VOTE YES on the Proposition 2½ Override

Proposition 2 ½ is a MA law enacted in 1980 that limits the total amount of property tax revenue that a town can raise through property taxes, referred to as the "tax levy" or the "levy". Under Proposition 2 ½, a town cannot increase the tax levy in a given year by more than 2.5% without the approval of a majority of residents (with certain exceptions for new growth that might result in increases closer to around 3%).

But, if Proposition 2 ½ limits property tax increases to 2.5% per year, why did my property taxes increase by more than 2.5% in some years? Proposition 2 ½ sets a limit on the entire tax levy for a town; that is, the total amount of tax revenue that Stoneham can raise through property taxes based on the total assessed value of all properties in town (the total tax pie). That total is then divided among residents based on the assessed value of their property relative to other properties in town to determine the tax bills for individual properties (your slice of the tax pie). Changes to the assessed value of your home relative to that of other homes in town could result in your personal property taxes increasing by more than 2.5% in a given year. In Stoneham the tax levy hasn't ever increased by more than the maximum 2.5% in , so it could be that something about your property has made its assessed value increase faster than that of other properties in town (reassessments after home renovations, changes in demand for your neighborhood, etc.), which is why your specific tax bill might have increased by more than 2.5%.

An override is a townwide vote that allows the town to increase the annual tax levy (total amount of property tax revenue that the town can collect) by more than 2.5% to cover the costs of essential town services like police, fire, schools, and public works. If the override is passed, the additional amount approved is permanently added to the tax levy to create a new baseline. In future years, rate increases are once again limited to 2.5% (with exceptions for new growth) unless another override is approved.

Nearly 75% of towns across MA have passed a total of about 1,900 overrides of Proposition 2 ½ to permanently increase their total tax levies and adequately fund town services; and 50% of those towns have passed 5 or more overrides. This includes our neighbors in Medford, Melrose, North Reading, Reading, and Wakefield. Malden, Melrose, Natick, Winthrop and many other towns across the Commonwealth are also likely to ask their residents to vote to approve overrides this spring.

Town property tax revenue has not kept up with inflation, increased costs of providing town services, and increased demand for town services. As a result, all town departments are facing substantial budget shortfalls going into next year—shortfalls that threaten public safety, town infrastructure, and the quality of our school system. For example:

• Public safety: The Stoneham Fire Department needs at least 2 more firefighters per shift to meet safety standards. The Stoneham Police Department needs at least 10 more officers to match the staffing of comparable nearby towns and another overnight dispatcher (“a safety issue”).

• Infrastructure: Stoneham's Department of Public Works has an aging fleet of trucks in disrepair with many fully out of service. It needs at least 3 new vehicles and 30 staff members in order to maintain Stoneham's roads, sidewalks, and public spaces.

• Education: Stoneham Public Schools is facing a $4.5 million deficit that will result in the elimination of at least 23 teachers and 40% of high school athletics, and could result in redistricting (sending kids to schools outside of their neighborhoods) and half-day Kindergarten for which parents must pay tuition.

Stoneham needs an override of Proposition 2 ½ to meet these and other budgetary needs of town departments.

The figure below plots the annual inflation rate against the 2.5% limit to annual tax increases in MA set by Proposition 2 ½. Inflation (aka the annual increase in the cost of doing business) has exceeded 2.5% in 25 of the 35 years since Proposition 2 ½ was passed, averaging over 3% each year, and increasing more than 30% in greater Boston between 2015 and 2025. Even a seemingly small (<1%) difference between the 2.5% limit and inflation can mean a Stoneham's costs exceed its tax revenue by hundreds of thousands of dollars in a given year. Adding this up year-over-year for the past 30+ years totals in many millions of dollar deficit.

The demand for town services and the costs of providing them have also increased substantially in recent years:

• Police calls for service increased 5.8% between 2022 and 2024.

• Fire department calls for service increased 9% between 2023 and 2024.

• The school department served 38 more students this year than last year, adding $760,000 to the FY25 budget, and expects to serve at least 30 more students next year, adding $600,000 to the FY26 budget.

• The district is also spending many millions of dollars more today than in the past providing special education services, transportation, and paying the tuition of students that opt to attend local charter schools.

• In addition to all of the above, the town expects a $1.2 million increase in the cost of providing healthcare to town employees next year (+11%).

The Select Board has asked residents to vote on a $14.6 million override of Proposition 2 ½, which translates into an approximately $1,700 per year property tax increase for the average Stoneham household. That amount is meant to cover both the immediate budget gap and the town’s growing costs over the next few years—so we don’t have to keep coming back for more overrides. You can find the assessed value of your home here, and use this calculator to find the impact of the override on your property taxes.

