COHASSET - December 2 - Cohasset’s finances are tracking well through the first quarter of fiscal year 2026, with revenues and expenses in line with projections and the town maintaining its strong fiscal position that supports its AAA bond rating, according to a detailed financial presentation delivered to the Select Board on December 2.
The Full Story
Finance Director Beth Moseley presented comprehensive budget-to-actual reports for the general fund and enterprise funds covering July through September 2024, showing the town performing at or better than the prior year’s benchmarks. General fund revenues stood at 28.9 percent of the annual budget, slightly ahead of the 27.9 percent collected at the same point last year.
The presentation revealed that the town’s fiscal year 2026 budget totals approximately $70 million when accounting for all appropriations from the May annual town meeting, November special town meeting, and adjustments made during tax rate certification on November 21. The budget is balanced using $878,000 in free cash from fiscal year 2025 and $604,000 approved at special town meeting.
Police and fire overtime budgets, which have historically been areas of concern, showed improvement compared to the same period last year. “We are in a better situation than we were at this exact time in the prior year,” Moseley told the board. The town had to make year-end transfers last June to cover police overtime deficits. To monitor the situation more closely this year, the Treasurer-Collector is providing bi-weekly updates on overtime hours to town leadership.
Bethany noted that the police department recently hired three new officers specifically to help reduce overtime costs, though the department is now down one position as of recent weeks. Fire department staffing also has positions that need to be filled.
The school department’s budget presentation showed what appeared to be 98 percent of funds already accounted for, but Moseley explained this is because the schools have encumbered not only contractual obligations but also all payroll through June to ensure accurate forecasting. “They pretty much, to my knowledge, everything that they plan to spend has been encumbered,” she said.
Both enterprise funds showed balanced budgets. The sewer enterprise fund received a significant, unexpected connection fee in July that boosted revenues above projections. However, Moseley conveyed a message from the Department of Revenue expressing concerns about sewer rates and requesting that the Sewer Commission conduct a rate analysis. “I believe sewer commission is already on top of it,” she said.
In a separate matter, the Select Board unanimously approved two updated investment policy documents for the town’s Other Post-Employment Benefits trust fund. Tim Davis, representing the Post-Employment Benefits Committee, explained that the OPEB trust has grown from zero approximately 15 to 20 years ago and now follows an aggressive investment strategy appropriate for a long-term fund.
“The OPEB trust fund is intended to be a forever fund and not to be called on,” Davis told the board. The investment policy allows up to 78 percent of funds in equities, with a target of 68 percent, reflecting the long time horizon before the funds would need to be accessed. “We’re not considering that we’re going to need those funds next year or the year after,” he said.
Davis reported that the committee decided this year to consolidate management with Bartholomew rather than splitting between two managers, as Bartholomew has been performing better. He also noted that the Select Board’s past actions extending the Norfolk County pension funding deadline have prevented significant cost increases in the near term. Under the town’s plan, once pension obligations are fully funded, 50 percent of the pension contribution will shift to accelerate OPEB funding.
Treasurer Collector Linda Cole joined the meeting remotely to explain that the cash and investment policy had been separated from the OPEB-specific policies to align with current industry standards. The changes also incorporated more aggressive investment options permitted under prudent investor laws, which will result in better discount rates from actuaries and help maintain the town’s bond rating.
“We met with our finance advisors a couple times so that we make sure that we’re really following in the footsteps of the prudent investor laws that are out there that let us be much more aggressive with the OPEB funds,” Cole explained. Davis quipped, “I can assure you, by the way, crypto is not in the policy.”
The board also approved an entertainment license for Captain’s Hideaway, allowing live music Wednesday through Friday from 3 to 11 p.m. and Saturday and Sunday from 11 a.m. to 11 p.m. Owner Jill Conroy said the restaurant plans to feature acoustic performers and small bands, with the possibility of establishing regular weekly performers.
Interim Town Manager Michelle Leary provided updates on several ongoing projects. The cell tower project at the transfer station is moving through the permitting process with conservation and zoning boards, with groundbreaking expected next summer, approximately six to eight months from September. Select Board member David Farrag noted the project encompasses public improvements beyond just the tower, including renovations to the Sohier Street entrance.
Leary confirmed details of the Recycling and Transfer Facility pilot program for out-of-town residents, which will begin January 1 with 100 permits. Traffic counters have been collecting data for 60 days to establish baseline usage patterns. Board Chair Ellen Maher noted that the RTF Manager found the highest traffic occurs in the first hour after opening and the final half-hour before closing, suggesting the pilot program could be structured to avoid those peak times.
