CHARLEMONT — As a result of an error in calculating the annual property tax rate, Charlemont is facing a $231,958 deficit in its fiscal year 2023 budget that officials plan to cover using free cash.

While calculating the tax rate, officials forgot to factor in the Proposition 2½ override — which was needed to cover $231,958 toward Hawlemont Regional School’s operating budget — that was approved at last year’s Annual Town Meeting and election. The error “caused the tax rate charged to residents to be lower than authorized … and lower than what is needed to cover approved appropriations,” reads a report from Selectboard Chair Valentine Reid and Finance Committee Chair Richard Filoramo.

The plan is to cover the deficit using funds from the town’s free cash reserve, an account for unanticipated expenses, Reid explained. The free cash account currently has $376,202, according to Town Administrator Sarah Reynolds, so this use will deplete the account by about two-thirds. Voters at this year’s Annual Town Meeting will need to approve using the free cash to pay the deficit.

Reid and Filoramo’s report noted this was the first year an override had to be calculated by the employees working with the tax software. The error was discovered while conducting a reconciliation process to prepare for the subsequent budget season.

“There was no reason to expect this error to occur,” the report states.

The Selectboard and Finance Committee recommended four actions be taken in future years to ensure the error doesn’t happen again.

“This is not to blame anyone else for the error,” Reid said. “We are taking responsibility for this.”

Specifically, the Selectboard and Finance Committee suggested performing the reconciliation process as a review prior to the tax rate vote; incorporating an independent review by Reynolds; creating a town-shared calendar with critical dates across departments; and providing feedback to the Massachusetts Department of Revenue about the error so the software might be modified to prevent future errors in other communities.

“Residents expect their vote and voice to be counted, and in this regard, that didn’t happen as voted,” Reid wrote in an open letter to residents. “On behalf of everyone involved, I apologize for this event, and we will work toward eliminating future errors.”

Bella Levavi can be reached at 413-930-4579 or blevavi@recorder.com.