Town Administrator

BUDGET MESSAGE FY2027

JANUARY 15, 2026

The Honorable Selectboard

Town of Wellfleet - Town Hall

300 Main Street

Wellfleet, MA

General Statement and Facts - Summary-January 14, 2026

Dear Board Members:

As required by the Town of Wellfleet Charter, I am forwarding the proposed Fiscal Year 2027 Budget and this accompanying report and Message.  This Message includes a summation of projected revenues, anticipated expenditures and presents a balanced budget for Fiscal Year 2027.  This budget basically holds time based on the current year and addresses basic needs of the community.  Some social services have been reduced, and other non-corporate function expenditures have been reduced or are recommended to be paid for (if approved) by Town Meeting Article funding.  Some maintenance items within capital have been slightly reduced for year-over-year expenses.  This budget understands that all departments are busier, and more is being expected by elected leaders, state/federal governments, including the citizenry.  At the same time, it recognizes that the taxpayers in Wellfleet have a limit to their extensive generosity.  Thus, this budget is responsible. All financial policies have been adhered to, and new spending requests are minimal, but necessary.  Town Departments were requested to fund the current staffing levels and service contracts. All other expense lines have been directed to be level funded or reduced.  With only a few exceptions the Department Leaders have responded well to this directive. We are recommending the addition of one ½ time admin support person to dovetail with the Housing Coordinator’s part time position.  This addition adds about 43K to the budget.  There is also dedicated money for Americans with Disability Acts compliance.  There is money both in the Annual budget and an ongoing allotment in the Capital budget for ongoing ADA compliance work for future years.

The Town of Wellfleet’s ability to continue to take on external projects FY 2027 – a repeat of the budget message from last year.  We must slow the number of new projects and work to get the numerous ongoing projects completed or simply out the door for initial review.   We must be cognizant that activity outside of Town borders has an impact on the Town’s financial position.  The economy, while from a stock market perspective is doing well, the steep rise in costs of goods and services is placing strain on municipal departments, and families in Wellfleet.   Additionally, there is less money flowing from Washinton and Boston and is putting current/future project work and procurement of goods in a difficult position.  The Town has worked hard to place itself in a municipally responsible position but must keep a keen eye on what is happening in the State and Federal legislatures.

Schools: and require creativity in assuring our students continue to receive the

We wait to see the final school number requests from both the Elementary School and Regional Districts. There is a scheduled update on the Regional District’s priorities scheduled for January 29th.  Note, increases above this threshold will require reductions in other areas of the proposed budget.    Additionally, we are waiting for updated numbers from Cape Cod Tech.

As noted above, Departments have been informed that we are not adding new positions this year, except for one ½ time support position to be combined with a ½ time support person for housing.  Recruitment of benefitted part-time positions is a poor use of money given the monthly cost of benefits.  It is sensical to identify need and try to share support help.

 The ability to recruit at all levels of staffing in Wellfleet continues to be challenging.

WATER DEPARTMENT: The Water Department is funded for operations in the same manner as in prior fiscal years.  I am aware the Town Meeting and Selectboard have approved the current funding mechanism, thus using both water enterprise fund revenues with a substantial general fund appropriation.  The Town procured water department and tank support and maintenance services, as it was time to rebid the contract.  The new contract, as approved by the Selectboard, is about 85,000 more than the previous contract amount.

The Capital Plan for Water calls for the repair and painting of the water tank.  This was deferred last year as the staff looked to find any grant money available for the repair of the tank, without success. This project needs to be completed in the next year.  This repair and other capital replacement and major repairs should be borne by the entire town, with the daily operation and maintenance covered by the users of the system.  If this capital item is approved at town meeting, either as budgeted debt within the Water department budget, or as a debt exclusion override, The Town should continue to underwrite capital and other general budget costs.  However, given the small size of the water system and with so few users, the Town must continue to assist in the underwriting of this department. 

In FY 25, the Town appropriated funding for a water/sewer manager.  To date recruitment has been disappointing and deferred.  I am recommending a proposal worked on between the DPW Director, Asst. Director and Administration.  Both the Director and Ast. Director have obtained rural and/or small water system licensure.  This is ideal for working with the new water management company, Veolia. An interim measure, I expect this to be in place until such time as there is sufficient activity in the Town to bring on a full-time person.  The net cost is $36,362, and very well spent, if approved.

Collective Bargaining: The Town is currently in or preparing for negotiations with all of the Town’s recognized Collective Bargaining units (7).  On this, and especially in our Public Safety Departments, the wage differences between our neighboring communities and Wellfleet is stark. After discussion with the Selectboard regarding the Town’s current financial position and the  inability to negotiate in good faith under the current constraints, the Selectboard and Town Administration have, after considerable discussion, determined that the Board and Administration would place a targeted override on the May Town Meeting Warrant and a subsequent ballot vote to cover the actual amount needed to fund the contracts after negotiations conclude.  Additionally, the Town is out to “bid” to undertake a wage and classification program, as the Town has not updated its wage and employee classification program since 2003/2004.   

