By Beth David, Editor
The Fairhaven Select Board set the tax rate for next year, choosing to stick with the maximum rate shift between residential and commercial properties, at its meeting on 11/21/22. Board of Assessors member Pamela Davis explained that the tax shift is the differential between the residential rate and the CIP (Commercial, Industrial and Persona Property) rates. the town has traditionally used the maximum allowed shift of 1.75%. The differential shifts some of the burden to commercial properties.
Ms. Davis told the board that the Board of Assessors recommended continuing with the same differential as previous years, making the new tax rate $9.95 per $1,000 valuation for residential properties, and $19.78 for commercial properties. FY22 rates were $10.22 for residential, and $20.39 for CIP.
The state regulates the maximum amount a municipality can raise in property taxes, limiting the town to 2.5% of total valuation from the previous year. The rate will go down, but because property values have increased, the end result is an increase in property taxes for most households and businesses.
The average single-family home value for FY22 was $366,206, resulting in an average tax bill of $3,742.63. Average home value for FY23 is $394,058, resulting in an average tax bill of $3,920.88. If the town eliminated the shift and had a single tax rate of $11.30, the average bill for FY23 would be $4,452.85.
The board voted to adopt the new tax rate of $9.95 for residential properties, and $10.22 for CIP.
In another matter, Finance Director/Treasurer/Collector Wendy Graves presented a financial summary to the board, outlining the town’s certified free cash, stabilization fund, pension liability, and income sources.
The town is meeting its goals for the amount of money it puts in the stabilization fund, said Ms. Graves, which is a minimum of 7% of the general operating budget. The town has $11+ million in the stabilization fund.
The town is also meeting its goal of having at least 5% of the town’s operating budget in certified free cash. The town has $6.4 million in that account. That money is from turnbacks from departments (money from their budgets they did not spend), and local receipts that came in over estimates, such as excise tax bills, permit fees; and state appropriation that came in higher than expected.
SB member Leon Correy asked why the free cash figure was so high. One of the reasons is that the town is consistently conservative in estimating local receipts. Also, in FY22 the town held a tax possession sale that netted $1.4 million.
Education, including Fairhaven Public Schools and tuition paid to other schools, such as NB Vocational, took up $42.94% of the budget in FY21. The percentage is on par with most other communities, said Town Administrator Angie Lopes Ellison.
Public safety and public works are next with around 15% each. General government is 6.26%.
SB member Bob Espindola noted to the board and to the public that the Mass. Department of Revenue has tools on it website that make it easy to compare Fairhaven to other cities and towns.
Ms. Ellison said some of the numbers were more up to date than other because of the way the state processes the data that the town sends to it. Some numbers require the tax rate to be set.
In a related matter, Ms. Ellison informed the board of the budget schedule for next year.
She also said she wanted departments to tie their budget requests to the goals that the board has set. For example, she said, if the highway department wants more money for wheelchair accessible sidewalks, that would tie into the Diversity Equity and Inclusion goals.
Mr. Espindola asked her to clarify that the goals would be tied to unfixed expenses and not salaries.
Ms. Ellison agreed, saying things like the electric bill are not what she had in mind. Any aspects outside of the basics would be the target.
“I just want to make sure the community doesn’t misinterpret what we’re saying,” said Mr. Espindola.
Ms. Ellison also announced that the report on the results of the actuarial valuation of the town’s contributory retirement is available and is a public document. Members of the public may request a copy from the Town Administrator’s office.
Ms. Ellison also told the board that the town is expecting its new electric vehicle next week or the beginning of December. It will be available for town employees to use. There is a charging station at the BPW, but Ms. Ellison said they need to add one.
Near town hall is a typical place to have one, she said.
The point is to have charging stations were there are activities, so people can plug in their cars and then go shopping or to lunch, or the library.
The BPW is near the bike path, she noted, so maybe people could use that station and then use the bike path. There are two charging stations there, one for town employees only, and one for the public.
The board also discussed the evaluation process for Ms. Ellison, with Labor Counsel John Clifford of Clifford and Kenny.
Mr. Clifford told the board that the process is “complicated by open meeting law.”
He sent a letter and explained the process for the evaluation. Ms. Ellison will complete a self-assessment and give it to board members. Each board member will fill out a performance review form.
Mr. Clifford stressed that the assessments are not public records, they should be part of Ms. Ellison’s personnel records.
The board member documents will go to the Human Resources Director who will compile a the results into one document.
Then Ms. Ellison will be evaluated in open session, but no public comment will be allowed.
Resident John Medeiros asked, during the public comment period, how the public could weigh in on Ms. Ellison’s performance.
The board said he should contact board members directly.
“It’s not like anybody has any problem reaching out to any of us to tell us how they feel about Ms. Ellison,” said Mr. Correy.
The board hopes to conduct the evaluation at its 12/19 meeting.
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