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BOARD OF SELECTMEN Finally, and at least financially, as the most notable change in town operations we list the vast increase in the school budget, both absolute and percentage -wise. As a re- sult, the major part of the decision - making relating to the town's tax rate has shifted away from the control of the selectmen and from the town meeting and into the control of the school committee. We say this without prejudice to the notable educational values which were derived; we cite it simply as a phase of change of which many citizens may not be aware. The foregoing changes require money to construct or operate. All of them create upward pressures on the tax rate. From this arises the great dilemma of town gov- ernment: how can the town best equate the insistent pressure for new or increased services with the maintenance of a tax rate which residents of Lexington can still tolerate ? The immediately reached conclusion by those distant from this problem is that the state sales tax will provide the answer. Citizens who draw that conclusion await a bitter disappointment. Over the past five years, the tax levy has increased at an annual average of $600,914. (The tax levy is the amount necessary to be raised to operate the town after allowance has been made for all state and federal subsidies, sales tax included.) It is our considered judgment that it will be difficult to restrain the increase to no greater amount than the $600,914. average of the past five years. Indeed, inflationary pressures may very likely push the increase above that figure. The sales tax will restrain taxes from rising to levels they would otherwise reach but in no sense can the sales tax reduce local taxes below present levels. A logical reaction at this stage might well be, "So what? Isn't Lexington's per capita income one of the highest in the Commonwealth? Why shouldn't our taxpayers be willing to accept the added burden of making the town they live in an even finer place?" We could agree to this reasoning if the burden fell equitably. Residents whose incomes fall in the middle and upper third of the five figure bracket could accept increased real estate taxes without hardship. This would not be true for most retired and fixed income residents. For them, increased real estate taxes, on top of rising consumer prices, could prove a real burden. When we talk about the affluence of Lexington it must be qualified by the knowledge that our fine schools and other town facilities are not paid for. We financed the major part of them with bond issues. Principal and interest alone, on that bonded debt amounted in 1966 to 16.9 per cent of our tax levy. It would be well for citizens to realize that every increase in the tax rate makes Lexington a more expensive town to live in. We are unpersuaded that the high tax rate has yet adversely affected property values. Newcomers to Greater Boston with children of school age in the family, find Lexington a very desirable place. Because it is an intellectual community with superior schools, they accept the tax rate as part of the investment they are making in their children's future. Lexington's tax rate is not attractive, though, to people on fixed incomes. That "plus" factor of the schools tends to limit new residents to those with school children; the home formerly occupied by a retired couple is frequently sold to a family with two, three, four, or more children. This adds to the school population, which adds to the in- creased school budget, which adds to the tax rate, which induces more fixed income resi- dents to move from Lexington. At that point the cycle starts all over again. Personal Services Expenses Staff as of Dec. 31 Five Year Trends in the Office of the Board of Selectmen 1962 1963 18, 278. 92 21, 215.85 4, 312. 23 5, 220. 29 3 4 9 1964 28, 269. 69 7, 454. 09 1965 1966 30, 029. 37 27, 568. 64 4, 831. 73 4, 989. 22 4 4