Board of Selectmen Meeting
February 1, 2010
By Jay Shenk
This meeting was very brief, but much of importance to our community and our tax bills transpired.
First, on a completely positive note, the Agricultural Commission came before the Selectmen to request a rate increase for participation in our newly formed but very popular ‘Farmers’ Market’, held during the warmer months on Academy Hill (from the first Friday in May until the last Friday in October), and elsewhere on special occasions throughout the rest of the year. The rate increases are modest, and the new rates, which were approved, will continue to be extremely low compared to other Farmers’ Markets in surrounding towns. Our market is new, and the rates are set to encourage participation rather than raise money, something I always like to see. For instance, our seasonal rate to participate in the market is going from $50 to $75, while the norm for nearby towns is more in the $300 range.
The Agricultural Commission will look for new locations over the winter—they used the DPW building around Christmas, for instance, and although DPW Director Josh Hall was quite accommodating, there isn’t really any heat in the building, so they’d like to be in some place warmer next year if possible.
On an upbeat or downbeat note, depending totally upon how your home is now assessed for tax purposes, the new tax bills have been mailed. Total property tax bills have remained virtually flat from 2009 to 2010—the town will collect only $170 less in 2010 than in 2009, but actual tax bills will vary widely by individual household.
Overall, property values in Westminster declined by 10.9% (were assessed at 10.9% less than in 2009), so to keep property tax revenue flat, per the Selectmen’s wishes, the property tax rate was raised by 10.9% This math doesn't quite work, but the end result is correct--if you have $100 and lose 10%, you have $90. Then if you gain 10% you gain $9, losing a $1....however the actual total of the tax bills, for whatever reason--rounding, computation of the average value decline, or new properties to tax, now comes out the same 2009 vs. 2010).
The new rate is now 14.42%, up from 13% in 2009. If your house declined in value by the average rate throughout the town, your tax bill will remain approximately flat. If your house declined more than the 10.9% average, your tax bill will decrease. On the other hand, If your house has been assessed at the same value it had in 2009, your tax bill will rise about 10.9%, and if your house defied the marketplace and actually rose in value, your tax bill will unfortunately increase more than 10.9%. The value of your house is determined based upon a State Department of Revenue formula which takes into account "arm's length" (not to a relative, for instance) transactions, comparable sales in your or a similar eighborhood, age of the house, and more, some of which is described in the press release sent out from Town Hall and posted at the bottom of this article.
Next up was a part of the meeting that although civil on the surface, was divisive for reasons not specifically stated. Peter Normandin brought up the subject of what the town was intending to do the property they are electing to buy at the end of South Street. Peter’s proposal is that the town immediately sell it, as he didn’t feel it was of any use to the town. Nothing was decided, as that is really step 2 in the process, after the town acquires the land, but it did emphasize, yet again, the fact that the town is buying two parcels of land that are no longer required to be purchased for reconstruction of the South Street/Main Street intersection.
More bluntly, the town voters approved $450,000 to acquire 22 temporary construction easements, 1 permanent sidewalk easement, the two properties at 4 Leominster St. and 137 Main St., and to cover any other associated costs, such as appraisals and legal expenses. We (the voters) approved this because the plan from the state at the time required that we take the two properties, which are a private house and the rundown garage at the end of Main Street. Then the state changed the project.
Now, although neither property is required for the project, the town is proceeding with the purchase anyway. The reasons given by the Selectmen, John Fairbanks in particular, are that the family who owns the house has been strung along by the state, and it’s the right thing to do, and the garage is an eyesore (which it certainly is).
However, the garage is also a potential environmental cleanup site, and although it’s confidential as the negotiations continue for both properties, in essence the town is spending a large portion of the $450K to acquire two properties that it does not need to acquire, and doesn’t have any particular idea what to do with post acquisition, other than probably tearing down the garage. Assuming the properties are torn down and any environmental issues cleared up, the town is looking at an additional $100,000+ in expenses. It’s probably not an exaggeration to say the town is spending close to half a million dollars that it no longer needs to spend, in order to do the right thing and beautify the end of Main Street.
Nick Hay mused on this at the meeting—at a time when we are asking department managers to shave $20K off their budgets, and the senior center is put on hold because we don’t want to spend the $60K, is it not incongruous to be spending possibly $500K or more on a discretionary item? However, the Selectmen did not put a hold on this purchase, so the town is proceeding to purchase both properties.
WESTMINSTER FY2010 TAX RATE APPROVED
The Department of Revenue has certified a tax rate of $14.42 for Westminster for fiscal year 2010. This represents a rate increase of approximately 10.9% over last year’s rate of $13.00. The rate increase is offset by a corresponding decrease of 10.9% in total property values. In accordance with the Board of Selectmen’s stated goal of no increase in taxes, the total amount of taxes to be raised among all combined property classifications (residential, commercial, and industrial) is the same for FY2010 as in FY2009.
It is important to note that although the total amount of taxes billed will not change, the effect on individual tax bills will vary, depending on revised assessed values. For example, a home valued at $300,000 would have received a bill of $3,900 at last year’s rate of $13.00. If the value of that home decreases by the town wide average of 10.9%, this year’s bill will decrease slightly, to $3,855. If the assessed value of that same home has not changed, however, this year’s bill will increase to $4,326.
Assessed values are arrived at in accordance with Department of Revenue guidelines, which prescribe a detailed analysis of arms-length sales in Westminster during the prior three calendar years. Sales are reviewed and analyzed by criteria such as style, neighborhood, age, condition and sales data. This results in differences in the changes that occur with assessed values between individual properties and between neighborhoods. Sales in one area of town may precipitate an increase in values in that neighborhood, while there may be no change, or a decrease in another neighborhood or with another style of home.
The actual real estate and personal property tax bills have been mailed. The 3rd quarter installment is due by Monday, March 1st and the 4th quarter installment is due by Monday, May 3rd. Payments may be made at the Treasurer/Collector’s office in person during regular business hours or may be placed in the drop box located at the front door of Town Hall or online at www.westminster-ma.gov. Abatement application forms are due in the Assessor’s Office by Monday, March 1st.