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| Let's see Bud pull THIS rabbit out of his hat !! |
I questioned some earlier posts on the effect of the potential Mirant closing on local tax bills and made a note on the blog that I was looking for clarification before people started with the pitchfork and torches. Ed Childs, our crack Assessing Guru immediately came to our aid with a more complete explanation of what would happen if Mirant was to go away.
Ed said:
The levy ceiling of the town WOULD drop (as prop 2.5 does say you could never levy more than 2.5% of the town real estate value). But we have never been remotely close to that figure (In FY 2010 the ceiling was 100.7 million, compared to the actual levy of 45.3 million. So our “real” tax revenue would not be effected, just the ceiling, which is currently 55 million away,The actual levy would not change at all – it would be allowed to increase (with any voted additions of override or debt exclusion) by the normal 2.5% plus new growth. The rate would be still calculated by dividing the levy b the now reduced total value of the town. The rate would adjust upwards, and the amount that would have been collected from Mirant would be distributed to all others.Prop 2.5 is truly NOT keyed to value – with the single exception of the levy ceiling – it is keyed to the actual levy. That is a common, and potentially dangerous misconception. Bills will react more to the change in levy as opposed to a change in value (unless you particular value dropped or increased by a certain range from the typical or average movement of all other properties.)Again, please remember the tax rate is just a division formula of tax levy/total town value. That is why in a hot or a cold market, the average bill typically increases by 2.5% plus growth (about 4% total)
In other words, if Mirant doesn't pay their $2.4 million, we will. No Override vote required -- everybody's tax bill just goes up automatically.
In reality, the plant will not evaporate -- there will be some taxable value remaining --- but there's a hell of a lot of difference in the taxable value of an operating power plant and a cold, shut-down power plant that has no inventory, little functional equipment, and unknown environmental "issues".
This is probably not a topic meant for discussion during the same week the Town is looking for a $5 million debt exclusion to fix buildings they haven't been able to afford to maintain, OR when they have begun discussing another Operating Override for the Spring.
Bud has been juggling chainsaws for years, but I can't imagine how he's going to pull this rabbit out of his hat!!
9 comments:
I believe that is Jim Pierce trying to put a saddle on the rabbit.
Yeah......couldn't afford in the past to repair buildings when the largest taxpayer was in its prime. That same taxpayer is now waving goodbye so we can afford repairs today? The point is, to town doesn't have to do a thing about it. As Bud was quoted in the CCT as saying, "We won't loose a penny..."
We?
Well..... there's always reducing expenses, finding new ways of doing things, like out- sourcing and....wait, NO.....let's just raise taxes, its easy and requires no effort.
Bud as much as said this in the CCT this week - he's not worried about Mirant because the rest of us tax paying saps will pick up the tab. It was a very candid admission! This Monday - Vote No. Vote No. Vote No.
You raise a HUGE point --- we're facing what is essentially an automatic $2 million overide once they mothball Mirant AND they want money to rebuild (but not maintain) town buildings, AND they want more money for operations next spring!!
The police & fire departmens will still be sliding into a flood zone ---- BUT at least Town Hall looks nice!
I'll vote for the override if they take down that god-awful sign on QMH in front of the temporary town hall --- it looks like the entrance to a Mashpee trailer park!
Whatever happened with those cottages? Did that crazy lady from Town Meeting make any money for the Town or just earn herself a lovely vacation home on the pond?
Yup, essentially an automatic override with nothing to show for it. Did they try to make that OCC Town Hall sign crooked? Really does look pathetic. I know, I know it is a temporary sign but does anyone own a level for crying out loud?
While I don't like the prospect of higher taxes any more than anyone else. The buildings desperately need repair. I encourage everyone to walk around the fire headquarters, for example, and take a look. The masonry is cracked, the windows are shot and there is significant rot, among many other issues in that building alone. The longer that we wait to fix them the more money it will cost us all. Given the town's present financial dilemma, it doesn't appear likely that a new safety facility will be a reality any time soon.
A careful review of past budgets, all of which that were endorsed by the Town Manager, Selectmen and Finance Committee, set aside almost nothing to finance on-going repair and improvements. The Town literally let its hard assets, like buildings, roofs, tennis courts, track and fields, etc., rot.
Now the Town Manager, Selectmen and Finance Committee are asking taxpayers to fix and repair everything they neglected for the past 20 years. Worse yet, us taxpayers are being asked to fix buildings for which there exists today no plans for set asides to finance on-going repair and improvements, no written maintenance plan and no maintenance resources. Taxpayers would quite literally be rebuilding assets to once again leave them to rot.
This plan is half baked and voters would be wise to vote NO Monday night.
But if we don't pass this override, we'll never be able to replace those beautiful mums in front of Town Hall each Fall! And isnt this the same BOS who just said okey dokey to a new library? Just wondering . . . I guess rubber duck floaties will be standard issue for our Police Dept! Sounds like a plan - all aboard the crazy train.
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