Marblehead Faces 'Difficult Decisions' As Town Plans Budget

MARBLEHEAD, MA — Marblehead will need to cut salary and operating budgets, find new sources of revenue or both as it finished fiscal 2020 and plans for the 2021 budget, Finance Director Alison Nieto told Selectmen Wednesday. Nieto delivered her annual state of the town presentation and said Marblehead will no longer be able to rely on free cash to support its operating budget.

"While the Town is currently in good financial health, difficult decisions will need to be made for FY21 and beyond to ensure continued fiscal stability," Nieto said in her presentation, a copy of which was posted on the town's Website.

Among Nieto's recommendations to selectmen and other town officials as they prepare next year's budget:

• Consider alternative sources of revenue to support future operations
• Implement budget reductions where possible while maintaining a high level of service
• Reduce reliance on free cash to support the operating budget

Nieto said the town is expecting "significant increases" in several key spending areas next year, including health insurance, contractual obligations, retirement funding and trash collection. Her office is projecting Marblehead's 2021 budget will be $86.3 million.