As the town grapples with rising costs and ongoing union negotiations, the Marblehead Select Board and Finance Committee leadership emphasized Nov.13 that a tax override may be necessary this spring.
“I’m going to try to get more data ready for a forecasting session in December, at which time we will have a better number,” Finance Director Aleesha Benjamin, referring to a structural deficit, told the Marblehead Current. “But then the detailed information that everybody wants to know on an override — that will be at the State of the Town in January.”
Finance Committee Chair Alec Goolsby presented a sobering financial forecast, noting that even before factoring in wage increases, the town faces approximately $1.5 million in fixed cost increases for fiscal year 2026, including about $1 million in health insurance increases and $500,000 in pension obligations.
“My initial reaction is that when we do see the numbers, there’ll be a preliminary in December, and then we’ll see better data in January, but my expectation is that an override should definitely be considered this year,” Goolsby said.
The discussion comes as Town Administrator Thatcher Kezer manages negotiations with multiple unions. The Marblehead Municipal Employees Union, representing town hall staff and public works employees, entered mediation after their contract expired June 30. The police union’s contract also expired in June. The firefighters’ contract expires next June.
Most pressing is the teachers’ strike that began last week
The financial challenges extend beyond union contracts. Revenue projections show the tax levy increasing by only $2.1-$2.3 million next year without an override, barely covering fixed cost increases before addressing any wage settlements or inflation.
The Marblehead Finance Committee report to residents emphasizes the town’s ongoing fiscal challenges, highlighting the limited options to address a persistent structural deficit where recurring expenses outpace recurring revenues
Select Board member Dan Fox emphasized the need to present any override request clearly to voters.
“We need to build trust back up throughout the town, the schools, the town,” Fox said. “We can’t just go to the citizens. I think that we need to figure out that number that we can go for that’s sustainable because we do need our fire, police and town employees.”
The timing of these discussions represents a shift in strategy. Benjamin and her team began budget preparations earlier than usual this year, with department heads submitting budgets in September. A preliminary revenue and expense forecast is expected the week of Dec. 9.
Select Board member Alexa Singer praised these efforts to increase transparency.
“The work that’s been done increasing the software and the ability for the citizens to see where things are going, how the money is being allocated — all of these improvements have happened,” Singer said. “This is two years worth of round-the-clock work to try to answer all the questions that we received from taxpayers.”
As an educator herself, Singer emphasized the broader stakes: “Great teachers make great schools, and I want great schools in Marblehead and to fund educator salaries and keep our talented teachers in the community, and also ensure all our town employees are paid competitive wages.”
The town has attempted to address its structural deficit through other means. Recent initiatives included implementing a hotel and meals tax and reviewing revolving funds for potential cost savings. However, Finance Committee member Molly Teets suggested these measures may no longer be sufficient.
“The fact that our town has been able to go for so long without an override is truly commendable,” Teets said. “But at some point, we all have to balance the low tax rate with investment in our town, in our community.”
Looking ahead, Kezer emphasized economic development as crucial to addressing the town’s financial challenges. He reported that interviews are underway for a new director of planning and community development, a position created to focus on community development and growing new revenue streams.
“We absolutely need to get the revenue streams improving,” Kezer said. “This department is created to focus on that and to focus on development for neighborhoods and housing and transportation and all those issues.”
