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City of Salem

Kimberley Driscoll. Mayor. City of Salem. Budget Overview. $128 million annual operating budget 50% of revenues supporting Salem’s operating budget are generated by property taxes; 25% from local aid; 25% from other sources, including local revenues  Property taxes at or near levy limit

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City of Salem

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  1. Kimberley Driscoll Mayor City of Salem

  2. Budget Overview • $128 million annual operating budget • 50% of revenues supporting Salem’s operating budget are generated by property taxes; 25% from local aid; 25% from other sources, including local revenues  • Property taxes at or near levy limit • School Department is approximately 42% of operating budget; Employee Benefits 18%; Public Safety 14%; Public Works 6%

  3. Budget Challenges • Deep cuts at the state and federal level to cities and towns • Health insurance increases • Unsustainable pension costs • Unfunded mandates • Increased demand on service delivery • Inflexible collective bargaining agreements

  4. Budget Challenges • Health Insurance • Bid health insurance which has helped control costs • Joined MIIA/Blue Cross Blue Shield • Successfully made changes to co-pay structure for 6 out of 7 unions • Acceptance of Section 18D • 8.5% of overall budget • $10.6 million annually

  5. Budget Challenges • Pensions • $8.3 million pension assessment • 6.5% of overall operating budget • $171 million OPEB • Need reforms at state level to control costs for municipalities

  6. Managing City Finances • Professionalize City finances • Regionalization/Collaboration • Service consolidation • Publicly bid all contracts • Privatize service delivery functions • New growth and other new revenues

  7. Regionalization in Salem • Combined purchasing functions with the Town of Swampscott • Emergency preparedness and response • Salem/Beverly Water Board • South Essex Sewerage District

  8. Opportunities • Public Health • Inspectional Services • School functions – transportation, SPED, etc. • Emergency dispatch • General public safety

  9. Obstacles • Changing status quo is never easy • Parochialism • Strong sense of community pride • Politics

  10. Thank you Kimberley Driscoll, MayorCity of Salem, Massachusetts978 619-5600kdriscoll@salem.comwww.salem.com

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