Finance Committee Releases Report Ahead of Town Meeting

The Marblehead Finance Committee will once again present a balanced budget without the need of a Proposition 2 1/2 override at Marblehead’s Town Meeting on May 4.

According to the committee’s annual report, recently published on the town website, this is the 10th consecutive year the committee has presented a budget without the need for an override.

The positive factors affecting the FY16 budget are (i) the continued decline in the volatility of health care costs since the transfer to the State’s Group Insurance Commission (GIC) in 2012 and (ii) the low borrowing costs as a result of the Town’s AAA bond rating. The FY16 projections include three significant unresolved issues that could further impact the budget process: (i) the settlement of all Collective Bargaining agreements for FY16, (ii) resolution of the FY16 state budget and the impact on State Aid, and (iii) the final Charter School enrollment from Marblehead.

Also in the report, the Finance Committee outlines its recommendations related to financial articles in the Annual Town Warrant. Among the recommendations is $525,565 for new equipment for various departments to be achieved through transfers from the Sewer Retained Earnings, Water Retained Earnings, the Cemetery Sale of Lots Fund and taxation.

The committee also recommends appropriating $5.46 million from free cash and $330,000 from electric surplus in order to reduce the town’s overall tax rate.

The full report is now available on the Town of Marblehead website. Marblehead’s Annual Town Meeting will take place Monday, May 4 at 7 p.m. at Veterans Middle School.