financial assessment of the town of tisbury 2026

Cover of Tisbury, Massachusetts financial report with a dock and boats.

COLLINS REPORT SUMMARY

Collins Report LINK

Town of Tisbury has commissioned a Financial Analysis that was recently completed by UMB Collins. This report provides the town with an overall understanding of it's fiscal capabilities.

Tisbury is facing a financial squeeze over the next 5 years.
The town has major capital projects planned (~$97 million), but expenses are growing faster than revenues, creating ongoing deficits and rising tax pressure.

1. Capital Spending & Debt

Total expected and planned investment: ~$97.3 million
90% is for buildings/facilities, including:
- Town Hall (~$20M)
- Regional High School (~$58.6M)
- Does not include existing Tisbury School Debt
Most of this will be funded through new debt (~$87M)

Key issue:

The town relies heavily on debt exclusions + one-time funds (Free Cash)
There is no consistent annual capital funding strategy, which creates risk

Result:

Annual debt service rises sharply:
- ~$7.6M (FY2027) → ~$12.6M (FY2030)

2. Financial Forecast (FY2027–FY2031)

Revenues grow: $44M → $59M
But expenses grow faster: $48M → $63M

This creates structural deficits every year:

FY2027: –$525K
- FY2031: –$4.35M
- Main cost drivers:
- Schools (+36%)
- Fixed costs & debt (+48%)
- Public safety (+19%)
- Additional concern:
- The town uses ~$700K/year of Free Cash to balance the budget, which is not sustainable
- 3. Taxes & Impact on Residents
- Tax rate projected to rise: $7.91 → $9.34 per $1,000
- Average single-family tax bill:
  - Could increase ~24% to ~$17,000
- Compared to similar towns:
- Tisbury already has higher tax bills than peers
- Residents carry ~90% of the tax burden (very little commercial base)
- 4. Key Problems Identified
- Overreliance on:
  - Debt
  - Free Cash
- Lack of clear financial policies and capital planning structure
- Staffing gaps
- Weak systems:
  - Incomplete asset inventories
  - Delayed financial reporting
- General Fund may be subsidizing enterprise funds (like sewer)
- 5. Recommendations
  The report suggests the town should:
  - Update and strengthen financial policies
  - Create a clear capital planning system
  - Stronger leadership
  - Build better data systems (assets, reporting)
  - Reduce reliance on Free Cash
  - Improve revenue strategies (fees, collections)
  - Consider regional collaboration (shared services)

Bottom Line
Tisbury can take on more debt—but not comfortably under current practices.
Without changes:

Deficits will grow
Taxes will rise significantly
Financial flexibility will shrink

With reforms:

The town can stabilize finances and better manage future projects