A Public Hearing of the City Council was held in the Council Chamber on Monday, December 14, 2009 at 6:00 P.M. for the purpose of discussing the allocating of local property tax levy among the (5) property classes for the fiscal year 2010, and the residential, open space, and small commercial exemption options. Notice of this meeting was posted on December 10, 2009 at 4:57 P.M. and advertised in the Salem News on November 30, 2009 and December 7, 2009.
Councillor O’Keefe was recorded as absent.
Councillor Veno arrived late at 6:24 P.M.
Council President Paul C. Prevey presided.
In attendance was Members of the Board of Assessors Richard Jagolta, Don Bates, Finance Director Richard Viscay, and the Assessor Deborah Jackson and his staff Joe Murphy and Paul Tierney.
President Prevey then turned the Public Hearing over to the Board of Assessors.
The hearing was then turned over to the Assessor Deborah Jackson.
Ms. Jackson introduced her staff and the Board of Assessors. She gave the definitions of terms with a power point presentation.
CIP – Commercial Industrial Factor
RF – Residential Factor
Levy – dollars to be reused through taxes
RES – Residential Property Classification
She stated that the Levy has gone up on an annual basis of 2 ½ percent.
The 2009 Levy limit is $67,385,423
Add 2.5% increase of 1,684,636
Add FY2010 New Growth 1,064,919
2010 Levy Limit is $70,124,978
The 2010 Budget is $123,965,435
Less total Receipts $53,883,110
FY10 Tax $70,082,325
In 2008 there were 947 sales around the City
Condos 404
Single family 266
Multi-family 116
commercial/ Industrial properties 35
other mixed use, land etc. 126
Condos and single family homes make up 75% of the residential parcels
The average 2010 bill for a single family is $4,370. Salem is on the lower end in comparison to surrounding communities with the average the increase of $176. Swampscott was the highest at $309 and Beverly was the lowest at $154.
The average single family bill (4,805 units) will increase $176, the average condo bill (3909 units) will only be an increase of $62.
Single family homes and condos make up 76% of all residential properties in the city. The average property tax bill for 76% of residential properties will increase only $125 for FY10.
The average two family is down 10 ½ to 11%
(Councillor Veno arrived at 6:24 P.M.)
Councillor Pelletier asked is the decline in value for commercial properties.
Ms. Jackson stated yes 2 ½ - 3% decline.
In 2000 73% residential, 10% personal, 17% commercial.
In 2004 81% residential, 6% personal, 13% commercial.
In 2010 83% residential, 4% personal, 13% commercial.
Residential value has been steady at a rate of 2%. State aid is down, pushing for commercial growth. Local options to off set which would be meals and room tax would generate $900,000 per year for the City of Salem.
Councillor Lovely asked local options what if we passed it in the summer what would the numbers be.
Mayor Driscoll responded that Dept. of Revenue would not allow you to calculate it for a 12 month. If local options were in place for Fiscal Year 2010 the average single family would have decreased $56.00.
Richard Viscay stated the earliest we could have adopted it would have been October 1st.
Mayor Driscoll stated there is so much of the pressure is on the property taxes, this would relieve it.
Councillor Veno state the slide presentation indicates going forward and that this could be the impact on what is saved.
Mayor Driscoll stated we are hopeful for next year.
Councillor Veno stated what is frustrating is when you do the budget and there is a 3 billion shortage for the state for 2011 it means tough times again.
Councillor Furey asked with local options other cities and towns have jumped on board will they show a savings?
Mayor Driscoll responded if we are cut another 4 million next year this could help preserve services and not make cuts.
Deborah Jackson stated we are looking for 1.65 split, $14.01 residential, $26.93 commercial (.858569).
Stan Poirier stated the average single family vs. condo Salem is over staffed with condos, look at the occupancy and those that are not occupied. Condos are getting away with murder.
Councillor Pinto asked do we have percentage of non occupied condos?
Ms. Jackson stated that she believed the number would not be high and could get the information for the council.
Councillor Veno asked what is the affect on the average commercial bill?
Ms. Jackson stated $661.00.
Councillor Veno asked what percentage is it.
Ms. Jackson responded less than 2% - ½ % increase
Councillor Veno stated it is a similar calculation for single family $176.00 increase.
Mr. Viscay stated 4.1% average single family, 4.8% average commercial property.
Rinus Oosthoek – stated Salem has lower taxation for businesses compared to other towns. We are doing good in comparison to other cities and towns.
Councillor Lovely slide 21 residential 83% and Commercial 13%, are we loosing businesses or is the residential expanding.
Ms. Jackson stated the real value is the Power Plant.
Councillor Lovely asked are we gaining businesses
Mr. Viscay responded that commercial is not leaving it’s devaluating equipment of the Power plant.
Rinus Oosthoek stated very few businesses are going out, we would like to fill vacancies.
Mayor stated we have manufacturing that turned condo that amount of revenue is more.
Councillor Lovely asked where are we with the Power Plant agreement.
Mayor Driscoll stated next year (2010) is the last year of a 3 year agreement. They are our largest tax payer and I wish it was a longer term agreement.
Councillor Pelletier stated the average condo increased $64.00 a 1.9% increase. Are those values down?
Ms. Jackson stated yes.
Councillor Veno stated regarding the power plant for the future. If you could give an overview relative to the plant it would be helpful.
Councillor Sosnowski moved that the hearing be closed. It was so voted.
On the motion of Councillor Veno the meeting adjourned at 6:50 P.M.
ATTEST: CHERYL A. LAPOINTE
CITY CLERK
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