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Date: 12/14/2023
HAMPDEN — Hampden’s tax rate will be going down in fiscal year 2024, but an increase in home values will leave most residents paying more than last year.
On Dec. 4, Principal Assessor Kelly McCormick told the Hampden Board of Selectmen that average home values in 2023, calculated using property sale values from Jan. 1, 2022, to Dec. 31, 2022, increased from $346,000 to $377,000. There has also been an increase in the total value of property in the town.
Largely due to residential construction and additions, $6.5 million in new growth has increased the total valuation to $877.61 million.
Tax rates are calculated using the previous year’s levy limit and adding 2.5%, plus new growth and any debt exclusions to reach the maximum tax levy. That number is then divided by the total taxable property value of the town. In Hampden, the estimated tax rate for FY24 is $15.66 per $1,000 of property value. McCormick said that average annual property tax bill will increase by about $66, from $5,837 in FY23 to $5,903.
Each year, the Board of Selectmen must decide whether to use a single tax rate for all property, including residential or commercial, industrial and personal. If a split tax rate is adopted, owners of commercial, industrial and personal property are charged a higher rate than residential property owners. A maximum shift in tax burden would save the average homeowner $493, but increase the tax bill of commercial, industrial and personal property owners by $6,708.
The Board of Assessors recommended a single tax rate because the relatively small number of businesses in Hampden would shoulder and outsized burden. “It’s a big shift to [commercial, industrial and personal property] for a little gain [for residents],” said Board of Assessors Chair Norman Charest. Additionally, many of Hampden’s businesses are owned by residents.
There are other tax exemptions that can be adopted, but they mainly benefit towns with a large volume of rental properties or large businesses, neither of which applies to Hampden. The Board of Selectmen voted to adopt a single tax rate with no exemptions.
Budget kickoff
Hampden’s department heads, school administration leadership and members of the Advisory Committee joined the Board of Selectmen to kick off the town’s budget process for FY25. Board of Selectmen Chair John Flynn praised the department heads said the town is “blessed.” The town’s Stabilization Account, which is essentially a municipal savings account, had a healthy balance, he said. However, he added, “We’ve got a lot of things coming forward,” referring to construction projects at the Senior Center and fire station.
Advisory Committee Chair Doug Boyd asked that departments limit their salary increases to only those that are contractually obligated.
Hampden-Wilbraham Regional School District Assistant Superintendent for Finance, Operations and Human Resources Aaron Osborne said the schools will have three large challenges in the year ahead.
Coronavirus pandemic-era grants will be expiring, and the district’s excess and deficiency account has a relatively low balance of $763,000, after using a total of $2 million from the account to supplement the budget in the past two fiscal years. Finally, Osborne said, “Special education costs … have been an ongoing challenge for school districts,” due in part to a 14% increase in FY23 for out-of-district placement tuitions.
Board of Selectmen member Donald Davenport asked about the timeline for the expected district reconfiguration and regional agreement renegotiation, which will impact the way the district is funded. Superintendent John Provost said the new regional agreement, which must be approved by the School Committee, both towns and the Department of Elementary and Secondary Education, may be ready for a vote at the spring Town Meetings and ready for implementation for the school year of 2025-26.
Council of Aging Director Rebecca Moriarty said the Town Meeting warrant will also include an article to fund the Senior Center expansion.
Fire Chief Edward Poulin said a request for quotes on the fire station renovation and expansion will soon be put out. In terms of salary, he hired one person to fill a vacant position. Aside from a generator, there are no big-ticket expenses planned for the department. Poulin also praised Deputy Chief Patrick Farrow for securing $250,000 in grants for the department over the past four years.
Parks and Recreation Director Dan Blanchard said he was hoping to complete some capital projects at Thornton W. Burgess School but said he would be pursuing Community Preservation funding for them.
Police Chief Scott Trombly to the Board of Selectmen that he expected salary increases to be included in the new police contracts. The town will be responsible for more of the assessment for emergency dispatch costs that will increase as the state grant that subsidizes it is structured to decrease.
Trombly also said a new police cruiser is needed and the costs have risen “significantly.” Flynn asked about state funding for hybrid cruisers, but Trombly said called them “terrible” and said the repairs cost more. The Police Department is also seeking new pistols to replace the current ones, which as more than 7 years old. He explained the state is moving away to a different weapon and there would be some related training.
Highway Department Superintendent Mark Langone said Emergency Dispatch Director Anthony Gentile requested that expenses for the Highway Department’s radio communication be transferred out of his department’s budget. Langone explained that the acquisition of the radio service led to dispatch covering the roughly $12,000 per year for the past couple of years. The department is also looking to replace a 2012 pickup truck with about 100,000 miles.