Effect Of Proposed Tax Increase
A number of people have asked for a table comparing property assessed value against the proposed tax increase.
So here it is.
| Assessed Value | mill Rate Increase | Total mill Rate |
| 0.94 | 26.70 | |
| Increase In Taxes | Total Tax | |
| $100,000.00 | $94.00 | $2,678.00 |
| $150,000.00 | $141.00 | $4,017.00 |
| $200,000.00 | $188.00 | $5,356.00 |
| $250,000.00 | $235.00 | $6,695.00 |
| $300,000.00 | $282.00 | $8,034.00 |
| $350,000.00 | $329.00 | $9,373.00 |
| $400,000.00 | $376.00 | $10,712.00 |
| $450,000.00 | $423.00 | $12,051.00 |
| $500,000.00 | $470.00 | $13,390.00 |
| $550,000.00 | $517.00 | $14,729.00 |
| $600,000.00 | $564.00 | $16,068.00 |
| $650,000.00 | $611.00 | $17,407.00 |
| $700,000.00 | $658.00 | $18,746.00 |
| $750,000.00 | $705.00 | $20,085.00 |
| $800,000.00 | $752.00 | $21,424.00 |
| $850,000.00 | $799.00 | $22,763.00 |
| $900,000.00 | $846.00 | $24,102.00 |
| $950,000.00 | $893.00 | $25,441.00 |
| $1,000,000.00 | $940.00 | $26,780.00 |
Consider the drop in housing values we have all experienced. Yet we are all being taxed at the peak values. The chart below tracks the median house values for Marlborough (zip code 06447 via zillow.com).
How many of us are now “underwater”? Underwater means you owe more than the house is worth on the market.
Your house value is not what the town assesses it at, but rather what someone is willing to pay for it.
Could you sell your house for it’s assessed value?
BookMark To:
Can you do a chart for the projected taxes for the next five years?
I don’t want hype, just the facts.
I am saddened by the number of residents needing to use the food bank. My understanding is that they need to “qualify”-is that accurate?
Shame on anyone who says that those who cannot pay taxes should move-we are better than that!
It is my understanding users have to be qualified prior to use of the food bank.
If we look at the un-avoidable increase in the debt service next year, the Chairwoman of the BOF has projected a 5.25 to 7.5% increase next year alone.
Taken with this year’s proposed 3.56% increase, we are looking an ~10% increase in just 2 years.
To go out further requires estimation. However we do know the debt service projections and we could use a range of tax increases for modeling purposes to come up with a range of tax increases. The further we go out the larger the tax increase high / low will be.
Might be useful, scary and informative.
Thanks
The roughly 10% increase does not accurately describe the effect on people in the sewer district. If you currently pay about $5K in taxes and live in the sewer district, you’ll get a greater than 20% hike in taxes because of the sewer alone PLUS the 10% increase. A 30% tax increase in the teeth of one of the worst economic downturns in US history.
It might be a good time to buy a house in the sewer district….if you can afford the taxes!!!
This budget should be rejected.
I just got off of the phone with Andover 1st Selectman, Bob Burbank who said the only way that they had a zero% tax increase is that they were fortunate to be able to apply a $300,000 surplus to this year. Numbers often do not tell the entire story.
I just got off of the phone with Andover 1st Selectman, Bob Burbank who said the only way that they had a zero% tax increase is that they were fortunate to be able to apply a $300,000 surplus to this year. Numbers often do not tell the entire story. VOTE YES.
@BOB
Without the $300K they would have been somewhere around 3%.
But according to Selectman Jay Linddy (RiverEast May 22nd) “If we didn’t have the zero increase to the mill rate this budget wouldn’t have passed.”
Would a 3% increase budget have passed? According to their Selectman, No.
But consider this, Andover was smart enough, disciplined enough, to have a surplus. Money saved, whether last year or this year is still money saved.
They were luckily enough or smart enough to have voted in thrifty elected officials.
Over the years Marlborough has also had a habit of supplementing the budget with $100s of thousands of dollars from tne reserve account and has done this in most years. Without this supplement we would have seen higher mil rate increases in past years. By doing so we have hidden the true impact of the increasing debt and costs from the taxpayers. Another issue is road repairs. This year we are being asked to approve $1.59 million in bonds for road repairs. In past years the road repair money was part of teh budget. Now we are putting it on our town’s “credit card”.
