The Override: A Necessary Evil as long as we have Prop 2 1/2, but that's not why Melrose will be "unaffordable".

We’ve spent all week researching the case for an Override. We’ve read the city's take, everything on the Yes for Melrose website, the Keeping Melrose Affordable website, and against our better judgement, we’ve read… and had friends send us… screenshots of discussions from multiple Facebook Groups and other online socials where the Override is a hot topic of conversation. The Melrose Messenger has done a phenomenal job reporting the what, why, and how of the ballot question.  If you take the time to read their article, and then a little more time to read both the Yes and No websites, it seems clear to us that an Override is not only common sense but terribly necessary. Further, it is our opinion that the fears of financial uncertainty for our fixed income residents would not likely be so forefront if it weren’t for poor, overarching state and national economic decisions that have led to them being cash strapped long before the vote this November. And now some are being forced to make a choice between their financial comfort and ongoing cuts to city services. 

                The Yes for Melrose side, using supporting information from the city’s website and demonstrates why an Override is needed; namely that the tax revenue the city is limited in collecting via property tax (thanks to Massachusetts Proposition  2.5) is inadequate to cover the rising costs to keep the city operating.  Both sites outline what collected tax dollars will be used for.  The Yes for Melrose website also outlines frequently asked questions that an undecided or NO voter might have in order to clarify what this means.  

                As far as we can tell, the main argument from the Keeping Melrose Affordable side is that some folks can’t afford a tax increase.  On their website, there is no argument that the funds aren’t needed, nor are there alternative solutions to the budget shortfalls outlined by the city.               

Anecdotally, arguments online have been:

·         RE: School Budget Shortfalls - Use the Melrose Educational Fund; a solution that isn’t really a solution because it’s based on donations which can’t be relied upon to cover recurring, tangible costs.

·         RE: City Infrastructure – No solutions offered

·         RE: The increase in the tax burden: The city should live within its means; or more officially, the city needs to live within a balanced and approved budget.

The likely reason for feeling like a property tax increase is too much is because folks are spending more of their income on everything else. Incidentally, some of these rising prices are affixed to the same goods and services that our local government also has to contend with: ingredients for food for schools, costs of insurance coverage for employees, building materials, etc.  Let's unpack this theory a bit more.

               Since 2018 (the year before the last Override in 2019) inflation has gone up 29%.  Adjusted for inflation, wages have only gone up only 5-10%, a difference of 19%!  In addition, the purchasing power of the dollar has dropped 22% over the same timeframe.  As illustrated in the graph below, there is a significant gap between what you can afford, the cost of goods, and the increase in wages over the last 6 years (and 5 years since the last Override).  

                Further, the average rate of Return on Investment for things like a 401(k) during this same time period was around 8%, compared with a 12%-14% ROI between 2010-2018, which means retirement accounts haven’t been earning what financial advisers might have predicted they would when some of our senior/fixed income residents were making the decision to retire. That is unfortunate, but not the fault of any mismanagement on the city’s part.

                The fact of the matter is the Override is less likely the reason they are/will struggle financially and more because of the above factors that have dropped the earning power of the dollar overall, drops that your earned income and/or retirement aren’t covering, and drops that city officials must also contend with, which includes cutting people and services.  The Override is just a convenient thing to blame because it's something we have control over on a micro level via our vote compared to these more macro reasons that are decided at a state and federal level.

                Voting for the Override also begs the philosophical question: will anyone want to stay/move to our community if our schools are chronically underfunded, our city infrastructure is inadequate to serve the population, and our first responder facilities are sub-par? For the NO folks: will Melrose remain the city of your nostalgia/your imagined future if it continues to cut services the way they have this past fiscal year, with more in the future if it doesn't pass?

                It’s a safe bet the answer to that is no.  There is already anecdotal evidence in various Facebook Groups that folks have left Melrose because of declining schools and it’s not a stretch to think that this, combined with the deterioration of city infrastructure, will likely decrease Melrose’s attractiveness to current or future homeowners.  This is a huge issue considering 95% of the city’s tax revenue comes from residential property taxes.  An increase in commercial business has been lobbied for in the past, but we remember the fight to keep commercial chains from moving into Melrose in deference to keeping its small-town “charm.”  The skewed reality of our tax base not building for...or welcoming...commercial businesses is a real loss for the community considering commercial-backed chains are less likely to fail meaning a more reliant, long-term tax solution.

                The financial stress is not lost on us here at Melrose Votes. However, we also do not realistically see a fiscally responsible path forward without this Override.  There is no sense in the proverbial “cutting off your own nose to spite your face” because letting the city sink will hurt everyone…including those who vote No.  We must look at the greater good in fervent belief that a rising tide will lift all boats.  Because for the NO voters, the Melrose you want to stay in won’t be the Melrose you remember/want when the schools, essential services, and infrastructure start to crumble.  And when it’s time to head to the polls to elect state and local leaders, take a closer look at any candidate promising tax cuts, because their other policies might put you right back where we are now: tax breaks that aren’t going into your pocket but instead going to cover the rising costs elsewhere every time you shop. Next blog topic: A dive into wild difference between how the people of Melrose vote when compared to the affiliation they are registered as.