DUXBURY - September 8 - The Duxbury Selectboard, School Committee, and Finance Committee received sobering news Monday night as Finance Director Mary MacKinnon presented a fiscal year 2027 budget forecast showing structural deficits that could reach $3.9 million by 2030, even as the town celebrated securing $20.7 million in bonds at a favorable 3.6 percent interest rate thanks to its triple-A credit rating.
The Full Story
The joint meeting began with the board approving the sale of $20,655,000 in general obligation bonds to SWBC Investment Services LLC, which will fund major capital projects including the DPW facility ($13 million), seawall repairs ($6.5 million), PFAS remediation ($1 million), and fire department equipment ($488,000). Town Treasurer Kory Lydon reported that the town received 12 competitive bids, with the winning bid offering a true interest cost of 3.6 percent—significantly better than the 4.5-5 percent rates shown in individual bond schedules due to premium payments from bidders seeking tax-exempt municipal bonds.
However, the evening's primary focus was MacKinnon's comprehensive revenue forecast for fiscal year 2027, which painted a challenging picture for the coastal community. The forecast shows total funding sources of approximately $93 million for FY27, representing a 4.57 percent increase over FY26—but much of that increase comes from debt exclusion payments rather than new revenue generation.
MacKinnon explained that Duxbury's revenue structure relies heavily on property taxes, which comprise 72.2 percent of all funding sources. "The wealth of a community is not translated into property taxes," McKinnon emphasized, addressing common misconceptions. "We do not assess an income tax here. We assess a property tax based strictly on the value of land and structures." She clarified that when home sales prices increase dramatically, it redistributes tax burden across the community but generates no additional revenue for the town.
The town's property tax levy can only increase through three mechanisms: an automatic 2.5 percent annual increase under Proposition 2.5, new growth from construction and improvements, and voter-approved overrides or debt exclusions. For FY27, the levy will increase by 3.21 percent, with $500,000 projected from new growth—a conservative estimate given the volatility of construction activity.
State aid represents 9.3 percent of the budget, with 82 percent of that being Chapter 70 education aid. The town is currently in the middle of a six-year phase-in period for the Student Opportunity Act, which has provided larger-than-normal increases through FY27. However, MacKinnon warned that once this implementation is complete, the town should expect to return to modest 2.3 percent annual increases.
Local receipts, which the town has more control over, represent just 9.7 percent of the budget. MacKinnon announced that fee hearings are scheduled for October to address transfer station stickers and beach parking fees, both of which haven't seen increases in years. The town is also projecting increased sewer revenues following recent rate increases.
The Selectboard had previously established budget priorities emphasizing fixed costs first, followed by maintaining staffing levels in police, fire, and highway departments, and preserving educational services with no more than 3 percent growth over FY26 funding levels. However, Teachers Union President Stephanie Madden expressed concern during public comment, stating it was "very discouraging" to hear education seemingly treated as less of a priority compared to other departments.
School Committee member Matt Gambino questioned whether a 3 percent cap could even maintain level services given state-mandated education requirements. "3 percent could very well not mean level services. 3 percent could mean very less than level services because our first charter is to cover all of our legally statutory mandated costs," Gambino said.
The Town Manager and department heads are currently developing detailed budget requests using the ClearGov platform, which will include a new digital budget book available to the public when the final budget is presented in December. MacKinnon noted that her department has already felt the impact of previous budget cuts, stating, "I know it's had the same on [Town Manager] René’s department. So we know that our revenues are not able to sustain our operations."
While the forecast shows concerning deficit projections through 2030, MacKinnon cautioned that these are placeholders based on assumptions and will change as actual department requests are analyzed. The Town Manager will present a balanced budget to the Selectboard on December 15th, with town meeting scheduled for March—though there was discussion about potentially moving the town meeting date later in the year.
Why It Matters
These budget challenges directly impact every Duxbury resident and property owner. With limited options to increase revenue beyond modest fee adjustments and new construction, the town faces difficult decisions about service levels and staffing. The structural deficit means either significant service cuts, staff reductions, or an override vote will likely be necessary to maintain current operations. Parents should expect continued pressure on school programs and class sizes, while all residents may see reduced services across multiple departments if the revenue-expenditure gap isn't addressed through community-wide financial solutions.
Meeting Minutes
Key Motions & Votes
Motion: Approve the sale of $20,655,000 general obligation bonds to SWBC Investment Services LLC. Outcome: Approved. Vote: Unanimous (5-0). (Timestamp: 27:52)
Motion: Approve $10,732 reserve fund transfer for sewer plant safety guardrails. Outcome: Approved. Vote: Unanimous Finance Committee. (Timestamp: 1:51:30)
Motion: Approve letter to Mass Housing regarding Villas at Keene Brook 40B application. Outcome: Approved. Vote: Unanimous (5-0). (Timestamp: 1:56:12)
Motion: Grant one-day wine and malt license to Duxbury Rural Historical Society for Harbor Walk ribbon-cutting. Outcome: Approved. Vote: Unanimous (5-0). (Timestamp: 1:58:44)
Public Comment
Three community members addressed the boards. Jared Collingwood, a parent and Alden teacher, urged adequate school funding and expressed frustration over budget cuts limiting student course options. Stephen Cass offered volunteer expertise in athletic facility development, emphasizing cost-effective improvements around existing school infrastructure. Teachers Union President Stephanie Madden stressed concerns about education not being prioritized equally with other departments, noting that previous cuts have already limited student class choices.
What's Next
The Town Manager and Finance Director will meet with department heads through October to refine budget requests. The Finance Committee will begin public budget hearings in October, with the schedule available on the town website. The School Committee will present their budget recommendation on December 10th. Fee hearings for transfer station and beach stickers are scheduled for October 20th. The town manager will present the balanced FY27 budget to the Selectboard on December 15th.