TR-2015-48 TAX FACTOR �;�N�ois-ug 'Ca��ac��
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Form of Government O'Mayor :�
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2015 Labor Force 15.r740
2013 Per Capita Income
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PROPOSE1.)
FY2016 Tax Classlification
Assessed
Tax Classification Tax Rate Tax Levy
Values
Residential
1 { 2
Commercial 29.58 725St393,412
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Industrial j . 51556,209 : � ,, m i
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Personal . 8,21,40,303i 277,715,230
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2016
CIASSIFICATION'
BREAKDOAV,N
PROPERW VALUE
PE RSONA ,
0
INDUSTRIAL
to RES11, lA
a COMMERCIAL
0 PERSONAL
L ,
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7 %
RESIDD4TIAL 21086
COMMERCIAL 255,393,412
INDUSTRIA,L '187,848,430
FY2015
AVG,
SINGLE
TAX BILL
SINGLE
ASSESSED AVERAGE TAX FAMILY
MUNICIPALITY VALUE PARCELS VALUE RATE TAX BILL
WESTFIELD ,1 I $ % 3224,655 18.54 �16
LONGMEADOW , 7, 0 326,74 23.62 ,7
RATES
TAX
Municipality
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ICOPEE 2013 ILS.7431.40
2 0 1429.60��.�M�
2 18.62
14 20.47 20.47
3 18.35 3997
2014 19.04 39.74
2 4
2 5
2014 23.15 23.. 5
2014 7 w
`„, "FIEF.., .,. .. . 38.98
20 5 33,19
2
�.,. 0 8,,54 34.69
FLIT TAX RATE
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Town of Agawam
2.x 3 D9PNA ASSESSMENT CLASSIFICATION REPA T
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w 277,715,230
R ;,wn 2,629,863,487
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CHAPTER,200
FOR F
AGAWAM
1 Lath year's chosen residential percentage` " Res"'de fi only, not R she 0a 6 104' %
2, This year's MRF usinq a 150% shift to CIP (from ILA-7), 8Z7243%
3, Mininnurn, residential stiare (R) are �irre t year using 50% Shift to CIS � 61,4816%
If#I Js gr&atff-r l-,,an#3, STOP € You may shn"t on jv cxi") lh` 1,50%;€ , C>`P and#2
fit. Calculate aresidential factor t,ia ing a t t 5% shift to CI a K0863%
11
tat tt kaa "a" ai by this E'' residential
percentage (R.),
What is the lowest Nf t ii:W residential percentagesince h first
certification (RI.
P A:," t 5 a "" ":a,��¢`�f t y C e P,.�,
"�" t� �� W greater�t�t� ���. �a � " X�`�as �aast'. �'+,rat un ,P �� t �:wt �. t't`t�� km=��r�." and IN
is the-Loweat
If#6"is greafer than #55" go
`take the lowest historical! residential percentage,g #6 3317% dived it
by the current residential percentage at t"'t*CV t` .3210%, the result is 79A317%
the t %ve,,st resolembal laclo,, allowable (it ane, y not be lest' ti a n 50%
Multiply that factor t� - tw � ,fit t � space, �,a„� � �� � 1
t � t �°` �" �°� ° �t ��"� �t�t the � � �,, a��s�� t� :� ��„��� , take �0tt% rii�,n
(R , 0)% total to equal,the new maxim urn CIP percentage share, .6683
9 tail+`Ra;e tha s new maxamwn CIP share by F ,.CV of CIP share 25.6790% to determine
percentage of shift, ' 6&3718 �s (this may not be more than s 5%)
t Residential share in the year before first certification ation rna; be used of ; �sess,o s docu n-ent it was lower,
DEPARTMENT
OF REVENUE
MINIMUMDE " I L FACTOR COMPUTATION
R FY 2016 ,
AGAWAM
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tka
t Class Full and Fair Case Percentage
Valuation Share
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MINIMUM RESIDENTIAL FACTOR 82,7243%
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' Town of Agawam
Assessor's Office
36 Main St,Agawam,Massachusetts 01001-1837
Tel. 413-786-0400 X 8704 Fax 413-726-2828
Email. assessor@agawamma.us
December 7,2015'
Good evening councilors and thank you for inviting me to speak here tonight.
Each year the City Council must decide at the Public Hearing on Classification how to
allocate the tax levy between the residential and business classes of property. The tax
levy for the town for FY 2016 is approximately$55,362000.