@BOB
Just curious if you live in the sewer district, Bob? I do, and my town payments will go up 48 percent if the town is allowed to continue with business as usual. I am voting NO, as this budget is no different than the last for the majority who voiced their opinions at the meeting.
Historically, Marlborough uses surplus funds to reduce property tax increases. Funds over 7.5% of the projected budget are transferred from the Undesignated Fund Balance (UFB) into General Fund Revenue. The BOF voted, after the budget defeat, to reduce this percentage from 7.5% to 7.4% to accommodate giving $20,000 more to the BOE without increasing taxes.
The surplus can be found on the Proposed 2009/2010 Revenue sheet in the first line called “Cash Available for Appropriation.” The average citizen has no way of knowing what this line item represents. I have been recommending, for transparency purposes, this line item be called “Use of Fund Balance” or simply “Surplus Funds.”
For the June 1 vote, $614,885 in surplus will be used to reduce property taxes. This is 29% less over this year’s budgeted surplus of $861,821. If surplus funds were not used to reduce taxes, the actual tax increase would be 7.42% rather than 3.56% and the mill rate would be increasing by 1.92 mills rather than .92 mills.
So Andover used their surplus for a zero tax increase, while Marlborough is using surplus for a 3.56% tax increase.
And yes, I agree, “numbers often do not tell the entire story.”
- Catherine Gaudinski, BOF Chairman
@Catherine Gaudinski
Thanks for the comment Catherine.
If the surplus is 861K$ and we are using 614K$ of it, where is the difference of 246.9K$ going? In to the Reserve (UFB)?
Thanks to BOF Chair Cathi Gaudinski the taxpayers are getting the information needed to allow them to make informed descisions. Cathi had repeatedly asked for an exit poll to be conducted. The absence of an exit poll has made her job and that of the BOF much more difficult. No matter what the outcome on June 1st, having exit poll information from that vote will provide the BOF with insight into the desires of the taxpayers. Therefore, the exit poll needs to be conducted even if the budget passes.
In regards to the June 1st vote, I would encourage everyone to get people to the meeting. We need to hear from as many taxpayers as possible to make sure that the vote is representative of the majority of the taxpayers.
These are surplus funds used in two different budget years. In 2008/2009 budget, $861K was budgeted. The 2009/2010 budget has $614K budgeted to offset tax increase. @Editor
Ms. Gaudinski:
It is my understanding that, in addition to using surplus funds to offset tax increases, the BOF raised the collection rate for the town to also offset the potential tax increase. Could you please explain?
Has the BOS committed to conducting a paper ballot for the Monday 6/1/09 budget vote as well as making sure that an exit poll is performed this time around?
@Reality Check
Bill Black advised me he will have both – a paper ballot and exit poll at this Town Meeting. Community Room opens at 6:30 for voter check-in. Towm Meeting begins at 7:00 p.m. – come early and don’t forget your identification.
It is my understanding that in past years the Tax Collector’s collection rate was higher (over 99%) than what the budget estimated (which was based on 98.8%). As a result the collections exceeded what was budgeted, which helped to add to the annual surplus. The question is what will be the collection rate this year what with the economy?
Considering all the handmade “House For Sale” signs I am seeing in Marlborough, plus the 8 foreclosures, I think 99% may be ambitious.
But hey, we can take their houses!
If you can’t afford to keep up, leave.
All satire aside, there is a negative consequence to high taxes, eventually it’ll drive housing values down. As people flee, supply goes up and prices go down. We’ve already seen a -21% drop in housing values, when those 8 foreclosures hit the market there will be more downward pressure. And when the tax bills in July hit, many people will be re-assessing where they live.
Especially those without children in the schools. Remember the Social Security cost of live increase this year is ZERO and it’s ZERO next year. ZERO and ZERO whereas our taxes in Marlborough are estimate to increase at least 10%, assuming this budget passes with the 3.56% increase.
Housing sales slowdown??? Where??? Last evening I put an offer in on a house for one of my buyers. The house received several offers and ended up selling $5,000 over list!
