Click Below for Additional Meeting Resources:
Opening and Enterprise Funds Budget Review (Link: 00:00:00 – 00:19:00)
Alec Goolsby called the Finance Committee’s “super Saturday” department level budget hearings to order, explaining that budget challenges prevented the usual three separate nights of meetings. He announced they would begin with enterprise funds, which are not funded by taxes, starting with water and sewer departments.
Pat Franklin and Timothy Shotmeyer served as the liaison subcommittee for water and sewer budget review. Franklin explained that both departments are enterprise departments whose budgets do not roll up into the town levy but impact citizens as rate payers. The major difference this year is that the sewer department’s final year of the Salem harbor pipeline replacement loan came off last year, resulting in a decrease of over one million dollars in the SESD (South Essex Sewage District) line item.
Aleesha Benjamin explained that large percentage increases in salary lines were due to reclassification between lines, where employee benefits previously categorized as expenses were corrected to align with the Uniform Massachusetts Accounting system and moved to salary lines. Amy from the water and sewer commission noted that salary increases were primarily contractual obligations, with one office assistant position upgraded to special clerk for a $4,000 increase to handle additional work from the new Munis system.
Amy discussed the MWRA’s historical performance in staying around 3.9 to 4% increases rather than adhering to the 2.5% limit, as they are not held to that restriction due to infrastructure requirements. She noted that Marblehead has a full vote on the MWRA advisory board regardless of percentage contribution. Regarding the SESD decrease, she explained that while this loan payment ended, the money would shift to Marblehead’s infrastructure needs, as the town has 28 pump stations from the 1930s-1970s requiring upgrades and facing parts availability issues.
Franklin made a motion to approve the water department budget of $6,865,301, which was seconded and approved unanimously. He then made a motion to approve the sewer department budget of $4,799,291, which was also seconded and approved unanimously.
The committee then moved to the Harbor and Waters enterprise fund. Molly Teets and Alec Goolsby served as liaisons and met with John and Mark from the department. Teets noted there would be an upcoming rate increase and highlighted the acquisition of a new boat funded 75% by federal funds. John from the harbor department explained that increases were mandatory items like health insurance and taxes, and they try to remain level funded while accounting for trends like rising fuel prices.
John described their capital improvement plans as primarily maintenance projects, replacing floats, piers, and equipment as they age. They are looking to add a float to Swamscott to increase public access. Regarding staffing, they maintain similar FTE headcount but fluctuate one or two positions depending on experience, with seasonal employee salaries adjusted upward as returning staff receive grade increases.
Goolsby noted that apparent large salary increases were due to benefits reclassification similar to water and sewer, with the total harbor budget only increasing 3.3%. Teets thanked the department for securing federal funding for 75% of the boat cost. Teets made a motion to recommend the Harbor Enterprise fund budget of $1,319,500, which was seconded and approved.
Health and Waste Department Budget Review (Link: 00:20:00 – 00:53:00)
Goolsby moved to the health and waste departments, noting they were ahead of schedule. He observed a 4% overall increase with 6.8% in salaries and a reduction in expenses. Michael O’Neil and Eric Knight served as liaisons for these departments.
Andrew from the health department explained the budget was straightforward at $252,839 for salary costs. He inherited another clerk from another department at a higher rate, accounting for the large salary increase. The department includes $60,000 for the Marblehead Counseling Center, which he emphasized provides huge community benefit that other health departments don’t offer. The department conducts flu shots for seniors and employees and maintains a $10,000 health revolving account for insurance reimbursements.
Andrew noted they had requested an increase for counseling services but it wasn’t accommodated in the town budget this year. He referenced a public health assessment surveying over 2,500 people that identified mental health as a high priority. According to state calculations, the health department budget should technically be about $708,980 based on $39 per citizen, but they receive substantial regional grant funding through the North Shore Public Health Excellence coalition.
Franklin asked about the psychological counseling line item of $60,000, confirming it represented a $60,000 reduction from the original request. Aleesha Benjamin supported the counseling increase request, noting the police chief also identified mental health needs in the community and how many cases police respond to related to mental health issues.
For the waste department, O’Neil explained the major point was the STRAP contract presentation as a separate line item, making year-over-year comparisons difficult. Salary line items contained contractual obligations plus step increases with no headcount additions. Andrew noted they operate six days a week requiring considerable overtime, with overtime budgeted at $33,032. A new position funded by the waste revolving account was added for general labor to handle three operations: curbside collection, residential transfer station use, and commercial weigh-and-pay operations.
Goolsby explained the unique budget presentation where the balanced budget technically does not include curbside collection. Benjamin broke out curbside collection as a separate $2,186,516 line item to clearly show the override request cost. If the override fails, a fee will be implemented to cover it through a general fund account with offsetting revenue. If the override passes, this won’t be in the general fund and there won’t be a fee.
