caner pointed out the logistical reality of the commercial market, noting that the building's owner probably doesn't want to wait two years to sell it while the town navigates multiple new Town Meeting votes.

Infrastructure costs also saw an uptick as the board addressed unforeseen complications at the Route 3A Broad Cove Pump Station. Sewer and Water Director Russ Tierney explained that crews discovered unforeseen underground concrete structures while excavating for the force main improvement project, which handles 95% of the north sewer district's flow. The discovery required a change in pipe elevation and a reconfiguration of the header. The board authorized a significant contract amendment to cover these costs and the replacement of two original 1956 pumps with modern, efficient models. Tierney noted that the reconfigured system will be safer for our operators to inspect and maintain. Motion Made by L. Klein to authorize the town administrator to sign the amendment number eight to the agreement with Dig It Construction LLC for the Route 3A Broad Cove Pump Station Force main improvement sewer project in amount not to exceed $462,672. Motion Passed (3-0).

The board wrestled with two citizen petitions that highlighted the tension between community goals and administrative capacity. Resident Henry Buckley proposed the establishment of a Youth Commission under state law to advocate for residents aged 14 to 18. Buckley emphasized that the article asks for zero dollars from town meeting right now and would create a seven-member body to provide input on community issues. While the board praised Buckley's initiative, they ultimately recommended no action, citing an inability to provide staff support. My only hesitation to support this this year... is that I know that the select board staff... are stretched very, very thin, Ramsey said. Liz Klein agreed, noting I love this idea in theory. I share similar concerns as Chairman Ramsey in terms of bandwidth.

Support for Buckley’s mission came from the audience, with Dr. Marcus Nify stating that a council on youth seems to be appropriate because young people are often overshadowed on other boards. Resident Diane Dapoli, who reinstated the Hingham Commission on Disability, encouraged Buckley to persevere: don't give up. It's certainly a very important mission. Despite the encouragement, the board stuck to its procedural stance. Motion Made by W. Ramsey to recommend no action on article HH. Motion Passed (3-0).

A second petition brought by Anita Ryan sought to transfer approximately six acres of school-owned land at 200 High Street to the Conservation Commission to ensure its permanent protection. Ryan argued the land has amazing conservation qualities that were identified during earlier HCAL site reviews. However, the board noted the land is under the legal jurisdiction of the School Committee, not the Select Board. Susan Murphy warned against Town Meeting attempting to dictate land management to independent boards, asking if the town wants to set a precedent of residents coming forward and saying... we want you to do this with your land. Resident Joshua Ross asked about the legal implications of changing the designation, but the board ultimately moved to avoid a jurisdictional conflict. Motion Made by W. Ramsey to recommend no action on article II. Motion Passed (3-0).

In other business, the town moved to replace its aging IT firewall, which has been in place since 2018. Bill Hardigan of the IT Department explained that the system will reach end of life and end of support in July of 2026, and the new hardware is necessary to handle modern video and data demands. Motion Made by L. Klein to authorize the town administrator to sign the agreement with Ochre's Technology for IT hardware and services in an amount not to exceed $53,272.68. Motion Passed (3-0).