The discussion concerning the potential shift from a single to a split tax rate was a primary focus, with board members weighing the implications for both residential and commercial property taxpayers. The conversation highlighted the absence of a significant shock when tax bills are issued, as some adjustments are made in preliminary bills. However, adopting a split tax rate could lead to substantial impacts on businesses, especially if implemented abruptly. Examples were provided of the possible cash flow challenges for commercial properties, emphasizing the importance of a phased approach to any tax rate adjustments.

Concerns were raised about the lack of support from local businesses for a split tax rate, with several representatives expressing opposition. The board acknowledged that while no proponents had stepped forward, it was essential to consider the broader community’s response.

The board also explored various tax relief programs, particularly those benefiting low-income residents, seniors, and disabled veterans. Notable was the senior property tax deferral program, which allows seniors to defer taxes at an interest rate of 2%, lower than the state average. This program has seen increased interest amid discussions on tax overrides, although challenges remain with banks’ cooperation in mortgage subordination.

Moreover, the meeting delved into the financial outlook and capital improvement planning for fiscal year 2027, with an emphasis on the town’s reliance on free cash. The state-certified free cash was reported at $13.9 million, attributed to several factors, including high non-recurring revenue and successful cost containment measures. Discussions highlighted the necessity of maintaining a financial cushion for unforeseen circumstances, though reliance on free cash was noted as potentially jeopardizing the town’s financial standing and bond rating.

The board debated the implications of free cash components, recognizing that if non-recurring items were removed, the figure would align more closely with historical averages. Concerns were raised about the unpredictability of achieving such figures in future budgeting cycles, emphasizing the episodic nature of the current year’s free cash.

A significant portion of the meeting was dedicated to the Natick Public Schools budget. It was noted that while historical growth rates averaged around 5%, current projections for level service have risen to 5.4%. This increase was primarily attributed to staffing commitments and contractual obligations, which constitute a considerable portion of the school budget.

Additionally, the meeting addressed the town’s top taxpayers and their contributions to the levy. Changes in the landscape were noted, with more apartment complexes entering the rankings as office values stagnated. The board emphasized the importance of comparing Natick’s tax structure to neighboring communities as part of their assessment process, presenting graphical data to illustrate these comparisons.

Finally, the board considered several other agenda items, including the approval of a 5K beer run event, pending participant limits and coordination with local police, and updates on various town matters. An alcohol training session for licensed holders was noted for its success and model recognition by the Alcoholic Beverages Control Commission. The meeting concluded with a transition to executive session to discuss strategic negotiations with non-union personnel.