Norwell Select Board Unanimously Approves $3.7 Million Override Request
Tax impact would be $856 annually for average home valued at $1.02 million
NORWELL - March 5 - The Norwell Select Board unanimously approves a $3.7 million operational override request to address what officials describe as a structural deficit in the town's finances. If passed by voters, the override would increase property taxes by approximately $856 annually for the average Norwell home valued at $1.02 million.
Town Administrator Darleen Sullivan explains that the town faces a significant gap between revenues and expenses.
"Fixed costs have increased at rates at least two to three times higher than our revenues," Sullivan says. "Revenue trends, you're looking over time, maybe three to 4% on average. And expenses like health insurance increase that we just spoke with MIIA about, they were just here earlier, went up 14.28%."
The override request comes after officials report that the town has only about $9,000 available to spend on operating budgets after accounting for fixed costs against revenues. Total expenses for the town are approximately $69.79 million, while revenues are only $66.18 million, creating a $3.7 million shortfall.
Select Board Chair Jason Brown expresses concern about the impact on residents.
"This is not the only expense that's coming. So it has to be framed in terms of reality," Brown says. "Not everybody can afford these increases because not only this, people are dealing with inflation and all the other realities of their own personal budgets."
The override would fund what officials describe as level services for the town and schools, with a small number of new positions in the school department, including a school nurse, an assistant special education director, and a math tutor.
Board member Brian Greenberg supports the override but acknowledges the financial burden it places on residents.
"I'm kind of in for a penny, in for a pound," Greenberg says. "I personally am sold that this is essentially level services with some very clear needs."
The board discusses the need to address structural issues in the town's finances, including potentially renegotiating health insurance plans. Earlier in the meeting, representatives from the Massachusetts Interlocal Insurance Association (MIIA) Health Insurance Trust reported a 14.28% increase in health insurance costs for the upcoming year.
Sullivan notes that even with the override, the town projects a $1.3 million deficit for the following fiscal year if no additional changes are made.
"We need to do some, make some changes during 26 to see if we can reduce or get rid of that if at all possible with some moves," Sullivan says.
The override request will appear on the May 2025 town election ballot. It must pass both at town meeting and in the town election to take effect.
Board member Bruce Graham predicts strong support at town meeting but cautions that the ballot vote could be more challenging.
"I think it's reasonable to expect a repeat of 2012, in which a town meeting will be packed with a lot of school parents who have not been to town meeting before, and they'll have a single issue to vote on, and they'll leave after Article Two," Graham says. "The election on the ballot is another story."
The last operational override in Norwell was approximately $2.8 million in 2012-2013.
Brown emphasizes the importance of clearly communicating to residents what services would be cut if the override fails.
"We need to clearly understand the tax impact of that override, we also need to understand what a no vote will be," Brown says.
Other key items from the meeting:
- The board approves a ballot question for a debt exclusion for the South Shore Regional Vocational Technical School, which would have an estimated tax impact of $70-$100 per household.
- The board discusses potentially offering voters the option to reduce or eliminate the Community Preservation Act (CPA) surcharge as a way to offset some of the tax increase from the override. This item is tabled until the next meeting.
- MIIA Health Insurance representatives report that health insurance costs are increasing due to higher healthcare utilization, rising prescription drug costs, inflation in healthcare delivery, and labor shortages.
- The board approves deficit spending for snow and ice removal despite some members questioning the need given the relatively mild winter.
- The board approves naming conference rooms in the new town hall after areas of town, including Assinippi, Churchill, and Mount Blue.