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HomeMy WebLinkAbout2012-11-20 Board of Assessors MinutesTOWN OE:REs�� K 16 LOWELL READING, VlaVIPfp7"03 BOARD OF ASSESSORS TEL.: 781- 942 -9027 FAX: 781-942-9037 Z2� MINUTES pc-M3 - 3 D r' NOVEMBER 20, 2012 611 MEETING WAS CALLED TO ORDER AT 7:00 P.M. IN ATTENDANCE: BOA PRESENT: FRED MCGRANE, RALPH COLORUSSO AND ROBERT J. QUINN, JR. BOA ABSENT: BOB NORDSTRAND. OTHERS PRESENT: VICTOR SANTANIELLO AND PATRICIA SULLIVAN. 1. APPOINTMENTS: - BOARD OF SELECTMEN @ 8PM (SELECTMEN'S MEETING ROOM). 2. MINUTES OF PREVIOUS MEETING(S): None. 3. TOWN APPRAISER'S REPORT: The following forms were previously submitted to MADOR on November 6, 2012: Sales (LA -3), Classification Report (LA -4), and the Sales Adjustment Report (LA -15). The New Growth Report (LA -13) was submitted to MADOR on November 7, 2012. Total New Growth for FY 2013 was reported to be $579,830. Ms. Sullivan reported that all of the above Forms have been approved by MADOR. A copy of the approved LA -4 and preliminary draft of the FY 2013 Levy Limit are included in the Classification Presentation to be made to the Board of Selectmen later this evening. Ms. Sullivan expects that Patriot Properties will begin the data collection project within the next week or two. 4. SIGNINGS: The Board signed correspondence memorializing the final settlement agreement pertaining to the FY 2012 assessed value of certain land owned by the Johnson Woods Condominium. The proposed settlement was approved by the Board on November 8, 2012 and was accepted by the assessed owner on November 14, 2012. This agreement will result in an abatement of $2,775,000 and a FY 2012 tax impact of $39,266.25 (@ $14.15 /mil). The Board approved routine Motor Vehicle Excise Tax Abatements totaling $2,702.39. The Board also approved the 6`h Commitment of Motor Vehicle Excise Taxes in the amount of $46,412.14. 5. NEW BUSINESS Classification Hearing - Preliminary. A preliminary presentation was made to the Board of Selectmen on October 23, 2012. A preliminary draft of the "Classification Guide" was circulated to the Board membership on November 15, 2012. The original pie chart showing the distribution of Commercial and Industrial properties among six valuation ranges was subsequently corrected. The revised version of the "Classification Guide" (Exhibit A, attached) was then reviewed by the Board. The Board noted that the average (mean) value of a single family home and typical commercial property was estimated to be $432,300 and $1,507,900, respectively. The FY 2013 (single) tax rate was estimated to be $14.39/mil, assuming a Tax Levy of $53.1 million. If Reading were to adopt the maximum permissible CIP shift (150 %), the owner of an "average" single family home would save about $350. On the other hand, the owner of an "average" commercial property would pay an additional $10,857. The potential impact of splitting the tax rate can be readily derived by comparing the two tables appearing on page three (3) of the revised Presentation. Mr. Quinn would like to have had the hypothetical impact on residential and commercial property owners explicitly stated in the classification presentation. Mr. Colorusso noted that residential property accounted for 90% of Reading's FY 2012 tax base, not 93% as reported in the three tables appearing on pages 7, 8 and 9. Mr. Santaniello will make note of this typographical error at the start of his presentation to the Board of Selectmen. The eligibility requirements for the Small Commercial Exemption and the DET data used to identify potentially qualifying small businesses were discussed in some detail. Department staff was called away to prepare some supplemental information (Exhibit B, attached) for the Selectmen. Classification Hearine. All present went down stairs to join the Selectmen's meeting already in progress. All five Selectmen were present as was the Town Manager and Mr. LeLacheur. Mr. Santaniello led the discussion and responded to questions posed by several of the Selectmen. A representative of the local Chamber of Commerce spoke in opposition to a split tax rate. Two small business owners also expressed their concerns. The Board of Selectmen then voted to adopt a residential factor of 1 for FY 2013. The Board of Selectmen also voted to not grant or adopt the Open Space Discount, Residential Exemption, or Small Commercial Exemption for FY 2013. The vote was unanimous in each instance, 5 -0 -0. Follow -Up. The Board reconvened in the Assessors' Office after the public hearing, about 8:45 PM. The Board complimented Mr. Santaniello on his fine presentation. Mr. Santaniello will reach out to Michael Palmer, the owner of Sam's Bistro, as per Selectman Schubert's request. Mr. Santaniello noted that he will be working with Collector Nancy Heffernan to get the FY 2013 tax bills out on time. Some "bridging" of the Patriot Properties and Munis systems will be required. Supplemental tax bills will also need to be prepared. A complete analysis of the Overlay Account needs to be put on the agenda for some future meeting. 6. GENERAL BUSINESS: 1►[G-LIt" 7. CORRESPONDENCE: Copy of letter dated November 8, 2012 from the Reading Board of Assessors to Mr. John M. O'Connor for HD Development of Maryland, Inc. and memorializing the final settlement agreement previously approved by this Board with respect to the valuation of 60 Walker's Brook Drive for FY 2011 and FY 2012. Letter dated November 20, 2012 from the Reading Board of Assessors to Attorney O. Bradley Latham for Johnson Woods Realty Corp. and Redstone Realty LLC and memorializing the final settlement agreement previously approved by this Board with respect to all cases pending before the Appellate Tax Board for FY 2012. ADJOURNMENT: A motion by Mr. McGrane, seconded by Mr. Colorusso to adjourn at 9 PM was approved by a vote of 3 -0 -0. 8. NEXT MEETING(S): TUESDAY, DECEMBER 18, 2012 @ 7:00 P.M. 8a: Anticipated Topics: T.B.D. ADJOURNED: 9:00 P.M. ATTEST: RPbERT J. rNK, JR. -S CRETARY