Frequently Asked Questions - shared from the Town of Franklin FY 2026 Override Information page. There are 40 and a form to ask another question if it is not already listed there -> https://ma-franklin.civicplus.com/Faq.aspx?TID=41
25. Will the re-assessment of properties increase the revenues the town collects?No. Proposition 2 ½ limits the total amount of taxes that can be collected, even if property values increase. If all properties in town doubled in value, the tax rate would need to be reduced by half. The total amount of the tax levy would not change. Note that cities and towns are required to measure and inspect properties every ten years or more often if there is an appeal, a building permit, or a sale. State DOR onsite reviewed Revaluations occur every 5 years, while Interim Year Market Updates are performed annually every other year. This is unrelated to any budget deficits. The only impact that the re-assessment would have on tax revenues is that some additional new growth may be found as part of this process. If there are new decks or other improvements that had not previously been reported to the town, that added value would be treated as new growth with respect to Proposition 2 ½.26. Could we borrow to solve this problem?No. Cities and towns are required to have balanced budgets and are not allowed to borrow money to support operational budgets.27. Could we dip into our reserves?Yes, but that would leave the Town in a very precarious financial situation. There is currently roughly $7.1 million in our stabilization accounts. If the Town were to spend all of that to close the budget deficit next year, that would leave the town without a financial safety net. The Town Council and Finance Committee have been working on updating the financial policies for the town. They have agreed to strive for a minimum balance of 5% of Non-Enterprise Budgets in our stabilization funds. In addition to providing for emergencies, healthy balances in our reserve accounts helps the Town to maintain our AAA bond rating. A strong bond rating is important when the town needs to borrow money. Towns with the highest bond ratings pay the lowest interest rates on the money they borrow.28. Did we consider all possible revenue sources?Yes. As has been stated the Town has very little ability to create revenue streams, the state greatly limits our ability in this area.
Additional info can be found on the Town FY 2026 Override page -> https://www.franklinma.gov/1089/Fiscal-Year-2026-Override-Information
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| Frequently Asked Questions: FY 2026 Override |
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