The Select Board voted 4-1 Tuesday to approve holding a Special Town Meeting on Thursday, Dec. 4, at 7 p.m. in order to adjust the operating budget for fiscal year 2026. This will be the only article on the warrant.
After the meeting, Assistant Town Manager Lance DelPriore sent out an email stating that it will be held at the high school auditorium, located at 90 Hayden Rowe Street.
Chief Financial Officer Kyla LaPierre explained that the budget that was approved in May was based on estimates. As the Finance Department prepared its tax rate setting process over the past two weeks for this meeting, members realized that more money had been appropriated for the town’s operating budget than necessary.
“We would like to give the money back or rescind about $5.7 million in the operating budget back to the town,” she said.
In order to do this, STM would need to vote on rescinding this operating budget. The urgency for an STM comes from the need to have the outcome determined before the tax bills go out at the end of December.
Stressed LaPierre: “This is a great thing because we don’t have to tax as much.”
The two areas that were overestimated were the debt payment and town employee health insurance costs, she said. The debt payment on an $81 million loan was made on a short-term note at a 3% interest rate instead of 6%. Health insurance costs were more than $2 million less than anticipated.
The surplus puts the town “in a much better position” for FY 27, according to LaPierre.
Town Manager Elaine Lazarus added that the state requires communities to raise the amount that is approved at Town Meeting “even if we don’t need it.”
“We don’t want to tax people for more than what we need,” she continued. “It’s really important to go back to the taxpayers and give it back.”
Because taxes are expected to rise over the next few years, chair Joe Clark noted that it is “more critical now than ever” to return the money. He stressed that this money has not been taxed yet because the tax bills go out at the end of December.
He added that, “in the interest of time,” it would be the only warrant article. This needs to be done speedily because the Department of Revenue needs the information the following day, making this a “unique circumstance.”
Lazarus noted that the warrant had to be posted by Wednesday to meet the deadline for a Dec. 4 STM.
Meeting date debated
Member Amy Ritterbusch noted that it would be hard to hold an STM in December because of holiday activities. This factor may make it difficult to obtain a quorum.
Member Matthew Kizner asked LaPierre if the money would go back into free cash if there was no affirmative STM vote. LaPierre said this was true, but it would disrupt the tax rate-setting process.
Principal Assessor John Neas explained that during the tax rate-setting preparation process, it was discovered that the town was about $6.5 million over the tax levy.
“That cannot happen without a Special Town Meeting and without rescinding the money that we don’t need,” he said. “We will not be able to set the tax rate without finding more money, raising more money somehow, but not in the tax rate.”
Said Kizner: “That sounds like a problem, folks.”
Lazarus stressed that the town does not need an override because the overage was based on estimates and additional savings.
Without the STM, residents would be paying higher tax rates until the amount is adjusted in 2026, Clark added.
Kizner was adamantly against having the STM on Dec. 4. He noted that the vote at May’s ATM vote moved Town Meeting to Saturday to increase resident engagement, particularly for older residents and those with disabilities.
The vote was to move the ATM to the first Saturday in May beginning in 2026. Kizner said he believed that vote created the expectation for residents that all Town Meetings would be held on Saturdays.
2026 tax rate set
The board voted unanimously for a single tax rate for residential and commercial tax properties. This decision was in keeping with votes over previous years.
Neas gave a presentation on setting the tax rates based upon STM approval. He noted that the town’s valuation was $7,197,870,763. Residential valuation accounted for 84% of this amount, with the remaining 16% was in commercial, industrial and personal property (CIP).
The current average single-family home in Hopkinton is valued at $995,750. The average condominium value is $775,300. New growth tax revenue amounted to $1,205,412.
The proposed rate would be $14.18 for CIP. The residential rate would be $14.20. The residential rate is slightly higher because of the means-tested circuit breaker senior exemption and the new school construction exemption. These items have to be funded from the residential class, Neas explained.
These rates mean that the average tax bill for a single-family homeowner would be $14,140. For a condo owner, it would be $11,025.
Member Brian Herr spoke against a split tax rate. He noted that it would not be wise to put more of a tax burden on the commercial/industrial base. The town has been trying to attract and retain businesses, which would be difficult if the tax rate is seen as being high. The other members agreed.
Clark also pointed out that articles for May’s ATM will be accepted at the start of the new year.
“Principal Assessor John Neas explained that during the tax rate-setting preparation process, it was discovered that the town was about $6.5 million over the tax levy.” What?!? It’s great that we will need to pay less in taxes in FY26, but how did we approve a budget that was over the levy limit??? A big thank you to Mr. Kizner the sole SB member pressing our CFO for details. I hope a comprehensive review is done to find out the source of this significant error.