WESTFORD — A citizens’ petition seeking to reduce Westford’s Community Preservation Act property tax surcharge from 3% to 2% caused an extended discussion during the Sept. 24 Finance Committee over tax relief, state matching funds and the future of community preservation projects.
Article 10 on the Special Town Meeting warrant proposes lowering the surcharge residents pay toward the town’s Community Preservation Act fund. The petition was brought forward by a group of Westford residents.
Finance Committee Clerk Dennis Galvin spoke about the proposal during the meeting, focusing much of his presentation on the financial pressures facing the town and its taxpayers.
Galvin pointed to projections of a potential $3.1 million deficit in the fiscal 2028 budget and discussed increasing expenses associated with education, school transportation, utilities, retirement obligations, health insurance and capital needs.
“We’ve got a budget problem,” Galvin said.
Westford has maintained a 3% CPA surcharge for approximately two decades. Revenue collected through the program is restricted to eligible community preservation purposes, including open space, recreation, affordable housing and historic preservation.
According to figures presented during the meeting, Westford has raised approximately $28 million through the program over the past 10 years. About 31% of that money has gone toward open space, 22.5% toward affordable housing, 10% toward historic preservation, and 36% toward recreation, with approximately 0.5% used for other expenses.
Figures presented during the meeting showed approximately $4.4 million in the fund, including about $1.2 million blocked for existing debt commitments. Members later clarified that the remaining balance is available for upcoming CPA projects and should not be interpreted as an unused surplus.
Galvin estimated that reducing the surcharge from 3% to 2% would leave approximately $900,000 annually with taxpayers rather than collecting it for the CPA program.
“This will keep the account going. It’ll keep it in practice,” Galvin said. “But it will also return to the taxpayers $900,000.”
The discussion also included the possibility of a future override that could generate additional revenue for Westford’s general fund. However, that Article 10 itself would not transfer CPA revenue into the town’s operating budget.
If the surcharge is reduced, the CPA portion of residents’ property tax bills would decrease. Any attempt to raise a comparable amount for the general fund through an override would require a separate process.
Community Preservation Committee Chair Robert Jefferies called into the meeting and raised concerns about what the proposed reduction could mean for the town’s preservation program.
Jefferies said reducing the surcharge from 3% to 2% would amount to a one-third reduction in the town’s local CPA revenue and could significantly limit the amount available for historic preservation, conservation, affordable housing and recreation.
The reduction could also cost Westford state matching funds.
The town’s CPA administrator told the Finance Committee that information from the Community Preservation Coalition indicated Westford could lose approximately $190,000 annually in state matching funds if the surcharge were reduced by one percentage point.
Jefferies also pointed to existing financial commitments that would remain even if annual CPA revenue declined. Approximately $1.1 million in annual CPA revenue is associated with debt service, according to information discussed during the meeting.
Jefferies raised the Abbott School as an example of a town property that could require substantial future investment.
“Whatever you decide to do with it, you’re going to have to do repairs,” Jefferies said.
Committee members also considered the potential role of CPA money in future land acquisitions and affordable housing projects. Jefferies argued that maintaining reserves gives the town resources for future projects, including open-space acquisitions.
Also, lowering the surcharge would provide savings on residents’ tax bills, doing so would also reduce a dedicated source of local funding and potentially decrease the amount Westford receives from the state.
The committee also highlighted an important limitation of CPA money. Revenue raised through the surcharge cannot simply be transferred into the town’s general fund to pay for regular municipal or school operations.
As a result, keeping the surcharge at 3% would not directly resolve the operating budget pressures discussed during the meeting. Likewise, reducing it to 2% would not automatically provide additional operating revenue to the town. Instead, it would reduce the CPA assessment paid by taxpayers and decrease the amount available for eligible community preservation purposes.
Finance Committee members continued to question how the immediate tax savings associated with the proposal should be weighed against existing CPA commitments, lost state matching funds and the town’s ability to finance future projects.
The discussion left committee members weighing the proposed tax reduction against existing CPA commitments, the loss of state matching funds and the program’s ability to finance future projects.
