CITY COUNCIL SPECIAL MEETING Monday, November 28, 2016 SPECIAL MEETING

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1 CITY COUNCIL SPECIAL MEETING Monday, November 28, 216 ************* SPECIAL MEETING 1. COMMUNICATION, Council President Morad, to City Clerk/Clerk of the City Council Dennis W. Farias, calling a SPECIAL MEETING OF THE CITY COUNCIL for MONDAY, NOVEMBER 28, 216, at 7: P.M., IN CITY COUNCIL CHAMBERS, CITY HALL, TO HOLD A HEARING ON TAX CLASSIFICATION FOR FISCAL YEAR LEGAL AD, PUBLISHED, MONDAY, NOVEMBER 14, 216, IN THE NEW BEDFORD STANDARD-TIMES, GIVING NOTICE OF TAX CLASSIFICATION HEARING FOR FISCAL YEAR 217, AT 7: P.M. IN CITY COUNCIL CHAMBERS, CITY HALL. 3. COMMUNICATION, Board of Assessors, submitting INFORMATIONAL PACKET to assist Councillors in selection of Minimum Residential Factor for Fiscal Year ORDER, ADOPTING MINIMUM RESIDENTIAL FACTOR FOR FISCAL YEAR 217.

2 Item Title: MEETING NOTICE Item Detail: 1. COMMUNICATION, Council President Morad, to City Clerk/Clerk of the City Council Dennis W. Farias, calling a SPECIAL MEETING OF THE CITY COUNCIL for MONDAY, NOVEMBER 28, 216, at 7: P.M., IN CITY COUNCIL CHAMBERS, CITY HALL, TO HOLD A HEARING ON TAX CLASSIFICATION FOR FISCAL YEAR 217. Additional Information: ATTACHMENTS: Description MEETING NOTICE Type Cover Memo

3 Office of City Council 133 William Street New Bedford, Massachusetts 274 (58) Fax:(58) Linda M. Morad Councillor at Large PLEASE POST November Dennis W. Farias. City Clerk/Clerk of the City Council City Hall William Street New Bedford, MA 274 Dear Mr. Farias: 1 hereby call a SPECIAL MEETING of the CITY COUNCIL for MONDAY, NOVEMBER 28, 216 at 7: P.M., IN CITY COUNCIL CHAMBERS. CITY HALL on the following: TO HOLD A HEARING ON TAX CLASSIFICATION FOR FISCAL YEAR 217 Sincerely, Linda M. Morad City Council President Councillor at Large Cjl^ LMM:smh cc: All Members of the City Council Legislative Counsel David J. Gerwatowski, Esq. Clerk of Committees Mayor Mitchell Neil Mello-Chief of Staff Ari Sky. Chief Financial Officer Elizabeth Treadup Pio. Mayor's Office - Assistant Informational Officer Board of Assessors/Carlos Amado, Administrative Assistant City Solicitor McDermott City Treasurer Abbott-Femandes City Auditor Robert Ekstrom North End Business Association South End Business Association Chamber of Commerce Downtown New Bedford. Inc. Department of Facilities and Fleet Management Cable Access Residence: 4162 Acushnet Avenue New Bedford, Massachusetts 2745 Tel: (58) Linda.Morad@newbedford-ma.gov

4 Item Title: LEGAL AD Item Detail: 2. LEGAL AD, PUBLISHED, MONDAY, NOVEMBER 14, 216, IN THE NEW BEDFORD STANDARD-TIMES, GIVING NOTICE OF TAX CLASSIFICATION HEARING FOR FISCAL YEAR 217, AT 7: P.M. IN CITY COUNCIL CHAMBERS, CITY HALL. Additional Information: ATTACHMENTS: Description LEGAL AD Type Cover Memo

