Officials wary of requesting tax hikes in poor economy

In towns like Sudbury, Holliston, and Wellesley they are making due with what they have rather than seek more money through an override of the state's tax-limiting law, Proposition 2 1/2.

"The general thinking is that it's extremely difficult to ask them to support an override when the terrible economy is affecting virtually everyone," said Larry O'Brien, chairman of Sudbury's Board of Selectmen. "It's a lot to ask."

Even in Wrentham and Belmont, where votes on tax increases are being considered, officials are pessimistic about the outcome.

"A lot of the feedback we're getting is negative," said John McFeeley, town administrator in Wrentham, where an override is on the ballot Monday. "People are focused on their own personal situation more so than the town's. People are losing their jobs."

Geoffrey Beckwith, executive director of the Massachusetts Municipal Association, said it appears as though fewer communities are considering Proposition 2 1/2 overrides this spring, but noted that it's still early in the budget process. He said some may hold off making the decision until the state and national economic picture is more clear.

Sudbury and Holliston are among several area communities where residents turned down requests for tax increases last year, and officials said the outcome would likely be no different this year, when the economic conditions are even worse.

"There certainly haven't been any discussions about an override," said Holliston Town Administrator Paul LeBeau. "The economic situation has a lot to do with it."

Instead, Sudbury and Holliston could be looking at significant cuts in the schools and town government for the fiscal year starting July 1, officials said.

In Wellesley, Town Meeting members on Monday approved a 2010 operating budget of $474,531, or less than 1 percent higher than this year's figure. Under Proposition 2 1/2, raising the tax levy by more than 2.5 percent would require approval by voters, and this is the third year in a row that officials decided against seeking an override to cover municipal expenses.

Between 1999 and 2006, however, Wellesley officials sought six overrides to cover the operating budget. Last year, residents approved a temporary tax increase of $86.6 million for the town's portion of a $130 million high school project.

In Wrentham, officials have placed a question on Monday's election asking residents to support an $800,000 override. If approved next week, and backed up by Town Meeting on April 27, it would add $189 to the average homeowner's annual tax bill.

Without the additional funds, the town would likely be forced to cut more than a dozen elementary school positions, up to two police officers, and up to two firefighters, McFeeley said.

Even though passage is unlikely, McFeeley said, Wrentham officials wanted to give voters the forum to express their view.

In Belmont, officials are leaning toward seeking an override to cover the town's operating expenses but won't make a final decision, including on how much to request, until next month, said Angelo Firenze, the Board of Selectmen's chairman.

Firenze thinks there's only a small chance voters in the June election would support a tax increase, and that's only if town officials can show they have taken steps to cut costs and become more efficient.

"It's going to be tough at best," Firenze said. "I don't think we have a high probability."

Also, residents will be voting on a debt-exclusion override, a temporary tax increase that would help pay for a new elementary school.

Barbara Anderson, executive director of Citizens for Limited Taxation, a statewide watchdog organization, said it's about time municipal leaders stop turning to taxpayers for more money. Though she does not have an official count of communities proposing overrides, Anderson said, the numbers are down this year.

"While there are still going to be some, I think cities and towns get it that people just don't have the money," said Anderson.

Anderson also thinks that taxpayers have grown tired of what she calls a two-class society, public employees and everyone else. She said residents no longer want to foot the bill for salary increases and benefits packages for public employees.

"It's a year when people have had enough of government," Anderson said.

Acton resident Charles Kadlec said he is relieved that his town isn't proposing an override this year. He said town officials decided last fall to do whatever possible to avoid raising taxes.

Besides, he doesn't think an override would pass.

"The economy is the main reason," he said. "The other reason is we already have one of the highest tax rates and tax bills in the Commonwealth."

In recent years, Acton has approved several increases, through operational and debt-exclusion overrides, for the library, schools, and a new public safety building that have added hundreds of dollars to property tax bills.

Kadlec said residents would be forced out of their homes if Acton's property taxes continue to rise.

"People who have limited resources have trouble keeping up," he said.

While some communities are trying to keep taxes stable for struggling homeowners, other towns are looking to take it a step further for residents on fixed incomes.

In Needham, where residents approved a $1.9 million override in November to cover the costs of opening a new school, officials are looking to offer additional tax relief to the town's seniors and disabled residents.

Needham Town Manager Kate Fitzpatrick said the Board of Selectmen may expand existing programs so more residents will benefit.

"It's a concerted effort to address the fact that for some segments of the population, property taxes are a significant burden," Fitzpatrick said.

Globe correspondent Lisa Keen contributed to this story. Jennifer Fenn Lefferts can be reached at jflefferts@yahoo.com.