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Introduction and Opening Remarks (Link: 00:00:00 – 00:01:00)
The Marblehead Select Board meeting commenced on the evening of Wednesday, February 5, 2025, shortly after 7 PM. The meeting began with an announcement from the Chair, Erin Noonan, regarding a request from Gary Swain to proclaim February 7 as “Donate Life Day” in Marblehead. Swain, an organ donation recipient, aims to raise awareness and funds for the New England Donor Services. The board unanimously approved the motion.
State of the Town Presentation Introduction (Link: 00:01:00 – 00:02:00)
Following the approval of the proclamation, Erin Noonan introduced the main agenda item: the State of the Town presentation by Town Administrator Thatcher Kezer. Kezer, alongside Finance Director Aleesha Benjamin, prepared the presentation to provide insights into the town’s financial status and future planning.
Overview of Municipal Organization and Services (Link: 00:02:00 – 00:09:00)
Thatcher Kezer began his presentation by outlining the mission of the town, which is to provide excellent services that ensure the health, safety, education, welfare, and quality of life for the community. He detailed the core municipal services, which include public education, public safety, public works, culture and recreation, and human services. Kezer also explained the organizational structure, highlighting the various elected boards and committees that manage different aspects of the town’s affairs.
Financial Challenges and Strategies (Link: 00:09:00 – 00:16:00)
Kezer addressed several financial challenges facing Marblehead, including the need to build reserves to meet policy and bond agency goals, reduce reliance on free cash for the operating budget, and increase new growth revenues. He emphasized the importance of capturing new growth revenues to alleviate the pressure on property taxes and discussed the impact of rising health insurance rates and the strain on staff due to the migration to new information systems.
Free Cash and Revenue Projections (Link: 00:16:00 – 00:44:00)
Kezer provided an overview of the town’s free cash situation, noting a strong position this year with an estimated $12 million in free cash. He outlined plans to allocate this cash, including moving $2 million into the stabilization fund and applying $2 million to capital projects. Kezer also presented revenue projections for fiscal year 2026, highlighting property taxes, state aid, and local receipts as key revenue sources. He noted the introduction of a meals and rooms tax, which is expected to generate significant recurring revenue.
Debt Exclusions and Expense Projections (Link: 00:44:00 – 00:55:00)
The presentation continued with a discussion on debt exclusions, which allow for temporary tax increases to pay for capital projects. Kezer noted a significant decrease in debt service for fiscal year 2026, which will result in a reduction in the tax burden for residents. He also presented expense projections, emphasizing the need to balance the town and school budgets while addressing contractual obligations and other cost drivers.
Addressing Future Financial Gaps (Link: 00:55:00 – 01:02:00)
Kezer highlighted the projected financial gaps in the coming years, with a significant deficit anticipated by fiscal year 2027. He stressed the importance of finding additional revenue sources and analyzing potential override scenarios to address these challenges. Kezer also mentioned ongoing efforts to capture new growth revenues and track recurring revenue streams.
Recent Successes and Future Focus Link: (Link: 01:02:00 – 01:09:00)
The presentation concluded with a review of recent successes, including the hiring of the town’s first-ever Community Development Planning Director and the receipt of a budget award from the Government Finance Officers Association. Kezer also discussed future focus areas, such as migrating to new financial software, building reserves, and addressing immediate town facility maintenance issues.
Questions and Clarifications (Link: 01:09:00 – 01:19:00)
Following the presentation, the board opened the floor for questions and comments. Erin Noonan and Aleesha Benjamin addressed inquiries regarding cost drivers that exceed the 2.5% tax levy increase, such as health insurance and utility costs. They also clarified the relationship between property assessments and tax levies, explaining that individual property assessments determine the share of the tax burden, not the overall tax levy. The discussion also touched on the financial implications of past borrowing approvals and future debt exclusions.
Discussion on Debt Exclusions and Financial Projections (Link: 01:19:00 – 01:21:00)
The Marblehead Select Board meeting continued with a discussion on debt exclusions and financial projections. A member of the board referenced a previous presentation by Finance Director Aleesha Benjamin, which included slides projecting debt exclusions over the next 15 to 20 years. These slides illustrated the decline of previously authorized debt and the potential for new debt issuance. The board members discussed the importance of understanding the town’s borrowing capacity and the implications for future financial planning.