At the proposed shift of 1.50 the residential rate would be$16.31/thousand and the
business rate would be$29.58/thousand. The tax levy for the residential class would be
just over$34 Million and the levy for the business class would be approximately $21.3
Million.
At this shift, the average single family home in Agawam,which is valued at'$212,400 for
FY'2016,will see a tax increase of approximately$173 annually, or about$43 per
quarter. There are 7,719 properties classified as single-family homes in Agawam.
For the 317 commercial and industrial properties with a value under$500M, the average
tax increase will be approximately$428 annually,;or about $107 per quarter. The
average value in this group of properties is$219,200.
For the 155 commercial and industrial properties with a value over$500M,the average
tax increase will be approximately$2,779 annually,or about$695 per quarter. The
average value in this group of properties is$1,523100
It should be stressed that the commercial and industrial tax increases noted above are for
the entire group of properties within each value segment. The tax increases will in
general be higher for those properties with Values above the average and lower for those
properties below the average.
At the subcommittee meeting held December 2"d, it was noted that the town of Agawam
has been fortunate over the past several years to have a significant increase in the
business class tax base due primarily to the effect of the Greater Springfield Reliability
Project. To put that tax-base increase in terms of real numbers,the value of the WMECO
personal property account, which is basically the transmission lines and equipment that
provide electricity,was about$32.7 Million in FY 2011. In FY 2015, that value peaked
at$209.1 Million.
This infusion of value has been the primary driver of relatively low tax increases over the
past several years. For the four years from FY 2012 to FY 2015, the total increase for the
average single family home in Agawam has been about$214.00 or$53.00 on average per
year. In one of those years, FY 2014,the average single family tax bill actually dropped
by$10.00.
FY 2016 is a different story. The WMECO project is completed, and even with a new
growth amount of$4.5 million, the value dropped from $209 Million to $200 Million for
FY 2016 due to normal asset depreciation. "There has also been drop in the value of
Berkshire Power from the last appraisal in FY 2013 from about$89 Million to $61
Million for FY 2016. Lastly,there were two properties that got designated as certified
manufacturers by the state, removing approximately $7 million dollars of assessed value'
from taxation at the local level.
This erosion of the commercial/industrial tax base has helped to create the opposite effect
that the WMECO project had,which means that taxes are going up more this fiscal year
than the past several years.
However, even at the proposed shift of 1.50 for FY 2016, Agawam's tax rates would still
be lower than the FY 2015 tax rates of surrounding communities such as West
Springfield, Springfield, Westfield and Chicopee. Agawam's average single-family tax
bill would also still be lower than the sister communities of Westfield and West
Springfield.
I hope that this information provides further clarification of the effects of the tax shift on
both residential and commercial/industrial properties.
Sincerely,
Kevin Baldini
Assessor
Town of Agawam
TR-2015-48
A RESOLUTION ADOPTING A RESIDENTIAL FACTOR OF 0.827243 PURSUANT TO
MASSACHUSETTS GENERAL LAWS,CHAPTER 40,SECTION 56
Sponsored by: Mayor Richard A, Cohen
WHEREAS, beginning in Fiscal Year 1989 the Agawam City Council began adopting
residential factors of less than one (1) pursuant to Massachusetts General Laws, Chapter 40,
Section 56; and
WHEREAS, it is in the best interest of the residential taxpayers of Agawam to adopt a
residential factor of less than one(1),and
WHEREAS, it is in the best interests of the Town of Agawam to adopt a residential
factor of 0.827243;and
WHEREAS,this factor represents a shift of 1.50.
NOW THEREFORE, THE AGAWAM CITY COUNCIL hereby resolves after
conducting a public hearing to adopt a residential factor of 0.827243 pursuant to Massachusetts
General Laws, Chapter 40, Section 56; and
DATED THIS OF --,2015.
PER ORDER OF THE AGAWAM CITY COUNCIL
Christopher C. Johnson,President
AI'". ROVED AS FORM AND LEGALITY
I A
Vincent oseia, Solicitor
� ae
" Town f Agawam
Assessor's Office
36 Main St,Agawam,Massachusetts 01001.1837
Tel. 413-786-0400 X 8704 Fax 413-726-2`828
Email: assessor@agawam.ma.us
December-3,2015'
Dear Council Members:
As a follow-up to our meeting I have attached two spreadsheets that give further detail to
the information discussed last night.
The first attachment is a continuation of the Average Comparison Spreadsheet. I have<
started this spreadsheet at 1.50 which was the recommended shift discussed last night
and extended it to the maximum allowable shift of 1.59. Moving in this direction has the
effect of shifting the tax burden further away from'the residential class and more toward
the commercial,industrial and business personal property classes.