@Ken Hjulstrom
I hope those sellers are properly completing their disclosure forms and checking off the box regarding any knowledge of sewer and/or water projects coming to town. Would have been nice if my seller had done that.
@David Durel
Didn’t your agent watch your back? You should have used me!
@David Durel Sorry, did not mean that to be anonymous.
I am just a humble mom who has never been involved with politics but I care about my family, and my neighbors. David, Karen, Cut the Budget and Do the Math Man are right. The money belongs in our hands not the government’s hands.The articles in the River East today solidified my vote-it will be no. Ken, I am no longer with you in wishy washy no man’s land.
I now know that education does not have to make cuts and that they have a surplus, have stimulus money, money from a senior teacher retiring and money from reducing the superintendent’s position to part time and that Bill Black had the audacity to give them ADDITIONAL money from the town’s reserve so they have that too! Shame on Bill Black!
The Bill and Melinda Gates Foundation just came out with the results of a study stating that teacher quality trumps class size.
I was a supporter of the board of education but I am now disgusted by their lack of empathy and lack of understanding about the people of the town. The facts have changed. There is no longer a chance of teacher job losses, and there has been a lot of money found due to the surplus, stimulus funds, special education savings, retirement and a reduction in superintendent’s salary. They are acting like spoiled children who want more more more more more regardless of whether it breaks neighbors backs. Taking money from the town’s reserve was the last straw.
How do we recall Bill Black?
Please vote no on June 1st!!
@ Ken, pls stop the shameless self-promotion of your real estate biz … it’s a bit much.
@Reality Check I am just providing a viewpoint based on my profession. What the media reports is not a true representation of what is going on out there. We have been told over and over again that the quality of a town’s educational system drives housing values. Education is a factor, but there are a lot more factors which feed into a home buyer’s descision about selecting a community. Taxes for one!
It is easy to cast stones when hiding behind a pseudonym. Would you consider using your real name?@Reality Check
See, now your most recent post is more in line with the spirit of the blog.
Next time we meet, I’d be happy to discuss this with you. You’ve been readng many of these posts and others aren’t using this forum to promote their business or services.
As for pseudonyms – looks like you’ve been using one all along as well.
In regards to the earlier question about the use of paper ballots, I think they will be used but a quote from Bill Black in the Rivereast article stated that he was prepared to use them if a majority of those present wanted to do so. Therefore, it is not a done deal in Bill’s mind that we will use paper ballots. If he does not indicate that he will do so then someone would need to make a motion at the start of the meeting to vote by paper ballot.
@Ken Hjulstrom
If Bill Black does not heed the call for paper ballots, he has to realize he is leaving the town open to legal challenges from either side of the debate. Depending on who wins/loses.
Let’s make sure this vote leaves no doubt in anyone’s mind. And not give the losing side a legal issue.
Anything else would be incompetence.
Sure hope Bill will be conducting the vote by ballot – that should be an automatic given based on the issues at the past meeting. How long do you have to hold up a hand for someone to count and double count Yes and No votes with that many residents in attendance??
Next year’s vote should be done by referendum and voting machines so residents can vote throughout the day at a time that’s convenient for them. To gather everyone in a room at the same time is unrealistic in this day and age. Although we’re a small town, we’re not that small of a town anymore. Plus, there’s no write-in ballot option available for those who can’t make it at the exact time of the town meeting.
Voting by machine is straightforward and leaves little room for abuse, confusion, etc. Other towns conduct their budget voting in this manner. Let’s change the town charter so we don’t have to go through this painful process next year. Which based on the increased debt load will be a much more controversial budget year than this year … hard to imagine.
@Reality Check
I agree with you… I work nights and therefore I am having to use a vacation day in order to have my voice be heard.
Hey, if your house went down in value since the revaluation – then DO something about it. You have the absolute right to challenge the stated value by going to the Board of Assessment Appeals – You can pay any real estate agent for a competitive market analysis – be sure to get the current selling price per square foot of top dollar, medium and bottom construction in your class – assuming a $350k house taking a 20% market hit, you save $49 on assessed value [$350k * .20 * .70 [which is the assessment ratio]] and for about $200 to an agent you save $1225 in taxes. If you would rather sit on your fat rear and complain about it – then good for you but don’t whine about it – you do have recourse and if you chose not to avail yourself of it – then stfu.