Operational Organization and Resource Management (Link: 01:21:00 – 01:25:00)
The conversation shifted to operational organization and resource management within the town. A board member raised questions about the reorganization efforts, emphasizing the importance of conducting these changes within the existing budget. Town Administrator Thatcher Kezer explained the strategy of optimizing the organization by centralizing specialized functions, such as human resources and technology, under the town administrator and finance director. This approach aims to improve efficiency and avoid the need for a tax override.
Financial Efficiencies and Revenue Sources (Link: 01:25:00 – 01:27:00)
The board discussed the financial efficiencies achieved by the town, which contributed to the decision not to pursue a tax override. Kezer highlighted the role of free cash and unexpected revenue sources, such as increased local receipts and inspections. He also mentioned efforts to maximize the town’s free cash by managing grant deficits effectively. These measures have helped stabilize the town’s finances and avoid additional tax burdens on residents.
Public Comments and Concerns (Link: 01:27:00 – 01:33:00)
During the public comment period, several residents and representatives expressed their concerns and support for various town issues. Toni Callahan, representing the Marblehead Education Association, emphasized the need for a comprehensive plan to address systemic issues affecting municipal services. Terri Tauro, President of the Marblehead Municipal Employees Union, raised concerns about ongoing contract negotiations and the lack of progress in securing fair agreements for town employees. The board acknowledged these concerns and reiterated their commitment to addressing them.
Infrastructure and Maintenance Challenges (Link: 01:33:00 – 01:41:00)
Jim Regis, a resident of Marblehead, addressed the board with concerns about infrastructure and maintenance challenges. He questioned the allocation of funds from the Municipal Light Department and the management of school buildings. Regis suggested that the town should provide more support to the school committee to ensure proper maintenance of school facilities. He also mentioned the need for realistic debt projections and capturing new growth in property assessments to reflect the true value of properties in Marblehead.
Discussion on Property Assessments and Debt Service (Link: 01:41:00 – 01:42:00)
The Marblehead Select Board meeting continued with a discussion on property assessments and debt service. A board member emphasized the importance of capturing new growth in property assessments to ensure accurate financial projections. The conversation also touched on the management of debt service, with a focus on borrowing strategies to minimize the immediate financial impact on taxpayers. Cassidy, a participant in the meeting, explained the approach of borrowing in stages to align with cash flow needs, thereby reducing the burden on residents.
Concerns Over Financial Management and Raises (Link: 01:42:00 – 01:47:00)
Albert Jordan, a resident of Roosevelt Avenue, expressed concerns about the town’s financial management, particularly regarding proposed raises for town employees. Jordan highlighted the challenges faced by elderly residents living on fixed incomes and questioned the sustainability of approving raises without sufficient funds. He also raised concerns about the rising cost of living and the impact of increased fees and taxes on long-term residents. Jordan urged the board to consider the financial strain on the town’s aging population when making budgetary decisions.
Addressing Housing and Cost of Living Challenges (Link: 01:47:00 – 01:51:00)
In response to Jordan’s concerns, the board acknowledged the challenges posed by the rising cost of living and the lack of affordable housing options in Marblehead. The board emphasized its commitment to diversifying housing inventory and creating more affordable living arrangements. Efforts are underway to address these issues through housing production plans and collaboration with state-level initiatives. The board also highlighted the importance of offering competitive wages to retain talent while balancing the town’s financial resources.
Senior Tax Relief and Airbnb Regulation (Link: 01:51:00 – 01:54:00)
The board discussed initiatives aimed at providing tax relief for seniors, including a proposed article for town meeting in collaboration with the finance committee and the council on aging. This initiative seeks to alleviate the financial burden on seniors most affected by tax increases. Additionally, the board addressed concerns about the regulation of Airbnb properties in Marblehead. Efforts are being made to inventory and monitor short-term rentals to ensure compliance with state registration requirements and to assess their impact on the community.
Clarifications on Debt Exclusions and Budget Planning (Link: 01:54:00 – 01:57:00)
A resident inquired about the distinction between general overrides and debt exclusion overrides, particularly in relation to funding capital projects like school renovations. The board explained that while a general override is not being pursued for the operating budget, debt exclusions may still be considered for specific projects. The board stated that budget planning is ongoing, with a focus on financial management and addressing the needs of the community.
Discussion on School Facilities and Debt Exclusions (Link: 01:57:00 – 01:58:00)
The Marblehead Select Board meeting continued with a discussion on the requests for school facilities and the process of deciding on debt exclusions. A participant inquired about how the town would help residents decide which debt exclusions to support or reject at the town meeting. The board confirmed that information on the impact of each debt exclusion on the median tax bill would be provided well before the town meeting. The discussion emphasized that these requests are based on necessity, not discretionary choices, particularly for maintaining essential services and infrastructure.