It should be-stressed that at a shift of 1.50 the increase of$428 in the
commercial/industrial class under$500M is the average for the entire segment of that
market. If the value of the property was twice the average value of$219,200,the tax
increase would also approximately double to$860 The same is true for commercial
industrial properties greater than$500M in value. The$1,523,100 value shown on the,
spreadsheet is the average value for the entire segment of that market.
To further exemplify the effect of moving the shift farther to the right as the committee
discussed,I have attached a second spreadsheet that shows the effect of a greater shift on
the following commercial/industrial properties:
• Six Flags New England
• A$3 Million property'
• A$4.5 Million property
• A$ 6 Million property
As the first box shows,the tax increase on Six Flags New England at a shift of 1.50
would be about$160,000,or an approximate 6% increase in taxes. This would increase
to about$252,000 at a 1.55 shift,or an additional $92,000 in taxes. To shift to 1.55
would represent an approximate 9.6% increase in taxes to Six Flags.
For the$1 Million property,the tax increase at a 1.50 shift would be about$5,644,or an
approximate 6.60/6 increase in taxes. The increase at a 1.55 shift would be about$8,643,
or an additional increase of approximately$2,998, To shift to 1.55 would represent an
approximate 10%tax increase.
For the$4.5 Million property, the tax increase at a 1.50 shift would be about$8,467, or
an approximate 6.6%increase in taxes. The increase at a 1.55 shift would be about
$12,965, or an additional increase of approximately$4,498. To Shift to 1.55 would
represent an approximate 10%tax increase.
For the$6 Million property,the tax increase at a 1.50 shift would be about$11,289,or an
approximate 6.6%increase in taxes. The increase at a 1.55 shift would be about$17,287,
or an additional increase of approximately $5,997. To shift to 1.55 would represent an
approximate I 01/o tax increase.
As was noted at the meeting,the to of Agawim,has been fortunate over the past
several years to have relatively low tax increases due primarily to the effect of the
Greater Springfield Reliability Project and the tax-base value that project infused into the
community. Therefore,even:at the proposed shift of 1.50 for FY 2016,Agawam's tax
,rates would still be lower than the FY 2015 tax rates of surrounding communities such as
West Springfield, Springfield, Westfield and Chicopee.
I hope that this information provides further clarification of the effects of the tax shift on
both residential and commercial/industrial properties. Please feel free to contact me if
you have any questions regarding this information.
Sincerely.
e�*"�74"
vin n
To
ssesr 0 g
To of Agawam
AVERAGE COMPARISON FY 2016 $65 361 992 TAX LEVY 1 111 61201 6
Fiscal Year 2015 Fiscal Year 2016 AVERAGE SINGLE FAMILY'HOME
Value $212,400
Value. $209,100
Shift, 1.50 1.51 1.52r 1.53; 1.54 1.55'> 1.56 1.57 1.58
Tax Rat® 15.74 Factor 0.827243 0.823788 0.820333 0:816878 0.613422 0.809967 0.806512 0.803057 0:799602
Tax $3,291
Rate $16.31 $16.24 $16.18 $15.11 $15.04 $15.97 $16.90 $15,84 15.77
Tax $3,464 $3,449 $3,437 $3,422 $3,407` $3.392 $3 377 $3,364 $3,350
Difference S 173 $' 158 $ 145 $ 131 $ 116 $ 101 $ 86 $ 73 $> 58
Fiscal Year 2016 COMMERCIALANDUSTRIAL UNDER 600M IN VALUE
