Frequently Asked Questions

The construction and outfitting of the new school are projected to total $104.2 million. This estimate comes from an independent cost estimator who based the projection on the conceptual designs of the building. The projected cost includes a contingency for potential future cost increases. The feasibility study was financed with funds previously saved by the Town, which will not require borrowing for this project.

Yes, the Town has been accepted into the selective Massachusetts School Building Authority (MSBA) program.  Any funds provided by the MSBA to the Town towards the project will reduce the net project cost that the Town will be responsible for.

The Town has and will continue to investigate ways to reduce the impact of the project on taxpayers. 

Early on, the square footage of the building was reduced by approximately 4,000 sq ft while still providing adequate space for all of the educational programs. This reduction is significant given estimated construction costs per square foot in the $850 range.

The Select Board and Finance committee will continue to put funds aside in the newly created School Building Stabilization Fund to reduce the impact of the debt exclusion on taxpayers.

The MSBA is a state government authority that partners with local communities to create affordable and energy efficient public schools across Massachusetts.  Created in 2004, the MSBA provides reimbursements to communities based on a predetermined percentage of eligible school construction costs.  The MSBA's revenue stream comes from the state's sales tax.

The exact MSBA contribution is not yet known but we are estimating it to be approximately $29.5 million of the project costs.  This number will be updated as the project continues through the MSBA's approval process in 2025.  Exact contribution figures will be known in the months prior to the Town's vote at the FY26 Fall Special Town Meeting in October/November 2025.

Proposition 2 1/2 allows a community to raise funds for certain purposes above the amount of its levy limit or levy ceiling.  A community can assess taxes in excess of its levy limit or levy ceiling for the payment of specified debt service costs.  An exclusion for the purpose of raising funds for debt service costs is referred to as a debt exclusion.  A Debt Exclusion requires voter approval. The additional amount for the payment of debt service is added to the levy limit or levy ceiling for the life of the debt only.  Unlike overrides, exclusions do not become part of the base upon which the levy limit is calculated for future years.

Reimbursements such as state reimbursements for school building construction are subtracted from the amount of the exclusion.

A debt exclusion is effective even in the rare case when the exclusion would bring the community’s levy above its levy ceiling and requires a two-thirds vote of the Select Board in order to be presented to the voters. A majority vote of approval at a ballot vote is required. 

Questions presented to exclude a debt obligation must state the purpose or purposes for which the monies from the debt issue will be used. 

An exclusion increases the amount of property tax revenue a community may raise for a limited or temporary period of time in order to fund specific projects. The amount of an exclusion may be raised in addition to the community's levy limit. It does not increase the community's levy limit nor become part of the base for calculating future years' levy limits.

An exclusion may be used by a community to fund capital spending whether the spending is financed by borrowing (debt exclusion) or within the annual budget (capital expenditure exclusion).

There is no limitation on the number or dollar amount of exclusions.

A Debt Exclusion override requires 2 votes.  Town Meeting will vote to authorize the Town to issue the bonds necessary to construct the Shaker Lane School.  This would require a 2/3 vote at Town Meeting. Currently, this vote is scheduled to occur at the FY26 Fall Special Town Meeting in October/November 2025.

A second vote would take place shortly after Town Meeting to ask the Town to raise the amount needed, outside the Levy Limit, to make principal and interest payments on a 20-year bond. Each year, the Town would add to the total amount needed for that year to pay the annual principal and interest payment to that year's Levy Limit.  If no debt exclusion were used, the Town would need to absorb the costs of those annual payments within the Levy Limit. Based upon the size of the project, it is the Town’s position that raising such funds within the Levy would limit the availability of funds for Town operations and other projects. 

A “YES” vote would allow the Town to levy the additional taxes needed to repay the money it borrows to construct a new Shaker Lane School. 

A “NO” vote would not allow the Town to levy additional taxes to construct a new Shaker Lane School.

No, the Town can only levy additional taxes to repay the debt for the Shaker Lane School project.

The Town will issue short-term debt called Bond Anticipation Notes (BANs) during the construction of Shaker Lane.  The amounts and timing of this debt is dependent upon the construction schedule and any reimbursements received from the Massachusetts School Building Authority (MSBA).  These BANs require that only interest payments be made upon maturity, usually within one year after issuance.  The increase to taxes is estimated to begin in 2026 through 2029 at approximately $400 on the average home.  Once the bond is issued both principal and interest payments would be made, starting in FY30, with the tax impacts shown in the calculator above. Payments would decrease each year due to a reduction in annual interest payments. The final bond would mature in FY2049 and the exclusion would end.

Tax Relief and Exemption Programs

The Town offers several programs to assist residents that may qualify for tax relief. More information can be found at the Assessor's Department.

The Town also offers a tax work off program for qualifying seniors. More information on this program can be found at the Department of Elder and Human Services.

• The school will not be built at this time.
• The MSBA (the state building authority whose grant program is subsidizing this project) will terminate its agreement with Littleton, as it is contingent on securing funding within 120 days of the MSBA Board accepting the schematic design.
• The district would not receive the state's reimbursements for the Shaker Lane Elementary School at this time.
• This reimbursement could not be shifted to another school or town project.
• Littleton would need to reapply to get Shaker Lane Elementary School back into the program. The best-case scenario is that the district applies the following year and is accepted into the program, the district and Owner's Project Manager will need to redo the work they've been doing and it takes another four years to get back to where they are now. The worst-case scenario is that MSBA rejects another Shaker Lane Elementary School application and it takes even longer.
• The cost of building a new Shaker Lane Elementary School will increase. Recent building construction inflation rates have trended at 4% annually. If we presume the contracts are bid and construction begins in the summer of 2026, the projected cost of the school could increase with a four-year construction delay by a range of $15.7, based cost of $92.2 million, to $17.7 million, based on a cost of $104.2 million.

Some other sites that may be of interest include:

• Massachusetts Division of Local Services, "Levy Limits: A Primer on Proposition 2 ½" (PDF)
• Massachusetts Division of Local Services, "Proposition 2½ Ballot Questions Requirements and Procedures" (PDF)
• Massachusetts Division of Local Services website, "Proposition 2½ and Tax Rate Process"
• Massachusetts Division of Local Services YouTube series: "A Deeper Dive Into Municipal Debt"
• Massachusetts Division of Local Services YouTube series: "Proposition 2 1/2"
• Massachusetts Division of Local Services Debt Service Calculator
• Massachusetts Division of Local Services Property Tax Impact Calculator
• Massachusetts Division of Local Services Municipal Databank
• Massachusetts School Building Authority School Construction Costs

The state's Division of Local Services posts significant information regarding property value and tax data on their Municipal Databank site: https://www.mass.gov/info-details/division-of-local-services-municipal-databank