Letter to the council & people of Beverly

Highlighting the point Do we need a new city hall or is it just we want it? If it is we just want it than put it on the ballot as a community vote as we end up paying for it...it's not the Mayor or the council paying the bill it is we the people.. Keep in mind Debt limits the number of options for a community.

I am sending you this letter so that you fully understand where I am coming from in the following narrative. Three years ago I did a program on Bev Cam with George Binns. We highlighted the debt. Our first slide identified that we had $130 million in debt in FY 23, with another $113.1 Million planned for FY24 for a total of $243.6 million in current and planned debt. We were concerned, but I kept hearing that debt was good and we can handle it.

We also highlighted the risk factors and unfortunately our magic ball was not as good as we thought. We identified the State and this Governor as a concern, and she outspend what we thought was possible., spending over one billion a year for the last 3 years for illegals. As we predicted aid from the state to the Cities and towns would be reduced, and yes, it has been less. and getting worst. We ranged the bell of concern, and most leaders ignored us. Keep in mind City Hall controls the data very closely. It takes a while to find someone that will share a number.



The black Swan event has arrived, and the mayor has know for 4 plus months that the City was in debt to the tune of $4 Million.Not good, but what does the Mayor do…..he continues with his Renovation of City Hall. He asked for $2M (from reserves) to get it started.And all but two councilors name Matt and John said no.Note $2M that could have been used to reduce 50% of the debt.

So, as we enter May the City & the schools still done have a plan they can share with the voters.Please permit me to share what a real business does when they are faced with short coming. The first thing they do is STOP spending new money. Followed by a hiring freeze.They solicit opportunities to cut cost from their department heads because the concern is to be sure they can support their customers.

In most companies as is true with a city. The two major lines that need to be addressed is the Cost of Labor (salaries & benefits) and debt (cashflow).

So what does Mayor Mike do he rolls out a plan to shift 100% of the new Trash Contract (estimated at $5M) to the Taxpayers with two options 425 a year or 280 a year for smaller users.The mayors

first action should not have been to transfer additional cost to their Taxpayers.Why was this?Is it the fact that the mayor is not a real CEO he is a politician and knows his voting block comes from the city employees and related families.

I encourage every person and every councilor to push back on the Mayor’s Trash actions.I hope you will vote no.

Earlier I indicated the two biggest cost is People and expenses.The city has added significant head count since 2020.The mayor bought the dollar store, that turns out to be contaminated as part of his City Hall activities for $8MSo why don’t start their selling it and using the money to reduce and eliminate the debt in FY26 and FY27.

Before you dump…. yes dumping the burden on the taxpayer due to mismanagement over the last 10 years by the mayor, should not be on the backs of the Taxpayer. And addition 300 plus dollars for trash a year hurts people on fixed income.I would like to see some headcount reduction on the city and school side…. before going after the Taxpayer.

Here are just a few items to consider and demand addressing

1. So why does Cahill budget $30K for Mainstreet Beverly? This is wasted money for you and me, but it is a political move for the Mayor. I say if he wants to give them $30K take it out of his own bank account

2. Why did the mayor buy 10 EV Buses at cost double a normal school bus. That is 1.6M in extra cost wasted by the Mayor. Again if he wants EV Buses, he should buy them out of his own pocket. I say sell them off for about $1.75M

3. Why does the mayor go to the green event each year. This year it was in Miami and you and I paid for it? 10K (Mike should pay us back....No one else goes on boondoggles!

4. The city has 2DEI positions. We have a HR department at City Hall as well as school department. The are doubled up.If he wants them, he needs to pay them the 150K each in salary and benefits. Let Mike Pay for it. $300K saved

5. reduce two additional people in the mayor’s staff for another 250K saved. Mr Scanlon Sanlon never had a Chief of staff. Why you ask?Its because he was a real CEO with talent

6. If we slowed down for 4 years in with reduce spending we will eliminate another $30Milion of debt and interest payments. These are big $11 to 14 million a year in principal and interest

7. Sell the dollar store for 8M and put it to the debt for 27 and 28

8.I have seen CEO not take a salary for the year or even reduce his salary by 10 to 15% for the year.O would suggest the council offer a 10% reduce in their pay for the year to assist in reducing impact on the workforce as well as the Taxpayers.

9. I am sure people can find additional savings ......I just found 30M in savings. How about we create a Bright Ideas program that workers as well as citizens can offer up saving opportunities.

Most people know that if the Property taxes go up, or the fees go up the taxpayer is impacted.In turn THE RENTER is also IMPACTED. If they don't addess it and just try to get a OVERRIDE it will get mess for all parties.

The city needs to operate with a balanced budget and reduce debt, or these events will occur every year. Attention to detail is important when one oversight can cost the City$4 million extra in health care.

The point is no longer can the City with budget north of $180M can be run by a political Mayor. We need a City Manager.Companies don’t have election to choose a CEO.…so why do we the people of Beverly permit a Politian to run our city.The Charter has many short coming, which minimize the role of the council and their role ends up being a bystander bullied by the mayor.

Respectfully

Jim Modugno