Selectmen maintain single property tax rate
Date: 10/22/2012
By Chris Maza
chrism@thereminder.comEAST LONGMEADOW — The Board of Selectmen voted to continue with a single property tax rate after hearing resounding support from the community at a public hearing on Oct. 16.
Board of Selectman Chair James Driscoll said at the hearing that a single tax rate made for a mutually beneficial situation for residents and the commercial and industrial businesses that call East Longmeadow home.
"In my nine years on this board, I have always supported a single tax rate," he said. "I think it's important that we are partners with our businesses and our industrial partners."
Driscoll added that he felt an increase in taxes on businesses would be a large burden on companies that already pay a fair amount.
"The fact of the matter is companies like Newell Rubbermaid, one of our largest employers and loyalest [sic] companies in town, pay a huge amount of taxes and don't use a lot of our services," he said. "As we know, 50-odd cents of every dollar is spent on schools, in addition to [Department of Public Works] expenses, which they don't really take advantage of. In my opinion, they already pay a higher tax rate based on the services that they get."
Selectman Paul Federici echoed Driscoll's statements, adding that the increases in other taxes and expenses for businesses made it increasingly crucial to keep the single tax rate to help local companies thrive.
"I think the fact that we continue to have at a single tax rate to help [businesses] stay in town and stay in business is a credit to our town," he said.
Resident Dawn Starks, representing the East of the River Chamber of Commerce, also endorsed the single tax rate.
"I don't want to beat a dead horse here, but both Selectmen Driscoll and Federici echoed the Chamber's position," she said. "With the current economy, most businesses are treading water ... Right now our thoughts are, 'Don't rock the boat.' We really appreciate the support of a single tax rate because it enables, especially small businesses, which this town has a lot of, to be able to rely on a steady tax rate.
"Mr. Federici is right. The taxes are always going up and there is always something else hitting the books. This encourages us to not only stay here, but to grow here. It makes East Longmeadow a viable place to live and a terrific place to set up a business," she continued.
Daniel McDonough, representing Newell Rubbermaid, told the board that the company appreciates the community's continued support through the single tax rate.
"We like to think that we're not insensitive to the issue because particularly today with taxes and cost of living, it's difficult [for residents], but I would echo the foundation that we want to remain here in town," he said.
McDonough went on to say that the company has continued to support the local workforce since American Saw and Lennox was purchased by Newell Rubbermaid in 2003.
"A number of people felt that [the sale] might be the death nail for our manufacturing base in East Longmeadow," he said. "At the time, we had 560 people in the building. Today we have 700. By the end of the year, we will have recruited 130 new people who will be in the building at 301 Chestnut St. Forty percent of our sales are outside of the U.S., however, everything that we manufacture that goes to Asia, Latin America and Europe is manufactured on Chestnut Street."
McDonough also added that since the acquisition, Newell Rubbermaid has invested $100 million into the East Longmeadow factory.
"That shows their commitment," he said. "They don't just give [the money] away. We've been able to prove that we can be a profitable manufacturer."
Planning Board member and former president of the Small Business Association Ralph Page said he and the organization also supported the continuation of a single tax rate.