5 LEGAL AD PROPERTY TAXES IN NEW BEDFORD TAX CLASSIFICATION HEARING On MONDAY. NOVEMBER at 7: P.M., there will be a PUBLIC HEARING held in City Council Chambers. Cit\. 133 William Street. New Bedford. MA. on CLASSIFICATION AND TAXATION OF PROPERTY ACCORDING TO USE. At that hearing, the Cit\l will accept oral or written information from taxpayers on their views. The Council will vote on allocating the tax burden among the four (4) classes of real property - residential, open space, commercial and industrial. The Council will, at this meeting, adopt a residential factor, which will govern the percentage of the tax levy to be borne by residential property owners. This meeting will determine how much Homeowners and Businesses pay in taxes for Fiscal Year 217. All members of the public are invited to attend this hearing. Any person who is interested in testify ing at this meeting will be allowed to do so. Written opinions can be mailed to the City Council Office. Room 215. City Hall. 133 William Street. New Bedford. MA 274, or left in the City Council Office Monday - Friday, from 8: a.m. to 4: p.m. City Clerk/Clerk of the City Council Publish: November 14, 216

6 Item Title: INFORMATIONAL PACKET - MINIMUM RESIDENTIAL FACTOR Item Detail: 3. COMMUNICATION, Board of Assessors, submitting INFORMATIONAL PACKET to assist Councillors in selection of Minimum Residential Factor for Fiscal Year 217. Additional Information: ATTACHMENTS: Description INFORMATIONAL PACKET Type Cover Memo

7 Council President Linda M. Morad and Members of the New Bedford City Council -*> City Hall - Council Chamber New Bedford, MA. 274 Dear Council President Morad and Members of the New Bedford City Council: Thank you for inviting the Board of Assessors and the Assessing Staff to the Annual Classification Hearing. As is usual, the City Council will determine the Minimum Residential Factor and the accompanying percentage shift of taxation from a percentage of 1 (a single tax rate) to 175. This year the proposed tax levy is $114,73,96. This includes the 2.5% increase and New Growth. In New Bedford, the maximum shift toward the business classes cannot exceed 175%, and, at this Levy amount, a Minimum Residential Factor of which would set the tax rates for Residential and Commercial/Industrial/Personal Property at $16.69 and $36.3 respectively. For Fiscal 216, the Council chose a factor of (175%) with tax rates of $16.49 and $35.83 respectively. During this Revaluation Year, the City's taxable base increased $24,96,33. The entire city valuation of $6,822,346,86 (including all the exempt property) increased $214,522,83 (an approximate 3.25% increase in value). The effect of a stabilizing real estate market and the slight increases in calendar years 214 and 215 is reflected in the values for Fiscal Year 217. Values for taxation for Fiscal Year 217 determined as of January 1, 216 are normally based on sales of the calendar year preceding the valuation date, i.e. Calendar 215 for Fiscal 217. The City did NOT have enough arms-length sales of all classes of property in Calendar 215 to use only that year as a data base for valuation. As such, the Assessors have been required to use 12 months of sales (215) for Single-Family and Condominium properties, 24 months of sales (215 and 214) for Multi-Family, Commercial and Industrial properties in our data base. We are required to use at least 2% of sales for each class as valid, arms-length transactions. Sales resulting from foreclosures, bankruptcies, estates, family, etc are not allowed to be used in creating the required data base.) 133 William Street, New Bedford, Massachusetts 274 Tel: (58) Fax: (58)

