Message from the Finance Committee to the Residents of Shirley
On Tuesday September 12, 2017 there will be a special election held to determine whether the residents of Shirley will pass a debt exclusion in the amount of $800,000 to purchase a new ladder truck for the Fire Department. After consideration and discussion, the Finance Committee voted unanimously in favor of the passage of the debt exclusion and recommends the new ladder truck be purchased.
At the most recent Annual Town Meeting, the Fire Chief has expressed concerns about the age, condition, and expected life of the current ladder truck, even if necessary repairs were completed. He has stressed the importance of having the ladder truck for fighting fires as well as safety reasons. It is the recommendation of the Fire Chief that a new ladder truck be purchased. Residents in attendance at the Annual Town Meeting voted in favor of putting the debt exclusion on the ballot.
If the debt exclusion passes, it will allow an increase in the tax levy above the provisions of Proposition 2 ½. Proposition 2 ½ is a Massachusetts statue that limits the amount a municipality can raise its property taxes by no more than 2 ½ percent on an annual basis. Therefore, the passage of the debt exclusion would result in an increase to your tax bill. As a resident in the town, you will have to consider the benefit and need of the ladder truck versus the financial implications on your tax bill.
The Finance Committee thought it would be appropriate to provide additional financial information for the residents to make a well informed decision. The purchase price of the ladder truck is $800,000. This amount is to be bonded out with an interest rate of 3.75% over a 15 year period. The total debt service for the ladder truck including interest will be $1,055,000. The financial impact on the median home valued at $282,200 will be approximately $31.33 per year over the 15 year period.
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