Berkley debt exclusion vote means stark choice: $400 annual tax hike or slashing services

BERKLEY — Berkley voters will head to the polls Saturday to decide the fate of a Proposition 2 1/2 debt exclusion to fund the town's share of B-P's $305 million new building project.

For the average Berkley single-family home, which is assessed at around $500,000, that would mean a tax hike of about $400 a year for most of the life of the 30-year debt, officials said.

But the alternative is major cuts to town services, because the town will have to pay its annual share of the price tag of the project whether Berkley's debt exclusion is approved or not, officials said.

Located in Taunton, Bristol-Plymouth Regional Technical School serves Berkley, Bridgewater, Dighton, Middleboro, Raynham, Rehoboth and Taunton, and each town pays according to its percentage of the student population.

Why Berkley has to pay for B-P project even though voters said no to new building

The construction project was approved on March 5, 2022, in a very close election in which Berkley voters overwhelmingly rejected the project by a two-to-one margin, with 329 "no" votes in Berkley and just "172" yes votes.

But Berkley voters were overruled. The outcome was determined through a combined vote of all the member cities and towns, who all held elections that same day. In all, 6,400 people from seven communities came out to vote, with 3,353 "yes" votes and 3,047 "no" votes. That meant the project was approved and each town would have to figure out how to pay its annual bill to fund it.

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Now, question is how to pay tab

Town Administrator Matt Chabot said that for the first three years of B-P's 30-year debt, Berkley will be responsible for an estimated annual assessment of about $625,000, based on the town's current B-P enrollment numbers — that would mean a tax hike of about $250 a year for the average single-family home.

But then for the remaining 27 years, the estimated assessment will grow to over $900,000 a year, again based on current enrollment numbers, Chabot said — and that would mean a tax hike of about $400 per year for the average single family home for the remaining 27 years.

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Why has the estimated tax hike gone up by so much?

Back in February of 2022, B-P's project consultants estimated in a presentation that the yearly property tax impact on the average single-family home in Berkley would be $285, assuming a 30-year debt and interest rate of 3.526%.

Chabot said the big thing that's changed since then is Berkley's enrollment has gone up dramatically, from 89 students in the 2022-2023 school year, to 111 in the 2023-2024 school year. The more students Berkley sends to B-P, the higher its share of the cost.

Chabot said "bond timing" is also an issue and under the current plan the interest rate is conservatively estimated at 4%.

State is picking up 40% of price tag for project

Of the $305 million estimated for the B-P project, taxpayers in the eight member-towns will pay 60% of the price tag, or $180 million — though that total doesn't include interest on the debt — with the remainder paid by the Massachusetts School Building Authority, or around $125 million.

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What happens if debt exclusion loses?

What if the townspeople vote down this debt exclusion? Selectmen Chair and former Finance Committee member Tabitha McCrohan said the money will have to come from somewhere elsewhere — such as cuts to police, fire and Berkley schools.

"And we're already operating on a skeleton budget," McCrohan said.

She pointed to the budget discussion at the Selectmen's Thursday, May 2, meeting, which was all about how cash-strapped the town is.

Berkley Superintendent of Schools Melissa Ryan, backed by a room full of teachers and school administrators, implored the board not to cut any more of her school budget.

On April 8, she had to let eight staff members go, she said, and she's not replacing one who is retiring. Select board members told Ryan they support the schools. But they later told the Gazette they may need a total of 12 staff cuts because of budget constraints when the budget for the 2024-2025 school year is voted on in June.

Another possible debt exclusion on the horizon

Adding to the complexity of the town's financial picture, residents might need to consider another school project with a debt exclusion plan in the fall. Chabot said for needed renovations at the Berkley Community School, the school building committee and its consulting firm are considering a debt exclusion question for a November town meeting and the Presidential election ballot.

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Also on Saturday's ballot: Races for selectman, treasurer, assessor, planning board

The rest of the May 11 ballot features three contested races:

• Local contractor Maurice Butler and local business woman Jennifer Vincent are vying for a Selectmen's seat being vacated by Wendy F. Cochrane.

• Meanwhile, Cochrane is being challenged for re-election to her other town hall position, as town treasurer, from local banker Connie Dagwan.

• Cemetery Commissioner Kevin Pavao and the assistant assessor in Easton Lisa Tetreault are competing for the one-year term on the Board of Assessors being vacated by George Moitoza, who is retiring after 60 years of town service that included stints as a selectman as well as an assessor.

• Maurice Butler is also running unopposed for a five-year seat on the Planning Board.

When and where is the election?

Polls will be open on Saturday, May 11 from 10 a.m. to 6 p.m. at the Berkley Community School, 59 South Main St., Berkley.

This article originally appeared on The Enterprise: Berkley B-P debt exclusion election presents