Beverly City Council Slashes DEI Position, Passes Budget On Split Vote Amid Looming Budget Crisis

BEVERLY, MA — A split vote of the Beverly City Council narrowly passes Mayor Mike Cahill's amended budget for 2027 amid dire forecasts of a looming structural deficit discussion ahead for next year.

The Council passed the FY27 budget by a 5-4 vote after cutting about $85,000 from Cahill's proposals on Tuesday night. The biggest chunk of those cuts came in the form of slashing the reduced-hour Diversity, Equity and Inclusion position from city staff — saving about $63,000.

Councilor Matthew St. Hilaire proposed about a dozen other cuts — some positions, and other travel and consulting fees — that he said would be necessary to live within the city's means amid rough financial times.

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"My goal tonight was really more in the totality of these cuts designed to reduce more than $700,000 in spending in the budget — combined, with what I think is the right move, to cancel the ($30 million) City Hall (renovation) project," St. Hilaire said. "That would have been $2.7 million. We did reduce it by $85,000, which is more than I think we have ever done when I've been on the Council.

"I appreciate that. In the grand totality, it doesn't move the needle. But I think it does send a message."

Cahill made a plea to maintain raises for city department heads — whom he noted were not eligible for overtime or other reimbursements offered to union employees — and for the salvation of the DEI position.

City Council President Julie Flowers also advocated for saving the DEI position, which was eliminated in a 5-4 vote.

City Councilor Scott Houseman proposed a reduction of $20,000 in department head raises, which he allowed was a largely symbolic message that the city was tightening its belt as it asks residents to pay more in the form of a trash fee that is tripling for most homeowners.

That proposal failed in a 5-4 vote.

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Houseman also called on the city to curb any pay increases in upcoming union contracts to those that are afforded under Proposition 2 1/2 — essentially 2.5 percent annually — as well as an increase in the amount that municipal employees pay toward their health insurance, which has been cited as one of the biggest deficit drivers moving forward.

"I am very troubled by both some of the votes I took tonight and some of the advocacy I've stated tonight," Houseman said. "Troubled in the sense that it is difficult. It's painful. I take no pleasure in trying to send a message that I've been trying to send throughout the course of this month.

"Because I think next year is going to be much harder."

Not all of the Councilors who dissented on the budget did so in seeking more cuts.

City Councilor John Mullady voted against the budget because he said it did not adequately fund schools and public safety — indicating his willingness to push for a Proposition 2 1/2 override, if necessary, to secure that funding in future budgets.

Cahill's budget included about a dozen municipal position cuts and hours reductions, as well as a school budget number that was less than the School Committee advocated to cover what it considered critical needs.

The budget also includes the elimination of the city's lone dedicated bus line and reduced hours at the libraries.

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Cahill's budget took into account a trash fee increase from $100 to $300 for most households — less than the $425 he said is necessary to fully cover costs of the new trash and recycling contract.

That difference necessitated about $1.4 million in additional cuts to make up for the city's subsidizing of the trash removal.