How Much Would An Override Cost Brookline?

BROOKLINE, MA — Tuesday the town votes on whether to raise property taxes in order to pay for the new Driscoll school. If the override passes, it will impact everyone in town from homeowners to business owners and renters. Dec. 10, 2019 Special Town Election: What To Know.

Several people have criticized the town for not laying out the costs in one easy to understand manner on the town website ahead of the election. Town officials said election laws prohibit them from doing so in the days ahead of the election so as to not influence the outcome election.

Earlier this year Town Meeting voted to appropriate $115.3 million to rebuild the school, but with rising building costs, the school is currently estimated to cost $119.7 million. A vocal group of people who oppose the override are asking where the town will make up the $4.4 million difference. Between that, the regular tax increases, a proposed tax levy to go toward affordable housing and other costs set to come in the years to ahead, many are concerned what the tax increases will mean for middle to lower income families who live here.

"I think many people are rightfully concerned about even a $10 difference per month," said Town Meeting Member Carolyn Thall of precinct 16."We just heard an impassioned talk from Deborah Brown last Thursday about the housing needs of lower income people in Brookline. It matters. Middle class people, seniors, low income families all live in Brookline and matter."

The town is also looking at three additional overrides for school buildings over the next eight to 10 years. The school committee voted on a plan (criticized by opponents to the override as too vague) in September that outlines a new Driscoll followed by Pierce, and then a possible ninth elementary school, and then renovation and possible expansion of the Baker school.

So what does it mean for property owners?

"Estimating the cost is a bit of a game, but if the average cost per school is (not including support from the Mass. School Building Authority) is $125 million, the taxes on the average condo would go up by $630/year and the taxes on the average single family home would go up by $1,566, or about 13.6 percent," said Mike Sandman of the advisory committee. "Not including the annual 2.5 percent increase or any operating overrides."

State law's Proposition 2-1/2 sets a ceiling on annual increases, so the 2.5 percent increase is pretty much guaranteed every year. Any overrides, for either capital projects like a school or for the annual operating budget, are on top of the 2.5 percent tax increase.

To get a closer look at what this override could cost homeowners, who aren't able to take advantage of Brookline's tax assistance and deferral programs, consider the tax value of a single family home in Brookline went up 5.9 percent in 2019 to this year's $2,042,388 for 2020 and a condo went up by a slightly less percent to $842,337.

If property tax stays at $9.37 per $1,000, a person whose home is assessed at $2,042,388 would pay $19,137.18 in annual tax in addition to $1,566 for a total of $20,703.18. Someone who owns a condo assessed at $842,337 condo would pay $7,892.69 in property tax in addition to $630 from the override for a total property tax bill of around $8,522.69.

Several residents have criticized a lack of information on the full picture of how the debt is racking up in town.

A Patch review of the town's current debt and proposed debt based off a $108.8 million cost of the Driscoll School at a scenario of 5 percent interest rate (though it could be set at a lower interest rate, which is often the case for AAA bond rated communities), by 2048 the school could cost nearly $180 million with the interest.

The town's debt in 2020 is $5.7 million. That will double to $12.4 million in 2021 if the override passes. The total projected debt will go up to $25.8 million in 2024 before it gradually goes back down.

It will take almost 30 years to pay off the Driscoll School.

As for concerns the amount of debt the town takes on with the override could ruin the town's bond rating?

“Ruin” is a strong term, said Sandman.

"We have a triple-A bond rating now, and we could be dropped down a level or two. The change would mean we’d pay a somewhat higher interest rate, which raises the real estate taxes cost that pay for an override," he said.

However, Brookline's property tax is actually, quite low compared with other municipalities in the state.

"Even though the assessed value of properties has been going up, the taxes on a property only go up by 2.5 percent a year, plus the effect of any overrides that are passed. Thus the assessed value of my condo went up by 9 percent from 2014 to 2015, but the real estate went up in accordance with the 2.5 percent limit," said Sandman.

What happens is that the effective tax rate — the real estate tax divided by the assessed vale of the property - has been going down in Brookline, he said.

"Based on assessed values, Brookline is one of the lowest-axed communities in the state. The typical condo owner is paying about 1 percent of the value of his or her home in real estate taxes."

This chart shows the total of the existing and projected debt expressed as a percentage of the overall levy. Typically, the levy increases 2.5 percent, plus new growth (+- another 1 percent), plus debt exclusions to give you a total levy increase.

Click on the chart below to get a sense of how much debt the town will see based on the Driscoll School project and high school project for the next few decades, if interest is set at 5 percent:

Brookline Town Assessor Gary McCabe presented the tax classification options to the Select Board in September:

Related: Dec. 10, 2019 Special Town Election: What To Know

4 Opinions on both sides:

• Teachers support Driscoll project (5 current and former teachers)
• Clearing Up Misconceptions On The Override (Scott Ananian)
• Let's Build Brookline's Future! (a poem by Mike Offner)
• Educator-leaders are voting YES (Mary McConnell, former Driscoll kindergarten teacher, and Robert Weintraub, former BHS headmaster.)

• Why You Should Vote No (Dave Batista)
• The importance of this moment ( Joe Ranft)
• Vote no on Dec. 10 - News - Brookline TAB ( Jackie Dupré )
• Vote no on Question 1 - News - Brookline TAB (Pam Lodish)

Did we miss something? Add it in the comments or email Jenna.Fisher@Patch.com