Financial Strategy for Capital Projects (Link: 01:58:00 – 01:59:00)
A board member highlighted the financial strategy employed since Town Administrator Thatcher Kezer’s tenure, which involves using free cash to fund smaller capital projects. This approach aims to alleviate pressure on debt service by incorporating smaller items into the levy, thereby optimizing the town’s financial resources.
High School Roof Project and Budget Concerns (Link: 01:59:00 – 02:01:00)
The conversation shifted to the high school roof project, which initially had a budget of approximately $5 million. A participant raised concerns about the project’s scope and cost escalation, noting that the initial estimate did not account for all necessary work, such as removing and replacing equipment on the roof. The lack of a feasibility study was identified as a contributing factor to the budget shortfall. The board acknowledged the oversight and discussed the importance of conducting thorough feasibility studies for future projects.
Clarification on Project Costs and Escalation (Link: 02:01:00 – 02:02:00)
Further clarification was provided on the high school roof project’s cost increase. The project’s scope expanded to include additional work, resulting in a revised estimate of $8.6 million. The board explained that the majority of the cost increase was due to changes in the project’s scope, rather than inflation. The revised estimate also accounted for inflationary adjustments, as the project is not expected to be completed until the following summer.
Concerns Over Budget Management and Project Credibility (Link: 02:02:00 – 02:04:00)
A participant expressed concerns about the credibility of budget management, particularly when project costs escalate significantly beyond initial estimates. The discussion covered the challenges of managing debt and capital projects, emphasizing the need for accurate cost projections and transparent communication with residents. The board acknowledged the importance of addressing these concerns to maintain trust and ensure informed decision-making at town meetings.
Capital Planning and Debt Management (Link: 02:04:00 – 02:08:00)
The Marblehead Select Board meeting continued with a discussion on capital planning and debt management. A participant raised concerns about the town’s approach to managing debt and capital projects. In response, a board member highlighted the revitalization of the Capital Planning Committee, which aims to assess projects holistically and ensure informed decision-making. The board emphasized that there is a cap on debt capacity, and projects are funded transparently through town meetings. The focus has been on school projects, but there is a need to address municipal buildings as well. The board acknowledged that while debt is managed prudently, the overall need may exceed available resources, potentially impacting the operating budget.
Financial Policies and Bond Rating (Link: 02:08:00 – 02:11:00)
The discussion shifted to the town’s financial policies and bond rating. A board member explained the importance of maintaining an excellent bond rating by adhering to financial policies and building reserves. The town aims to increase its stabilization fund to improve fiscal health and maintain a strong bond rating for future projects. The board also addressed questions about the grant process, clarifying that grants are reimbursable and do not impact the budget until funds are secured. The town does not budget for grants in anticipation but manages cash flow to accommodate grant-funded projects.
Grant Process and Zoning Vote Implications (Link: 02:11:00 – 02:13:00)
David Patton, a resident of Lee Street, inquired about the grant process and its relationship with the upcoming MBTA zoning vote. The board clarified that grants are reimbursable, and funds are only spent once a signed contract is in place. The zoning vote could impact the approval of future grants, but current projects are not budgeted based on anticipated grants. The board emphasized the importance of passing the zoning vote to avoid penalties and ensure continued grant eligibility.
School Roof Project and Funding Concerns (Link: 02:13:00 – 02:15:00)
Kristen Exarra of Sixteen Merrill Road raised concerns about the funding for the school roof project. The board explained that the project requires borrowing, and if the borrowing is not approved by voters, the town would face significant challenges. The board clarified that surplus funds from the school budget cannot be redirected to the roof project, as the project requires specific borrowing approval. The discussion highlighted the two-step approval process for debt exclusions, involving both town meeting and a ballot vote.
Warrant Articles and Public Notification (Link: 02:15:00 – 02:17:00)
Jonathan Heller of Ralph Road inquired about the timeline for public notification of warrant articles, including debt exclusions. The board explained that an engineering and architectural firm is currently assessing the HVAC and roof at Mary Alley, and a report will be provided once available. The official deadline for warrant articles is around April 10, with prior meetings providing preliminary information. The board emphasized the importance of publishing the warrant to ensure adequate public notice and transparency. The meeting concluded with a motion to adjourn, acknowledging the participation of department heads, employees, and residents.
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