Marshfield's Budget Remains Stable Amid Economic Challenges
Community Electricity Program Delivers Savings for Residents
MARSHFIELD - January 13 - Marshfield's fiscal year 2025 budget shows a modest 3.35% increase in revenue and 3.33% increase in expenses, maintaining fiscal stability despite ongoing economic challenges. The town's financial health remains strong with an AA+ bond rating and $6.8 million in stabilization reserves.
Town Administrator Michael Maresco presented the state of the town report to the Select Board on Jan. 13, highlighting the town's fiscal achievements and ongoing projects.
"Tonight I stand before you to tell you that the financial health and well-being of the town of Marshfield is fit, secure and consistent," Maresco said. "This is thanks to our very strong and reaffirmed bond rating of double A plus and SP plus one on short-term borrowing, strong management, and sound fiscal policies."
The FY2025 operational budget revenue is projected at $115,404,910, up from $111,665,149 in FY2024. Total expenses are budgeted at $115,406,710, maintaining a balanced budget.
Maresco attributed the town's fiscal stability to conservative practices and careful management of fixed costs. He noted that inflation, interest rates, fuel prices, and healthcare costs continue to be monitored closely.
The town's stabilization reserves stand at $6.8 million, which Maresco said are earning additional interest due to recent nationwide interest rate increases.
One area of concern is the pension liability. Marshfield is now six budget cycles away from Plymouth County retirement being fully self-funded, with substantial increases of 10% in the pension expense line expected in upcoming years.
"Plymouth County was supposed to be done in 2029. They've extended it out to 2032," Maresco explained. "States also extended their state pension out four more years."
In other financial news, the Marshfield Community Electricity Program has delivered significant savings for residents. Rachel Ferdinand of Good Energy reported that program participants saved over $1 million compared to basic service rates during the initial contract period.
The program's standard rate dropped from 16 cents to 14 cents per kilowatt-hour while maintaining 10% renewable electricity content. These new rates are locked in through December 2027.
"We did see prices are decreasing," Ferdinand said. "Again, it started at that 16 cent rate for the standard. It is now a 14 cent rate, which is really exciting."
Ferdinand noted that residents didn't have to take any action to receive the new pricing, which went into effect in December. Bills received in January will reflect the lower rates.
The town continues to make infrastructure improvements, including the completion of new seawalls in Brant Rock, renovation of Town Hall, and ongoing upgrades to school playgrounds to address ADA issues.
Maresco also highlighted the addition of 111 acres of conservation land at Red Gold Farm, expanding the town's trail system.
Looking ahead, challenges include monitoring the local, state, and federal economy, as well as managing inflation, interest rates, and healthcare costs.
The Select Board will begin reviewing the FY2026 budget on Jan. 21. Maresco noted that while the town has avoided layoffs and furloughs in recent years, budget controls remain tight.
"We forecast no cuts of employees or material reduction of services at this time," Maresco said. "Town Administrator implemented a hiring freeze to preserve current employment levels and a 10% cut to the FY25 expenses."
The board also approved the opening of the warrant for the April 28 special town meeting. Articles can be submitted from Feb. 18 to Feb. 28.
In other business, the board accepted several donations for the animal shelter, library, and Council on Aging, and declared surplus office equipment from the treasurer's and assessor's offices.