WESTFIELD – The City Council voted last night to continue a public hearing on the shift factor between residential and commercial tax rates to its Nov. 21 session.
The council took that action because there were no speakers in the Council Chambers to argue to move the shift to benefit residents or businesses on the shift.
Typically the Greater Westfield Chamber of Commerce and several business owners attend the hearing requesting that the council move the shift factor to lower the commercial tax rates, which results in a higher residential tax rate.
And typically several residents petition the council to adopt a shift factor to lower residential rates, which results in a higher commercial rate.
Currently the residential tax rate is $16.72 per $1,000 of property value and the commercial, industrial and personal property rate is $31.09 per $1,000 of property value.
City Assessor Robin Whitney and City Collector Michael McMahon presented details on the shift, offering numbers on options under consideration for a tax increase of 1 1/2, 2 and 2 1/2 percent.
Whitney said the city has yet to determine which tax rate will be considered because the state Department of Revenue (DOR) has yet to certify the city’s free cash, projected at about $3 million. Free cash is money remaining in the previous fiscal year account that is not incumbered and is not available for the city’s use until the DOR has certified that money is unencumbered under the previous fiscal year.
Free cash or stabilization funds have been used in recent years to lower the amount of revenue raised through the tax levy. Last year the tax levy was set at 1 1/2 percent instead of the maximum 2 1/2 percent allowed under state law.
“We are in a time crunch,” McMahon said. “We’re going to be moving back into City Hall in December and all of the technology (used to send out tax bills) will be shut down. And we still don’t know if the free cash will be certified by Nov. 21.”
Ward 4 Councilor Mary O’Connell questioned if the hearing could be continued to the council’s Nov. 21 session.
“The Chamber of Commerce folks are not here. They’re always here,” O’Connell said. “Why not keep the hearing open to our next meeting?”
Ward 1 Councilor Christopher Keefe asked McMahon for a “drop dead date” when the city has to mail tax bills. Many tax payers prefer an opportunity to pay their tax bills in the current calendar year so it can be applied to their federal tax returns.
McMahon said that the goal is to have the tax bills prepared for mailing by Dec. 5.
Council President Brian Sullivan suggested that the council keep the hearing open, but also send the shift issue to the Finance Committee which usually recommends a shift factor as the starting point of the council floor debate.
Ward 5 Councilor Richard E. Onofrey Jr., Finance Chairman, said the committee will meet with the city’s financial officers on Nov. 21, prior to the regular council session, to review the numbers presented last night.
Onofrey then made a formal motion to both send the issue to committee and keep the hearing open.
At-large Councilor Brent B. Bean II asked “are we holding this up because the Chamber (of Commerce) and home owners are not here tonight? OK, that fine as long as that’s the reason.”
Onofrey’s motion was approved by a 13-0 vote.