8 Fiscal 217 is a Revaluation Year. 3 new single family homes were added to the tax rolls. The total New Growth tax for Fiscal 217 is $1,98,839. This includes new growth of $32,953 from TIF and STA agreement properties. (Note that the Tax Increment Finance and Special Tax Assessment eliminate all, existing, and new, personal property from taxation for the term of the agreement for the taxpayer). The New Growth is added to the existing Fiscal 216 tax levy after the 2.5% increase, the Final proposed Tax Levy is $114,73,96. Please note that the excess levy capacity remaining between the final tax levy and the levy limit will be announced at the Classification Hearing, (In Fiscal 216, the excess Levy Capacity was $4,898,31 1) depending on the Minimum Residential Factor selected by the City Council. Using the Levy amount quoted above, the excess levy capacity for Fiscal 217 should remain the same, approximately: $4,898,311. The possible maximum single tax rate for Fiscal 217 (at the proposed Levy) is $2.59. The increase in the single tax rate is directly attributable to the additional tax levy from New Growth and the 2.5% increase. The equalization of value throughout the city may result in tax decrease for some taxpayers, an increase for some while others remain about the same, depending on the Minimum Residential Factor selected. Residential (RES) and Commercial/Industrial/Personal (C/I/P) classes shift as a percentage FISCAL SGL TAX C/l/P % RES C/l/P YEAR %RES % C/l/P RATE SHIFT RATE RATE % 2.61% % % 2.58% % % 2.97% % % 2.3% % % 19.56% % % 18.42% % % 16.98% % % 16.64% % % 15.9% % % 15.6% %** % 16.53% %** % 16.7% %** % 17.25% %** % 19.% % % 21.4% % % 23.3% % % 23.4% % ** Special Legislation

9 Even though the City Council eliminated tax billing for Personal Property Accounts with $1, or less, in value beginning with Fiscal 213, the Personal Property valuation remains steady. Commercial and Industrial values remained relatively stable. The Assessors are monitoring the sales market in Calendar 216 as the economic condition stabilizes and real estate sales prices continue to show improvement. At the Proposed Tax Levy one penny of the single tax rate equals about $55,399 in spending. The attached chart of Minimum Residential Factors / Percentages / and associated Tax Rates provides the Factor and percentages and associated tax rates for your consideration. Please note that the chart has the maximum factor/percentage at 175. The necessity of paying real estate taxes affects everyone, especially those on fixed income. Statutory Exemptions are available for qualifying taxpayers as well as other options. First, Chapter 59, Section 5, Clause 41A Tax Deferral where an amount of tax may be deferred until a later time, and a lien with an accruing interest charge is recorded at the Registry of Deeds.. Water and Sewer Bills may also qualify for this clause. Successful application for this clause is dependent on the personal circumstances of the individual taxpayers as they meet the statutory requirements set by the Legislature. New legislation gave the power to set a low interest rate on the deferred amount by local option acceptance and was accepted a few years ago by our City Council along with raising the maximum income level for qualification. The second option available to qualifying taxpayers-under the guidelines of Massachusetts Income Tax Filing in 217 for activity in 216, and not in anyway administered by local government, is the "Circuit Breaker" Bill provisions of which create a deduction or refund of a percentage of real estate taxes and water/sewer bills. This is totally a function of state income tax and the Department of Revenue, but it is a highly viable help to those taxpayers who may qualify to use it in addition to any statutory exemptions they may already receive. Elderly taxpayers should investigate this possibility with a qualified tax accountant as the amount to be exempted has risen these last few years. The Board of Assessors and the Assessing Department are always ready to provide help and assistance to you and our taxpayers. Sincqrely, ^ ^ y- Board of Assessors Cc: Mayor Jonathan F. Mitchell City Councilors Ari J. Sky Robert Ekstrom Renee Femandes Dennis Farias Susan Henriques/Council Office

10 Average taxes based on average values Residential and Commercial properties for FY 217 Avq Single Familv Avq Commercial FY 216 Assessed Value: $189,719 $46,977 FY 216 Tax Rate: $16.49 $35.83 FY 216 Tax: $3,128 $14,582 FY 217 Proposed Value: $199,356 $46,418 Proposed Levy: $114,73,96 Class % Min Res Factor Res Tax Rate Est Avg Tax Sql Fam Djff %lnc C/l/P Tax Rate Est Avg Tax Comm iff %lnc $3,431 $ % $13,81 ($772) -5.29% $3,421 $ % $13,891 ($691) -4.74% $3,411 $ % $13,977 ($65) ^.15% $3,41 $ % $14,58 ($524) -3.59% $3,389 $ % 34.8 $14,143 ($439) -3.1% $3,379 $ % 35.1 $14,229 ($353) -2.42% $3,369 $ % $14,31 ($272) -1.87% $3,359 $ % $14,395 ($187) -1.28% $3,349 $ % $14,477 ($15) -.72% $3,337 $ % $14,562 ($2) -.14% $3,327 $ % 36.3 $14,643 $61.42%

