Rising property values and inflation have put Marblehead’s seniors and veterans in a financial squeeze, and three proposals before Town Meeting seek to offer some relief.
Article 28 would boost property tax exemptions for qualifying elderly homeowners while maintaining eligibility requirements. Nearly half of Marblehead’s senior citizens living alone earn $60,000 or less annually, with about 3,060 making under $40,000. Seniors 65 and older comprise approximately 22.6% of Marblehead’s 20,300 residents, significantly higher than the national average of 17.3%. The financial strain on this population has intensified as property taxes climb despite Proposition 2 1/2 protections. When Marblehead’s average single-family home assessment jumped 16.7% in 2023, the average tax bill rose 4.6% to $10,778 — a significant burden for those on fixed incomes.
Healthcare costs have compounded the problem, growing at an average annual rate of 5.2% from 2019 to 2023, with a sharp 8.6% increase in 2023 alone. The Senior Citizens League reports that Social Security benefits have lost approximately 20% of their purchasing power since 2010.
The state has enhanced the Circuit Breaker Tax Credit program — eligibility requirements for which this proposal would mirror — raising the maximum credit to $2,730 for tax year 2024. In 2022, 418 Marblehead seniors claimed a total of $440,382 through the program, averaging $1,054 per recipient.
Meanwhile, Articles 29 and 30 would expand property tax exemptions for veterans, building on the HERO Act signed last August. This state legislation permitted municipalities to double property tax exemptions for veterans.
Marblehead has about 670 veterans, constituting about 4.2% of the town’s 20,296 residents. Last year, Marblehead granted 143 statutory exemptions totaling $164,737 to qualified applicants and senior work-off volunteers.
These targeted exemptions provide needed balance as Marblehead manages fiscal challenges of its own, even as the cost of living goes up for its residents. The Boston area’s Consumer Price Index rose 21.3% between June 2020 and December 2023, yet Social Security benefits increased just 17.8%. For many seniors, this gap has created genuine hardship, forcing difficult choices between medication, heating and property tax payments.
By expanding exemptions for seniors and veterans, Marblehead affirms its commitment to compassion, dignity and economic fairness — and upholds the values that define our community.
A modern approach to managing public funds
Article 26 would adopt the Massachusetts Prudent Investor Rule, giving Marblehead the ability to diversify its trust fund investments beyond conservative vehicles like bank deposits. This modern investment standard, enacted under state law in 2023, allows municipalities to manage public trust funds using a balanced portfolio approach — similar to how private trusts and endowments are managed. It emphasizes sound strategy over rigid restrictions, requiring that funds be invested with “reasonable care, skill and caution,” and tailored to the town’s financial goals. Riskier speculation remains off-limits, but responsible diversification becomes possible.
Finance Director Aleesha Benjamin told the Current that adopting this rule would enable the town to build more robust investment portfolios that deliver stronger long-term returns.
Marblehead’s recent investment returns underscore the benefits of strategic financial management. In fiscal year 2023, the town earned over $1.3 million in investment income — a dramatic increase from just $66,000 the year before. That momentum continued in fiscal 2024, with returns reaching $2.4 million. Benjamin credited this growth to well-timed decisions that took advantage of high interest rates, though she noted that future returns could soften if rates fall.
The Prudent Investor Rule provides a framework to help sustain this momentum. It includes built-in safeguards — such as mandatory diversification and regular performance reviews — to ensure that public funds remain both productive and protected.
Adopting Article 26 is a natural next step.
Independent audit would duplicate existing oversight
Marblehead voters face a costly choice at Town Meeting. Article 46 proposes an independent municipal audit at a cost not to exceed $100,000 from free cash, despite existing professional oversight.
The town recently switched external auditors to Roselli, Clark & Associates from Powers & Sullivan for enhanced transparency. These annual, independent audits currently cost $76,000.
The existing annual audits already review financial records, procedures and internal controls, providing recommendations for improvements.
Article 46 would duplicate these efforts at significant expense. Town Meeting should reject this redundant measure.
The Current Editorial Board
The members of the Current’seditorial board are Bob Peck, chairman of the Current; Virginia Buckingham, president of the Current's board of directors; board member Brian Birke, Current editorial staff member Kris Olson, and Joseph P. Kahn, a retired Boston Globe journalist.
