Duxbury Weighs Tax Override as Budget Challenges Mount
Town Officials Consider Self-Insurance Risks, Pension Obligations
DUXBURY - February 6 - Town officials are grappling with significant budget challenges as they prepare for a potential tax override vote, with rising costs and potential service cuts on the horizon.
The Selectboard and Finance Committee held a joint meeting February 6 to review the proposed fiscal year 2026 budget, which includes a $6.5 million pension assessment and $8.7 million for employee health insurance.
A public forum is scheduled for Feb. 12 at 6:30 p.m. at the middle school to discuss the proposed budget and its implications for residents.
"This train is coming into the station," said Finance Committee Chair Betsy Sullivan, referring to the approaching Town Meeting. "There's an end."
Duxbury's self-insured health insurance model for town employees is saving money compared to joint purchase arrangements used by neighboring communities, but officials acknowledge it comes with risks. The town maintains a $7 million trust fund to mitigate potential high-cost claims.
"We are in a really good place," said Jeannie Horne, Human Resources Director. "We are the only self-insured entity. All of the other communities are with joint purchase programs."
Horne explained that self-insurance gives Duxbury more control over rates and allows the town to incentivize employees to make cost-effective healthcare choices.
However, the arrangement requires careful management. An insurance committee meets monthly to review claims trends and performance.
"We watch our claims experience like hawks," Horne said. "We are on it every single month."
The town's pension obligations are also a significant budget factor. Mary MacKinnon, Finance Director, reported that Duxbury's assessment from the Plymouth County Retirement System for FY26 is $6.5 million, a 10.21% increase from the previous year.
MacKinnon noted that the retirement system recently extended its full funding date from 2029 to 2031 due to investment performance. Once fully funded, Duxbury's annual contribution is expected to decrease dramatically.
"Imagine if you will, that's good," MacKinnon said, referring to the potential future savings.
Other budget pressures include rising costs for risk management and workers' compensation insurance. The FY26 budget includes $844,782 for property and casualty insurance, a 9% increase, and $287,147 for workers' compensation, up 7%.
Officials are also weighing the future of the Community Preservation Act surcharge, currently set at the maximum 3% rate. Resident Jim Sullivan urged the board to consider reducing it to 1%.
"It is time to look at the maximum 3% rate for residents to be reduced to what was the 1% reasonable rate for an extended period," Sullivan said. "This is incumbent on the town authorities."
The human resources department highlighted its unique role in managing benefits for both town and school employees, as well as retirees. Horne reported that 394 of the town's employees have less than five years of service, reflecting recent turnover.
"We're living in our applicant pool," Horne said, noting that 43% of town and school employees and retirees are Duxbury residents.
As officials prepare to vote on budget recommendations, they emphasized the importance of public input at the upcoming forum.
"Everybody's welcome to come along and go through and attend that forum and a great opportunity to ask questions and follow up on the conversations that we've been having," said Selectboard member Fernando Guitart.
The final budget decisions will have significant implications for Duxbury's services and tax rates in the coming fiscal year. Residents are encouraged to attend the Feb. 12 forum to learn more about the proposed override and its potential impact on the community.