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Shaftesbury adopts lower municipal tax rate after reappraisal; treasurer flags short-term cash squeeze
Summary
The Shaftesbury Select Board on July 20 adopted a municipal tax rate of 0.3986 after a townwide reappraisal sharply increased the grand list, lowering the rate. Treasurer Melanie warned the board of a temporary cash-flow timing issue tied to a postponed fire-truck delivery and said tax bills will be mailed after rates are finalized.
The Shaftesbury Select Board on July 20 adopted a municipal tax rate of 0.3986 following a townwide reappraisal that raised the grand list substantially.
Melanie, the town treasurer, told the board the grand list rose from about $4.4 million to about $7.02 million this year, a change that reduces the municipal rate even as the town's budget increased. "Because their assessed values went up so much on an average about 83%, that's why the tax rate has gone down significantly," Melanie said in explaining the math behind the calculation.
Why it matters: A higher grand list spreads the town's revenue needs over a larger valuation base, which lowers the tax rate but can still change individual bills depending on each property's reassessment. Melanie said some residents' bills will go down while others may see increases because of individual assessment changes and education taxes.
Treasurer's context and cash timing: Melanie presented the town's fiscal-2026 close showing $587,050 in cash-on-hand and described a temporary cash-flow concern tied to timing of a fire-truck purchase. She said delivery and final work on the truck remain in progress and that staff are arranging billing and potential payment terms with the vendor to avoid depleting reserves. "If we had taken delivery of the fire truck, that would have wiped us out," Melanie said, noting she plans to mail tax bills as soon as the board finalizes the rate to shore up receipts.
Community appropriations: Melanie also disclosed an error in how community appropriations appeared across the town report and ballot and proposed (and the board approved) adding the VNA Hospice payment (about $5,000) to the tax-rate calculation even though it had not been listed on this year's ballot. A board member moved to approve the appropriation and the motion passed.
What was decided: The board voted to adopt the municipal rate of 0.3960 plus a local agreement rate of 0.0026, for a total municipal tax rate of 0.3986. The board also approved sending the VNA Hospice appropriation as presented.
Next steps: Melanie said professional auditors will be on site the following week and she aims to mail tax bills immediately after the tax-rate paperwork is complete. She invited board members to help with envelope stuffing to expedite mailing.
