Overview:
The town of Athol has $562,000 in unused levy capacity, which could be used to avoid cuts in municipal services or delays to important capital improvements. The town's financial personnel discussed options for using the levy capacity, but using the maximum amount would result in an increase in property tax rates. The Finance and Warrant Advisory Committee chair, Ken Duffy, believes that the town should use its levy limit every year, or get close to it, rather than asking voters to pass an override.
ATHOL – As town officials consider a Proposition 2 ½ override to avoid cuts in municipal services or delays to important capital improvements, the town’s financial personnel met to discuss options.
The Finance and Warrant Advisory Committee met Tuesday, Jan. 13, with Principal Assessor Lisa Aldrich. Town Manager Shaun Suhoski, Treasurer/Collector Amber Robidoux, and Town Accountant Amy Craven.
Aldrich provided the committee with a wide array of financial statistics, among them, the town’s levy limit; the amount taxes can be raised before an override would be necessary. At present, said Aldrich, the town has $562,000 in excess, or unused, levy capacity.
Asked about the importance of the meeting, FWAC chair Ken Duffy said, “What got me thinking about it was when she met with the Selectboard to set the tax classification and said she said, ‘We do have $562,000 in levy capacity that we haven’t used for the FY26 budget.’”
Duffy pointed out that in FY20 the town was within about $40,000 of the levy limit. The reason the amount of excess levy capacity has grown, Duffy said, is because the town has “been very cautious about estimating revenue; they’ve been very cautious about getting too close to that limit. But I do think it has grown more than they anticipated.
“I think this year, given the fact it looks like this (FY27) is going to be a tighter budget….because of health insurance costs, retirement costs, and inflation,” he said. “I’m firmly convinced that local aid is going to be flatlined. I don’t see a big increase coming from the state in local aid. So, that that levy capacity is going to be instrumental in helping blunt any tough decisions that the town has to make as far as services and personnel.”
Duffy said it’s his opinion that before asking voters to pass an override “you have to use the levy capacity that you have. I think the feeling is there could be a fairly significant gap between revenues and projected expenses.”
Members of his committee, he said, seemed surprised that the town has not been using the levy capacity available over the last few years.
“That’s why needed to hear from Lisa,” he said, “because I’m not sure all of us really understood how that levy limit works.”
Duffy was also quick to point out that using the town’s maximum amount of levy capacity would result in an increase in property tax rates.
“It’s not free money,” he said. “If we go that route, and it’s subject to appropriations at the town meeting, it will reflect in the taxes the townspeople have to pay.”
Duffy said that the town would be better off using its levy limit every year, “or getting close to it. We’re better off going up 2 ½ percent every year, then you just adapt to it. It’s noticeable, but it’s not overwhelming. But there’s no hidden formula that’s not going to affect the tax rate one or another. I just don’t think that you can ask for an override until you first have used what you’re allowed to use through Prop 2 ½. And I would think the state would say, ‘Why are you going for an override for when you have over a half million dollars in excess capacity you’re not using.’”