While an override results in a permanent tax increase that is used to fund recurring operational expenses, debt exclusions result in a temporary tax increase to pay the debt service from bonding for a specific capital project, such as building a new school.
For debt exclusions, the debt service costs are added to the levy limit for the life of the debt only (typically between 10-30 years). Thus, unlike overrides, debt exclusions do not become part of the base used to calculate future years’ levy limits.
Hingham voters approved three debt exclusions in 2022. The debt exclusions will fund a new elementary school to replace the Foster School ($113 million), a new Public Safety Facility on Route 3A ($47 million), and a new Town Pool located at the South Shore County Club ($8 million).