Chatham Projects $62.3 Million Budget For Next Year

CHATHAM – Town officials are anticipating a $62.3 million budget for fiscal 2028, a 3.53 percent increase over current spending.

The figure includes a nearly $50 million operating budget, a 3.9 percent hike, and $12.8 million in education spending, a 4.5 percent increase. 

“It’s important to remember that we’re still early in the budget process,” Finance Director Carrie Mazerolle said. A number of unknowns remain regarding the fiscal year that begins next July, including collective bargaining agreements and costs related to utilities and insurance, she said.

The operating budget has grown from $45.9 million in fiscal 2024 to the current year’s $60 million. Total town spending could climb to $65 million in 2029 and nearly $70 million by 2031, according to information presented at the Oct. 31 budget summit held by the select board, finance committee and Monomoy Regional School District officials.

The theme for next year’s budget is “Meeting the Changing Tides,” said Town Manager Jill Goldsmith.

“Meeting Changing Tides is about honoring our past, responsibly recognizing change, responding thoughtfully and ensuring Chatham remains financially strong and prepared for the future,” she said.

Budget objectives include maintaining core services; enduring fiscal responsibility; presenting a balanced budget; funding community priorities; and remaining aligned with the town’s fiscal policies.

“Every fiscal year brings changing tides,” she said in her budget message. “New financial pressures emerge, community needs evolve and priorities shift. The FY2028 Meeting Changing Tides budget reflects the town’s ability to respond to these changes while continuing to make thoughtful and responsible financial decisions.”

Revenues remain steady, Mazerolle said. Property taxes make up 62 percent of all town revenue, with local revenues, water department receipts and available funds accounting for most of the remaining income. New growth of $400,000 is expected, in line with the $422,000 average of the past four years. Local receipts are budgeted at $11.9 million, which includes meals and room tax revenue at a conservative 88 percent of last year’s figures. Both taxes have grown steadily over the years. Room tax income was $4.4 million in fiscal 2026, including $1.8 million in short-term rental receipts. Both short-term rental and traditional room tax revenues were up last year, she said.

“While we’ve seen consistent growth, we also recognize that some of these revenues, particular rooms and meals, can fluctuate with economic conditions and tourism activity,” Mazerolle said. “That’s why we continue to take a conservative approach in developing our revenues rather than assuming this growth will continue at the same pace each year.”

The recent increase in water rates has brought water department revenue above operating expenses again, she said, and a surplus of $1 million is expected next year on a $5.8 million budget.

Rising utility, health insurance and other benefits costs could change the bottom line, Mazerolle said. Several large expenditures are being eyed for separate town meeting articles, including $3 million for PFAS treatment of town wells 10 and 11, replacement of the public works department salt shed at $3 million, replacement of the DPW roof and replacement of vehicles in several town departments.

Town department budgets are due to the town manager’s office by Nov. 20, with a draft Monomoy school budget due Jan. 13. Goldsmith will present her budget recommendations to the select board on Jan. 19, with the finance committee due to present its budget recommendations to the board on Feb. 18. Final finance committee recommendations are due March 9. The select board must set the date for the annual town meeting by Dec. 30; it is currently anticipated to be held on Monday, May 10.