Paying the Bills

by Carole Owens

A taxing jurisdiction imposes taxes to pay for something. Stockbridge real estate taxes, with other sources of income, pay the cost of running the Town.

The amount raised is the amount needed. The tax rate is calculated to raise that amount. The most important step in setting the tax rate is determining the amount needed. What do we include in that amount and what do we defer when determining the amount?

The Town has millions in reserve accounts to offset costs. At Town Meeting (TM), we vote on the expenditures only but also on how to pay for them. For items not in the operating budget, we vote to borrow or to use funds transferred from those reserve accounts.

According to the Assessor the tax rate was reduced "more than ever before". When the Assessor said, "...taking out of reserves like free cash, [makes] this year 's tax rate good. We can't predict next year", the Assessor was explaining the process this year and sounding an alarm for the future. Hopefully, everyone is listening. Here's why...

We know the valuations will continue to go up because we know the 2022 sales on which they are based. When values go up, the rate must go down. A flat budget helps, but Stockbridge will not have a flat budget. Stockbridge has very significant increases in capital costs that we know are coming — the new school, sewer repair and expansion, dredging and more. What we select to include in the budget determines the amount to be raised from taxes and other revenue sources. That amount determines the tax rate.

The combination of ever rising valuations, and ever rising costs will make it close to impossible to keep the tax rate down as much as this year's historic low. The choice will be between higher tax bills or eliminating some costs.

We need to be ready. We need quality discussions; we don't need slogans, threats, or emotion-laden, misleading arguments. For example, all tax deferrals, abatements, and exemptions are paid for by everyone else — by shifting to other taxpayers or by the Overlay Account — because we must raise the amount needed to pay the bills.

Like it or not, Stockbridge is changing. We must meet the challenge and adopt the best laws because the best laws drive the desired outcomes. The charm and health of Stockbridge is no accident. As SB Chair White said, "we were blessed with wise engaged folks for almost 300 years — from Konkapot to Miss Mary Flynn." We need to be as wise and engaged as they were so our future is bright.

Photo: Don Eaton