Town officials reduce tax levy by $838,000 after budget hearing adjustments

The Northborough Select Board meeting on April 9, 2025, focused on final adjustments to the town's budget ahead of the upcoming Town Meeting. Key discussions revolved around strategies to reduce taxes while maintaining essential services, particularly in light of unexpected increases in health insurance costs.

During the meeting, officials reported that health insurance renewal rates had surged to 25%, significantly higher than the anticipated 10-12%. This increase posed a potential need for a tax override in future budgets, but the board managed to implement several adjustments to mitigate this impact. By carefully analyzing budget components, they were able to preserve levy capacity for the upcoming fiscal years.

One major change involved reducing the overlay account to zero, as recent assessments indicated a sufficient balance following the resolution of several cases. This decision was made to avoid raising $375,000 in the budget when a surplus was likely. Additionally, the board announced a reduction of $3.5 million in borrowing for the fire station project, which resulted in a further budget decrease of $269,000.

The board also increased estimates for local receipts by $150,000, based on improved projections from motor vehicle taxes. Overall, these adjustments led to a reduction in the tax levy by $838,000, bringing the proposed budget increase down from 9.69% to 8.87%.

The revised average tax bill for fiscal year 2025 is projected to rise by $966, with the fire station debt accounting for a significant portion of this increase. The board emphasized the importance of these budgetary changes in maintaining financial stability for the town while minimizing the burden on taxpayers.

As the town prepares for the upcoming Town Meeting, these budget adjustments reflect a proactive approach to managing fiscal challenges and ensuring the continued provision of essential services to the community.