TR-2016-63 TAX FACTOR -(�"ao �`�3'—road/
— - — —
TR-2016-63
A RESOLUTION ADOPTING A RESIDENTIAL FACTOR OF 0.812561 PURSUANT TO
MASSACHUSETTS GENERAL LAWS,CHAPTER 40,SECTION 5
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 0.812561; and
WHEREAS,this factor represents a shift of 1.55.
NOW THEREFORE, THE AGAWAM CITY COUNCIL 'hereby resolves after
conducting a public hearing to adapt a residential factor of 0.812561 pursuant to Massachusetts
General Laws, Chapter 40, Section 56;and
DATED THIS OF ,,�i _(p� ,2016.
PER ORDER OF THE AGAWAM CITY COUNCIL
�1 /)z�&e D4 S+r .
JAWS P. CICHETTI,President
APPROVED AS TO FORM AND LEGALITY OYi
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CC - SS
PATRICK M. TONEY,Solicitor , ] z
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CC - a.,4AIW. --ky
MAYORAL ACTION
Rec6ved this day of �A IXAIb�r,2016 from Council Clerk.
Signed by Council President this day of &�ZA—Iklvr
.'2016.
AZMOVAL OF LEgAILATIO
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawp arter,as
ded I IkMerey arve the passage of the above legislation on this of
2016.
Richard A.Cohen,Mayor
DISAPMO P�k L _L L_EGISL&U ONW
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter,as
amended, I hereby veto the passage of the above legislation on this day of
2016 for the following reason(s):
Richard A. Cohen,Mayor
RE IM OF LE- TO COOC L QJER
Returned to Council Clerk this
/Dday of vt 16.
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MASS'!ACHUSE17S DEPARTMENT OF REVENUE j
-I p"�. 04-63 Agawam
DIVISION OF LOCAL SERVICES City I Town I Dstrict
BUREAU OF ACCOUNTS
CLASSIFICATION TAX ALLOCATION
Fiscal Year 2017.
1,The selected Residential Factor is 9.812561
It`you desire each class to maintain 100%of its full values tax share,Indicate a residential factor of"11"and go to question 3.
2.In computing your residential factor,was a discount granted to Open Space?
Yes— No A
If Yes,what is the percentage discount?2
3.Was a residential exemption adopted?
Yes_ No A
If Yes,please complete the following:
Class I Total,&SOS69d Valj&, = 2115180= X
Class I Total Parcel Count* 0 Selected Res-Exemption% Residential Exemption
Include all parcelsvorlih a Mixed-Use Residential designation
Applicable number of parcels to receive exemption Q
Net value to be exempted.Q
4.Was a small commercial exemption adopted?
Yes_ No 2j
%Selected 9
If Yes,piease complete the following:
No.of parcels eligible
Total value of parcels
Total value to be exempted Q
5.The following information was derived from the LA-7.Please indicate in column D percentages(accurate to 4 digits to the right of the decimal point)which result
from your selected residential factor.(if a residential factor of"I"has been selected,you may leave Column 0 blank.)
A IS C 1)
Class Certified Full and Percentage Full Value Now Percentage
Fair Cash Value Shares of Total Tax Levy Shares of Total Tax
Assessments Levy
Residential 2,135,580,230.00 74.5824% 60.6027%
Open Space 0.00 0.0000% 0.0000%
Commercial 255,698,39100 8.9299% 118414%
Industrial 190,806,23&00 6Z637% 10.3287%
Personal Property 281,298,670.00 9.8240% 15.22729'z
TOTALS 2,863,383,523.00 100.000016A 100.0000%
NOTE:The information is preliminary and is Subject to change.
Printed on 111912016 0�13.16 AM page I of 2
MASSACHUSETTS DEPARTMENT OF REVENUE Agawam
"-DIVISION,OF LOCAL SERVICES city 1 Town 1 District
BUREAU OF ACCOUNTS
CLASSIFICATION TAX ALLOCATION
Fiscal Year 2017
6.Notice was given to taxpayers on 10/20/2016(date),7:00 PM(time),at Roberta Doering Middle School(place),by Newspaper Notice(describe type of notice)
that a public hearing on the issue of adopting the tax levy percentages for fiscal year 2017 would be held on 11/09/2016(meeting date)'.
7.We hereby attest that on 11/09/2016(date),7:00 PM(time),at Roberta Doering Middle School'(place)in a public hearing;an the issue of adopting the
percentages for fiscal year 2017,that the Board of Assessors presented information and data relevant to making such determination and the fiscal effect of the
available alternatives,and that the percentages set forth above were duly adopted in public session on W0912016f(date).;
8.The LA-5 excess capacity for the current fiscal year is calculated as 10,730,840,97
The LA-5 excess capacity for the prior fiscal year is calculated as 10,553,513.76
For cities;:City Councilors.Aldermen, Mayor
For towns:Board of Selectmen
For districts:Prudential Committee or Commissioners
Signatures
No signatures to display.
