To the editor:
For the past 20 years, Marblehead has managed without a Proposition 2 ½ override — a remarkable feat of fiscal discipline. As a former Finance Committee chair and School Committee member with more than 30 years in the municipal bond market, I can attest that this success was built on conservative revenue estimating, strong fiscal controls, ample reserves and prudent debt management. These practices earned Marblehead a coveted AAA bond rating from Standard and Poor’s, placing us among the most fiscally stable communities in the Commonwealth.
Like your credit score, the town’s bond rating determines how much we pay (in interest costs) to access capital markets for major infrastructure projects. Our top rating means that Marblehead pays, comparatively, very low interest costs on our bonds.
But today, we are at a crossroads. S&P has placed our long-held AAA rating on a negative outlook, citing “recent budgetary stress” and the potential for depleted reserves if we cannot manage rising costs. The town government — our Select Board, Finance Committee and professional staff — has done everything possible to delay this moment, but we can no longer “manage” our way out of structural deficits caused by rising fixed costs.
If we allow our bond rating to fall, we are essentially choosing to pay more in borrowing costs for years to come. Voting “yes” on the override is an investment in Marblehead’s financial stability. We have spent decades building a town that future generations would be proud to inherit. Let’s not let that legacy erode now. I will be voting in favor of the override on Tuesday, June 9, and I hope you will consider the long-term health of our community and do the same.
James Dearborn
Summer Street