Knight asked about fee structure and opt-out provisions. Andrew explained they would service approximately 8,108 eligible homes (single through four-family), providing recycling and trash bins to all. With everyone participating, the cost would be divided among all homes, but they’re setting up an opt-out option. With an estimated 3% opt-out rate, the fee would be approximately $281.77 per household, but this increases as more people opt out. The board of health would hold annual hearings to set fees, similar to water and sewer operations.
Teets asked about reserve funds to handle higher opt-out rates than estimated. Andrew acknowledged there’s some risk with only slight buffer from contracts and tonnage estimates. They carry about 11,000 tons capacity but typically handle 9,500 tons, providing some wiggle room. However, storm events could create additional challenges.
Regarding the commercial waste revolving account, Andrew explained they set rates by examining facilities within a 50-mile radius, currently charging $320 per ton compared to the typical $300 market rate. The account funds commercial waste disposal, employee costs, and the new barrel program costing $1 million. Revenue fluctuates based on economic conditions and construction activity. The account generates approximately $1.2-1.4 million annually while spending about $1.2 million, creating modest retained earnings used for capital improvements.
Teets suggested considering debt exclusions for capital needs rather than building up revolving account balances, allowing profits to keep fees lower. Goolsby noted potential for expanding what can legally be transferred between general fund and revolving accounts through bylaw changes. Andrew explained the revolving account was created to handle unpredictable trash disposal costs, and they currently use it to cover the gap between budgeted general fund allocation and actual disposal costs.
Andrew detailed revolving account expenditures including $609,000 for commercial waste disposal, employee salaries, backhoe costs, and curbside bins totaling approximately $1.2 million. Knight confirmed that once the board of health sets the annual fee, it cannot be adjusted mid-year, but they could add downtown businesses to help support costs. The account maintains approximately one year’s worth of revenue as reserve, similar to a circuit breaker reserve.
O’Neil made motions to approve the health department budget of $339,320 and the waste collection budget of $1,790,344 to be funded by tax funds. He then made a separate motion to approve the curbside collection amount of $2,186,516 to be funded by a fee collected through the general fund. All motions were seconded and approved.
General Government Department Budget Review (Link: 00:53:00 – 01:13:00)
Goolsby announced they were ahead of schedule and would review general government departments. He noted that most committee members had watched a presentation the previous week and Pat Franklin had taken detailed notes, so department heads would not need to present unless there were specific questions.
Starting with the moderator budget at $100 year over year, Goolsby moved to the select board department budget. He explained that the assistant department head request was not a cut but a reclassification issue, and the labor attorney line was moved to town council to consolidate all legal line items across the town. The elected officials expense was an actual cut made by the select board to their own budget, and select board dues was a budget adjustment.
Thatcher Keezer explained a new civic events line item of $15,000 to cover costs for the 250th anniversary and other events like police details. He noted they frequently had to find funding for events like Juneteenth ceremonies and the Marine Corps birthday celebration that was moved from Boston to Marblehead at the Congressman’s request. The line item would help track these activities and build funding history. Teets asked if this would continue annually, and Keezer said it would likely be lower in future years due to the special 250th anniversary activities.
For the Finance Committee budget, Goolsby noted it remained level with last year to cover meetings and town meeting materials. The reserve fund was reduced by $30,000 to $414,000, which Goolsby supported as it was still significantly higher than the $144,000 level from his early years on the committee. He explained this fund provides transparency for year-end transfers and allows departments to request funds through a controlled process rather than using other line items.
Teets asked about using the reserve fund for mid-year issues like potential waste rate shortfalls if opt-out estimates were too low. Benjamin confirmed this was possible but would double-check regarding schools. Knight confirmed that disbursing reserve funds requires approval from both the Select Board and Finance Committee, providing significant oversight. Franklin noted the Select Board approval must come before Finance Committee review, adding transparency and accountability.
For the Finance Department budget, Goolsby identified cuts including a Finance Senior Clerk FTE position, $9,000 in state travel, and $50,000 in computer equipment. Benjamin explained the computer equipment cut delayed actual replacement needs identified by the North Shore IT Collaborative, and the travel cut affected staff certification and training requirements.
Teets asked for details about computer rental costs, which Benjamin explained were hardware replacement costs recommended by the IT Collaborative after an asset inventory. Knight raised concerns about IT security risks from delaying equipment updates. Benjamin assured him that grant funding covered cybersecurity vulnerabilities and they worked with a college on security assessments.