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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@agawam.ma.us'
October 13, 2016
Dear Council Members:
Since the Massachusetts Department of Revenue has less;staff due the implementation of
an early retirement program,I have made it a point to get values certified earlier this year
than in previous years. In this way,we will avoid a potential logjam of tax rate
certifications that could happen in late November or early December.
Major's Pronosed Shift
At the proposed shift of 1.55,the Residential tax rate would be$16.31/thousand and the
Business (CIP) rate would be$31.12/thousand. The resulting Tax Factor would be
.812561
In order to provide more detail to the Average Comparison Spreadsheet contained in
the classification'booklet, I have provided the following information for your review.
Single-Fatnilj Residential
7,722 Total Parcels
• There are 4,986 properties at or below the average tax increase of$121.00. This
average annual tax increase equates to approximately$30.00 per quarter, and;
represents about 64.4%of the single-family tax base.
• There are 1,693'properties that will have an annual tax increase between$121.00
and$200.00. This number of properties represents about 21.9%of the single-
family tax base.
• There are 707 properties that will have an annual tax increase between $201,.00'
and $300.00. This number of properties represents about 9.2%of the single-
family tax base.
• There are 408 properties with an annual tax increase of more than $300.00.'This
number of properties represents about 4.5%of the single-family tax base.
Condominiums
1,617 Total Parcels
• Of 1,617 properties, 457 would experienced an annual tax decrease, 1,023'
properties would have an annual tax increase of less than$10000 and 137
properties would have an annual tax increase of greater than $100.00
A market revaluation was done for the above residential property types. Calendar year
2015 sales were analyzed and adjustments made to the tax base to account for shifts in
market demand. This interim adjustment is done every year,with the primary focus
being on residential property types.
Commercial and industrial
Besides Berkshire Power and the main site for Six Flags New England, which were not
part of this analysis,there are 477 commercial and industrial parcels in the Town of
Agawam.
Unlike the residential market,;which includes condominiums,no market revaluation of
the commercial industrial tax base was conducted for Fiscal Year 2017. The
commercial/industrial market isn't as sensitive as the residential market to yearly changes
in market conditions. Since there was no market adjustment to the base, I utilized the
same average values for each category in Fiscal Year 2017 that t utilized in Fiscal Year
2016
Of the 477 parcels used in the analysis,357 were unchanged, which equates to
approximately 75%of the total. Of the 120 parcels that did change, 40 went down in
value and 80 went up in value. Changes to these parcels were either due to building
permits for added construction or demolition,or cyclical re-inspections as part of the
Department of Revenue mandated inspection program.
I believe that this methodology best expresses the effect the proposed tax rate will have
on the bulk of the commercial and industrial properties and that it would be confusing to
try to factor in those properties that did change due to permits or inspections.
322 properties under$500,000 in assessed value:
The same average assessed value of$219,200 that was used in FY 2016 was utilized in
FY 2017 For this average value the tax increase would be $250 annually.
Property types include some small vacant parcels, small Mom and Fop businesses and
also some medium-sized commercial and industrial buildings,
155 properties over$500 000 in assessed value
The same average assessed value of$1,523,100 that was used in FY 2016 was utilized in
FY'2017 For this average value the tax increase would"be$1,736 annually.
Property types include some medium-sized commercial and industrial buildings at the
low end and also larger concems such as nursing homes, shopping centers and large
industrial buildings located in the industrial park.
I hope that this additional statistical information is of assistance to you in setting Tax
Classification Factor.
In closing, I would like to give special thanks to Charlotte Grondin for being essential in
putting the Tax Classification Booklet together.
Sincerely, .
Kev' aldini
Assessor
Town of Agawam
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Land Square Miles 23.241
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Unemployment Rate 2016 3.91
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PROPOSED
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CLASSIFICNHON
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COMMBRCIAL 256,698,393
PERSONAL 281,298,670
TOTAL 2,86 , t 2
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SINGLEA 1, 4(3' F
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TAX BILL
FAMILYASSESSED AVERAGE TAX
MUNICIPALITY VALUE PARCELS VALUE RATE TAX ,BILL
AGAWAM 1,,63,%64,900 7,719 212A15 1618 3,4317
HOLYOKE 958M,17,303 5,333 179,795 19,12
WEST SPRINGFIELD 1,484',087,200 6,418,3 24920 16,99 489
WESTFIELD 21 $410
SOUTHWICK 7�186,530 3,051 24T,416 17,10 4,231"i'l
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3,61,2 21 21x26 21,1 ,�� r
O. GM � DOO Ail A �gar"6n'a 5, l 3 327,W � i33 71,977
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TAX RATES SURROUNDING TOWNS
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DEF-1ARTMENT OF REVENUE
VISION' cif" LO'Aw,AL SERVICES
CALCULATION OF THE LOWEST POSSIBLE RESIDENTIAL FACTOR
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)IMION OF LOCAL SERVICES
BUREAkI OF L0(,AL ASSESSMENT
MINIMUM RESIDENTIAL FACT COMPUTATION
Fiscal Year 2017
A a
CY ass, FL411 and Fair Cash Percentage Share
valuation
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'a 255,6908,393 i f het i, '2 5 41 7 6`.'t.
2,863,383,523
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