The Finance Committee started the budgeting process last week, about six months earlier than usual. It met on June 17 to talk about Fiscal Year 2026 financial planning.
“We all know that there’s a lot of work ahead of us in this fiscal year,” said FinCom Chair Alec Goolsby. “We’d like to hold these meetings once a month, this summer, to check in on how things are going and provide advice effectively.”
Goolsby said the early start is largely driven by the need for a more comprehensive, long-term strategy for municipal finances.
One of the key focus areas for the committee will be personnel costs, which make up more than 80% of Marblehead’s budget. Goolsby stressed the importance of a thorough review of all funded positions and their associated salaries.
“I’d really like to see you focus on personnel, to really get a good idea of all the positions funded currently in fiscal year 25 budget for each department,” Goolsby said.
Budget challenges remain significant
Marblehead continues to face significant budget challenges.
Town Meeting in May approved a $115 million budget, including $46.7 million for schools, for fiscal year 2025. The town decided not to seek a Proposition 2 ½ tax override this year, opting instead to address a $4.2 million deficit through a combination of fee increases, new taxes, dipping into revolving funds and budget cuts.
“I need to meet with every department, and they need to justify to me what they need, what contractual services they have,” said Finance Director Aleesha Nunley Benjamin of her summertime plan. “I’ve given them no more than 1% growth rate based on our declining free cash revenue.”
The early start also comes on the heels of recent measures to bolster Marblehead’s budget, including the introduction of a 0.75% local meals tax and a 6% rooms occupancy tax, which begin on July 1. Town Administrator Thatcher Kezer said these new revenue streams are expected to generate an estimated $400,000 annually, potentially reaching $1 million in future years.
“We’re trying to wean away from balancing the budget with free cash, and instead making an informed decision based on a real long-term financial plan that describes where the town is heading,” Benjamin said.
To ensure that the long-term financial plan is based on a thorough understanding of each department’s circumstances and requirements, the FinCom plans to work closely with department heads to gather detailed information about their needs, contractual obligations and potential areas for cost savings or revenue generation.
Collective bargaining presents unknowns
The FinCom faces several challenges in its efforts to develop an accurate and sustainable financial plan. Kezer noted the ongoing union contract negotiations, particularly with the teachers union, as a significant unknown factor in the budget planning process.
“Your biggest union cost is the unit eight teachers. And though we’ve agreed to negotiate during the summer, it’s very likely it’ll continue into the fall,” Kezer said. “So that’s a big unknown.”
Finance Committee member Timothy Shotmeyer highlighted the importance of presenting information in a way that is accessible and easy to understand.
“We don’t want to kill people with information. But we want to make it as simple as possible,” Shotmeyer said.
Resident survey
To ensure that the budget aligns with the needs and expectations of the community, Select Board Chair Erin Noonan proposed conducting a resident survey to gauge public satisfaction with current services and identify areas for improvement.
“It’s been a while since we’ve done a resident survey, service survey, I think there was one done in 2019,” Noonan said. “It’s kind of hard to do that in a vacuum without feedback from the community.”
Kezer said investments in information systems, including ClearGov, are designed to address workforce challenges and improve efficiency. He emphasized that by allowing software to handle routine processing tasks, employees can focus on more engaging, decision-making roles that directly contribute to improving the organization.
In response to the Current’s question during public comment about the likelihood of a general override being brought to the next Town Meeting, Kezer replied, “TBD, TBD (to be determined).”