Keezer provided context about IT infrastructure improvements, explaining that when he arrived three and a half years ago, the main server was running on a seven-year-old backup system with a full hard drive that couldn’t add new user accounts. Significant investments had been made in server room equipment and firewalls, providing flexibility to meet current budget demands while maintaining security. Knight emphasized that IT requires ongoing iterative investment, not one-time purchases.
Teets noted that the finance department had been underinvested when she started four years ago, including doing budgets in Excel. She observed that necessary investments had been made and the department was starting to flatten out spending. Benjamin highlighted new transparency tools including Open Finance, which provides live access to Munis data for residents to view revenues and expenses in real time.
Goolsby praised the Munis implementation for combining financial reporting, cash reconciliation, and budgeting into one system, improving controls that were previously lacking when pulling from three different systems. Keezer compared Benjamin’s work to performing heart surgery on a tennis player, as she simultaneously ran daily finance operations while rebuilding the entire system.
For town council, Benjamin explained a significant increase from $113,000 to $276,000 resulted from consolidating all legal line items from other departments for better cost control and oversight. Keezer noted they handle numerous lawsuits and claims against the town. Goolsby confirmed this represented both a realignment and a net increase based on recent spending history. The parking clerk budget remained unchanged from the previous year.
Budget Department Reviews and Analysis (Link: 01:13:00 – 02:17:00)
Franklin noted that elections and registration is part of the town clerk review. Goolsby moved to the planning board, which had a $4,000 reduction due to legal line item reclassification, with other changes being less than $2,000.
For public buildings, Benjamin identified the largest cuts as two custodian positions – one at Mary Alley and one for Abbott Hall. Knight confirmed these were two FTE positions. Keezer explained they had other staff with different titles like police and counseling agents, but these two buildings would go from two custodians to zero in the balanced budget. If all systems fail and the override doesn’t pass, they would look at commercial contractors and identify funds through reserve transfers to cover cleaning costs. The other impact would be opening and closing buildings, which would have to come from existing staff salaries, with department heads covering late night meetings.
Benjamin noted the custodians handle far more than cleaning, including clearing walkways and snow during storms. Knight highlighted security risks when multiple individuals have responsibility for opening and closing buildings instead of designated staff, noting risks to building security, heating systems, and potential damage from weather events.
For human resources, Benjamin explained an $11,000 correction where a senior clerk position was moved to administration, and an $11,000 cut to other professional technical services used for employment advertising. She described a reclassification where a benefits person was upgraded from clerk to administrative position, as this person handles high-level functions including projections and day-to-day benefits management, payroll, and employee interactions. Keezer noted this person runs the entire open enrollment program and brings in vendors, while the HR director focuses on negotiations, employee issues, and grievances.
For community planning and development, Benjamin announced they were losing three FTEs: the director, sustainability coordinator, and grant coordinator. Instead of restoring the grant coordinator, the focus would shift to a conservation agent position. Keezer explained the town planner also serves as conservation agent, but this creates an overload situation requiring separation of functions. They plan to migrate from paper-based to electronic permitting systems using OpenGov software modules.
Benjamin highlighted that the sustainability coordinator brought in ten times their salary in grants, and the community development director is currently acting as interim town planner. Keezer explained conservation agent work requires field boots-on-the-ground work while town planning is desk-intensive regulatory work, making it challenging to find candidates qualified in both areas. In the balanced budget, they would go from five to two FTEs, with the goal of switching the grant coordinator position to conservation agent while having the finance department pick up grant compliance responsibilities.
For police, Benjamin identified a patrolman cut – specifically the school resource officer position. Teets noted Marblehead would be the only town on the North Shore without a student resource officer in this balanced budget situation. Franklin confirmed this represents the absolute minimum staffing level according to Chief King, who has had cuts in previous years. Keezer explained a $35,000 increase in police post stipend due to new collective bargaining agreement, noting they must follow municipal trends to avoid binding arbitration through the Joint Labor Management Commission.
For fire, Benjamin explained they originally cut a firefighter vacancy but the select board opted to restore it and reduce overtime instead. Teets supported this decision based on meetings with the fire chief, noting it would actually save costs relative to overtime structure under union contract obligations. Keezer explained minimum staffing requirements create constant overtime needs, and the department faces challenges with firefighters on military or medical leave.
For building inspection, Benjamin described extensive reclassification for transparency, moving positions from generic titles like “department head” to specific titles like “electrical inspector” and “plumbing inspector.” She cut $52,500 from other professional technical services, removing OpenGov subscription and copier maintenance. The salary line decreased despite contractual obligations, possibly due to anticipated retirements.
Amy from public works explained extensive budget reclassifications due to departmental reorganization and Munis implementation. Benjamin identified cuts including a temporary clerk ($20,000), one laborer position (full FTE), reduced overtime, and $60,000 from hot top funding. Amy explained the hot top cut would be absorbed through the revolving fund, though this wasn’t sustainable long-term and would prevent implementing a planned trench repair program.
