Town Meeting gives preview of projected tax hikes

For some of the more than 320 voters at the May 4 Town Meeting, the discussion about projected tax increases over the next decade may have raised some eyebrows.

In budget presentations, Select Board member John McDonald and Finance Committee Chair Bharath Venkataraman said tax bills may rise by nearly 80%, or 5.9% per year, by 2036, as the town explores several big-ticket capital projects including the Middle School and High School building project and the new fire station. In addition to those capital projects, ongoing union negotiations with the school district’s teachers and the police union and the impact of inflation on general operating expenses are expected to affect the tax rate. In prior years, the average tax bill in Weston rose by 3.3% per year, or 38.5%, over the previous decade; the median tax bill is set to rise to $20,084 in 2027.

While the tax projections were shared at the town’s October 2025 financial summit, Town Meeting served as the first opportunity to put those numbers in front of a much-larger audience.

“Next decade we face a very different tax environment,” Venkataraman said at the Town Meeting. “The next 10 years – grab your chair, brace yourself – 78% [increase], 5.9% per year. That’s where we’re heading.”

The median FY37 tax bill could potentially rise to more than $36,000 if the town follows that trajectory.

There are several options that town officials could employ that could bring the projected increase down, including reducing the Community Preservation Act surcharge, pausing other post-employment benefits (OPEB) contributions and reducing capital project costs, as well as controlling school and town salary and expense growth. If those options are pursued, Venkataraman estimated the 78% increase could be cut down to 62% over the next decade, or 5% per year.

In interviews, McDonald and Venkataraman stressed the importance of long-term capital planning to reduce the tax impact on residents, as well as continued vigilance over Weston’s operating budget.

Venkataraman explained the projected 78% increase is driven by two factors: the general 3.3% tax increase that compounds every year and the capital projects, making it “half and half.”

McDonald said the Middle School and High School building project, which has price estimates ranging from more than $170 million for renovations to $400 million to build new schools, makes up the “lion’s share” of the cost increases. The fire station project, estimated between $41 million and $53 million, is another major cost, but it is a necessary project, he said.

“[The approach needs to be] what is the real need and how can we do things in a more cost-efficient manner, and, to a lesser degree, look at our budgets,” McDonald said. “Mainly, all of the school items are not a requirement or a necessity. It’s not entirely clear that we need to build two new schools; certainly, some renovations are needed, but they’re not needed next year.”

The School Committee and School Building Committee are in the early stages of the Massachusetts School Building Authority’s eligibility pipeline for state funding. The town will need to appropriate money for a feasibility study by the end of the year to continue the process.

Where the two men split in their approach to capital projects is with the creation of a capital stabilization fund, which was passed over for inclusion on the Town Meeting warrant. The Finance Committee supported the article, but the Select Board was split, with McDonald against it, outgoing member Tom Palmer supporting it and Lise Revers on the fence, as she thought the topic warranted more discussion and a clearer outline before being considered by voters.

The special account would allow the town to sock money away each year to put toward capital projects, which would potentially reduce future borrowing costs, according to Venkataraman.

“A capital stabilization fund allows the town to pay for major capital projects over the period they are actually used, rather than forcing today’s taxpayers to shoulder the full cost of long-lived assets through borrowing,” Venkataraman said, noting this approach helps “smooth taxes over time. Instead of sharp tax increases when multiple large projects come due at once, the fund allows the town to plan ahead, spread costs more evenly across generations of taxpayers and maintain predictability in tax bills from year to year.”

McDonald said a capital stabilization fund would be against residents’ interests, as they would be putting money toward a future project with an unknown cost. He likened it to paying a car dealer five years in advance and not knowing what the actual price of the car would be when it came time to purchase it.

“All it is, is asking you, the taxpayer, the residents here, to make an interest-free loan to the town for x number of years,” McDonald said. “If they want to claim it is going to reduce your town-borrowing costs, that’s going to pale in comparison to what the resident would be earning on their money that they haven’t given to the town.”

In regard to the budget, McDonald said “we need to look at all of the departments,” including the school, which typically represents more than half of the budget. He emphasized he is not advocating for cuts to amenities or school services, but Weston’s annual per-pupil expenditure of $31,170 is much higher than neighboring affluent communities.

Lexington, a significantly larger district, reports a per-pupil expenditure of $27,831; Dover-Sherborn, which serves two towns and serves about 800 fewer students, spends $26,166 per pupil; and Wayland, serving about 800 more students, spends $23,649 per student, according to FY24 data from the Department of Elementary and Secondary Education.

The School Committee’s budget report states Weston’s smaller enrollment, lack of student-activity fees, comprehensive transportation services, METCO support and high external funding increase the per-pupil spending, as well as municipal accounting decisions.

“Many towns, such as Concord, regularly use debt to fund capital expenses, making their operating budgets appear smaller,” the report states. “Weston, by contrast, has made a deliberate financially responsible choice to reduce reliance on debt for routine purchases like vehicles and technology, which can make our PPE appear higher.”

Both Venkataraman and McDonald said they cannot forecast the effects of such a major tax increase on the town in 10 years, but they expect it will likely force some residents out of town and potentially keep new buyers out, even if those bills come down once debt is paid off.

“To be honest, I have not had much time to reflect on what this rapid increase would mean,” Venkataraman said. “I can see some folks accepting this is what we need for a really good school system, and town utilities and services. Others may choose this as the opportunity to leave.”

“It’s hard to say. I have heard people say that if their taxes went up like that, they’d leave,” McDonald said. “If it’s going up by that much, it’s going to have a detrimental effect.”