11 New Bedford - 21 CLASS Residentia Open Spac Commerci- Industrial Personal P Total VALUE 4,423,238, ,54, ,142,1 26,1, ,539,895,96 1. R&% CIP% MassDOR - Massachusetts Department of Revenue Division of Local Services What If... Scenario Worksheet for FY 217 CLASSiFiCATiON OPTIONS Residentiai Exemption # Eligible Parce Res Parcel Cou Res Exemption Small Commercial Exemption # Eligible Parcels Total value of Eligi Comm Exemption Total Res Value 4,423,238,525 Total Comm Value 91,646,775 Enter a Levy (estimated if necessary) Levy 114,73,96 Single Taxi 2.59 Enter a CIP Shift Range Shift Range Shift increment % Max Shift Allowed Note: This table should be used for planning purposes only. Actual calculations may differ slightly due to rounding. For actual calculations, complete Recap. Share Percentages Levy Amounts Esimated Tax Rates CiP Shift Res Factor Res SP: OSSP Comm SP indsp PPSP Total SP Res LA OS LA Comm LA Ind LA PPLA Total LA Res ET OS EJ: Comm ET ind ET PPET ,8,428 13,24,122 5,727,32 4,242,36 114,73, ,85,493 13,154,363 5,784,593 4,284, ,73, , ,62,559 13,284,64 5,841,8661 4,326, ,73, , ,39,624 13,414,845 5,899,139; 4,369, ,73, ,16,689 13,545,87 5,956,413 4,411, ,73, ; ,93,754 13,675,328 6,13,686 4,454, ,73, , ' ,7,819 13,85,569 6,7,959 4,496, ,73, ,47,885 ^ 13,935,81 6,128,232 4,538, ,73,96 2, , , ,24,95 14,66,51 6,185,55 4,581, ,73, ,11,15 14,196,293 6,242,779 4,623, ,73, ,781,8 14,326,534 6,3,52 4,666,24 114,73, , ,551,146! 14,456,775 6,357,325 4,78,66 114,73, , ,321,211 14,587,16 6,414,598 4,751,81 114,73, , ,91,276 14,717,257 6,471,871 4,793,51 114,73, ; ,861,341 14,847,499 6,529,145 4,835, ,73, , ,631,46 14,977,74 6,586,418 4,878, ,73, ' ; , ,41,472 15,17,981 6,643,691 4,92, ,73, ,171,537 15,238,222 6,7,964 4,963, ,73, ,941,62; 15,368,464 6,758,237 5,5,63 114,73, , ,711,667 15,498,75 6,815,511 5,48,23 114,73, , , ,481,733 15,628,946 6,872,784 5,9, ,73, ,251,798 15,759,187 6,93,57 5,132, ,73, , ,21,863 15,889,428 6,987,33 5,175, ,73, ; ,791,928 16,19,67 7,44,63 5,217,75 114,73, , , ,561,993 16,149,911 7,11,877 5,26, ,73,96 19, , ,332,59 16,28,152 7,159,15 5,32, ,73, , ,12,124 16,41,393 7,216,423 5,344, ,73, ,872,189; 16,54,634 7,273,696 5,387, ,73, , , ,642,254, 16,67,876 7,33,969 5,429, ,73, , ,412,32 16,81,117 7,388,243 5,472, ,73,