Shift 1.50 1.51 1.52 1.53` 1,54 1.55 156 157 1.58
Average Value 219 200 Factor 0.827243 0.823788 0.820333 0.816878 0.813422 0.809967 0.806512 0.803057 0.799602
Hate $29.58 $29.78 $29.97 $30.17 $30.37 $30.56 $30.76 $30,96 31.16
Average Tax Increase for Entire Class $438 $472 $514 $658 $601 $643 $687 $731 $776
Fiscal Year 2016 COMMERCIALIINDUSTRIAL OVER 500M IN VALUE
Shift 150 1.51 1,52` 1.63' 1.54 1.56 156 157 1.58
Average Value 1,523,100 Factor 0.827243' 0.823788 0.820333 0.816878 0.813422 0.809967' 0.806512 0.803057 0.799602
Rate $29.58 $2978 $29.97' $30.17 $30.37` $30.56 $30.76 $30.96` 31.16
Average Tax Increase for Entire Class $2,779 $3,084 $3,373' $3,678 $3,982 $4,272 $4576 $4,881 $5,185
FY 16 VALUE FY 15 RATE TAX FY 16 VALUE SHIFT RATE TAX INCREASE
92,487,680 0.02829 2,616,476.47 93,868,090 1.47 0.02899 2,721,235.93I 104759.46
1.48 0.02918 2,739,070.87 122,694.40
1.49 0.02938 2,767,844.48' 141,368,02
1.50 0.02958 2,776,618.10 160141.64
1.51 0.02978 2,795,391.72 178 915.25
1.52 0.02997 2,813,226.66 196,760.19
1.53 0.03017 2.832,000.28 215,523.81
1.54 0,03037' 2,850,773.89 234 297.43
1.56 0.03056' 2,868,608.83 262,132.36 91990.73
1.56 0,03076 2,887,382.45 27090598
1.67 0.03096 2,906,156.07 289,679.60
1.58 0.03116 2,924,929.68 308,453.22
FY 1S VALUE FY 15 RATE' TAX, FY 16 VALUE SHIFT RATE TAX INCREASE
3,000,000 0.02829 84,870.00' 3,060,000 1.47 0.02899s 88.709.40 3,839AO
1.48 0.02918 89,290.80 4,420.80
1.49 0.02938 89.902.80 5032.80
1.50 0.02968 90,514.80 5,644.80
151 0.02978 91,126.80 6,256.80
1.52 0.02997 91,708.20 6,838.20
1.53 0.03017 92,320.20 7450.20
154 0,03037 92,932.20 8,062.20
1.55 0.03066 93,513.60 8,643 60 2,998.80
1.56 0.03076 94,125.60 9,255.60
157` 0.03095 94.737.60 9,867.60
1.58' 0.03116 95,349.60 10,479.60
FY 15 VALUE FY 15 RATE TAX FY 16 VALUE SHIFT RATE TAX INCREASE
4:504 000 0.02829" 127,305.00 4,590,000 1.47 0.02899 133,064.10' 5,759.10
1.48' 0.02918 133,936.20`. 6,631.20
1.49 0.02938 134,854.20' 7,549.20
1.50` 0.02958 135,772.20 8,467 20
1.51 0.02978 136,690.20 9,38520
152 0.02997 137,662.30 10,257.30
1.53 0.03017 138,480.30` 11,175.30
1.54> 0.03037 139,398.30' 12,093.30
1.56 0.03056 140270.40' 12,965.40 4,48$.20
156' 0.03076; 141,188.40 13,883.40
157' 0.03096 142,106.40 14,801.40
1.58 0.03116 143,024.40` 15,719.40
FY 16 VALUE FY 15 RATE TAX FY 16 VALUE SHIFT RATE IM INCREASE
6,000,000 0.02829 169,740.00 6,120,000 1.47' 0.02899 177,418 80 7,678 80
1`.48 0.02918 178,581.60' 8,841.60
1.49 0.02938> 179,805.60 10,065.60
1..50 0.02958 181029.60 11.289.60
151 0.02978 182253,60 12,51360
152 0.02997 183,416.40 13,676.40
153' 0.03017 164,640.40 14,900.40
154. 0.03037` 185.864.40` 16,124.40
1.55 0.03056 187,027.20 17,287.20 5,997.80
156 0.03076 188,251.20 18,511.20
157 0.03096< 189.475.20 19,735.20
1.58 0.03116` 190,699.20 20,959.20
FA36;
aAGAWAM CITY COUNCIL
rN STkEET
l:
LEGAL NOTICE LEGAL NOTICE
PUBLIC HEARING
AGAWAM CITY COUNCIL,
PRESIDENT
Christopher C. Johnson
The Agawam City Council will conduct a public hearing on Monday,
VICE PRESIDENT December 7, 2015, at 7c00pm at the Roberta G. Doering School; +68'
DennisJ Perry Main Street, Agawam, MA to consider the adoption of a Residential
COUNTax Factor pursuant to Massachusetts General Laws, Chapter 40,
George
Bitzx Section 6 as submitted to the City Council by the Mayor on
G'eaa���e, ztzas
Cecilia P. Calabrese November 12, 201 .
