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Shrewsbury board holds first reading of 2025 tax levy as assessed valuations climb
Summary
City staff explained a large increase in assessed property valuations that lowers the tax rate under the Hancock Amendment; the board approved first reading of the 2025 levy ordinance and will consider budget details this fall.
Shrewsbury’s board held a first reading on the city’s proposed 2025 property tax levies after staff described a sizable rise in assessed valuation that will force the tax rate downward under state limitations.
Justin, the staff member presenting the item, said the city submits assessed-value data on a Form 15 to state auditors and that the state calculates the maximum rate a municipality may request. "First thing I'm gonna start with is in my memo. I provide prior year and current year assessed valuation," Justin said. He told the board an increase in assessed values — described in the packet as a move from 108,000,000 to 138,000,000 — is driving a rate decrease even as overall tax revenue capacity rises.
Justin noted the Hancock Amendment limits how much property-tax revenue the city may collect and explained that the state does not include senior property-tax freezes in its rate calculations. "The state does not calculate that into their rates," he said, adding that the county likewise excludes those freezes.
An alderman asked whether the Hancock-law limit is applied before any senior-tax-freeze adjustments; Justin answered, "That's correct." Another alderman repeated that residents had been promised tax reductions and said lowering taxes remains a priority; Justin said those decisions will follow during the budget process.
The board moved and seconded the first reading of the ordinance to set levies for 2025 and approved it by voice vote. Justin said the budget presentation is planned for November and final passage of the budget ordinance is expected in early December.
The ordinance is at the first-reading stage; board members said they expect more discussion during the formal budget process and that any vote to reduce rates beyond the limits set by state calculations would be considered during budget deliberations.