Amy described the revolving fund, established for street opening permits, which generates $8,000-$14,000 annually with a current balance around $450,000. The fund was intended for trench repair programs but would now be used for general maintenance. She noted challenges with oil price increases affecting asphalt costs and explained her department reorganization created succession planning opportunities but also stretched resources thin, particularly affecting stormwater maintenance.
For snow removal, Benjamin noted the fiscal year 25 budget was $105,000 but they spent $311,000, with this year’s spending at $636,000. A spending freeze was implemented April 1st, and they can raise an additional $150,000 on the recap. Snow and ice is the only appropriation legally allowed to deficit spend, and this will significantly impact free cash certification.
For Council on Aging, Goolsby identified cuts including the nutrition coordinator full-time position and a temporary special clerk. The nutrition coordinator manages the commercial kitchen, prepares meals for 80-100 people weekly, runs pop-up lunch programs, sets up classes, maintains the building, and serves as backup driver. The temporary clerk position had moved to the Department of Public Health during the trash strike. The department operates very lean with four union employees and seven part-time grant-funded positions.
For veterans benefits, the veterans advocate explained they provide Chapter 115 benefits with 75% state reimbursement and noted that for every dollar Marblehead spends on municipal veteran benefits, veterans bring in $10 worth of federal and state benefits. The town’s 717 veterans contribute an estimated $9.6 million annually to the local economy. The advocate works with other departments and provides 24/7 availability for veterans in crisis.
Goolsby concluded by praising Benjamin’s detailed analysis of health insurance benefits, noting they examined every single enrollee as of March 1st with audited rates. He explained the 11% increase in group insurance reflects actual enrollment data rather than applying a percentage to last year’s budget. He noted health insurance costs have increased dramatically from 2% four years ago to current levels of 9-12%, creating significant budget pressure. The budget includes cushions for enrollment changes and unemployment costs for proposed cuts, but does not fund OPEB obligations.
Other General Government Benefits and Final Vote (Link: 02:17:00 – 02:25:00)
Teets thanked Goolsby for putting an extraordinary amount of time into the budget analysis, including most of his time on Friday, noting the amount of work and collaboration involved. Franklin added that this work was not only valuable and necessary this year but also establishes a baseline for processing in future years.
Knight expressed incredible appreciation and congratulations to both Goolsby and Benjamin for bringing transparency to benefit costs that had been discussed with various numbers and rules of thumb year over year. He noted it took extraordinary work to develop these numbers and that when Goolsby said they were as good as they could be, they truly were.
Goolsby explained they analyzed six lines for purposes of identifying costs attributable to town versus schools, with five fully signed off and one pending. He noted he called the state actuary with Linda’s help, and the actuary would be breaking out a school line in the next report. The overall result was an 11% increase on the benefits line totaling $2.5 million, combined with $600,000 less available revenue, creating significant budget challenges.
Benjamin thanked both Teets and Goolsby, noting that Goolsby sat with her for five hours on Friday. She explained the exercise with the Finance Committee started in the summer and she had never seen a finance committee more hands-on than Marblehead’s. While she didn’t appreciate it initially, she found it to be the best exercise for providing support and validation behind all budget items, appreciating how deeply the committee examined revenues and expenses.
Goolsby explained that when someone questions a number, auditing those numbers and getting committee support is the best way to get comfortable with budget items from his perspective. He then worked to confirm the total Select Board budget numbers with Benjamin, noting they had covered 9.5 FTE cuts totaling just short of $55,000 in the meeting.
After reconciling numbers and confirming the debt service line contained only current principal and interest obligations, Goolsby made a motion to recommend the fiscal year 27 proposed budgets. He listed each department budget individually, including moderator at $100, select board at $723,176, finance committee at $6,375, FinCom reserve fund at $414,000, finance department at $1,778,805, town council at $278,000, parking clerk at $8,400, planning board at $1,775, public buildings at $178,671, HR at $293,480, community planning and development at $203,682, police at $5,216,914, fire at $6,016,967, building inspection at $633,330, sealers of weights and measures at $2,100, animal inspector at $2,400, public works at $2,369,771, snow removal at $105,000, council on aging at $387,377, veterans benefits at $154,872, memorial and veterans day at $9,500, maturing bonds and interest at $11,098,398, and other general government at $24,965,092, for a grand total of $54,848,185. The motion was seconded and approved.
All About Town provides all information in a good faith effort to improve community engagement and awareness. However, text is generated by artificial intelligence, and we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information provided herein. Use of the site and reliance on any information on the site is solely at each individual’s own risk.