HomeMy WebLinkAbout2001-06-14 Community Preservation Act Study Committee Minutes2C~Oi J a `r2: C Q
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Town of Reading
Community Preservation Act Study Committee
Minutes for Meeting of June 14, 2001
Present: Chair Kim Honetschlager, Paul Dustin, Dick Howard, Jack Downing, Patricia Lloyd,
Rick Schubert and Tim Kelley (committee members)
Also present: Gerry MacDonald, Amy Senier, Thomas J. Ryan (Bd of Assessors) and Ralph
Colarusso (Bd of Assessors) and Nancy Eaton (Cons. Com.)
Meeting was called to order by Kim Honetschlager at 7:33 p.m.
Presentation from Board of Assessors.
Mr. Ryan and Mr. Colarusso made a presentation analyzing, from FY 2001 values, what the
Town could expect to collect from a CPA surcharge of 1%, 2% or 3% with analysis of
exemptions for first $100,000 and for low & moderate housing and combination. (See attached
chart prepared by the Board of Assessors dated June 14, 2001.) This is based on the FY2001 tax
rate of $13.51 per $1,000.00. The range of surcharge collected is from approximately $193,000
to $905,000. Mrrs. Ryan and Colarruso also presented issues of: Chapter 59 non-discretionary
exemptions for elderly, veterans, disabled, etc.; abatements; deferments. Mr. Ryan stated that
under the CPA there are three types of exemptions: (1) first $100,000 of value for residences; (2)
low/moderate income housing; and (3) certain exemptions on commercial property if there are
separate commercial/residential tax rates (does not apply to Reading).
A general discussion of assessment process followed. Reading reviews assessments every year.
State law requires review every 3 years. Assessment is defined as 100% of full & fair cash value.
There are 7,962 total assessed residential parcels in town. Average assessment per parcel is
approximately $280,000.
Ms. Eaton distributed the MACC Newsletter (MA Assoc of Conservation Commissioners)
which contained information regarding the 25 communities that adopted the CPA.
A discussion followed regarding our next action. Mr. Howard suggested that we develop an
outline in progress of our report. Ms. Lloyd offered to prepared a first draft outline as follows:
A. Summary of CPA
B. Presentation of needs presented to Study Committee
C. Revenue figures and options for surcharge/exemptions
D. Alternative sources of funding needs
E. Pros and Cons of CPA and our recommendations
F. Public input
G. Implementation schedule
H. What other communities have done
Meeting of 7/28 will be used to work on the first draft and presentation to the Selectmen. There
was further discussion about the best way to present the issues to the Selectmen and to the Town
as a whole, including televised forum and/or panel discussion.
Ms. Honetschlager announced that she is resigning as chair. Next meeting the Committee will
accept nominations for a new chair.
Motion to adjourn. Motion made by Mr. Howard and seconded by Ms. Lloyd. Voted 7-0.
Adjournment 9:20 p.m.
Submitted by,
Tim thy J. Kelley, Actin Secretary
2
TO: Community Preservatigtt A$,Hq Study C Lori e JUNE 14,, 2001
FROM hoard of Assessors
QUESTION:
Now much. money could, the Town of Reading. raise in a. Community Preservation Fund
by imposing a Surcharge tin real estate taxes at various percentage levels with and
without certain exemptiot1s.if. the. Town of Reading. adopts the Community Preservation
Act?
The accompanying chart gives a breakdown of the various scenarios.
Thanks to the following:
Dave Billard, Town Appraiser, for supplying. the data;
-Beth Klepeis, Town Treasurer, for her guidance in these financial areas.
BoardO Assessors
PY2001 ANALYSIS - SCENARIOS Of THE COMMUNITY PRESERVATION SURCHARGE
(IF IT WERE ADOPTED IN FY2001)
NECESSARY LEVY I ABATEMENT INFORMATION
TOTAL AMOUNTS
RESIDENTIAL.
COMMERCIAL
A,
FY2001 REAL PROPERTY TAX LEVY
30,349,343.60
28,089,804.21
2,259,539.39
FY2001 ABATEMENTS GRANTED
33,752.05
10,306.79
23,445.26
FY2001 EXEMPTIONS GRANTED
161,712.25
161,712,25
0.00
T
FY2001 NET REAL ESTATE TAX LEVY
30,163,879.30
27,917,785.17
2,238,094.13
SURCHARGE SCENARIOS x'
r
6
0
NO EXEMPTIONS
ADDED REVENUE
RESIDENTIAL
COMMERCIAL
NO SURCHARGE ADOPTION
0
28,089,804.21
2,259,539.39
AT A 1% SURCHARGE
301;538.79
10,306.79
23,4+46,26
AT A 2% SURCHARGE
603,077.59
161,71125
0.00
AT A 3% SURCHARGE
904,616.38
27,917,785,17
2;236,094.13
CO-
100,000 VALUE EXEMPTION
ADDED REVENUE
RESIDENTIAL
COMMERCIAL
NO SURCHARGE ADOPTION
0
17,381,778.21
2,259,539,39
AT A 1 % SURCHARGE
194,458.53
10,306.79
23,445,26
AT A 2% SURCHARGE
388,917,07
161,712,25
0.00
AT A 3% SURCHARGE
583,375.60
17,209,759.17
2,236,09+4.13
0
LOWIMODERATE HOUSING EXEMPTION
ADDED REVENUE
RESIDENTIAL
COMMERCIAL
NO SURCHARGE ADOPTION
0
27,933,343.55
2,259,539.39
AT A 1% SURCHARGE
299,974.19
10,306,79
23,445.26
AT A 2% SURCHARGE
595,948.37
161,712.25
0.00
AT A 3% SURCHARGE
899,922.56
27,761,324.51
2,236,094.13
LOW 3100,000 EXEMPTION
ADDED REVENUE
RESIDENTIAL.
COMMERCIAL
NO SURCHARGE ADOPTION
0
17,225,317.55
2,259,539.39
AT A 1 % SURCHARGE
192,893,93
10,306.79
23,446.26
AT A 2% SURCHARGE
385,787.85
161,712.25
0100
AT A 3% SURCHARGE
578,681.78
17,053,298.51
2,236,094.13