Table of Contents
By Charles H. Gessner
Marblehead revenue must catch up to the burst of inflation that has plagued the United States for the past five years, due mostly to the COVID-19 pandemic. In 2021 inflation hit 7 percent; in 2022 6.5 percent; 3.4 percent in 2023; 2.9 percent in 2024 and 2.7 percent in 2025. Town operating costs — primarily personnel-related, including benefits — have gone up significantly during this period, but Marblehead's revenues are essentially capped by Proposition 2 1/2, causing a serious gap to develop between revenues and expenses.
How did the town cover the gap? It burned through its surplus (called "free cash") and for fiscal 2027, that lifeline is no longer available. Thus, the need for a "general override" to be passed at town meeting and by voters in June to preserve essential town services.
The town leadership has offered a complex, three-tier approach to an operating override. From my perspective, the middle Tier 2 approach — called "Stabilize and Build" — makes the most sense. It would add approximately $12 million to real estate taxes, raising the cost to owners of a million-dollar home $280 in fiscal 2027, another $676 in fiscal 2028 and $274 in fiscal 2029. Those increases could vary by year depending on hiring patterns and other variables, but a million-dollar homeowner's taxes in 2029 would be up about $1,230 more than what they would be if no override is passed.
The list of what services would be retained or restored has been listed elsewhere, but here are some of the critical functions that would be covered: police and fire personnel — and by restoring most of these positions, overtime costs should be reduced; the library would remain open on a schedule we are used to; the Department of Public Works would remain intact and there would be money available to hot-top some roads! And the schools would receive increases in out-of-district special education tuition as well as cost-of-living increases for personnel, and the full-day kindergarten fees are eliminated for 2028 and 2029.
This writer would lobby hard to have the restoration of administrative positions recently added — and in some cases vacated due to this revenue crunch — delayed or eliminated. Some of the functions can be addressed with a consultant's report (a one-time cost, not a continuing one with benefits!). Some examples: the assistant planner; the extra person in the clerk's office; and the director of community development and planning. In other words, restore or retain the hands-on worker positions and delay or eliminate the administrative positions.
Marblehead always had a reputation for delivering good town services at a reasonable cost to taxpayers. Unfortunately, over the past few years, an administrative layer has been added below the town administrator with no obvious benefits to the citizens of the town. Marblehead also has the advantage of a small geographic presence resulting in high-density housing. That has been a benefit to taxpayers due to less public space to be maintained and the need for smaller public functions like police and fire.
To maintain the quality of life we have enjoyed for decades, please vote yes on the at town meeting, and vote for the override's Tier 2 in the June election.
Charles H. Gessner is a member of the Marblehead Retirement Board and a former Finance Committee chairman.
