DALTON, Mass. — Town officials are trying to set the record straight on an expected bump in tax bills after an alarming figure was quoted at Monday's Select Board meeting. 

 

The town is looking at a 10.1 percent increase in its operating budget for fiscal year 2024, or an extra $873,031. The Finance Committee Chair William Drosehn said at the meeting that it would more than $1,000 on the average single-family tax bill.

 

That's wrong, Drosehn and Town Manager Thomas Hutcheson said in a statement released on Wednesday. 

 

They're estimating the average tax bill increase will be closer to $300 and the overall rise in property taxes will be 6.4 percent rather than over 10 percent.

 

"We deeply regret any alarm this mistake created," Hutcheson wrote. "We will be sure in the future to validate any number we present at a public meeting."

 

He said the estimate was based on an outdated town assessment that had not been updated to show the rise in value of residential properties in 2023.

 

The tax rate won't be determined until later this year after a budget is passed and assessors have the FY23 valuation.

 

The fiscal 2024 spending plan will be presented at annual town meeting on May 1. 

 

The budget is up significantly after being down or nearly level for several years. Last year, the town was approximately $1.2 million under the levy limit and this year is at $800,000 under.

 

If the town continues to make increases at the pace it is going it is going to bump up to the levy limit in two years and the town will start to lose services, Drosehn told the Select Board on Monday.

 

"When you bump up against that levy limit, finally, if we keep the pace going people are not going to like what happens in this town. It gets very ugly, very fast," Drosehn said. 

 

He gave the incorrect number for the tax hike, which board member Daniel E. Esko characterized as "unacceptable," though some members did think inaccurate.  

 

The driving force behind the increase is related to personnel, Drosehn said.

 

He said the Finance Committee has agreed with the projected spending plan but cautions the town on continuing this upward trend. 

 

"That's what I'm here for, to get everyone's attention in advance of fiscal year 2025," he said Monday. "Myself, and I believe I can speak for a few not all of the Finance Committee members, our tax base can tolerate a 10 percent increase each year."

 

Select Board Chair Joseph Diver said there are unfunded mandates in this budget, such as the effects of the police reform legislation, which are expected to level off. 

 

"I think we have been investing at a higher rate than in the past. I don't expect that rate to continue and so I would not expect us to keep that 10 percent for another year or two," Hutcheson said. 

 

The Finance Committee is recommending departments take a historical look at their budget to determine what is being used and what is not before making requests, Drosehn said.  

 

"All we're advocating for is before an increase is asked for, look at that historical data and decide if there are places that you can lower your budget in one place if you want to raise it in another," he said. 

 

He said the committee would start looking at cuts if the FY25 budget comes in above 2 1/2 percent.

 

Diver said he would like to have committee's insight earlier in the process so that they can determine a target increase.

 

Esko agreed, saying it feels like they are looking at things in a vacuum and that it would be better if they had a big picture early on.  

 

Currently, the department budgets start with the town manager and department heads, the go to the Select Board, then the Finance Committee, then back to the board.

 

Drosehn said it would be better if the Select Board and town manager determine a target percentage since they know how much is needed to run the town. The committee is going to start having monthly meetings and look at policies, he said.