We’re writing to share our thoughts on the proposed Community Preservation Act (CPA). While CPA has merits, Fall 2026 is not the right time for Reading to add a 1% property tax surcharge, on top of the 9% minimum tax increase already scheduled for FY28, which could reach a nearly 20% tax increase if an operating override passes. Given these significant financial pressures, this ballot initiative should wait.
Please take a moment to contact your Town Meeting members (link: https://www.readingma.gov/575/Town-Meeting) and urge them to vote NO on Article 13 the Spring 2025 town meeting (which runs April 27th — May7th ). Article 13 is the town meeting article to put a CPA surcharge vote on the fall 2026 election ballot.
Executive Summary
- The average Reading tax bill of $10,600 already IS going up in FY28 by approximately $981 (9.25%) from debt exclusions already approved for Killam and ReCal.
- An operating override on the Fall 2026 ballot could add another ~$1,000 based on current shortfalls.
- The CPA surcharge, if passed, adds a 1% property tax surcharge on top of all this.
- Let’s pause on CPA and revisit in future when Reading’s financial footing is clearer and more stable.
🌱 What Is the CPA, in Plain English?
The CPA is a Massachusetts law that lets towns add a surcharge of up to 3% on property taxes to create a dedicated fund for specific limited uses:
| 🌳 Open space &conservation | 🏞️ Outdoor recreation |
| 🏛️ Historic preservation | 🏘️ Affordable housing |
The state then provides a variable annual contribution from the statewide CPA Trust Fund. This contribution is not a true match because it fluctuates with real estate activity and state finances. Communities that joined decades ago received far larger contributions than have issued in recent years. CPA funds are restricted and can’t be used for schools, public safety, roads, staffing, or operating needs.
💵 What Would CPA Cost Reading?
Reading is proposing a 1% surcharge, with the following limited exemptions:
| Exemption Type | Included? | Notes |
| Low‑income residents | ✅ Yes | Income < 80% Area median income(AMI) |
| Low‑ or moderate‑income seniors | ✅ Yes | Income < 100% AMI |
| First $100,000 of residential value | ✅ Yes | Automatic |
| Commercial property | ✅ Yes | Full exemption – no surcharge. |
According to the CPA Study Committee:
- Average homeowner cost: ~$100/year
- Local revenue raised: ~$800k–$900k
- Variable State contribution: ~$180k–$220k (and likely to fluctuate downward in tight budget years)
In normal times, this might be manageable. But 2026–2028 won’t be normal years for Reading taxpayers.
🚨 Why Now Is Not the Right Time
1️⃣ Residents are already facing major tax increases
Reading voters in 2025 approved $157 million in debt exclusions for Killam and ReCal. But we’re not done:
- Expected Killam/ReCal impact on avg. home: ~$981/year added to the average tax bill starting in 2027.
- Current structural deficit: ~$8 million and growing
- Override vote expected fall 2026, same time as proposed CPA vote)
- 2018’s $4.5M override added ~$500. An exemplary $10M+ override could add another $1000
👉 With an override sufficient to close the structural deficits and no cuts to the town and schools, the average Reading household could see $2,000+ in new property taxes per year before CPA surcharge is even added!
2️⃣ CPA funds can’t help minimize the override or pay for core services
CPA money cannot be used for any of the financial challenges driving the need for an operating override (school, police, fire staffing costs, inflationary impacts on capital, expenses, and operating costs, double digit health insurance costs, etc.). CPA funding is usable only for the specified purposes, which are expenses that many deem discretionary and optional in financially tight times.
3️⃣ CPA may be harder to pass when paired with a large override
- Voters are less likely to approve multiple tax increases at once.
- In Reading in 2002, CPA was paired with a proposed debt exclusion override and CPA failed.
- Pairing CPA with a necessary override could jeopardize both.
4️⃣ Many CPA projects are “nice to have,” not “must have”
Supporters often highlight recreation projects like playing fields, playground upgrades, splash pads, pickleball courts, and expanding trails. These are great amenities, but they are discretionary. Given the need for an override and the already large debt exclusions that Reading approved, it is reasonable to pause optional projects for a few years.
Supporters also have touted that CPA can help improve the supply of affordable housing. However statewide research also shows that a large share of CPA funds go to open space and recreation, not housing, especially in wealthier communities like Reading.
5️⃣ We can always adopt CPA later 🌟
This is not a “now or never” decision. Reading can revisit CPA in 2028 or 2029 or later, after we see if an override passes (and its impact stabilizes) and after residents adjust to the impact of Killam/ReCal taxes. Moreover, the town has estimated that ReCal is likely to require an additional half million dollars of operating budget a year to provide necessary staffing and services, which our budget will also have grow to handle.
Waiting on CPA does not close the door forever. Rather, it respects the financial realities Reading faces today.
💬 Next Steps
If you’ve read this far, let’s reiterate — please take a moment to contact your Town Meeting members (link: https://www.readingma.gov/575/Town-Meeting) and urge them to vote NO on Article 13 at the Spring 2025 town meeting (which runs April 27th— May7th ).