Note: the town doesn’t have to tax the full $14.6 million all at once. The Select Board has indicated that they might propose to tax only what’s needed for the first year—likely around $9.5 or $10 million—which would help ease the initial impact on residents. That said, it’s not automatic. The Select Board could propose taxing the full $14.6 million right away. Either way, residents will vote on the final FY26 budget at Town Meeting on May 5. If this “phased-in” approach moves forward, the town can gradually increase up to the approved amount in 2027 and beyond—but only as needed. This way, we can fix the budget crisis while keeping taxes manageable.

The average annual property tax bill in Stoneham was $7,834 in 2025, which is lower than similar nearby towns. Stoneham's residential tax rate and taxes as a percentage of home value are also lower than those of many neighboring communities. See tables below. Property taxes in Stoneham will remain comparably low even if residents approve an override.

No, Stoneham passed a debt exclusion to build the new high school. A debt exclusion is different from a tax override. An override allows for a permanent tax increase to support a town's ongoing operational expenses, such as public safety, schools, and municipal services. A debt exclusion is a temporary tax increase to pay for a specific capital project, such as building a new school or fire station.

Debt exclusions do not impact a town's total tax levy. Once the debt is fully repaid, the tax increase ends. Stoneham's high school debt exclusion enabled the town to raise revenue needed to fund the project above and beyond the more than $50 million in grants for it provided by the Commonwealth. The debt for Stoneham's new high school will be paid off over 30 years.

Stoneham will use the revenue to make up its substantial budget shortfall and adequately fund public safety, education, public works, and general government expenses. Stoneham residents will vote at the spring town meeting on how exactly the town appropriates the revenue raised across these areas. The spring town meeting is on Monday May 5, 2025.

Stoneham is audited each year by an independent accounting firm. In recent years, the audit has been performed by CliftonLarsonAllen LLP, which reviews and reports on the town's financial statements each year. This annual independent audit is a standard requirement for MA municipalities to ensure accountability and transparency in financial reporting. You can find Stoneham's annual audit reports dating back to 2017 here.

Public safety, infrastructure, and the school system will greatly decline. The shortfall and related cuts that Stoneham town departments are facing for the coming year are on top of cuts and shortfalls that the town has been making for decades.

If an override does not pass, the school system will reach a point, within the next year or so, at which it is only providing legally-mandated services and there is legally nothing left to cut. That is when the other town departments - police, fire, public works - will have to start making major cuts, the library will have drastically reduced operating hours, and departments like the Council on Aging could be totally eliminated.

Residents can vote on whether or not Stoneham can override Proposition 2½ on Tuesday April 1, 2025 at Stoneham Town Hall (35 Central Street) between 7:00am and 8:00pm. Residents can also request a ballot to vote by mail here. Requests for mail-in ballots must be submitted by March 25 at 5pm. There will not be early voting. You can contact the town clerk at (781) 279-2650 or msagarino@stoneham-ma.gov with questions.

There are various state and local tax relief and exemption programs available to eligible residents

At their March 6, 2025 meeting, the Stoneham Select Board voted to advance three additional tax relief articles to spring Town Meeting for approval by residents:

• Voluntary Tax Check-Off Fund for Seniors & Disabled Residents: Would allow residents to donate to a fund that will help low-income elderly and disabled residents pay their property taxes.

• Increased Tax Exemptions for Seniors, Veterans & Others: Would double tax exemptions for seniors, blind persons, veterans, and surviving spouses who already qualify.

• Expanded Tax Relief for Veterans: Would increase property tax exemptions for veterans under existing state laws.

Visit the this site to learn more about these programs.

The majority of property throughout Stoneham is residential property, making residential property taxes its largest revenue source and limiting the amount of revenue that the town can collect from commercial property. Further, citing the importance of preserving Stoneham's neighborhood feel, residents have voted "no" to welcoming large commercial development projects to Stoneham, including a Home Depot shopping center and a hotel. The town recently established a Zoning Bylaw Review Committee that is in the process of re-codifying Stoneham's zoning code, which hasn't been updated for 40 years. The committee is examining ways to make the code easier to understand and follow for homeowners, existing businesses, and prospective businesses and whether the town could increase the availability of commercial corridors. Residents will have the opportunity to ask questions about recommended updates and will vote on whether to adopt the new code.

Stoneham regularly applies for and receives grants from various entities. But because grants must almost always be used for a very specific purpose, they are not part of the town operating budget. Over the past few years, the town has received approximately $64 million in grant funds, including more than $50 million for the construction of the new high school, $250,000 to make Stoneham Arena accessible to residents with disabilities, and $4 million to revitalize downtown.

There is no guarantee that another override won't be needed in the future. Many towns in Massachusetts have passed multiple overrides to keep up with rising costs and increasing service needs that exceed the 2.5% annual limit. If that time comes, the town will follow the same process as it is now—engaging the community with transparency, discussing the financial situation openly, and ultimately putting the decision to a vote. Residents will have the opportunity to review the information, ask questions, and determine the best path forward.