A continuation of a Public Hearing of the City Council was held in City Council Chambers on Thursday, December 15, 2011 at 6:30 P.M. for the purpose of discussing the allocating of local property tax levy among the (4) property classes for Fiscal Year 2012 and the residential, open space and small commercial exemption options. Notice of this hearing was posted on December 9, 2011 at 11:36 A.M.
Absent were Councillors Lovely, Ronan and Prevey.
Council President Jerry L. Ryan presided.
In attendance were the following: Assessor Deborah Jackson, Board of Assessors, Mayor Driscoll and Richard Viscay Finance Director
President Ryan then turned the Public Hearing over to the Assessor.
Deborah Jackson, Assessor stated that the Board of Assessors do reassessment every three years it was started in 2010. The Assessor proceeded with a slide presentation (a hard copy is on file in the City Clerks office). She started with an explanation of the terms and explained how they arrive at the figure for the average tax bill.
Assessment Update as of January 1, 2011 for FY 2012
The State requires that the Board of Assessor’s complete a revaluation every 3 years: this is called a triennial revaluation. The revaluation took place in Fiscal Year 2010. An interim adjustment to values happens between the 3 year cycle in response to changes in the real estate market. Interim adjustments have occurred annually since Fiscal Year 2002. The ultimate goal is to maintain assessments at “full and fair cash value”. This is done by analyzing the real estate market. Fiscal Year 2012 values are based on market activity that occurred during calendar year 2010, during which we had limited decline in single family, condominium values and commercial and industrial properties. Multi family dwellings saw the largest decline, averaging almost 6%.
Average Residential/Commercial Bills as presented at 1.65
Class FY 2011 FY2012 FY12 Values Change
Single Family $4,467 $4,594 $293,900 $127
Condominium $3,422 $3,459 $221,300 $ 37
2 Family $4,399 $4,361 $279,000 $ (38)
3 Family $4,835 $4,720 $302,000 $ (115)
Commercial $13,993 $14,336 $480,000 $343
Tax Rate Change Single Family Condo 2-3 Family Commercial
1.66 115 28 -49 / -127 439
1.67 106 21 -58 / -136 516
1.68 94 13 -69 / -148 602
1.69 83 4 -80 / -160 689
1.70 72 -5 -91 / -172 775
1.71 62 -12 -100 / -181 862
1.72 50 -19 -111 / -193 949
1.73 38 -29 -122 / -205 1,035
1.74 27 -38 -133 / -217 1,122
1.75 18 -55 -141 / -226 1,208
Deborah Jackson explained 2012 Tax Levy Limitation
The 2011 Levy Limit 72,993,129
2.5% Increase
FY2011 New Growth
2012 Levy Limit 75,492,988
Sales in 2010 were 699
Sales in 2011
293 Condos
165 Single Family
180 Multi Family
36 commercial
25 other
She continued to go over the handout relative to the Average Single family bill and comparisons of other cities.
She stated that since 2009 there has been 139 dollar increase in tax bills. The average single family bill cost is lower in Salem than in Danvers.
The Average Single family bill there was 1789 over average and 3039 under average.
Condo there were 1816 over the average and 2169 under the average.
Average for 2 family has gone down to 279
Average for 3 family has gone down to 302
The shift of CIP affects the Commercial rate. The recommendation is 1.65 CIP split making it .865208.
Councillor McCarthy asked for clarification the average commercial will be going up how much.
Deborah Jackson stated $343.
Councillor Pelletier asked how much difference is it if we drop from 1.65 to 1.64.
Ms. Jackson stated residential increases but commercial goes down.
Councillor Pelletier stated he would like it to be considered to send a better message to businesses.
Councillor McCarthy moved that the hearing be closed. It was so voted.
On the motion of Councillor McCarthy the meeting adjourned at 6:50 P.M.
ATTEST: CHERYL A. LAPOINTE
CITY CLERK
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