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Town Administrator Thatcher Kezer will deliver Marblehead’s FY2027 State of the Town on Wednesday, Jan. 28, as officials prepare for another budget cycle shaped by rising fixed costs and limited revenue growth.
The annual presentation, scheduled for 6 p.m. at Abbot Hall, 188 Washington St., and via Zoom, comes as Marblehead’s $128 million operating budget continues to grow in total dollars while leaving less room for discretionary spending. Property taxes remain the town’s primary revenue source and are constrained by Proposition 2½, even as costs tied to personnel, health insurance, special education and long-term obligations continue to outpace the levy.
In recent budget discussions, town finance officials have projected a widening structural gap beginning in FY2027, driven by health insurance increases, higher contract costs and declining reliance on one-time revenue such as free cash. The town balanced its current budget using about $7 million in free cash, but forecasts show that cushion shrinking in the years ahead.
Kezer’s State of the Town traditionally walks through those cost drivers and explains how the administration plans to assemble a balanced budget under state law ahead of Town Meeting. The presentation will be followed by Select Board discussion and public comment.
The meeting is open to the public.
