Community Report from the Chair: Perspectives on Plymouth’s Financial Future

The Town recently completed a 5-year financial forecast that projects our revenue growth and expense growth each year through FY2032.  As you can see in the chart, we’re projecting a recurring gap between our revenues and the cost of providing services — a gap that widens significantly year over year.   

Plymouth’s 5-Year Financial Forecast Projected Revenues and Expenditures

I know these numbers are concerning. The Select Board is concerned, too, and the Town has already begun taking steps to address the situation. But as serious as this is, we cannot let fear drive our decisions. We need to respond with a clear understanding of the challenges we face, be willing to consider new approaches, and commit to planning for the long term.

I have three points I’d like to share with you that may help put this forecast in perspective.

A forecast is not a predetermined outcome. It does not mean Plymouth is in crisis, nor does it mean we should stop planning for our future or investing in our priorities. The forecast is a planning tool. It gives us the information we need to understand our financial trajectory and make informed decisions while we still have time to change course…and we do have time to change course.

This forecast reflects structural challenges. It’s not a problem we can solve simply by deferring a project or changing a policy. In fact, putting off necessary infrastructure improvements or other critical work could cost us much more in the long run.

Like other municipalities across Massachusetts, Plymouth is feeling the effects of inflationary pressures and rising health insurance, energy, and construction costs. These expenses are growing faster than we could have anticipated several years ago. At the same time, our revenue options are constrained by the limits we have on property tax growth, by what we can generate through local fees and fines, and by state aid that has clearly not kept pace with the financial pressures facing municipalities.

I’m mindful that Plymouth is, for all practical purposes, in the service business. Our primary responsibility is to meet the needs of our residents while living within our financial means. 

So how do we do that when so many factors affecting our revenues and expenses are beyond our direct control?

This forecast gives us a long-term view of the financial consequences of the decisions we make today. It challenges us to look beyond the annual budget cycle and plan more proactively and strategically for our future.

If we are going to change our financial trajectory, we must ask harder questions about our priorities; we need to be open to new approaches to delivering services and evaluating revenue-generating options; and we need to be more intentional about how we allocate our limited resources.

The Town has already begun exploring options, and we will continue that work in partnership with our School Committee and school administration. We are committed to working collaboratively with our unions, retirees, employees, and colleagues in other elected and appointed positions. And, of course, we will engage our taxpayers in this process.

We are essentially creating a roadmap to strengthen our financial future, including a more transparent and interactive budgeting process that will give residents meaningful opportunities to understand the challenges and contribute their ideas. There will be much more to come on that.

If there is one message I hope you take away from all of this, it’s this: We don’t have time to waste — and I promise you, we will not waste a minute. But we do have time to plan.

We have time to ask the hard questions, explore our options, and make thoughtful decisions that protect the services our residents depend on and position Plymouth for a stronger financial future.  That work has already begun.

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