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Date: 11/18/2020
HAMPDEN – The Hampden Select Board voted at its Nov. 16 meeting to set a single tax rate for the 2021 fiscal year (FY).
Principal Assessor Kelly McCormick laid out the tax classification options for the board, which included a single tax rate for both residential and commercial properties or a split tax rate, which assign a higher rate to businesses than homes. Historically the town has used a single tax rate since the ratio of residential to business property is heavily skewed, with 85 percent to 90 percent homes.
The second option would be a small business exemption in which properties that house commercial enterprises valued under $1 million and with fewer than 10 permanent employees would see a 10 percent reduction of the taxes, with that amount shifted onto large businesses. With the low volume of commercial properties in town, there wouldn’t be enough large businesses to take on the extra share of taxes. It should also be mentioned that the exemption would benefit the property owner, not the small business that is located at that property. The option was not adopted.
The board also had the option of adopting a residential exemption, which would not change the tax rate, but would shift the residential burden toward high-priced houses, rental homes and non-primary residences, or second homes. Hampden has very few homes that would support the tax burden shift as nearly all the houses in town are homeowner primary residences. No action was taken on this option, either.
The FY20 tax rate is $20.15 per $1,000 of property value. For FY21 the tax rate has gone down to $19.67 per $1,000. Despite lowering the tax rate, McCormick explained that some residents may see an increase in their tax bills because the average residential property in town has increased 7 percent in value, from $270,000 in FY20 to $288,000 this fiscal year.
The tax-abatement program was continued for FY21. The program allows senior residents to work for the town and, in return, their property tax is reduced by up to $1,500, depending on the number of hours worked. There are 10 positions, such as at the senior center or in the town hall, that are open for the program for the upcoming year. For eligibility requirements, the Assessor’s Office can be reached at 566-2151 ext. 106.
Interim Town Administrator Bob Markel updated the board on the status of regional emergency dispatch negotiations with the Town of Wilbraham. Wilbraham would receive $256,000 in grant money from State 911 for regionalizing as well as $112,000 to install fiberoptic cable between the towns. The latter part is contingent upon a signed inter-municipal agreement.
Markel’s counterpart, Wilbraham Town Manager Nick Breault, informed him that Wilbraham will be seeking a $125,000 fee plus the annual consumer price index (CPI) increase per year to answer Hampden’s 911 calls in addition to their own. Wilbraham would also receive Hampden’s public safety answering point (PSAP) revenue, the fee automatically charged to mobile phone users monthly to fund 911 services.
Select Board Member John Flynn said that he would like to see what that number is based upon. By comparison, Chicopee-based WESTCOMM, another candidate for a regional agreement, proposed a $100,000 fee. Chair Donald Davenport noted he would prefer the fee be linked to the volume of calls from Hampden rather than the CPI.
Select Board Member Mary Ellen Glover remarked that she wasn’t sure what was in the agreement for Hampden, but Davenport reminded her that even if the town paid the $125,000 fee, it would still be saving between $350,000 and $400,000 per year.
Noting that money was not the only factor, Glover said that Hampden should have a “strong say” in decision-making and the budget. Davenport noted that the regional agreements for the towns of Rutland and Ayer, on which the draft agreement was modeled, do not allow the satellite towns to reject the budget of the town that houses the dispatch.
Glover asserted that she would not vote to sign any regional agreement with Wilbraham. When discussing other options, Davenport said that Ludlow and Palmer were not likely partners, but that Charlton and Oxford were looking for a third town to join their agreement. It was decided that another meeting would be scheduled between Hampden and Wilbraham.