EXPLANATION FOR THE INCREASE IN THE FY2008 TAX RATE

The tax rate is calculated by dividing the Town's tax levy (the amount the Town votes at Town Meeting to spend for the year) by the total taxable assessed value. When the assessed value goes down that causes an increase in the tax rate.

In recognition of changes in the residential real estate market, residential assessments were lowered approximately 8% for FY2008. The increase in the tax rate was due to the lowering of assessments combined with levy increases from the 2007 override and debt exclusions from recent years. The net effect was the following increase in the tax rate:

FY2008 TAX RATE              16.79

FY2007 TAX RATE            -14.16

                                                   2.63