Taunton Pays Off High School Debt Early
The city council used its stabilization fund to retire the Taunton High School debt exclusion two years ahead of schedule.
Updated on Nov. 2, 2026 in Saving
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On October 13, 2026, Taunton City Council voted unanimously, with nine councilors in favor, to use stabilization funds to pay off the Taunton High School debt exclusion early. The debt exclusion had two years remaining before it would have been fully paid.
Why it matters
Paying the debt with cash from the city's savings account ends the property tax levy that funded it, providing tax relief to Taunton homeowners. The move reflects a decision to draw on reserves that have grown since 2021.
Taunton's stabilization fund holds about $46 million, and the city council voted to draw on it to end the High School debt exclusion two years early. A homeowner with a $500,000 home saves about $50 this fiscal year and roughly $100 across the remaining two years, though the exact transfer amount was not stated.
The players
Taunton City Council
The nine-member legislative body of the city of Taunton, which voted unanimously to approve the early payoff.
Patrick Dello Russo
Taunton's chief financial officer since 2021, under whose tenure the stabilization funds have grown.
The details
The council used the city's savings account, known as stabilization funds, to cover the remaining cost of the debt exclusion rather than continuing to collect the dedicated property tax. The stabilization funds have grown since 2021, when Patrick Dello Russo became chief financial officer, and the city plans to replenish them after the transfer.
Timeline
2021: Stabilization funds began growing under CFO Patrick Dello Russo.
October 13, 2026: City Council voted to use stabilization funds for the debt exclusion.
Next two years: Taxpayers save approximately $100 from the early payoff.
Market Landscape
Massachusetts towns fund many capital projects through debt exclusions, which Proposition 2½ allows as temporary levy increases outside the standard cap. Taunton's decision to retire its High School exclusion early with reserves is a less common move than letting it expire on schedule.
Homeowners in Taunton will see a small reduction in their property tax bills as the High School debt exclusion is retired early. The savings are modest, around $50 this fiscal year for a $500,000 home, but they arrive without any new borrowing or added levy.
The takeaway
Reserve funds can be a practical tool for retiring debt early, but the savings for an individual household are typically small. Residents interested in their own property tax obligations should review their town's annual budget and levy documents.
Further reading
Explore more on Saving to see how reserve funds like Taunton's can be used to reduce long-term costs.
Source note: This article includes information reported by The Taunton Daily Gazette, Taunton, MA.
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