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HomeMy WebLinkAboutmin brd of selectmen 09/03/02 .. r"\t ,¡On ,. U r II ! r ~.,. ~:- 'è} .... ¡':'., ~,:. f ',C E~_ f Minutes of Boards of Selectmen/Assessors Joint Wor~Qétin.H \ I: 43 September 3, 2002 , , I f) ~ - k '~,,~'::':~ ~ · A ,-'" (' I,' I ¡ ") ,- T T S I /'1 ~:\, ,:,: ....~, I",.., J '1 ï_) "., '-- Present: Board of Selectmen: Daniel Donovan, Chairman; Steven W. MacCaffrie, Clerk; Selectmen David W. McCarter and Louis P. Amoruso Board of Assessors: John McNair, Chairman; Michael Eagan, Clerk; Paul Folkman, Assessor Staff: Town Manager John O. D' Agostino and Assistant Assessor/Office Manager Edward A. O'Neil The meeting was called to order at 7:00 p.m. Assessor McNair opened the meeting, stating there were rumors and innuendos going around that they felt the need to discuss and dispel. r- Mr. O'Neil began with the 2003 interim adjustment analysis. They've analyzed 2001 assessments and sales. Single family is 13% below, condos 21%, 2 families 20%, 3- family 27%, and commercial/industrial - based on sales - are at 98%. There have been other large sales that are being qualified by a certified general appraiser. Town Manager D' Agostino noted that while it appears we're way off on the commercial/industrial, the reason the conclusion is being drawn is because some of the buildings have been sold for far more than the assessed value. He suggested that be clarified as to why it's occurring. Mr. Folkman said they do not know why yet, which is why they're having an independent appraiser come in and take a look at it. He noted they could be internal sales that are trying to "pull" the industrial park, rather than "arm- length" sales. In the case of Motorola, it was an investment company purchase with lease-backs. Mr. O'Neil spoke of several "lease" signs currently in the industrial park. They have the same mix of properties this year as they did last. There were 252 appeals this year, only one of which was residential, and there are currently 7 decisions that are being appealed. We did not start out 20-30% below. We started at 97% and values changed over the course of a year when the appraisals were done and the rates set. Mr. Folkman stated the numbers are not generally "tweaked" between the re-valuations, which occur every three years, but may need to be this year due to the statistical analysis done. To do so would be a policy decision made by the Board of Assessors. Single-families and condominiums are the lowest currently. The 98% industrial figure does not include the internal sales. Selectman Amoruso asked Mr. O'Neil for a comparison with other towns. Residential is still rising faster than commercial/industrial throughout the area. They would use the ~ 2003 sales for the revaluation in 2005. He would like to do a small increase in each of Minutes of Selectmen/Assessors Meeting of September 3,2002 I " ( the next two years. The tax burden would still be the same. Mr. D' Agostino noted that when you look at the sales overall, it seems the assessments have been right all along. The two- and three-family homes are out ofline. Mr. Folkman noted with the increased use of computers, values are being "tweaked" more often on an annual basis. Selectman Amoruso said there is no easy answer, but getting slammed with a huge increase every three years is difficult. Last year there was a 30 percent increase implemented over the preceding three years. Selectman Donovan questioned what would happen if things become very stable over the next year. Mr. Eagan noted this first year has been a steep ramp, and it may flatten over the three-year period. Mr. D' Agostino suggested there is some validity to small increases annually. If the market levels off, it would make more sense to look at it midway. Selectman Donovan suggested when colleges start with big layoffs, the economy is in question. Mr. Eagan noted business is reacting to the economy, while residential is not. According to the actual sales for FY'02, the assessments are qualified. There have been two or three large commercial sales that have been well publicized. There is, however, no upward pressure in value. Mr. O'Neil noted that the increase in vacancies is not a result of increased valuations. Mr. Amoruso suggested there may be a time period when there is a downturn when the warehouse operations are converted to office use. Because of our geographic location, warehousing/distribution centers were attracted. There are now many more towns along r Route 495 that have industrial operations. We would like to promote more bio-technical uses. Mr. D' Agostino suggested the utility capacity of Mansfield positions us better than some of the other area communities. The problem we have is convincing people that Mansfield is the next best place to move into outside of the Route 128 belt. We may need to look into ways to market Mansfield generically because we can't afford to have commercial property vacant. Selectman McCarter noted competition for the types of businesses we want to attract is fierce. Mr. Eagan said all communities are looking for a revenue source. Mr. D' Agostino noted Mansfield has a huge population of engineers that have come out from the Route 128 belt. We have the kind of human resources, as well as the geographic location, to attract these businesses. The IDC is working on a plan to market Mansfield. Mr. McNair noted the Old Colony Line is going to be opened up, which may take some of the interest away from us. Mr. Eagan reiterated the plan and progress of the Assessors. Mr. O'Neil reviewed Chapter 653 that was accepted by the Town about five years ago, which allows the Town to capture growth after July 1st of the first year, resulting in an 18-month period the first year, and 12-months thereafter. Building permits are received on a monthly basis. June 30th is the last day you can take growth for the upcoming year. Chapter 653 allows us to look at growth between July 1 st and December 31 st. When it r- was initiated we captured $400,000 to $500,000. Minutes of Selectmen/Assessors Meeting of September 3, 2002 2 r Mr. O'Neil noted land in June that was built and completed prior to December would get a free ride for those six months. We're now catching everything up to June 30th, and a building for which there is a temporary occupancy permit is considered