“Here we have hard data on when Cohasset residents like to go to the RTF,” Maher said. “So if we know that, why not make the pilot program fit into a different time frame so people aren’t disrupted?” The board consensus was to proceed with the 100-permit pilot and evaluate before considering expansion to 200 or 300 permits.
The board reviewed and will vote at their next meeting on the fiscal year 2027 budget calendar, which pencils in annual town meeting for Monday, May 4, with elections on Saturday, May 16. The calendar includes a February 3 budget presentation date, with Maher requesting that all department heads present their budgets, potentially over one or two dedicated meetings. The school district was asked to adjust its budget approval date to March 25 to align with the town’s warrant schedule, rather than their currently scheduled April 1 date.
Leary shared a note from the parents of recently deceased employee Pam Fahey, expressing gratitude for the town’s support and noting that Fahey had “a lot of fond memories that she shared with her family about the town of Cohasset.” The annual holiday stroll is scheduled for December 13 from 5 to 8 p.m., featuring the official tree lighting on the pond. Leary requested permission to light the common’s decorative lights now that installation is complete, which the board supported.
Why It Matters
The first quarter financial report demonstrates that Cohasset’s fiscal management remains sound, with revenues and expenses tracking as expected and problem areas like overtime being monitored more closely than in previous years. The town’s strong financial position, supported by disciplined OPEB and pension funding policies, directly impacts residents by maintaining the AAA bond rating that allows Cohasset to borrow at the lowest possible interest rates for capital projects. The updated investment policies ensure the town can continue aggressive growth strategies for long-term obligations while meeting state requirements and actuarial standards that reinforce fiscal stability.
Meeting Minutes
Key Motions & Votes
Motion: Move into executive session for exemption number 6 to consider the purchase, exchange, lease or value of real estate. Outcome: Approved. Vote: Unanimous. (Timestamp: 00:02:01)
Motion: Approve entertainment license for Captain’s Hideaway for live music Wednesday-Friday 3-11 p.m. and Saturday-Sunday 11 a.m.-11 p.m. Outcome: Approved. Vote: Unanimous. (Timestamp: 00:04:07)
Motion: Approve Town of Cohasset OPEB Trust Investment Policy Statement dated October 1, 2025. Outcome: Approved. Vote: Unanimous. (Timestamp: 00:38:20)
Motion: Approve Town of Cohasset Cash and Investment Policy Statement dated September 25, 2025. Outcome: Approved. Vote: Unanimous. (Timestamp: 00:38:47)
Motion: Approve minutes of November 18, 2024 (Julie Rollins abstained). Outcome: Approved. Vote: 4-0 with one abstention. (Timestamp: 00:50:06)
Motion: Adjourn at 8:54 p.m. Outcome: Approved. Vote: Unanimous. (Timestamp: 00:50:23)
Public Comment
No public comment period was held during this meeting. The meeting included presentations from Beth Moseley, Post-Employment Benefits Committee representative Tim Davis, and Treasurer Linda Cole, as well as a license applicant.
What’s Next
The Select Board will vote on the fiscal year 2027 budget calendar at their December 16 meeting. The school district must confirm adjustment of their budget approval date to March 25. Town staff will finalize details of the Recycling and Transfer Facility pilot program for out-of-town residents launching January 1 with 100 permits. The Finance Director will provide second quarter financial updates after the January 20 meeting. Department heads will present FY27 budgets in early February, with the board scheduling one or two dedicated meetings for all presentations. The cell tower project continues through permitting with conservation and zoning boards.
Full meeting available via Cohasset Cable Access TV (Channel 143).
Excellent fiscal discipline on display here! The pension-to-OPEB funding sequence is actually kinda brilliant becuase it creates a built-in escalator once pension obligations wrap. The 50% automatic redirect prevents political battles over reallocation later, which tons of municipalities struggle with. One thing tho, betting on consistent market returns at 68% equity for that long a horison means any downturn right when pension funding ends could create awkward timing pressure.
Solid fiscal reporting here! The decision to treat OPEB as a forever fund with 68% equitytarget is super smart given the 15-20 year runway. What stands out is how consolidating with the better performing manager shows Cohasset's not stuck on legacy relationships. One angle that might get overlooked though is that biweekly overtime monitoring could create short-term pressure to underschedule, especially when those three new hires are still ramping up.