Salem Mayor Dominick Pangallo is pushing for passage of a property tax override to fund a new building for the city’s high school.
The citywide vote, which takes place on May 5, is asking residents to raise the total amount raised through taxes by $239 million to go towards the construction costs.
“It provides the shortest construction timeframe. It lets us continue using the old high school while the new one’s built, so it’s less disruptive to the students,” Pangallo told GBH News on Tuesday. “And because of that shorter timeframe, it’s actually less expensive to the city than doing a renovation of the existing building.”
More specifically, voters are being asked to approve a debt exclusion that, starting in 2028, would be added to their tax bills for 30 years. Based on the city’s median home value of $590,000, the average bill would increase by about $700 per year — although the exact amount wouldn’t be set until the debt financing is finalized, according to the city. The dollar amount added to individual bills through the debt exclusion is unlikely to change over the 30 years. Unlike regular overrides, debt exclusions can only be used for the specific project cited on the ballot.
Salem is the second Gateway City this year to ask residents to increase their property taxes under Proposition 2-1/2, the state law that sets limits on the annual tax increases communities can impose. Malden asked residents to consider a regular override to fund city services last month, but it failed to pass. Debt exclusion votes, while also relatively rare in Gateway Cities, have had more success, with Fall River residents approving one in 2022.
Some Salem residents, like Justin Whittier, are worried about how a tax increase would impact the city’s overall affordability.
“We all want what’s best for the students, but we also have to do what we can afford,” said Whittier. “This proposed tax hike to build a new high school is going to hit a lot of low and fixed income people really hard.”
Salem officials say the current 50-year-old school building needs to be replaced, and a renovation would ultimately cost the city more to bring it up to code over the next 20 years.
Pangallo said the building has deficient art facilities, asbestos in the walls, mercury in the floor and leaking ceilings. The building also does not comply with the Americans with Disabilities Act, and the classrooms are much smaller than what the state would allow today.
The total cost of the new building would be $447 million, according to the city. Grants from the Massachusetts School Building Authority would cover around $208 million of that.
Construction of the new building would be expected to start in 2028 and be completed in 2030.
The median increase on commercial properties over the next 30 years of debt payments would be roughly $1,233 a year, according to the city.
Stephen Kapantais lives in Salem and owns a three-family home. He said he and his tenants are going to feel the effects of the override if it passes.
“As property owners, as our taxes go up, our costs of maintaining the house and costs of insurance go up,” he said. “At a time when affordability is supposed to be at the forefront, this is going to make Salem less affordable for tenants both on the commercial and the residential side.”
Even if the override doesn’t pass, Pangallo said the issues with Salem High School will still need to be addressed with a renovation, with estimates for that option coming in at around $461 million. The city would also have to reapply for matching funds from the state to offset the costs of a renovation.
“If we don’t do the new construction project, it’s actually more expensive to do the code renovation,” he said. “I appreciate that people are concerned about the costs, but the selection of the new construction option is actually the least expensive way of addressing the problems with the building and achieving what we want in our school.”
Salem resident Ashley Judge said she plans to vote yes because she believes a new building is the cheaper option.
“As I understand, the cost is going up no matter what for us taxpayers. Let’s do the thing that benefits us the best,” she said. “Also, with the state funding, these are tax dollars coming back into Salem instead of going somewhere else. I know we don’t have a great choice, but I believe this is the best choice.”
