The Finance Committee on Monday voted to recommend most Town Meeting warrant articles with financial impact, including Article 23, a $122,762,030 budget for fiscal 2027. Without an override to restore cuts, the budget would lead to deep service reductions and at least 35 to 40 layoffs. That number is expected to climb when the school department announces another $1.5 million in cuts later this week.
“This has been one of the toughest budget seasons, certainly that I’ve been a part of, and one of the toughest that Marblehead has seen as well,” Finance Committee Chair Alec Goolsby said at the meeting.
The FinCom postponed making a recommendation on a joint override until after the Select Board votes Wednesday night on dollar amounts. A small group of town and school department leaders has been meeting over the last week to develop figures for a multi-year, multi-tiered override. Options range from restoring fiscal 2027 cuts to reinvesting in town programs and buildings. The FinCom will meet again closer to Town Meeting to make its recommendation on the override and any other articles with late numbers.
In addition to the budget, the Finance Committee voted to recommend approval of Article 4, the town’s zoning plan to comply with the state’s MBTA Communities law. The proposal identifies multifamily housing zones on Broughton Road and at Tedesco Golf Club.
Town Administrator Thatcher Kezer said the town’s noncompliance with the law has already cost Marblehead access to nearly $4 million in state grants.
The committee also recommended approval of an article allocating $749,920 to cover Marblehead students’ tuition at Essex Technical and Agricultural School.
FinCom members said they will need to monitor those costs in the coming years. Essex Tech recently announced it will allow more Marblehead students to attend each year, which would increase the town’s tuition expenses.
Mooring fee increase
The FinCom also recommended Article 32, which would increase mooring fees from $10 to $12 per foot in Marblehead Harbor, Little Harbor and Doliber Cove. All other locations in Marblehead shall be assessed at $11 per foot.
The increase is intended to keep the harbor enterprise fund financially stable as operating costs rise.
A chart presented to the Finance Committee showed expenses rising faster than revenue, largely driven by employee benefits and general government costs.
Without an increase, officials said the harbor fund’s surplus — used to maintain equipment and make repairs — would steadily decline.
The Harbor and Waters Department is facing potential near-term repairs of about $300,000, with larger projects — including seawall work at Parker’s Boat Yard and Fort Sewall areas — estimated in the $2 million to $3 million range over the next three to five years, officials said.
The town’s share of those projects would likely come from the harbor enterprise fund.
Officials said fee adjustments are typically proposed every few years as costs rise. The last increase was approved at Town Meeting in 2022.
Finance Committee members said the proposal appeared consistent with regional pricing and recommended approval.
Other routine articles
The committee also voted to recommend Article 9, which would appropriate $524,067 for lease-purchase agreements for equipment already in use by town departments. Of that amount, $236,077 would come from the waste revolving fund and $287,990 from free cash.
Several standard capital articles — including those related to equipment purchases and public building improvements — were tabled because no funding requests were submitted this year due to the town’s $7.2 million deficit.
Town Meeting voters will ultimately decide whether to approve the articles.
