Speaker 3 gave a step-by-step presentation on Massachusetts’ property tax levy mechanics under "prop 2 and a half," using Charlton’s recent levy history as a working example. He said the town started FY25 with a $32,000,000 levy base; a 2½ percent increase on that base equals roughly $800,000, and the town captured about $2,500,000 in new growth that year. Debt exclusions and other adjustments produced the town’s reported levy capacity figures.

Speaker 3 emphasized that excess levy capacity is an authority to tax — not cash on hand — and explained how municipalities may lawfully exceed the levy limit only by ballot (override), debt exclusion or capital outlay exclusion. He said the town has deliberately maintained excess capacity in recent years to avoid year-to-year spikes in tax rates and to preserve flexibility for capital and operating needs.

The presentation included illustrative projections for FY26 and FY27. Speaker 3 said the town’s FY26 levy base and captured new growth pushed its levy capacity higher (speaker cited a $42,800,000 figure in one projection) and suggested conservative budgeting assumptions (e.g., using a $400,000 new-growth benchmark) while final assessor values are pending.

Committee members raised questions about the levy ceiling ($25 per $1,000 assessed value was cited during discussion) and how Charlton compares with other towns. Speaker 5 noted Charlton’s recent commercial and industrial growth has helped build excess capacity, and Speaker 3 warned that large swings in new growth assumptions could generate or erode millions of dollars in capacity between projection and certification.

The presentation also connected excess levy capacity to other fiscal pressures: Speaker 3 pointed to rising health-insurance costs and OPEB as the largest wild cards for long-term liabilities, and Speaker 5 noted a previously reserved overlay to cover a potential $4,800,000 Amazon tax bill if that company contested assessments. Committee members concluded the town will continue to model several new-growth scenarios and to present refined numbers later in budget season.