City Council - Finance Committee

CITY OF EASTHAMPTON OFFICE OF THE CITY COUNCIL Easthampton Municipal Building 50 Payson Ave., Ste. 100 Easthampton, Massachusetts 01027-2260 Telephone #: (413) 529-1460 06/24/2020 MINUTES FINANCE Meeting 06/24/2020 Attendees: FINANCE Committee Members*: Councilor Dan Rist, Chair Councilor Peg Conniff Councilor Bill Lynch, Clerk Other Attendees: JP Kwiecinski, Councilor Jen Gallant, City Treasurer Meeting called to order at 5:00pm. The meeting was videotaped. No minutes were available. OLD BUSINESS: 1. Proposal to accept MGL Chapter 44B Section 3(e)(1) - CPA exemption - Reviewed the ballot question for CPA exemption - Councilor Kwiecinski showed changes to the document as a result of typos. (See attached) Motion that Finance Committee make a recommendation to the full council to approve the CPA exemption for low income and low and moderate income seniors. Motion: Councilor Conniff, Seconded by Councilor Lynch. Passed 3-0  CITY OF EASTHAMPTON OFFICE OF THE CITY COUNCIL Easthampton Municipal Building 50 Payson Ave., Ste. 100 Easthampton, Massachusetts 01027-2260 June 24, Telephone #: (413) 529-1460 2020 James “JP” Kwiecinski Councilor, Precinct 1 413-575-6009 JKwiecinski@easthamptonmagov CPA EXEMPTION FOR LOW INCOME AND LOW AND MODERATE INCOME SENIORS MOTION: I move that the city vote to ACCEPT the exemp4on from property tax surcharge imposed under Sec4on 3(e)(1) of Chapter 44B of the General Laws, the “Community Preserva4on Act,” (“Act”) for property owned and occupied as a domicile by a person who would qualify for low income housing or low or moder- ate income senior housing in the community as defined in the Act, star4ng with taxes assessed for the fiscal year beginning on July 1, 2021. If approved, the ac- 4ons of the body shall be submiRed for acceptance to the voters of a city or town at the next regular municipal or state elec4on. The city or town clerk or the state secretary shall place it on the ballot in the form of the following ques4on: BALLOT QUESTION: To see if the city will vote to ACCPET the exemp4on from the property tax surcharge imposed under sec4on 3(e)(1) of Chapter 44B of the Gen- eral Laws, the Community Preserva4on Act (“CPA”), for property owned and oc- cupied as a domicile by a person who would qualify for low income housing or low or moderate income senior housing in the community as defined in the CPA, start- ing with taxes assessed for the fiscal year beginning on July 1, 2021. FAIR AND CONCISE SUMMARY: The City of Easthampton accepted Sections 3 to 7 of Chapter 44B of the General Laws of Massachusetts , also known as the Com- munity Preservation Act,” (“CPA”) and established a “Community Preservation Fund” with a dedicated funding source. Fund monies may be spent to (1) acquire, create and preserve open space, which includes land for park and recreational uses and the protection of public drinking water well fields, aquifers and recharge areas, wetlands, farm land, forests, marshes, beaches, scenic areas, wildlife preserves and other conservation areas, (2) rehabilitate and restore land for recreational use, (3) acquire, preserve, rehabilitate and restore historic buildings and resources, (4) acquire, create, preserve and support affordable housing and, (5) rehabilitate and restore open space and afford- able housing that was acquired or created with community preservation funds. Funding for the Community Preservation Fund is derived from a three percent (3%) surcharge on the annual property tax assessed on real property. (“Surcharge”) Currently the City exempts the real property tax assessed on first $100,000 of the value of each parcel of residential real property as defined for property tax classification purposes from the Surcharge. If accepted this amendment would allow additional exemptions from the Surcharge for: (1) property owned and occupied as a domicile of a person who qualifies for low income housing, or low or moderate income senior housing, as defined in the CPA; If accepted this amendment will take effect starting in fiscal year 2022, which be- gins on July 1, 2021. The Surcharge will continue to be calculated by multiplying the real property tax on the parcel by the adopted Surcharge percentage. A taxpayer receiving any other exemption or abatement of tax on real property con- tinues to receive a pro rata reduction in Surcharge as detailed in the CPA. A Yes Vote will allow low income individuals, or low or moderate income seniors to seek an exemp4on from the Surcharge on his or her real property tax bill. A No Vote will con4nue the Surcharge on the real property tax bill of certain low income individuals, or low or moderate income seniors. If a majority of the voters vo4ng on said ques4on vote in the affirma4ve, then ex- emp4on shall take effect in the City, but not otherwise. 5:08 pm - Motion to adjourn by Councilor Conniff