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The original item was published from 3/29/2021 12:30:34 PM to 4/15/2021 3:32:11 PM.

News Flash

Town Manager

Posted on: March 10, 2021

[ARCHIVED] Proposition 2 1/2 Override Discussions & Presentations

On March 9, 2021, Town Manger Kevin Mizikar and the Board of Selectmen reviewed and discussed an analysis of a potential override and the impact on taxpayers which can be viewed below.

The Board of Selectmen received a large amount of correspondence from concerned residents for the need of a Proposition 2 1/2 Operation Override to fund the School Departments budget needs which was discussed at a February 10, 2021 meeting of the School Committee.

This topic was further discussed at a joint meeting with the School Committee and Board of Selectmen on Tuesday, March 16, 2021 at 7:30 pm, which can be seen below. 

Click HERE for the March 16, 2021 Presentation from Town Manager Kevin Mizikar

Click HERE for the Override Framework between the Board of Selectmen & School Committee

Click HERE for the Override Statement to the Residents of Shrewsbury from the Board of Selectmen & School Committee 

At the Board's meeting on Tuesday March 23, 2021, Mr. Mizikar reviewed a presentation regarding the proposed proposition 2 ½ operational override. Mr. Mizikar discussed the current American Rescue Plan (stimulus), its knowns, unknowns, and the implications with a potential override. See below for a recording of the meeting and the presentation. 

Click HERE for the March 23, 2021 Presentation from Town Manager Kevin Mizikar

On Friday March 26, 2021, the Board of Selectmen voted to place the following question on the May 4, 2021 Annual Town Election ballot:

QUESTION 1

 

Shall the Town of Shrewsbury be allowed to assess an additional $9,500,000 in real estate and personal property taxes for the purposes of funding municipal and school operating expenses for the fiscal year beginning July first, two thousand twenty one?

 

YES_____                   NO_____

 

Summary:          In 1980, the voters of the Commonwealth adopted a referendum that became G.L. Chapter 59, Section 21C, but is more commonly known as “Proposition 2½”.

 

Proposition 2½ limits the tax levy of the Town, which is the total amount that can be raised by taxation, to an increase of two and one half (2½%) percent of the previous year’s levy limit plus new growth. Accordingly, the levy limit for the fiscal year beginning July 1, 2021 (FY 2022), will be established by increasing the levy limit of $77,695,673 (FY 2021) by 2½% and then adding the tax levy value of any new growth in taxable property. New growth for FY 2022 is expected to be in the range of $856,000. New growth in the current fiscal year (FY 2021) was $856,963.   Previous years’ new growth was $1,121,615 in FY 2020, $1,597,448 in FY 2019 and 1,299,856 in FY 2018.

 

The present question seeks a permanent increase in the tax levy limit of Nine Million Five Hundred Thousand ($9,500,000) Dollars for the purposes of funding municipal and school operating expenses for the fiscal year beginning July 1, 2021.

 

Town Meeting ultimately determines the total amount of appropriations (within the levy limit) and the appropriation is then met or raised by application of the local property tax rate upon assessed property values. If the full amount of the proposed increase of Nine Million Five Hundred Thousand ($9,500,000.00) Dollars is used and appropriated by the Town Meeting for the first year (fiscal year 2022, from July 1, 2021 to June 30, 2022), the impact on the average single family home which is valued at $481,819 will be an annual increase of $704.34. If the Town Meeting does not appropriate all of the increased levy capacity, the impact will be lower, depending on the actual amount appropriated.

 

A “YES” vote will make available to the Town Meeting an additional Nine Million Five Hundred Thousand ($9,500,000) Dollars in tax levy capacity beyond the current limitation established by Proposition 2½ ( G.L. c. 59, s. 21C); and

 

A “NO” vote will not make additional levy capacity available to the Town Meeting.


The Board is currently seeking a principal proponent and a principal opponent pursuant to Chapter 472 of the Acts of 2006. If no persons identify themselves as interested in preparing arguments in favor of or in opposition of the passage of the questions, and/or if no arguments are received by the April 15, 2021 deadline, the Act requires that Town Counsel prepare the arguments. Once arguments are submitted, the Town will make available to voters certain information concerning these ballot questions. The Board will ensure that no less than 10 days prior to the date of the Special Town Election such information will be posted on the Town’s website, at each polling place, at the post office, and at the Town office building.

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