THE Cost of "YES"

An operating override would fund a permanent increase in the Town's property tax revenues and requires a town-wide vote to "override" the Proposition 2-1/2 tax levy limit. It is important to note that an override does not immediately increase property taxes -- it only raises the levy limit. Town Meeting (192 elected members from all eight precincts) will continue to control how much is appropriated and spent each fiscal year after taking recommendations from Town Management and the Finance Committee (15 appointed Town residents).

When fully realized (beyond FY20), Winchester's tax rate will move from the low end of peer communities to the median. Given the continued strong growth in real estate values, this adjusted rate drives an effective average tax bill that falls above the median (a median tax rate on a higher value property will yield a higher than median tax bill). See Tax Rate and Tax Bill charts, below:

STEPPED INCREASES: FY20 + FUTURE YEARS...

It is important to note that the calculation above is based on full taxation at the levy limit established by an operating override, however the Town Manager's FY20 needs-based budget does not make full use of the $10 million increased levy limit.

Although a YES vote on March 26th raises the tax levy limit, the Town's departments have made a deliberate effort to limit increases in the FY20 Needs-Based budget to be less than this total increase. Why? The purpose of the override is both to "catch up" on municipal services lost to years of cuts while also providing room for future-year budgeting. The intent of the override increase is to accommodate the Town's needs now (FY20) and into the future.

At this time (early March), the Finance Committee is working hard on a recommended FY20 operating budget for Spring Town Meeting's consideration and vote in May. Should the override question pass, it is currently estimated that FY20 will use approximately $6.7M of a raised tax levy limit. The residential tax impact would be approximately 87 cents increase per $1,000 valuation, or a $941 tax increase on the average single family home assessment ($4.7M + $2M for capital = $6.7M x $0.13 or $0.871).

Therefore, the "cost" of a YES vote is limited to FY20 tax bill adjustments, plus Prop 2-1/2 increases and future budgets recommended by the Finance Committee, approved by Town Meeting.

Learn more on the tax levy & levy limit at https://www.mass.gov/service-details/proposition-2-12-and-tax-rate-process