Paul C. Cavallo
James R Clchetfi The Resolution ('TE-201 -48) is available for public inspection at the
Gina M Letellier City Clerk's Office, 36 Main Street, Agawam, MA between the hours
Joseph 11 ineo of 8:30arn to 4:30pm, Monday through Friday. It is also available at
Donald 1 Rossi lt
Robert. , Rossi the Agawam Public Library, 750 Cooper Street, Agawam, A and the
R
Anthony R,Supiti Agawam Senior Center, 954 Main Street,Agawam, MA.
ADMINISTRATIVE BY ORDER OF:
ASSISTANT
Barbara A, Rare
{Christopher C. Johnson
President of the City Council
TO BE ADVERTISED ON 11/19/1
Q
TELEPHONE
(413) 726- 716'
FAX
(413) 7 6-9777
EMAIL
bbard@agmvam.ma.us
TR-2015-48
A RESOLUTION ADOPTING A RESIDENTIAL FACTOR OF 0.827243 PURSUANT TO
SAS SETTS GENERAL LAWS, CHAPTER 40,SECTION 56
Sponsored by: Mayor Richard A. Cohen
WHEREAS, beginning in Fiscal Year 1989 the Agawam City Council began adopting
residential factors of less than one (1) pursuant to Massachusetts General Laws, Chapter 40,
Section 56; and
WHEREAS, it is in the best interest of the residential taxpayers of Agawam to adopt a
residential factor of less than one(1);and
WHEREAS, it is in the best interests of the Town of Agawam to adopt a residential
factor of 0.827243;and
WHEREAS,this factor represents a shift of 1.50.
NOW THEREFORE, T14E AGAWAM CITY COUNCIL hereby resolves after
conducting a public hearing to adopt a residential factor of 0.827243 pursuant to Massachusetts
General Laws, Chapter 40, Section 56; and
DATED THIS-OF .2015.
PER ORDER OF THE AGAWAM CITY COUNCIL
Christopher C. Johnson,President
AP ROVED AS FORMANTI)LEGALITY
1 41% A
Viiieent dioscii,Solicitor
Town of Agawam
illp
Assessor's Office
36 Main St,Agawam,Massachusetts 01001-1837
Tel. 413-786-0400 X 8704 Fax 413-726-2828
Email: assessor@agawam.ma.us -
;November 20,2015
Dear Council Members:
At the proposed shift of 1.50, the Residential tax rate would be$16.31/thousand and the
Business (CIF)rate would be$29.58/thousand. The resulting Tax Factor would be
.827243`
In order to provide more detail to the Averaee Comparison Spreadsheet contained in
the classification booklet, I have provided the following information for your review.:
Single-Family Single-Farnfly Residential
7,719 Total Parcels
• There are 4,571 properties at or below the average tax increase of$173.00 This
annual tax increase equates to approximately $43.00 per quarter.
• There are 1,290 properties that will have an annual tax increase between$181.00
and$200.00'
• There are 1,450 properties that will have an annual tax increase between $201.00`
and $300.00
• There are 408 properties with an annual tax increase of more than $300.00
Condominiums
1,609 Total Parcels
• Of 1,609 properties, there were 126 that experienced an annual tax decrease,
1,388 properties that will have an annual tax increase of less than $100.00 and 95
properties that will have an annual tax increase of greater than$100.00`
P
Y'
Commercial and industrial
Besides Berkshire Power and the main site for Six Flags New England, which were not
part of this analysis,there are 472 commercial and industrial parcels in the Town of
Agawam.
317 properties under 1500.000 in assessed value
The average assessed value for these properties is$219,200,
Property types include some small vacant parcels,small Mom and Pop businesses and
also some medium-sized commercial and industrial buildings. The average increase for
the entire group of 317 properties would be $428.
155 properties over$500,000 in assessed value
The average assessed value for these properties is 1,523,100.
Property types include some medium-sized commercial and industrial buildings at the
low end and also larger concerns such as nursing homes,shopping centers and large
industrial'buildings located in the industrial park. The average increase for the entire
group of 155 properties would be S2,779.
In closing, Agawam has been fortunate over the past several years to have relatively low
annual tax increases in comparison to surrounding communities. These lower tax
increases were due primarily to the significant increase in the tax base due to new growth;
provided by the WMECO(Eversource)Greater Springfield Reliability Project during that
time period. This project has been completed and the growth from that source has
stopped. There was also a significant decrease in the value of Berkshire Power since the
last update in FY 2013 that contributed to a decrease in the industrial tax base.
I hope that this additional statistical information is of assistance to you in setting Tax;
Classification Factor.
Sincerel
f�l i a dini
Ass or
Town of Agawam