12 Share Percentages CIP Shift Res Factor Res SP OSSP CommSP indsp PP SP Totai SP Res LA , 84,182, ,952, ,722, ; ,492, ,262, _ 91, , ,32, ,82,776 1, , 15,6417 6, ,572, , ,342, ,112,972 1, ,883, ,653, ,423, ,193,233' ,8921: ,963, , ,733, , ,53, ,1347! ,273, ,8823 7,1682; ,43, ' ; ,813, , ,583, : ,353, ,123, ,893,885 1, , ,663,95! 1, , 68,7572, 17, ,434,15 1,56 85, , 17, ,24, ,974, ,744, , 77,514, ,284, ,54, , ,824,472 1, ,594,537 1, , ,364,62 1, ,1358 1, 76,134, ,3344 6,173 1, 75,94, , , 75,674, , 75,444, ,9353, , 75,214, , ,984, , , ,755, , , ,525, ,295, ,65, , ,835,32 Levy Amounts LA Comm LA ind LA PPLA Total LA! 16,931,358 5,514, ,73,96 7,445,516; 17,61,599 5,557,68 114,73,96 7,52,789 17,191,841 5,599, ,73,96 7,56,62 17,322,82 5,641,98 114,73,96 7,617,335 17,452,323 5,684, ,73,96 7,674,69 17,582,564 5,726, ,73,96 7,731,882 17,712,85 5,769,17 114,73,96 7,789,155 17,843,47 5,811,59 114,73,96 7,846,428 17,973,288 5,854,1 114,73,96 7,93,71 18,13,529 5,896, ,73,96 7,96,975 18,233,77 5,938, ,73,96 8,18,248 18,364,12 5,981, ,73,96 8,75,521 I 18,494,253 6,23, ,73,96 8,132,794 18,624,494 6,66, ,73,96 8,19,67 18,754,735 5,18, ,73,96 8,247,34; 18,884,976 6,15, ,73,96 8,34,614 19,15,218 I 6,193, ,73,96 19,145,459 8,361,887 6,235, ,73,96 19,275,7 19,45,941 8,419,16; 6,278,214 8,476,433 6,32, ,73,96 114,73,96 19,536,182: 8,533,76 8,59,98 6,363,55 114,73,96 19,666,424 8,648,253; 6,45, ,73,96 19,796,665; 8,75,526j 6,447, ,73,96 19,926,96 8,762,799 6,49, ,73,96 2,57,147 8,82,72 6,532, ,73,96 2,187,389 2,317,63 8,877,346 8,934,619 6,575,157 6,617, ,73,96 114,73,96 2,447,871 2,578,112 8,991,892 6,659,997 9,49,165 6,72, ,73,96 114,73,96 2,78,353 9,16,438 6,744, ,73,96 2,838,595; 9,163,712 6,787, ,73,96 2,968,836 9,22,985 6,829,679; 114,73,96; 21,99,77 9,278,258 6,872,99 114,73,96 21,229,318: 9,335,531; 6,914, ,73,96 21,359,559 9,392,84 6,956,94 114,73,96 21,489,81 9,45,78 6,999,36 114,73,96 21,62,42 9,57,351 7,41, ,73,96 21,75,283 21,88,524 9,564,624 9,621,897 7,84,21 7,126, ,73,96 114,73,96 22,1,766 22,141,7 9,679,17 9,736,444 7,169,42 114,73,96 7,211, ,73,96 22,271,248 9,793,717 7,253, ,73,96 22,41,489 9,85,99 7,296,33 114,73,96 22,531,73 9,98,263 7,338, ,73,96, 22,661,972 9,965,536 7,381,143; 114,73,96; 22,792,213 1,22,81 7,423, ,73,96 Esimated Tax Rates ResET OS ET Comm ET Ind ET PP ET ; , , , , , , , , , , ' , , , , '

13 Item Title: ORDER - RESIDENTIAL FACTOR FY17 Item Detail: 4. ORDER, ADOPTING MINIMUM RESIDENTIAL FACTOR FOR FISCAL YEAR 217. Additional Information: