Despite hike, Chicopee still enjoys low tax rates

Date: 10/25/2011

Oct 26, 2011

By G. Michael Dobbs

Managing Editor

CHICOPEE — The City Council gave taxpayers relatively good news at its meeting on Oct. 24: taxes are going up, but not by much.

The councilors voted to adopt a shift of the tax levy to 170 percent. This means homeowners will see a residential tax rate of $14.93 per $1,000 of value resulting in a 27-cent increase, Assessor Laura McCarthy explained to Reminder Publications. The average residential tax bill will increase by $47, she said.

The new tax rate brings a 53-cent increase per $1,000 of value to commercial properties.

McCarthy said each year the shift is different and the City Council sets a tax rate based on economic conditions. This year’s rate puts a little more of tax burden on the residential side, she said.

While taxes are going up in Chicopee, the city’s residents enjoy the lowest property tax bills in the area, according to Mayor Michael Bissonnette. Out of the 338 communities in the Commonwealth with a property tax, Chicopee ranks 304th in terms of the most expensive bill.

At a press conference on Oct. 20, Bissonnette and the Board of Assessors spoke about the city’s financial status. In the fiscal year 2012 budget the city’s budget as well as the School Department’s budget have increased. The city’s water and sewer expenses have also increased.

Bissonnette said that state aid mostly offset the $70,000 increase in the city budget and the $2.9 million hike in the school budget, while increases in water and sewer fees will address that gap.

The state is giving back to the city $704,000 in state aid it had originally cut from the budget and Bissonnette will use that amount with $1.3 million from the city’s stabilization fund to reduce the tax bills for residents.

“Essentially, what we are trying to say is it’s very good news for the taxpayer,” Bissonnette said.

McCarthy said that housing values in the city have remained stable with the average home value at $179,000.

“We’ve not seen much change in the market,” McCarthy said. “People want to live in Chicopee.”

She noted that members of the Board of Assessors visit new residents and people have told them they are impressed with the new high schools, the new library and the lower electricity rates, among other factors.

Assessor Virginia Robak said that people look to retire to Chicopee.

Bissonnette said Chicopee’s stability is due in part to a diverse tax base and financial practices that have allowed the city to meet the challenges of less aid and lower budgets without resorting to layoffs. He thanked the city’s employees for their willingness to compromise.

McCarthy said the next step for the tax rates to become official is for the mayor to sign off on the legislation and for the state’s Department of Revenue to approve it.