By passing an override, the Town can assess taxes in excess of the automatic annual 2.5% increase and any increase due to new growth.  An override results in a permanent increase in the levy limit and allows the Town to fund services and programs we believe the community expects and desires.

Proposition 2 ½ is a state law that was enacted in 1980. It limits the total amount of property taxes that a city or town can assess each year. The “levy limit” or total tax amount a town is allowed to collect cannot increase by more than 2.5% per year, plus the impact of new growth, unless there is a vote to override this limit. Individual tax bills are impacted by changes to the relative value of residential and commercial properties and localized changes in real estate values. However, if the town had no new construction in a given year AND all of the real estate in town increased in value by exactly the same amount, say 10%, then every property tax bill would increase by 2.5% the following year. See an example below.

While an override results in a permanent tax increase that is used to fund recurring operational expenses, debt exclusions result in a temporary tax increase to pay the debt service from bonding for a specific capital project, such as building a new school. For debt exclusions, the debt service costs are added to the levy limit for the life of the debt only (typically between 10-30 years). Thus, unlike overrides, debt exclusions do not become part of the base used to calculate future years’ levy limits.

The amount of the override is $3,862,672 and it is to fix the Town’s Structural Budget Deficit in order to provide level service, meaning the same level of service the Town is providing today. 

The $3,862,672 will be used to fix the structural deficit. This funding allows the Town to maintain “Level Service”, meaning the same staffing and expenses as the current fiscal year. 

The two minor exceptions:

• One administrative assistant request by the elected Board of Assessors. Half of this request was offset by the elimination of a part-time position in town Human Resources. 
• Eight restored FPS positions that were cut in the FY25 budget for Account 300 Franklin Public Schools. 

Cost of Living Adjustment (COLA) at 2.5%: 

• Municipal estimated cost of a $610,000 increase over FY25. 
• School FEA Unit A Cost 2.5% COLA. Estimated $1,381,594 increase over FY25.

Account 300 Franklin Public Schools: $2.9 million increase or a $3.8% over FY25. 

Municipal Line item 910 Benefits Budget:

• Town and school employees and the town will see a health insurance increase of 14.5%. 
• Norfolk County Pension Assessment - $558,045 or 7%, increase over FY25. 
• All municipal health insurance related line items combined to increase 19%.

Based on the FY25 Tax Rate of $11.62 and the FY25 Certified Median Single Family House Value of $679,449, a $3,862,672 million override would increase the average residential tax bill $312.00 for the FY26 tax year, in addition to the normal annual increase allowed under Proposition 2 ½. The average tax bill increase in FY25 was $226 (current fiscal year). Prop 2 ½ combined with the $3,862,672 override results in a $538 increase annually.

If the override passes, the tax impact in subsequent years reverts back to the levy amount under Proposition 2 1/2 subject to valuation by the assessor.

The actual increase for each homeowner is based on the assessment for the home. You can also use the calculator on the Department of Revenue (DOR) website to perform calculations. 

Disclaimer: The FY26 tax rate is not established until November/December of 2025. The Board of Assessors will not have an actual dollar figure on the baseline Proposition 2 ½ figure until the tax rate is established. Projecting data on a tax rate establishment in 8 or 9 months is not advantageous. Staff use FY25 to illustrate the tax impact on families and households to offer a more accurate projection of their property tax increases with an override.