Marina: The Marina continues to be a work in positive progress.  While there is much to do at the Marina, the Harbor master and his staff have made huge improvements both to the physical plant and in creating and/or updating policies and patron protocol in consort in working with the Marine Advisory Committee.  The Marina suffers from decades of deferred maintenance.  The Townspeople have been generous in helping to kick start some of the major repairs, especially in the electrical “grid” at the Marina.  More work is necessary on the bulkhead and engineers are looking at the structure.  The Marina will take some time to be 100%. Fortunately, we have a good staff and dedicated Marine Advisory Board, working hard to make it better.  Similar to the Water Enterprise fund, the Town must consider undertaking all capital and borrowing costs from the General Fund budget and allow the Marina to cover the costs of regular maintenance, payroll, fuel, float repair and replacement and the like from the fee structure.

In similarity with the Water Enterprise fund, the number of marina users/patrons is insufficient to adequately cover the costs of the operation. The Town and Marina staff are looking for alternative funding mechanisms to assist this enterprise fund.

Human Services: The estimated costs for the human service allotments is up substantially this year. I am recommending that human service organization funding in excess of what was expended in the prior year be addressed by a separate article at the Annual Town Meeting.  The Townspeople have been very supportive of this type of funding over the years.  This year we need to fund it differently, should Town Meeting approve.

Wastewater: Lawrence Hill Facility: The project is on schedule and within budget. The ongoing running of the facility, its’ daily costs, capital expense and contract service are unknown currently.  We can estimate the flows but will not know the contractual costs or operational costs for several months.  I am working with the Town’s consultants to derive a guesstimated budget for the ensuing year. With so many unknowns, I am recommending an article to fund the start-up costs of the facility and subsequently in the fall or next spring having accurate numbers to create an operating budget.  As with the water department and Marina funding, the Town will absorb costs of capital repair a future capital funding.  The Facility users will cover the costs for the day-to-day running of the facility and contract costs.

Capital:  I recommend that 150,000 of free cash for capital be taken from the 200,000 Marina Master Plan funding approved in 2023.  The Marina is in need to too much structural repair and a master plan right now is ill conceived.  I do recommend leaving 50K in this account to obtain a 30,000-foot view of what might be considered in master planning.  By doing this the Town and can also live up to the spirit of the intent of the article as envisioned in 2023.  However, with all the structural issues and the need for substantial investment in dredging over the next several years, we need to continue to focus on the immediate needs as priority.

I am comfortable with the figures for expenditures and anticipated local receipts presented in this budget. These figures are based on historical data and are realistic projections for moving forward.  With that said, a clear picture of state revenues and assessments is not present.  Initial local aid estimates from the Commonwealth will not be available until later this month.  Governor Healy is expected to provide insight regarding local aid, etc.at the MMA Annual Meeting later this month.

Stabilization Historical Recapitulation

For historical data incorporated into this report, please refer to the Town’s Website and seek the Finance Department section.  All materials are located here.

General Health insurances are estimated at a rate of increase of 16%+- for Blue Cross and about 9%, for other health policies such as Harvard Pilgrim. I am going to request that the Selectboard and Unions commence a Public Employee Committee, as provided by Massachusetts General Law, enter discussions on plan design and coverage companies.  Any savings found must be shared with the employees per state law.  We may find there is not a better option available.  However, we must look to see if we can find some economies to at least try and stabilize rate increase growth.  I do anticipate another substantial increase of about 12% in the general liability, building and contents, and any marine related policy, as the actual figures are provided by Carriers very close to the renewal date of July 1. Thus, some facts will not be clarified until later in this budget cycle.  

We are comfortable that state assessments will rise slightly, and local aid is expected to be relatively level funded. Any increase in general unrestricted local aid will mean little to the overall budget scenario, as Wellfleet remains a net-payor community.  On this, the Department of Revenue must retool its formula on assessments and local aid distribution.  No community should be at a net loss on local aid.  The huge increase in land and home values across the Commonwealth, but especially on the Outer Cape continues to exacerbate the wealth disparity and the needs of many.  The Commonwealth must do more.   The current Payment in Lieu of Taxes is woefully insufficient when compared to what local taxation would glean if this land were available for development, commercial, expanded municipal beaches, or housing. The State and Federal Government’s approach to PILOT is obviously outdated and needs immediate attention from our elected Federal and State Delegation.  ·

Departmental turn backs at the end of each year are expected and arise primarily in areas where there is a large turnover, where current recruitments are difficult, or wage gaps are prevalent as in the public works realm.  It is not recommended that we make substantial changes to the Police, Fire or DPW salary lines since vacancies are often unpredictable.  We need to ensure full funding to allow successful recruitment and employee retention.

The Town has voted to support many priorities both from within operating budget constraints and via Debt and General Operational overrides.  The cost and complexity of many of these projects do not only have an impact on the Town’s ability budget, but they also require substantial time commitments from what is already very thin departmental staffing.   I must also note that while the town’s books have been re-established, there are still many anomalies that are encountered, requiring substantial research to try and obtain historic trends and expenditures. I expect that “surprises will continue to pop up, but on a less frequent basis over time. This problem of layers and not always readily available history (both fiscal and policy related) creates delays and hinders innovation.  Below, please see a chart depicting debt, both exempt from Proposition 2 ½ and debt within the Town budget that is not exempted from the provisions of proposition 2 1/2.

Internally, we are continuing the thoughtful review of and need to expand the Town’s use of current available technology and computer software.  This year the Town has matriculated completely to Microsoft* and Microsoft Teams* for all of the town’s basic computing needs.  This includes phone service. Any change or augmentation in this regard will have to have tangible benefits related to process efficiency, productivity increase and citizen benefit.  Thanks is given to the internal working groups for implementing new permit and inspection software, electronic payroll (forthcoming), and electronic invoice submission.   

As I have stated in the recent past, our culture and recreation offerings are as important to the core of this community’s identity as is our shoreline and other important municipal offerings.  Due to the voters’ generosity, the Town’s Library, Recreation and human service departments are adequately funded for FY 27. 

The Budget:

The budget as presented is a document that acknowledges a changing time in municipal finance, given the devolution of Federal and some state programs and funding.  The budget expands the Town’s ability to become more technologically savvy, staff’s departments minimally recognizes that there are areas of need within the Town and School Departments that are not being met, and addresses areas deemed as important to the Elected leaders.  The budget is sustainable and can endure overtime, though we must develop mechanism to reduce the overtime costs in public safety.   The issue is systemic and a problem in many cities and towns in the Commonwealth.  Drivers of the budget remain those of fixed and shared costs, especially in the health and general liability/property insurances. 

Additional drivers include assessments by County and State entities of which the Town has little control. 

As is generally the case, the budget understands that forecasted current revenue streams are limited and are likely to become more so for the foreseeable future.  We again anticipate that State aid will remain basically level funded (GOV-House 1).  The Town will hold approximately 8.5% (at policy) of the proposed FY 2020 budget in savings after the use of up to $1,600,000 in free cash for budget offset (approximately the same from last year, overall).   I will use any possible realized reduction in the proposed appropriations to reduce the utilization of Free Cash toward the budget.  We are in adherence to all financial policies and will be able to fund the OPEB trust, per policy.  Please note, the Towns bond rating remains stable.   

The Town’s minimum financial reserves remain in-tact, but a concerted effort needs to be undertaken to increase its’ reserves capacity. 

The recommended Wellfleet Public School budget appropriation is reasonable and well within the Town’s funding capacity.  Public Safety and DPW staffing requirements will remain at current levels.  However, overtime costs at Fire Department are always worrisome due to the inability to recruit (state-wide problem) and the way staffing is required to maintain an appropriate complement for both Fire and EMS purposes.    

This proposed budget meets the expectations of the Townspeople.  It is fiscally responsible while providing adequate value for the dollar of services offered.

Representatives of Town Leadership (Administrator, Selectboard Chair, Finance Director, School Committee Chair, Superintendent, and Finance Committee Chair) should meet on an informal regular basis to keep all lines of communication open and to brainstorm ideas that benefit the entire Wellfleet Community.

GENERAL FUND  BUDGET

The recommended TOTAL FY 2027 General Fund Operating Budget without Enterprise Funds is $ 33,792,332.00.  Note, this is subject to substantial revision as numbers become more available and clearer and after the Selectboard provides guidance.

I anticipate the need for several modifications to this budget proposal prior to the final budget being brought forth to Town Meeting.

It is an annual challenge to construct a budget for presentations to the Town's citizens.  Numbers shift dramatically back and forth over the course of several months. Specifics from the Commonwealth will once again be held until the last possible moment allowed by law.

Without the strong willingness and candor by Wellfleet's Department Leaders, finding the right balance of expenditure would have been much more difficult.  The Town continues to be fortunate to have the workforce and departmental leadership currently in place.

It cannot be forgotten that the proposed budget has continuing implications for service delivery.

I would be remiss if I did not thank several people who have provided great assistance in preparing this budget and Budget Message.  The Department Heads and employees have been instrumental in endeavoring "to make this budget work."  The Interim Finance Director, Michael Ellis, is personally thanked for his willingness to roll up his sleeves and assist.

I thank Town Accountant Suzanne Moquin for her willingness to review the finals for the budget preparation and her ability to answer questions as they have arisen in this interim period.  I thank the Board of Selectmen who have provided early priorities to the Administrator. This Board of Selectmen is an extremely hard-working group of public leaders who have put in an extraordinary amount of time this past year to deal with unanticipated curve balls thrown our way. The priorities have greatly helped in framing the budget as presented.  Assistant Town Administrator John Bugbee has been extremely helpful and has proven to be a great addition to the Administrative Team.  A special mention of thanks is given to Finance Committee Chair, Mr. Fran Conroy.  Few private citizens would be willing to undertake the enormous amount of volunteer work that he has committed to this Town.

I look forward to reviewing this budget with the Selectboard, Finance Committee and Citizens of Wellfleet.

Respectfully submitted,

Thomas M. Guerino

Town Administrator