An Override Story

In 2023, the North Middlesex Regional School District, (NMRSD) asked for $1,500,000 from Pepperell which was more than Pepperell had budgeted for.  We voted to approve an override ballot for the $1,500,000 requested.

Townsend and Ashby, however, did not pass an override and the school district had to further reduce its budget request to meet their needs.  A reduction was made and Townsend approved the lowered school budget request last August, finalizing the school budget..  The reduction in the NMRSD budget meant Pepperell had approved funding that exceeded the original Pepperell obligation by $785,882.

At the December Special Town Meeting in December of 2024, a warrant article approved to still levy the $785,882 amount but not to be appropriated for spending.  It was collected and can be appropriated at another time.  The Town might have been able to hold another vote to reduce the override amount.  However, it was very late in the tax rate setting process and this may not have been accomplished before the end of the calendar year. when the tax rate should be set in order to send out the third quarter tax bills.  If bills were sent out late, the Town may not have had enough money to meet its obligations.

Tax rates are approved under the rules of the MA. Department of Revenue, (DOR).  Pepperell's tax rate for fiscal 2025 was increased based on three factors.

A 2.5% increase on the last fiscal year levy limit is allowed every year.  For Fiscal 2025 that amount totaled $640,579.

A "New Growth"  amount is added to the levy each year.  New growth reflects the additional tax revenue generated from new construction, renovations and parcel splits.  The amount for fiscal 2025 was $286,542.

Any overrides are added to the levy.  The approved override was for $1,500,000.

Pepperell's maximum allowable levy limit for fiscal 2024 was $28,185,569, including debt exclusions.  The new maximum allowable levy for fiscal 2025 increased to $30,580,699, including debt exclusions.

Pepperell typically levies taxes to the levy limit.  There could have been public discussion about not levying the surplus $785,882 that resulted from the reduction in the school's budget. That surplus was placed in reserves accounts. This option was not disclosed to the voters.  The full $30,580,699 was levied, resulting in a $14.63 tax rate for fiscal 2025.

I am sympathetic to Peppeerell's dire budget challenges.  I am also sympathetic to our tax paying citizens that are suffering increasing financial stresses.  I chose to support the passage of the $1,500,000 override for both municipal and school needs and taxing to our allowed limits.  I protest our Town Administrator',s avoidance of  disclosing the budget options due to the reduction in the NMRSD budget reduction.

Tom Nephew, DPW Committee Chair, asked at the Special Town Meeting if our property taxes were going to be. lowered in response to the lower school budget expense.  Mr. MacLean stated that we are not reducing the tax rate and that the amount that we are taxing is needed for what is required for the budget that was voted at the May Annual Town Meeting.  He also said that it would not be kept in surplus but is staying in reserves..  That was an incomplete answer and appeared to avoid telling the whole story of the financial choices available to voters..

Mr. MacLean learned through recent public meetings and survey that voters want more transparency in our government.  They have good reason to complain.