occupied. Mr. Folkman reviewed the percentages used during the construction process to determine the tax value of the property. The fall bill is based on the value of the land and buildings as of June 30th. Chapter 203 of the Acts of 1998 provides for supplemental tax assessments. Town Manager D' Agostino asked if this is just for residential and if it has an adverse affect on businesses. Mr. Eagan noted currently seventeen communities have implemented Chapter 203. Quarterly tax billing has not been supported in Mansfield. The Assessors would implement whatever policy the voters decide on. This would be done at a local Town election by ballot. Selectman MacCaffrie noted if we do not do it, we're not doing all we can do to collect tax revenue. Town Manager noted the problem is that it may deter a business from looking at Mansfield. If a building moves along fast, the increased assessment will be picked up sooner. Mr. Eagan noted there is more administration involved, but the Assessors are neutral on the issue. The issue becomes the coordination between the Building Department and the Assessors Office. By our prior adopting of Chapter 203, we are two years ahead of Hopkinton. Selectman MacCaffrie questioned why it never was brought forth for discussion or action until it was brought up by the Selectmen. Selectman Donovan asked about the small r business exemption that was instituted in 1995. Mr. O'Neil will get the information. Selectman McCarter asked the Assessors if they're confident we're capturing everyone under the system we use now. The Assessors noted if a permit is taken out, they know it and are assessing for it. Grabbing the new growth closed much of the open door. Adopting the new law will close the gap. Mr. D' Agostino noted quarterly billing is the only way to capture it all. The public, however, would rather have it in their pocket for an extra quarter than in ours. Selectman Donovan suggested it may be easier for people to pay smaller bills on a quarterly basis. Mr. D' Agostino noted the current semi-annual billing does create a cash flow problem at certain times during the year. The cost of borrowing is then passed along to the taxpayers. It was generally agreed that Chapter 203 would be a desirable thing to put before the voters for their decision. Selectman MacCaffrie noted every dollar we can get is a dollar we need. Mr. Folkman noted the Finance Committee initiated the adoption of Chapter 203. There do not appear to be any negative impacts in those towns that have adopted it. Mr. Eagan spoke of building his first house in Mansfield in 1975 and noted he had three months before he had to pay taxes. Right now we're not building first-time homes. When it was a first-time home, the money for taxes was already in an escrow account. Town Manger D' Agostino read the requirements of Chapter 203 regarding public hearing notification and Town Meeting. The Selectmen suggested this information be r Minutes of Selectmen/Assessors Meeting of September 3,2002 3 ( disseminated to the taxpayers to enable them to make an educated decision at the polls. We will check on the experience of other towns who have implemented it. Selectmen will officially vote on placing the question on a ballot. In summary, the Assessors will be looking at all "arm-length" sales; tax rates are now equal; residential property values may stabilize. Selectman Donovan suggested waiting another year. Mr. D' Agostino noted the vacancy rate in the industrial park may affect industrial/commercial values. A public information campaign will take place prior to the election at which the matter appears on the ballot. Selectman MacCaffrie asked Karl Clemmey, who was in the audience and is a large property owner, if this would deter him from developing property in Mansfield. Mr. Clemmey said it would not and noted the amount of money we're now losing that we should be going after. He noted it's the single-family housing and apartments that are not getting a fair shake. He suggested a public meeting be held on the issue. Selectman Amoruso noted the concerns he had were adequately addressed. The Motorola sales triggered the concern and are difficult to evaluate, but must be qualified nevertheless. Selectman MacCaffrie asked if money has to be set aside for abatements that are successfully argued. Last year $450,000 was allocated, with close to $200,000 being allocated for seniors and veterans exemptions. Town Manager D' Agostino mentioned r the new senior abatement program for utilities to assist them in staying in their homes longer. He noted the impact of seniors selling their homes to young families. The $450,000 figure may need to be increased to $550,000 or $600,000. The exemption eligibility has also dropped from age 70 to 65. Mr. Clemmey noted $80,340.46 was left in the abatement account as of three days ago. Mr. O'Neil verified that the number came from the Town Accountant and is accurate. Assessor Folkman noted that is a good thing. When there is a deficit, it has to be made up the following year. Each year an amount is put in the overlay account and Mr. Folkman explained the process. Town Manager D' Agostino noted the amount we have is probably a sufficient amount to do the abatement program we have committed to. If we make the decision to increase the commercial/industrial assessment, we may have to put more money into that account. If we keep Chapter 653 and adopt Chapter 203, we have both sides covered in what used to be a hole from the first of January to June. If it were not accepted, we would have to take a look at pushing the date back. At this point in time, it would not be advantageous. With it we would get the additions to homes. Selectman MacCaffrie indicated he hoped the memo of complaint they received would be adequately addressed. The Assessors will address it with the Town Manager. Selectman r Minutes of Selectmen/Assessors Meeting of September 3, 2002 4 MacCaffrie said he would like to hear from the audience that shows up at workshops to r get their input. Selectmen thanked the Assessors for the information and knowledge gained from this meeting. The meeting adjourned at 8:45 p.m. Respectfully submitted, ~~~~ Mary-L Cotton Selectmen's Executive Secretary ríl- Approved by Board of Assessors on t::t/IDjO[..¡ r (EloÚK4~ r Minutes of Selectmen/Assessors Meeting of September 3,2002 5